FINANCEUBS is closing its fund, Dillon Read Capital Management, after a loss of $124 million in the first quarter. [Reuters via NYT]UBS’s investment banking president in June, is trying to staff his boutique investment bank with former colleagues like Navid Mahmoodzadegan and Warren Woo. [Deal Journal/WSJ]DealBook/NYT] MEDIAJournal, will the staff get the hands-on boss or the laissez-faire owner? [NYT]Times cafeteria will feature sushi, tapas, and a vaguely themed “international” bar. [Gawker]Time 100 list is out. In: Mayor Bloomberg. Out: President Bush. [Time] FASHIONFashionista]NYT]The Shophound] LAWAm Law 100. [Law Blog/WSJ]AutoAdmit. [Law Blog/WSJ] … [Read more...] about Welcome, Hedge-Fund Backlash!
How many hedge funds in the us
London (CNN Business)Happy Friday. A version of this story first appeared in CNN Business' Before the Bell newsletter. Not a subscriber? You can sign up right here. For all the chatter about a looming recession in the United States or Europe, it's important to remember: right now, forecasters don't expect the global economy to contract. Instead, we're looking at a slowdown — and there are signs it could last longer than many economists initially anticipated. The question on my mind recently: Is the successor to the Great Recession the Great Stagnation? That's certainly the warning embedded in the new economic outlook from the Organization for Economic Cooperation and Development. The group now forecasts that global GDP growth will sit at 2.9% in both 2019 and 2020, the lowest annual rate of growth since the financial crisis. It's expected to tick up just 0.1 percentage points in 2021. The OECD said it does not see this sluggishness as the result of one-off circumstances. Read … [Read more...] about The world could be headed for a Great Stagnation
New York (CNN Business)The Federal Reserve's rescue of the overnight lending market appears to be having an unintended side effect: it's juicing the stock market. The September spike in overnight lending rates revealed that the plumbing of the financial markets was broken. Banks and other financial institutions simply didn't have enough cash. The Fed, acting as a plumber, started pumping in lots of cash to ease the crunch. In addition to temporary cash injections, the Fed reversed course by promising to purchase bonds — a ton of them. After months of shrinking its balance sheet, the Fed vowed to buy $60 billion worth of Treasury bills per month through the spring of 2020. As a result, the Fed's balance sheet has swelled by $286 billion since early September, to $4.05 trillion. Despite the similarities to quantitative easing, the Fed has stressed its current actions are not a return of that 2008 crisis-era bond-buying program, which was aimed at stimulating the economy and … [Read more...] about The $4 trillion force propelling US stocks to record highs
Beijing (CNN Business)The US-China rivalry isn't easing off — it may, in fact, be about to get even more intense. That's keeping the business world on edge. The swarm of corporate executives, academics and politicians who descended on Beijing this week to discuss the state of the economy seemed a lot more unsure than confident about the outcome of the trade war, which now threatens to drag into 2020. For one thing, the fabled "phase one" agreement with China that US President Donald Trump promised in October has yet to materialize, leaving businesses uncertain about what comes next. Janet Yellen on the economy: 'There is good reason to worry' Meanwhile, the United States seems ready to take a harder line on at least one issue of huge importance to China. Hours before the New Economy Forum started on Thursday, US lawmakers passed a bill in support of pro-democracy campaigners in the semi-autonomous city of Hong Kong, where protests have gone on for months. China has … [Read more...] about The US-China trade war isn’t getting better. This week showed why it could get worse
As questions swirl about whether Tesla will go private — and the well-being of CEO Elon Musk — one crucial factor looms large over the fate of the Palo Alto company: Tesla’s own financial health. The company has undertaken drastic measures as it seeks profitability, cutting costs and even erecting a tent-covered third assembly line at its manufacturing plant. But many of those tactics may not be sustainable for long, and some could even hurt the company down the road. The state of Tesla’s balance sheet, and particularly its near-term cash position, are important to the company’s future, perhaps even more so since Musk’s surprise declaration Aug. 7 that he would explore taking the company private. In an emotional interview last week in which he discussed the “excruciating” year he has had, Musk said Tesla would soon be in the black. “Tesla is going to be profitable and cash flow positive,” Musk said. “From a Tesla … [Read more...] about Tesla slashes spending, and may add to its troubles