Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.
Today’s Top Stories:
- Debt Ceiling Up Again in Nov: the latest $1.2T debt ceiling increase may not last through the Nov elections, meaning another drawn out battle could occur right around the time Americans are heading to polls (Reuters)
- Bank of America IB Results: BAC IB reported revenue of $1.05 billion, down 33.9% vs. the same quarter last year http://bit.ly/x4gjLq
- Al-Qaida operative killed in drone strike: A senior al-Qaida operations planner was among those killed in a recent drone strike in Pakistan, a U.S. official told CNN http://bit.ly/xlZyhZ
- Homeowner Spending Picking Up: Americans are stepping up spending on home improvements for the first time in years, giving a small lift to the beleaguered construction sector http://on.wsj.com/yIT3QE
- Foreclosure Deal: While the nation’s five biggest mortgage servicers are ready to sign off on a sweeping foreclosure settlement, it’s state and federal officials who are still fine-tuning the deal http://nyp.st/wcYWW7
- Akanthose Buying FCSC: Akanthos Capital Management disclosed that it currently owns 2.5% of the outstanding common stock of Fibrocell Science (OTCBB:FCSC) http://bit.ly/yEXR7P
- BNP selling Assets: BNP Paribas has been selling assets in order to be compliant with Basel 3 financial regulations by Jan. 1, Paribas North America CEO Everett Schenk told CNBC Thursday http://bit.ly/x8Ufbz
- Morgan Stanley IB Results: MS reported 4Q investment banking revenue of $883mn, down -41.7% vs. the same period a year agohttp://bit.ly/xySkJ8
- Blackstone Hiding Fortune: Blackstone is converting part of its 14.1% stake in the company to nonvoting preferred stock to avoid having to make certain disclosures http://on.wsj.com/yBtXxE
- MS Reducing Banker Pay: reducing pay for senior investment bankersand traders by an average of 20 percent to 30 percent for 2011 (BBG)
- Hedge Funds Seeing Withdraws: the industry had net withdrawals of ~$127M in the final three months of ’11. This was the first net contraction since Q2:09 (WSJ)
- Worst Earnings: “our strategist yesterday noted that the ratio of negative pre-announcements to positive is at its worst level since 2009” (Barclays)
- GOOG Results: “GOOG reported 4Q11 results that were short of our expectations, driven by revenue growth of 25%, 5% under our estimate. Margins, however, beat by ~260 bps, resulting in in-line non-GAAP EBIT of $4b. An impairment charge for CLWR, hedging expenses, and higher tax rate accounted for the variance in non-GAAP EPS of $9.50 vs our CS est of $10.16” (Credit Suisse)
- Weekly M&A Trends: M&A volumes increased 44% while equity and debt underwriting rose substantially http://bit.ly/yZJ4HN
Disclosure: I do not have a position in any stocks mentioned in this article, do not have a plan to initiate a position within the next 72 hours.
Disclaimer: The information, opinions, material, and any other content provided in this article is for informational purposes only and is not to be used or considered an offer or solicitation to buy or sell securities, investment products, financial instruments, or to participate in any particular investment strategy. The information, opinions, material, and any other content provided in this article does not constitute as a recommendation or as advice to buy or sell securities, investment products, financial instruments, or to participate in any particular investment strategy.
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