Monday Morning Pre-Market News


Monday November 7th, 2011

Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.

Morning Market Levels:

ValueWalk’s October 2022 Hedge Fund Update: Haidar Capital Surges 225%

reports 1660232581Welcome to our latest issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring investors exit long-short hedge funds, the oil market is now "broken", and Haidar Capital surges 225%. Q2 2022 hedge fund letters, conferences and more

  • S&P futures are down -7 points to 1,245
  • Europe: DJ Euro Stoxx -0.4%, FTSE -0.6%, CAC -0.3%, DAX -0.1%, Spain -1.2%, Italy 2.0%
  • Asia: Japan -0.4%, Hong Kong -0.8%, India 0.5%, Australia -0.2%
  • USD (DXY) up 0.19%
  • Gold up 1.23% to $1,776.3
  • Silver up 1.16% to $34.6
  • Copper down -0.84% to $353.5
  • Crude up 0.30% to $94.5
  • Corn down -0.19% to 654.5
  • Wheat up 0.16% to $637.8
  • 10yr Treasury yields are up, trading at 2.03%
  • S&P current trading at 12.60x current year P/E

Today’s Top Stories:

  • Private Equity Fee Shake-up: Large investors are pushing for sweeping changes to the PE industry’s fee structure, looking to shrink management fees (FT)
  • Third Points Attachs YHOO CEO: Thirdpoint’s Daniel Loeb sent a letter to the Board of Yahoo! (Nasdaq:YHOO) today, attacking CEO Jerry Yang. Loeb expresses his concern
  • Euro Banks: European banks are sitting on heaps of exotic mortgage products and other risky assets that predate the financial crisis, adding to pressure on lenders that also are holding large quantities of euro-zone government debt
  • Berkshire Earnings: reported 3Q 2011 earnings after the close on Friday, reported results ahead of consensus at $2,309/shr, vs. expectations of $1,796
  • RBS Continues to sell AZO: Eddie Lampert’s RBS Partners has disclosed that it has reduced its stake in Autozone (NYSE:AZO) from 24.9% to 27.8% once again
  • RBS IBD Shrinking: Company plans on setting aside a bonus pool ~GBP 500mn for its investment banking division, firm plans on shrinking the business by 1/3 over time
  • KKR Tees up Capital for Investments: As of September 30, 2011, KKR’s portion of total uncalled commitments to its investment funds was $746.1 million
  • Greece Update: “Over the wknd progress made in Greece as a tentative agreement has been reached btwn Greece’s two main political parties to support a “unity government.” Aim of new govt will be lead the country to an election after the decisions of Oct 26th have been implemented. Milestones needed to be achieved before early elections include: disbursement of 6th loan tranche, agreement on new aid plan/MoU, approval of new 2012 budget, completion of 2011 budget implementation, completion of PSI, and disbursement of 1st loan tranche under new aid program. This suggests new election would take place in Feb 2012” (Deutsche Research)

Economic Calendar:

  • Monday: Consumer Credit
  • Tuesday: JOLTs Job Openings
  • Wednesday: Wholesale Inventories
  • Thursday: Import Price Index, Trade Balance, Initial Jobless Claims, Monthly Budget Statement
  • Friday: U. of Mich Confidence

M&A Watch:

  • FDIC Bank Failures: There were two additional FDIC failures during the prior week bringing the number of failures year-to-date to 87 and cycle-to-date to 412
  • Bank of America may bolster balance sheet by exchanging preferred securities for total of $6b of common shrs and debt (BBG)
  • MF Global’s Asian units may be sold as soon as this weekend after liquidators received between 30 and 40 “credible” purchase offers, WSJ reports
  • Tingyi (Cayman Islands) said to buy PepsiCo’s ops in China excluding food business (BBG)

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