goldman sachs

goldman sachs

Frontrunning: May 16

  • As scandals mount, White House springs into damage control (Reuters)
  • Glencore Xstrata chairman ousted in surprise coup (Reuters), former BP CEO Tony Hayward appointed as interim chairman (WSJ)
  • JPMorgan Chase asks Bloomberg for data records (Telegraph)
  • Platts Retains Energy Trader Confidence Amid Price-Fix Probe (BBG)
  • Syrian Internet service comes back online (PCWorld)
  • Japan Q1 growth hits 3.5% on Abe impact although fall in business investment clouds optimism for recovery (FT)
  • Soros Joins Gold-Stake Cuts Before Bear Market Drop (BBG)
  • Factory Ceiling Collapses in Cambodia (WSJ)
  • Sony’s $100 Billion Lost Decade Supports Loeb Breakup (BBG)
  • Snags await favourite for Federal Reserve job (FT)
  • James Bond’s Pinewood Turned Down on $300 Million Plan (BBG)

Tesla Announces Offering Of Common Stock, Convertible Notes

Several moments ago, TSLA (hardly) surprised the world when it filed an open-ended S-3 (Shelf) statement, as many had expected it was only a matter of time before the company used the recent surge in its stock price to sell shares. Then, a few moments later, TSLA once again (hardly) surprised the world when it announced a joint $450 million convertible bond and 2.7 million share common stock offering. And because a dilution is not a dilution if the founder is participating in the common offering (buying his own equity at an unprecedented price to "anchor" it as a benchmark- sure why not - after all he is making much on all the other equity he has in the firm that he is not buying, as a result), the stock is trading up after hours.

Frontrunning: May 15

  • Once a beacon, Obama under fire over civil liberties (Reuters)
  • Eurozone in longest recession since birth of currency bloc (FT)
  • EU Oil Manipulation Probe Shines Light on Platts Pricing Window (BBG)
  • BMWs Cheaper Than Hyundais in Korea as Tariffs Crumble (BBG)
  • Stock Boom Isn't a Bubble, Says BOJ's Kuroda (WSJ)
  • Struggling France strives to shake off economic gloom (FT)
  • JPMorgan investors take heat off Dimon (FT)
  • Private-Equity Firms Build Instead of Buy (WSJ)
  • Bloomberg Saga Highlights Clash Between Two Worlds (WSJ)
  • Bank documents portray Cyprus as Russia's favorite haven (Reuters)
  • HSBC Signals 14,000 Jobs Cuts in $3 Billion Savings Plan (BBG)
  • Argentines Hold More Than $50 Billion in U.S. Currency (BBG)

Frontrunning: May 14

  • Controversies give Obama new governing headaches (Reuters)
  • About that Capex... BHP to Rein In Investment, Chief Says (WSJ), considers returning cash to shareholders (FT)
  • Bloomberg users’ messages leaked online (FT)
  • Japanese mayor sparks China outrage with sex-slave remarks (Reuters)
  • Economists Cut China Forecasts (WSJ)
  • U.S. oil boom leaves OPEC sidelined from demand growth (Reuters)
  • U.S. banks push back on change in loan loss accounting (Reuters)
  • Fed’s Plosser Says Slowing Inflation No Concern for Policy (BBG)
  • Watchdog probes 1m US swap contracts (FT)
  • Used Gold Supply Heads for ’08 Low as Sellers Balk (BBG)
  • Ex-BlackRock Manager Said to Be Arrested in U.K. Probe (BBG)

Goldman Pours Cold Water On The Inflation Expectations In Japan

Inflation expectations (CPI this evening) have risen on expectations surrounding Prime Minister Abe’s policies and bold BOJ monetary easing under Kuroda. In developed economies, inflation expectations are often measured using the breakeven inflation rate (BEI) embodied in inflation-indexed government bonds. And sure enough much has been made of the rise in so-called JGBi's (despite their small notional outstanding and limited liquidity) as indicative that expectations are increasingly creating a virtuous cycle for Japan (encouraging domestic consumers to spend not save). However, while this all sounds jolly good in the headlines, as Goldman Sachs notes, in fact the JGBi market (when adjusted for a planned consumption tax hike in 2014) implies a considerably lower expectation of inflation (around 1%) to 2015 (the end of Abe's predicted 2Y plan). Oh well, must need moar money...

Bloomberg Responds To Surveillance-Gate

In the aftermath of the tempest in a teapot scandal surrounding the Bloomberg surveillance of its clients (maybe one should also inquire just what data FaceBook investor Goldman Sachs, not to mention various other data vendors, has on all FaceBook users just to be fair; or whether Goldman feeds its prop desk with REDI trading data ahead of "best-practices" execution; of whether Blue Horseshoe's contact at 555-7617 leaks any material source info to their best connections before an article gets published), which hit a crescendo over the weekend (and certainly brings a new meaning to the Bloomberg radio show "Surveillance"), the firm owned by one of the world's wealthiest men offered its explanation. Here is the full response by Bloomberg's editor-in-chief Matt Winkler.

IRS Conservative Witchhunt Started In 2011 With High-Level Officials Involved

The IRS conservative targeting scandal is going from bad to worse. Following the Friday revelations that despite all prior appeals to the contrary, the IRS did in fact apply political bias and prejudice in targeting conservative groups who had applied for exempt status (and who knows what other prejudice when targeting non-liberals entities - perhaps it is time to do an analysis of what the ratio of conservatives to liberals audited each year is?), culminating with the farcical response by an IRS official during the Friday press meeting, this may be just the beginning of a major political scandal which in additon to tangential fallout crushing the alleged "impartiality" of the Obama administration, additionally validates many of the heretofore right-wing "conspiracy theories." And as Zero Hedge has shown time and again, it is not a conspiracy theory if it is a conspiracy fact.

