Insider Trading

In Duel With Valeant, Ackman; Is Judge David Carter The "New Jed Rakoff?"

In his rejection of an SEC settlement with Citigroup, Judge Jed Rakoff vowed to "see that the truth emerges." After presiding over the most high-profile insider trading cases since the crisis -- including Raj Rajaratnam and Rajit Gupta -- Judge Rakoff has come to symbolize the mantra that "nobody is above the law." In determining that Valeant and hedge fund manager Bill Ackman must face insider trading charges for their failed takeover of Allergan, U.S. District Judge David Carter may be the "new Rakoff."

Frontrunning: November 12

  • Stock futures little changed as Yellen comments awaited (Reuters)
  • Draghi stimulus hint underpins stocks, knocks euro (Reuters)
  • Black Friday's Losing Its Mojo and Retailers Might Be Relieved (BBG)
  • Macy’s Fights Downward Spiral With Bet on Off-Price Backstage Stores (WSJ)
  • Greece Comes to a Standstill as Unions Turn Against Tsipras (BBG)
  • Euro zone production falls more than expected in September (Reuters)
  • Valeant played a key role in building, operating Philidor RX (Reuters)

Global Stocks Fall For 5th Day On Disturbing Chinese Inflation Data; Renewed Rate Hike Fears; Copper At 6 Year Low

The ongoing failure of China to achieve any stabilization in its economy, after already cutting interest rates six times in the past year, and the prospect of a U.S. interest rate hike in December, had made markets increasingly jittery and worried which is not only why the S&P 500 Index had its biggest drop in a month, but thanks to the soaring dollar emerging market stocks are falling for a fourth day - led by China - bringing their decline in that period to almost 4 percent, and the global stock index down for a 5th consecutive day.

Widening Probe Snags Most Senior Chinese Banker Yet, Sends Stocks Lower; RBA Sparks Commodity Slide, FX Turbulence

It's a busy night in AsiaPac. The ubiquitous Japanese stock buying-panic at the open quickly faded. China weakened the Yuan fix quite notably and injected another CNY10bn of liquidity but news of the arrest of the President of China's 3rd largest bank and a graft investigation into Dongfeng Motor's general manager sparked greater uncertainty and Chinese stocks extended the losses from yesterday. Commodities had started to creep lower, with Dalian Iron Ore pushing 2-month lows with its biggest daily drop in 3 months, were extended when the Aussie central bank kept rates steady (as expected) but sparked turmoil in FX markets with forward guidance of th epotential for more easing.

Futures Rebound From Overnight Lows On Stronger European Manufacturing Surveys, Dovish ECB

On a day full of Manufacturing/PMI surveys from around the globe, the numbers everyone was looking at came out of China, where first the official, NBS PMI data disappointed after missing Mfg PMI expectations (3rd month in a row of contraction), with the Non-mfg PMI sliding to the lowest since 2008, however this was promptly "corrected" after the other Caixin manufacturing PMI soared to 48.3 in October from 47.2 in September - the biggest monthly rise of 2015 - and far better than the median estimate of 47.6, once again leading to the usual questions about China's Schrodinger economy, first defined here, which is continues to expand and contract at the same time.

How To Profit From Oprah Winfrey Gaining Weight

Far more importantly for arbitrageurs, there is now a direct way to profit from Oprah's weight gain, because if WTW surges simply on Oprah "losing" weight, then logically it has become the short of the century for every incremental pound in weight that Oprah gains.

Frontrunning: October 23

  • China's central bank cuts rates for sixth time since November (Reuters)
  • Global stocks hit two-month high on dovish Draghi message (Reuters)
  • $6.5 Billion in Energy Writedowns and We're Just Getting Started (BBG)
  • Alphabet, formerly Google, sets share buyback, shares jump (Reuters)
  • Hurricane Patricia, Stronger Than Katrina, Nears Mexico (BBG)
  • TVA Cleared to Start First New U.S. Nuclear Power Plant in Nearly 20 Years (WSJ)

Frontrunning: October 6

  • Asian shares rise on fading Fed rate views (Reuters)
  • U.S. Equity Futures Fall, Risking S&P 500 Rally as Copper Slides (BBG)
  • More biotech pain, this time from the WSJ: For Prescription Drug Makers, Price Increases Drive Revenue (WSJ)
  • VW Will Delay or Cancel Non-Essential Investments Due to Scandal (BBG)
  • Russia Rejects No-Fly Zone Over Syria as Clerics Urge Reprisals (BBG)
  • Historic Pacific trade deal faces skeptics in U.S. Congress (Reuters)
  • German Factory Orders Unexpectedly Fall Amid Economic Risks (BBG)

Frontrunning: September 23

  • Global Stocks Steady Despite China Slowdown (WSJ)
  • European Recovery Saves Markets From China Gloom as Stocks Rally (BBG)
  • Pope starts U.S. trip with tone of conciliation (Reuters)
  • FBI Said to Recover Personal E-Mails From Hillary Clinton Server (BBG)
  • Volkswagen chief faces grilling by board over diesel scandal (Reuters)
  • 'European Detroit' Fear Grips VW Company Town as Scandal Widens (BBG)
  • Berlin finds itself caught up in Volkswagen scandal (FT)

Head Of China's 'Goldman Sachs' Probed For Insider Trading As "Market Purification" Continues

Imagine for a moment the sentiment shock for mainstream Americans if Goldman Sachs' Lloyd Blankfein was probed for insider-trading and publicly scapegoated for causing a nation's equity market (and economy) to collapse. While it may be true, it would never happen in America... But in China, as part of what authorities call "purifying the markets," the president of China’s biggest brokerage has been swept up in a widening campaign to root out financial wrongdoing and assign blame for the nation’s $5 trillion stock rout. As Bloomberg notes, shares are falling further in today's markets as the probe of Citic Securities President Cheng Boming comes after the state-run Xinhua News Agency reported last month that four executives at Citic had admitted to so-called insider trading.