Slump in Trading Threatens a Wall Street Profit Engine; Industry Could Post 11th Trading Decline in 16 Quarters

Slump in Trading Threatens a Wall Street Profit Engine

Industry Could Post 11th Trading Decline in 16 Quarters

SAABIRA CHAUDHURI and JULIE STEINBERG

Jan. 6, 2014 7:52 p.m. ET

The trading boom that helped reshape global investment banks over the past decade is sputtering, raising fears that one of Wall Street’s biggest profit engines is in peril. Read more of this post

Pressure to Build in 2014 on Some CEOs; Turnarounds Often Aren’t Fast Enough for More-Demanding Investors

Pressure to Build in 2014 on Some CEOs

Turnarounds Often Aren’t Fast Enough for More-Demanding Investors

JOANN S. LUBLIN and SARA MURRAY

Jan. 1, 2014 9:17 p.m. ET

In some corner offices, the high-stakes job of CEO comes with even more pressure during the new year. Read more of this post

No Letup in Europe’s Currency Battles

No Letup in Europe’s Currency Battles

RICHARD BARLEY

Jan. 5, 2014 4:19 p.m. ET

The currency wars that Brazilian Finance Minister Guido Mantega first warned of in 2010 have never quite reached a boiling point. But currency skirmishes are certainly under way as unprecedented loose global monetary policy continues to reverberate through markets. Read more of this post

Never Mind the Predictions: What Did We Learn?

January 6, 2014

Never Mind the Predictions: What Did We Learn?

By CARL RICHARDS

I’m not big on market predictions. In fact, if anyone asks, I’m pretty quick to say that I don’t know what the markets will do in 2014. If you absolutely must have predictions for the next year, then I recommend you check out Barry Ritholtz’s annual list. But if you are interested in something more useful than predictions, I suggest taking a look at what we learned (or had confirmed — again) in 2013. Read more of this post

Looking for ways to post a profit in a dead-letter world

Looking for ways to post a profit in a dead-letter world

January 7, 2014

Eric Johnston

While telcos, airlines and power stations are relatively easy business for governments to sell, postal services have long stayed in the too-hard basket. But last year’s successful $3.3 billion partial stockmarket listing of Britain’s Royal Mail now has many around the world considering the possibilities.

Read more of this post

Key Trends in a Milestone Year for ETFs; As the first ETF turned 20, Fidelity launched new offerings and Vanguard’s assets surged

Key Trends in a Milestone Year for ETFs

As the first ETF turned 20, Fidelity launched new offerings and Vanguard’s assets surged

ARI I. WEINBERG

Updated Jan. 5, 2014 4:26 p.m. ET

It was a heady year for ETFs. The year began with the 20th anniversary ofSPDR S&P 500, SPY -0.15% the first and still the largest ETF in the U.S., and throughout 2013 investors kept up their voracious appetite for exchange-traded funds. Investors pumped a net $188.5 billion into U.S. ETFs and related exchange-traded products, according to IndexUniverse LLC. That topped 2012’s record of $188.4 billion, despite heavy withdrawals from SPDR Gold Shares GLD +0.52% as the price of gold tumbled. Here’s a look at six key developments and issues in the ETF realm in 2013:

Read more of this post

Jim Rogers Warns “Bernanke Has Set The Stage For The Fed’s Collapse”

Jim Rogers Warns “Bernanke Has Set The Stage For The Fed’s Collapse”

Tyler Durden on 01/04/2014 20:46 -0500

With Bernanke’s term due to expire in January, Jim Rogers warns Mineweb that the Fed-head will be remembered as “the guy who set the stage for the demise of the Central Bank in America. We’ve had three central banks in America. The first two disappeared. This one’s going to disappear too in the next decade.” With precious metals, bonds, and stock markets obsessing over Fed actions, Rogers says, in the next 10 years or so, “People will realise that these guys have led us down a terrible path,” and collapse is “not a possibility,” he adds, “it’s a probability.” Read more of this post

It’s Time for a New Dividend Strategy: Going for the highest yields may backfire. Here’s a better approach

It’s Time for a New Dividend Strategy

Going for the highest yields may backfire. Here’s a better approach.

