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Fed Chairman Jerome Powell warns business borrowing at ‘historic highs’ shouldn’t be ignored
There’s a “moderate” risk that “near record levels” of business debt will spill over into the broader US economy and spark another financial crisis, Federal Reserve Chairman Jerome Powell said on Monday. Collaterized loan obligations (CLOs) have been a key funding source for riskier business borrowing, Powell said. “Business debt has clearly reached a level... Read More →
‘It’s a cat-and-mouse game’: The head of technology at $60 billion hedge fund Two Sigma explains why cybersecurity is a bigger challenge than AI
Alfred Spector, Two Sigma’s chief technology officer for the past three years, said computer security is a harder problem to solve than artificial intelligence. In an interview with Business Insider, he said that he thinks about the subject constantly, including “nation-state attacks” on US infrastructure. Despite ever present concerns about security, Spector is excited to... Read More →
‘John Wick 3’ dethrones ‘Avengers: Endgame’ at domestic box office after historic run
Lionsgate’s “John Wick: Chapter 3 – Parabellum” had a franchise-best opening weekend with an estimated $57 million to win the domestic weekend box office. It finally knocked off “Avengers: Endgame,” which topped the box office for the last three weeks. However, “Endgame” now has a $771 million domestic total, making it the second-best grosser all-time... Read More →
Breaking up Facebook is just a step on the road to rehab for America’s relationship with big companies
Facebook should be broken up because it’s anti-competitive, and it uses its power to stay that way. It should also be broken up because it’s proof positive of an important idea that America turned away from in the 1970s — the idea that size in and of itself can be corrosive to markets. Since the... Read More →
Luckin Coffee, a massive but unprofitable Chinese Starbucks competitor, soars 47% in its debut
Luckin Coffee opened for trading at $25 a share on Friday after pricing its initial public offering at $17. Shares trade under the ticker LK on the Nasdaq. The two-year-old startup, which in April received a round of funding from BlackRock, is the latest in a long line of money-losing IPOs to hit the US... Read More →
6-year courtships, misplaced briefcases, and ‘damned frustrating’ vacancies: How Evercore assembled a dealmaking A-team and started challenging Goldman Sachs and JPMorgan
Since Ralph Schlosstein joined it almost exactly 10 years ago, the independent investment bank Evercore has produced a nearly 600% total return and grown its advisory revenue to $1.74 billion from $180 million. No publicly traded competitor — bulge bracket or boutique — beats Evercore’s performance over the past decade. Part of the firm’s success... Read More →
Investors are increasingly betting the Fed will drop rates, as the trade war escalates and Trump calls for a cut
While the Federal Reserve paused its three-year hiking campaign this year, officials have fallen short of signalling that lower borrowing costs are coming. But as the trade war between the US and China escalates, market expectations for an interest rate cut have been ticking higher. More than three quarters of investors forecast a rate cut... Read More →
Auto stocks pop on news that Trump may delay tariffs by up to 6 months (F, GM)
The Trump administration plans to delay auto tariffs by up to six months, according to multiple news outlets. The reports sent shares of Ford, General Motors, Tesla, and Daimler higher on Wednesday. Visit Markets Insider for more stories. The Trump administration plans to delay auto tariffs by up to six months, multiple news outlets reported... Read More →
Trump’s trade war is once again wreaking havoc on markets. Here’s what you need to know.
Dear Readers, After a charmed start to 2019, the stock market was shocked out of complacency last week as President Donald Trump reignited trade-war tensions with China. The benchmark S&P 500 suffered through its worst week of the year, tumbling 2.2%, while global equities saw as much as $1.4 trillion erased at one point. In... Read More →
BANK OF AMERICA: Buy these 14 stocks, which will surge even as the US hurtles towards a full-blown trade war with China
China escalated its trade dispute with the US on Monday, announcing retaliatory plans to slap 25% tariffs on US goods worth about $60 billion. Strategists and economists at Bank of America Merrill Lynch laid out their investing advice for the worst-case scenario: a “full-blown” trade war. They advised buying quality companies that do most of... Read More →