While Carl Icahn admits 'modest' defeat on the Dell deal, he remains neck deep in Herbalife, and as we illustrated back in February, and warned earlier in January, it seems someone is betting right alongside him on a massive short-squeeze - a la Volkswagen. It would appear, someone decided that today was the day to buy 1000 lots (100,000 shares) of Jan 2014 $105 calls (implying an expectation of a 65% surge in price from here) and funded that by selling 1000 lots of the Jan 2014 $95 calls. Whether this is a hedge for Ackman (fearing the worst) or someone betting on an 'event' across the one-year anniversary of Ackman's big bet is unclear. One thing is for sure, if this pays off, we will see more tweets from the man himself...
The 77-year old billionaire twitterer extraordinaire, Carl Icahn, shows everyone just how it's done, making a levered profit in the process, but not before he lets a few sharp barbs out to tell everyone just how he feels. To wit: "We jokingly ask, “What’s the difference between Dell and a dictatorship?” The answer: Most functioning dictatorships only need to postpone the vote once to win.... One of the great strengths of our country is that we abide by the rule of law. However, state laws dealing with corporate governance often favor incumbent corporate boards and management and are weak in many areas. While we must abide by these laws, we believe that they can and must be changed. Among many other things, boards should not be able to treat elections as totalitarian dictatorships do; where if they lose, they simply ignore the results.
- Hedge Funds Cut Back on Fees (WSJ) as we predicted would happen in May
- Syria's Assad denies chemical weapons use; U.S. presses case for strike (Reuters)
- Unemployment Falling for Wrong Reason Creates Fed Predicament (BBG)
- U.S. tapped into networks of Google, Petrobras, others (Reuters)
- Chinese Zombies Emerging After Years of Solar Subsidies (BBG)
- Monte Paschi doubles planned capital hike to 2.5 billion euros (Reuters)
- Loan Size to Be Cut for Fannie, Freddie (WSJ)
- Japan Growth Revision Opens Door to Sales Tax Rise (FT)
- Inside the End of the U.S. Bid to Punish Lehman Executives (NYT)
- Financial Crisis: Lessons of the Rescue, A Drama in Five Acts (WSJ)
- Time Warner Joins IBM in Health Shift for Retirees (WSJ)
- Mideast Derails Key Issues in Congress (WSJ)
- UN Insecptors to leave Syria early, by Saturday morning (Reuters)
- Yellen Plays Down Chances of Getting Fed Job (WSJ)
- JPMorgan Bribe Probe Said to Expand in Asia as Spreadsheet Is Found (BBG)
- No Section 8 for you: Wall Street’s Rental Bet Brings Quandary Housing Poor (BBG)
- Euro zone, IMF to press Greece for foreign agency to sell assets (Reuters)
- Brothels in Nevada Suffer as Web Disrupts Oldest Trade (BBG)
- U.S., U.K. Face Delays in Push to Strike Syria (WSJ); U.S., U.K. Pressure for Action on Syria Hits UN Hurdle (BBG)
- Renault Operating Chief Carlos Tavares Steps Down (WSJ)
- Vodafone in talks with Verizon to sell out of U.S. venture (Reuters)
- Dollar Seen Casting Off Euro Shackles as Fed Tapers (BBG)
- Bankers Brace for Fed Wind-Down (WSJ)
- A Veteran Saudi Power Player Works To Build Support to Topple Assad (WSJ)
- Gunmen shoot at weapons experts' vehicle in Damascus: U.N (Reuters) - as long as it's not drones
- ECB Council Members Split in Jackson Hole Over Rate Cuts (BBG)
- Fed Officials Rebuff Coordination Calls as QE Taper Looms (BBG)
- As Egyptians Ignore Curfew, Talk of a U.S.-Brotherhood Conspiracy (NYT)
- Pipeline-Capacity Squeeze Reroutes Crude Oil (WSJ)
- Lawmakers Probe Willful Abuses of Power by NSA Analysts (BBG)
- Indictments Expected in Alleged Trading Code Theft (WSJ)
- India’s ONGC takes Africa gasfield stake (FT)
- Capital Flight Drains Reserves as Rupee, Rupiah Fall (BBG)
- Banks scale back rates business (FT)
The “cloud” in China is corporate nirvana: a high-growth tech sector in a high-growth country. Or was. And it’s showing up in the numbers.
The man who called the turns in RIMM/Blackberry, AAPL, GOOG and NOK answers this question in detail!