MICHAEL A. POLLOCK

Updated Jan. 5, 2014 4:31 p.m. ET

It may be time for investors to rethink their dividend strategy. Although stocks with juicy dividends (and funds focused on them) have been a great choice recently for investors frustrated by low bond yields—in some cases churning out payments yielding 4% or more and producing handsome capital gains—the good times may be nearing an end, financial professionals say. Read more of this post

Goldman to JPMorgan Say Sell Emerging Markets After Slide

Goldman to JPMorgan Say Sell Emerging Markets After Slide

Wall Street’s biggest banks say the slump in emerging-market assets that left equities trailing advanced-nation shares by the most since 1998 last year will prove more than a fleeting selloff. Read more of this post

Global threat fails to break spirit of Sweden’s labour model

January 6, 2014 9:52 am

Global threat fails to break spirit of Sweden’s labour model

By Richard Milne in Stockholm

Three quarters of a century ago, Swedish workers and employers sat down and hashed out a remarkable accord. The Saltsjöbaden agreement, signed on December 20 1938, provides the basis for Sweden’s consensus-driven approach to labour relations and is the bedrock of the much-admired Nordic model of capitalism. Read more of this post

GaveKal Special: Too Different For Comfort

GaveKal Special: Too Different For Comfort

by ValueWalk StaffJanuary 5, 2014 Via ZeroHedge

Introduction

When Lord Salisbury, the first British prime minister of the 20th century, was asked by Queen Victoria to consider a reform, he famously replied: “Change? Your majesty, aren’t things bad enough as they are?”

Fewer Cheap Stocks: A Warning Sign? Investors should take note as cash builds up in ‘value’ funds

Fewer Cheap Stocks: A Warning Sign?

Investors should take note as cash builds up in ‘value’ funds

TOM LAURICELLA

Updated Jan. 5, 2014 4:22 p.m. ET

The huge rally in U.S. stocks in 2013 had a downside for fund managers whose job it is to hunt for bargains: It has gotten harder to find undervalued names for their portfolios. Read more of this post

Federal Washington cashes in on connections; In Washington, opportunities and rewards are distributed according to what you can do, not whom you know?

Federal Washington cashes in on connections

By Charles Lane, Tuesday, January 7, 9:10 AM

This is a tale of a city that is really two cities. In some parts of town, gleaming office-retail complexes rise, home prices reach into the millions and people routinely spend tens of thousands of dollars per year to send their children to private schools. Read more of this post

Fantasy Sports Luring Wall Street in Its Fastest-Growing Sector

Fantasy Sports Luring Wall Street in Its Fastest-Growing Sector

Drew Dinkmeyer spent seven years as a senior investment analyst in Tampa, Florida, before deciding to pursue fantasy sports professionally. Dinkmeyer, who’s 31 and got married last year, said he earns about as much from competing in daily fantasy sports leagues as he did when he was researching international equities and domestic small- and mid-cap stocks at CapTrust Financial Advisers. Read more of this post

Ever since Heinrich Hiesinger took over as chief executive of ThyssenKrupp in 2011 with a mandate to sell assets and overhaul an ossified and tainted corporate culture, investors have looked forward to a day when the indebted steel conglomerate would finally clear its storm-damaged decks and reach full speed again

January 6, 2014 12:00 pm

ThyssenKrupp tests investors’ patience

By Chris Bryant in Frankfurt

Ever since Heinrich Hiesinger took over as chief executive of ThyssenKrupp in 2011 with a mandate to sell assets and overhaul an ossified and tainted corporate culture, investors have looked forward to a day when the indebted steel conglomerate would finally clear its storm-damaged decks and reach full speed again. Read more of this post