GoldCore's picture

As the global economic slump continues central bankers, such as Mario Draghi, and politicians have vowed “to do whatever it takes” to get economies back on track. Such policies while having near term benefits are considered extremely risky in the longer run by many commentators as they could beckon runaway inflation or stagflation, with ruinous results.

Shinzo Abe unleashed his plan with the blessing of the Bank of Japan to begin aggressive government bond purchases. This has led to a massive growth of 60% on the Nikkei and is deflating the yen and boosting their exports.

Bloomberg Limits Internal Client Data Disclosure After Goldman Complaint

it is no secret that for years, one of the most useful features of the Bloomberg terminal (if only for other users of Bloomberg), has been the ubiquitous red or green user dot, showing if a given user is online (such as NY Fed Analyst/Trader Kevin Henry before Zero Hedge exposure) or gray i.e., invisible, circle such as Kevin Henry after Zero Hedge exposure. Because to some there is nothing more informative than knowing if the object of their stalking ambitions is currently sitting next to a PC. As it turns out, it is not just clients of Bloomberg that found this functionality useful, but Bloomberg journalists too, who until recently at least, it turns out had much more access than just the "dot" including information on when a subscriber had most recently logged onto the service, when they had first become a subscriber and a tally of the types of functions they were accessing through the terminal. That is, at least until Goldman Sachs complained.

Overnight Sentiment: Buy In May, And Continue Buying In May As Global Easing Accelerates

With another listless macro day in the offing, the main event was the previously mentioned Bank of Korea 25 bps rate cut, which coming at a time when everyone else in the world is easing was not too surprising, but was somewhat unexpected in light of persistent inflationary pressures. Either way, the gauntlet at Abenomics has been thrown and any temporary Japanese Yen-driven export gains will likely not persist as it is the quality of products perception (sorry 20th century Toshiba and Sony), that is the primary determinant of end demand, not transitory, FX-driven prices. And now that Korea is set on once again matching Japan in competitiveness, the final piece of the Abenomics unwind puzzle has finally clicked into place.  Elsewhere overnight, China reported consumer price inflation increasing by 2.4%, on expectations of a 2.3% rise, driven by a 4% jump in food costs: hardly the thing of Politburo dreams. Or perhaps the PBOC can just print more pigs, soy and birdflu-free chickens? On the other hand, PPI dropped 2.6% in April, on estimates of a 2.3% decline, as China telegraphs it has the capacity, if needed, to stimulate the economy. This is ironic considering its inflation pressures are externally-driven, and come from the Fed and the BOJ, and soon the BOE and ECB. And thus its economy stagnates while prices are driven higher by hot money flows. What to do?

11 Reasons Why The Federal Reserve Should Be Abolished

If the American people truly understood how the Federal Reserve system works and what it has done to us, they would be screaming for it to be abolished immediately.  It is a system that was designed by international bankers for the benefit of international bankers, and it is systematically impoverishing the American people. The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years. The Fed creates our "booms" and our "busts", and they have done an absolutely miserable job of managing our economy. So why is the Federal Reserve doing it?  Sadly, this is the way it works all over the globe today.  In fact, all 187 nations that belong to the IMF have a central bank.  But the truth is that there are much better alternatives.

Kenya's Njuguna Ndung'u Shows Australia How It's Done, Cuts Rate By 100 Bps Due To "Increase In Economic Confidence"

Following on the widely telegraphed rate cut by the Australian central bank overnight to a record low 2.75%, here comes a truly surprise move out of the Kenya Central Bank, and its Governor Njuguna Ndung'u whose central bank just showed the world how it's really done:

  • KENYA CENTRAL BANK CUTS BENCHMARK RATE TO 8.50% FROM 9.50%
  • KENYA CENTRAL BANK SAYS CONFIDENCE IN ECONOMY HAS INCREASED

As long as the confidence is there... Incidentally, the expectations, by those who have nothing better to do than forecast what the Kenya central bank will do, was for a mere 25 bps cut. We expect the credit carry traders out of Niarobi to scramble for yield in places like Greece, now that their cost of funding has dropped by over 10%. The good news for those doing the inverse trade, and looking to trade Kenyan Eurodollar futures, or the "Kenyo-dollar" as the case may be, is that there still is a long way to go before all time lows rate lows are taken out.

Goldman Caves: "The Unemployment Rate Is An Inappropriate Measure Of The Labor Market"

The second half of 2012 saw a significant shift in US monetary policy from calendar-based guidance to outcome-based guidance and the adoption of a 6.5% unemployment rate as a threshold for 'tapering'. With Friday's better-than-expected payrolls data and another tick lower in the critical-to-liquidity unemployment rate, it seems Goldman Sachs (and others) are waking up to the facts that we have been vociferous about: the shift of jobless individuals from unemployment into inactivity (the participation rate dilemma) is making the unemployment rate a less appropriate measure of broad labor market conditions. This has important implications for Fed policy because it implies that the committee might still be quite far from reaching the jobs side of its mandate even once the unemployment rate is back at 6%. After all, the Federal Reserve Act calls for 'maximum employment', not 'minimum unemployment'

How Al Gore's Net Worth Caught Up With Mitt Romney's

Mitt Romney's net worth of $250 million is well-known by virtually everyone in America: after all, it was the primary campaign offensive used by the Obama team against his presidential challenger in an election run largely down wealth, and social class lines, and whom "Democrats targeted in ads and speeches as being out of touch with most Americans." What many may not know is that staunch democrat Al Gore's own personal wealth, has soared from virtually nothing in 1999 to a staggering $200 million according to an analysis conducted by Bloomberg.