Morning Market News

Morning Market News

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:

  • S&P futures are up 10 points to 1,235
  • Europe: DJ Euro Stoxx 1.0%, FTSE 0.6%, CAC 1.5%, DAX 1.1%, Spain 0.6%, Italy 1.4%
  • Asia: Japan -0.2%, Hong Kong 0.5%, India 0.2%, Australia 0.3%
  • USD (DXY) down -0.12%
  • Gold up 0.54% to $1,715.7
  • Silver up 0.83% to $33.5
  • Copper up 4.22% to $356.5
  • Crude down -1.04% to $92.2
  • Corn up 0.15% to 651.8
  • Wheat up 0.51% to $639.5
  • 10yr Treasury yields are up, trading at 2.17%
  • S&P current trading at 12.48x current year P/E

Today’s Top Stories:

Gates Capital Management Reduces Risk After Rare Down Year [Exclusive]

Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More

  • Government Cuts: With the deficit supercommittee’s deadline fast approaching, House Minority Whip Steny Hoyer on Tuesday said he’s not entirely confident the panel will succeed in reaching a bipartisan agreement before the clock expires
  • Blackstone Posts $342mn Loss: On October 21, Blackstone Group LP (NYSE:BX) posted a net loss of $342 million in Q3 due to market-driven declines in the carrying value of its investments
  • Tuition Jumps 8.3%: Tuition and fees at U.S. public universities soared 8.3 percent this year, twice the rate of inflation, to an average $8,244, a College Board report found. Nonprofit private college costs rose 4.5 percent to $28,500
  • Bank Breaking Up: Perhaps it is not Occupy Wall Street that the banks should fear, but their latest frothy financial product. Investment bankers are crisscrossing the nation peddling spinoffs. But given the weak stock prices of these banks, they may find themselves under the same pressure to split up from their own investors
  • Huge Cuts at Normura: Executives inside Nomura are debating the plan, with some calling for cutting as much as $1 billion a year while refocusing the bank on profitable businesses in the U.S., Japan and the rest of Asia (WSJ)
  • Private Equity Opportunities in Asia: If you’re looking for private equity interviews look to Asia, Reuters reported that KKR (NYSE:KKR) is planning to raise a new $6 billion fund that will be focused on pan-Asian buyouts in the first quarter of 2012
  • T2 Partners Buys NFLX: Following Netflix’s (Nasdaq:NFLX) horrendous Q3 2011 financial results announcment, it seems that Whitney Tilson believes the share are finally undervalued at around $77 per share
  • Deutsche IBD Down 48%: In total investment banking revenues were down 48% versus last quarter, this is slightly worse than what we’ve seen at the other banks
  • UBS Cutting IBD Headcount: A lot of focus on the quarter from their “Cost reduction program” – i.e. massive layoffs. UBS is taking the axe to their IBD division stating “largest share of staff reductions in the investment bank.”  Out of the 3,500 planned cuts 45% will be in the investment banking

M&A Watch:

  • ArcelorMittal quit a venture to acquire Macarthur Coal, leaving partner Peabody Energy to pursue the takeover on its own (BBG)
  • KKR is seeking as much as $6b for its second Asian buyout fund, according to a person familiar (BBG)

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