Euro Jobless Scourge Seen Defying Leaders’ $163 Billion Pledge

Euro Jobless Scourge Seen Defying Leaders’ $163 Billion Pledge

European Union leaders pondering the fruits of a 120 billion-euro ($163 billion) push to jump-start the economy and create jobs can look to data this week for evidence of how little has been achieved. Read more of this post

Erdogan Eye on ‘Crazy Projects’ Links Turkey Scandal to Builders

Erdogan Eye on ‘Crazy Projects’ Links Turkey Scandal to Builders

A tiny fishing village called Garipce holds a clue to understanding the largest corruption scandal in Turkish history. An hour’s drive north of Istanbul, two giant concrete towers straddle the Bosporus, one foot in Asia, the other in Europe. By 2015, a $2.5 billion suspension bridge will hang between the 322 meter (1,056 feet)-high towers. Nearby, a swath of forest the size of Manhattan is being readied for a $14 billion airport. Read more of this post

Don’t Play Politics With Unemployment Benefits

Don’t Play Politics With Unemployment Benefits

President Barack Obama and Republican legislators are signaling that they might after all make a deal to extend federal support for the long-term unemployed. An extension makes such good sense that there shouldn’t be much to discuss, but never mind. If a deal is done, it would be petty to complain about the delay. Read more of this post

Creditors of Distressed Companies Seek Disclosures

Creditors of Distressed Companies Seek Disclosures

EMILY GLAZER

Jan. 5, 2014 6:42 p.m. ET

Creditors of distressed companies have taken on a new role: transparency advocates. Bondholders and other creditors of companies close to bankruptcy are pushing the firms to disclose heaps of information after confidential talks with the distressed outfits stall or end. Their goal: to be able to trade free from accusations that they are using inside information not accessible to others. Read more of this post

Concerns grow for future of Tel Aviv exchange

Last updated: January 6, 2014 5:12 pm

Concerns grow for future of Tel Aviv exchange

By John Reed in Jerusalem

Plans by Israel’s Delek Group to list shares abroad have added to longstanding concerns for the future of the Tel Aviv stock exchange, following similar moves by other companies. Read more of this post

Companies on Guard for New Legal Pitfalls; Cybercrime, Labor Rules, Financial Penalties Add to General Counsels’ Concerns

Companies on Guard for New Legal Pitfalls

Cybercrime, Labor Rules, Financial Penalties Add to General Counsels’ Concerns

JENNIFER SMITH

Jan. 5, 2014 8:17 p.m. ET

Top legal officers at many large companies are preparing for stepped-up scrutiny of their operations by both regulators and private litigants as they head into 2014. Among their concerns: staying up to speed on wage-and-hour rules and anticorruption laws, while guarding against possible data-security breaches. Read more of this post

Central Banks Split on Stimulus in 2014 as Fed Tapers

Central Banks Split on Stimulus in 2014 as Fed Tapers

The united stimulus front of central banks is starting to splinter as 2014 dawns. The Federal Reserve — soon to be led by Janet Yellen, who is poised for confirmation by the Senate today — begins pulling back on its quantitative easing amid stronger U.S. growth, and the Bank of England is trying to cool its housing market. The European Central Bank and Bank of Japan lean toward more monetary action to fight weak inflation. The ECB and BOE both hold policy meetings this week. Read more of this post

The world’s biggest economies will need to refinance $7.43 trillion of sovereign debt in 2014 as bond yields begin to climb from record lows, threatening to raise borrowing costs while nations struggle to bring down elevated budget deficits.

