Pre Market Morning News: RBS CEO Returning Bonus


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:

  • GS Morning Update: Markets in Asia were mostly lower Monday, with stocks in Hong Kong and China dropping in the first day of trading following the week-long Lunar New Year holiday. Investors are likely disappointed that no further stimulative measures were announced out of China. Stocks in Europe are also opening lower this morning ahead of a summit of European leaders scheduled for this week and amidst a lackluster earnings period (GS)
  • Romney Frontrunner for FL: Romney has been climbing meaningfully in the FL polls and now is the favorite to win Tues by double digits (NYT)
  • Kingdon Adds KV: Mark Kingdon’s Kingdon Capital Management disclosed a 7.05% state in the total outstanding common stock of K-V Pharmaceutical Company (NYSE: KV.A/KV.B)
  • MF Global: Nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that much of it might never be recovered, according to people familiar with the investigation
  • Housing Rent vs. Own: This is a really interesting chart put out by Barclays REIT team.  Basically it shows the tug of war between renting vs. buying in the U.S.
  • US Equity Valuations: valuations for US stocks have been stuck below the 5-decade average for the longest period since Nixon’s presidency, a sign investors don’t trust the corporate earnings outlook (BBG)
  • RBS CEO Bonus: Royal Bank of Scotland Group PLC said its chief executive will waive his bonus for 2011, after a particularly fierce public and political outcry over the size and timing of the award
  • Wall Street Layoffs: bankers are worried about a wave of fresh layoffs on Wall St and are contacting headhunters to explore new opportunities (FT)
  • JOE Takes Impairment: St. Joe Co., one of largest landowners in Florida, signaled that it is scaling back development plans again, an indication that its efforts to turn the state’s Northern Gulf Coast into a cluster of luxury second-home communities have been a flop (WSJ)
  • KKR Allocate in 2012: Henry H. McVey, Head of Global Macro & Asset Allocation team, published the following thoughts on the global macro trends, “2011 offered numerous headwinds—from the rating downgrade of U.S. Treasuries to the continuing sovereign-debt crisis in Europe—so it shouldn’t come as a surprise that 2012 kicks off with its own share of risks

M&A Watch:

  • Weekly M&A Trends: Completed M&A volumes rose by 10% in the week to $25.0 billion
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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