There was a time when the shadier online "element" was mostly interested in procuring credit card numbers, usually from Eastern European sources, in order to turn a quick buck. However, over time, interest in credit card fraud declined and according to RSA the going rate for 1000 credit card numbers has now dropped to as little as $6. What has taken the place of monetary online fraud, is artificial "likability" and "popularity." Reuters reports that with the rise of social networking, instead of obtaining credit card numbers, hackers have used their computer skills to create and sell false endorsements - such as "likes" and "followers" - that purport to come from users of Facebook, its photo-sharing app Instagram, Twitter, Google's YouTube, LinkedIn and other popular websites. This can be seen in the costs charged by "service" providers: 1,000 Instagram "followers" can be bought for $15, while 1,000 Instagram "likes" cost $30. It is likely that the going rates for fake popularity on other online social networks, FaceBook and Twitter is comparable.
Obama must be fuming like a pile of something in the pristine Oval Office today as he hears of the latest Edward-Snowden revelations.
- Critics Decry Risks Posed by Link Between China's Banks and Bonds (WSJ)
- U.S. retailers say uneven recovery keeps consumers cautious (Reuters) - er, what recovery?
- Easy Credit Dries Up, Choking Growth in China (NYT)
- Fed's Bullard Floats Idea of Small Cuts to Bond Buying (WSJ)
- EU wants one definition of bad loans for bank tests (Reuters) - because in Europe they can't even agree what an NPL is...
- Nagasaki Bomb Maker Offers Lessons for Fukushima Cleanup (BBG)
- With Gmail Overhaul, Not All Mail Is Equal (WSJ)
- Snowden downloaded NSA secrets while working for Dell, sources say (Reuters)
- Apollo co-founder buys into New Jersey Devils (FT)
- Republicans to vote on debate boycott because of Clinton programs (Reuters)
- J.C. Penney Heads for Ninth Quarter of Plunging Sales (BBG)
In a session that has been painfully boring so far (yet which should pick up with CPI, jobless claims, industrial production and the NY Empire Fed on deck, as well as Wal-Mart earnings which will no doubt reflect the continuing disappointing retail plight) perhaps the only notable news was that Japan - the nation that brought you "Fukushima is contained" - was caught in yet another lie. Recall that the upside catalyst (and source of Yen weakness) two days ago was what we classified then as "paradoxical news" that Japan would cut corporate taxes in a move that somehow would offset the upcoming consumption tax hike. Turns out that, as our gut sense indicated, this was merely yet another BS trial balloon out of Japan, which admitted overnight that the entire report was a lie.
- JPMorgan Nears Settlement With SEC on London Whale Loss (BBG)
- Without even a wristslap: Iksil to face no U.S. charges in 'Whale' probe (Reuters)
- China’s Credit Expansion Slows as Li Curbs Shadow Banking (BBG)
- China slowdown shows signs of abating (FT), even as...
- Australia central bank Lowers Growth Outlook as Economy Transitions From Mining (BBG)
- SAC Business Plan Goes to Judge, Plan Would Allow Firm to Maintain Business Operations but Restrict Its Ability to Move Assets (WSJ)
- Another buyer of Herbalife? - Norway’s oil fund plans to turn active (FT)
- Mark Carney plays down scepticism over interest rate policy (FT)
- Orders Evaporate for Celebrity Perfumes (WSJ)
- Fukushima: "300 metric tons of contaminated water were likely leaking into the ocean daily" (WSJ)
- Unexpected strength in China trade data eases some gloom (Reuters) - actually, perfectly expected data fakery
- Pimco, BlackRock Seek to Bar California Mortgage Seizures (BBG)
- How will Amazon's Bezos change The Washington Post? (Reuters)
- Montreal Maine Railway Files for Bankruptcy After Crash (BBG)
- Fed Belongs to Everybody as Public Says It’s Our Money in Crisis (BBG)
- Local Russian TV channel broadcasts rare critical segment about Putin (Reuters)
- Loeb’s Reinsurer With No U.S. Staff Gains From Obama’s Jobs Act (BBG)
- As Berlusconi star fades, daughter Marina tipped as new leader (Reuters)
- Detroit Rattles Muni Market (WSJ)
- Washington Post Company Chairman and CEO Donald Graham talks about the sale, what it means for the future of The Post (WaPo)
- Private-equity firms are adding debt to companies they own to fund payouts to themselves at a record pace (WSJ)
- U.S., U.K. Urge Citizens to Leave Yemen (WSJ)
- India Names Rajan Central Bank Governor as Rupee Plunges (BBG)
- Family Offices Chasing Wealthy’s $46 Trillion in Assets (BBG)
- UK 'bad bank' repays $2.9 billion to taxpayers in first half (Reuters)
- Sony rebuffs Daniel Loeb’s push for entertainment spin-off (FT)
- Public Pensions Up 12% Get Most in 2 Years as Stocks Soar (BBG)
- Hidden Billionaire Found With Food Fortune in California (BBG)
- Fonterra under fire over milk scare; more product recalls (Reuters)
- Crédit Agricole Profit Rises After Greek (WSJ)