Bond Tab for Biggest Economies Seen at $7.43 Trillion for 2014

The world’s biggest economies will need to refinance $7.43 trillion of sovereign debt in 2014 as bond yields begin to climb from record lows, threatening to raise borrowing costs while nations struggle to bring down elevated budget deficits. Read more of this post

Berkshire Stakes Name on Realty Business Buffett Barely Noticed

Berkshire Stakes Name on Realty Business Buffett Barely Noticed

Berkshire Hathaway Inc. (BRK/A)’s foray into the home-brokerage arena 14 years ago was almost an afterthought. Today, Warren Buffett’s company is staking its name on the business. Read more of this post

Bankers Pitching Avoidance Advice as Activists Amass Record Cash

Bankers Pitching Avoidance Advice as Activists Amass Record Cash

Activist investors determined to shake up the way companies do business are amassing record cash for their campaigns. Now investment banks are advising clients how to anticipate and thwart such vocal investors before they even show up. Read more of this post

Activist Investors Gain in M&A Push; Shareholders Make Their Power Felt; Firms Review Operations, Make Pre-Emptive Moves

Activist Investors Gain in M&A Push

Shareholders Make Their Power Felt; Firms Review Operations, Make Pre-Emptive Moves

DANA MATTIOLI and DANA CIMILLUCA 

Updated Jan. 5, 2014 8:57 p.m. ET

In a lackluster spell for mergers and acquisitions, activist investors have been a rare bright spot.Aggressive investors including Elliott Management and Barington Capital Group LP were a driving force behind a number of deals at big companies in 2013. According to FactSet SharkWatch, there were 10 instances in 2013 in which a U.S. company agreed to break itself up or sell or exit businesses after an investor pushed it to make such changes, even if the moves didn’t always satisfy the activist. Read more of this post

50 Years Later, War on Poverty Is a Mixed Bag

January 4, 2014

50 Years Later, War on Poverty Is a Mixed Bag

By ANNIE LOWREY

WASHINGTON — To many Americans, the war on poverty declared 50 years ago by President Lyndon B. Johnson has largely failed. The poverty rate has fallen only to 15 percent from 19 percent in two generations, and 46 million Americans live in households where the government considers their income scarcely adequate. Read more of this post

Bitcoin Tops $1,000 Again on Adoption by Zynga

Bitcoin Tops $1,000 Again on Adoption by Zynga

The price of Bitcoin surpassed $1,000 again on the Mt.Gox exchange, after Zynga Inc. (ZNGA) said it would start accepting the virtual currency for some of its online social games as the digital money becomes more widely used. Read more of this post

Why Following the Winners Is for Losers; Last year’s top performers will likely lag behind the market in 2014.

Why Following the Winners Is for Losers

Last year’s top performers will likely lag behind the market in 2014.

MARK HULBERT

Updated Jan. 3, 2014 4:26 p.m. ET

“Past performance is no guarantee of future results.”

This phrase, ubiquitous in the small print of financial products, often falls on deaf ears, according to Adam Reed, a finance professor at the University of North Carolina at Chapel Hill. “Investors have a tendency to rush into those funds that are at the top of the previous year’s performance rankings,” he says, citing numerous studies. Read more of this post

Ascent of the Fallen Stars: Barron’s looks at the comeback of funds run by star managers who had stellar runs and then imploded. They discuss their strategies

SATURDAY, JANUARY 4, 2014

Ascent of the Fallen Stars

By LESLIE P. NORTON | MORE ARTICLES BY AUTHOR

Barron’s looks at the comeback of funds run by star managers who had stellar runs and then imploded. They discuss their strategies.

A surprising byproduct of this year’s rally was the comeback of the star manager: investors with long spells of brilliant performance, whose funds then spectacularly imploded. Consider Bill Miller, whose Legg Mason Opportunity Trus t (ticker: LMOPX) is staging a revival. Finally approaching the levels of 2007, Miller’s fund is up 67%, more than double the S&P 500’s gain. Miller is by no means alone: The same could be said of Ken Heebner’s CGM Focus fund (CGMFX) fund and Bruce Berkowitz’sFairholme fund (FAIRX), both of which are outpacing the index. Read more of this post