Carlyle has raised $698 million for its dedicated Africa fund, nearly $200 million above its initial target.» Read More
Ireland Gets 85 Billion Euro Package (Bloomberg) Bloomberg's lede graf provides a good index of the sentiment: "European governments sought to quell the market turmoil menacing the euro, handing Ireland an 85 billion-euro ($113 billion) aid package and diluting proposals to force bondholders to bear some cost of future bailouts."
Four words— 'sought', 'quell', 'turmoil', and 'menacing' —would seem to capture the current tone of the markets in Europe. Also, German Chancellor Angela Merkel's initial insistence on haircutting Irish bondholders would appear to have been removed. But: "The twin decisions were not enough to placate investors today that the crisis is now contained. Irish 10-year bonds erased an early advance, European stocks and the euro declined and the cost of insuring the debt of Spain and Portugal against default soared to record highs." Investors seem to believe that if you plug the hole in Ireland, the fear just migrates south and east.
Greece Bailout Repayment Timeline Extended \(CNBC via Reuters\) Greece will have an additional six years to pay back its 110 Billion Euro bailout loan to the EU and IMF. The loan, which was originally due to be repaid in 2015, has been extended to 2021. In exchange for the extension, Greece will pay another 30 basis point of interest – bringing the total rate to 5.8 percent, from an initial interest rate of 5.5 percent. The plan has been agreed to informally, with details expected to emerge after a formal agreement during the next Eurogroup and Ecofin councils on Dec 6-7.
Will Senior Bondholder of Irish Banks Take a Haircut? (Bloomberg) "European Union and International Monetary Fund officials are taking legal advice on how senior bondholders can share the cost of Ireland’s 85 billion-euro ($113 billion) bailout without triggering lawsuits, the Irish Times reported today, without saying where it got the information. Negotiators plan to finalize the aid package on Nov. 28 before markets re-open after the weekend, an EU official said on condition of anonymity." Junior bond holders have expected to come out less than whole—but analysts in Dublin long believed that senior bondholders were 'sacrosanct'. Perhaps not so, as the situation continues to deteriorate.
"China Protests U.S.-South Korea Exercises" (Wall Street Journal) Add this to the list of thorny issues between The U.S. and China:
"China made its first official protest over plans by the U.S. and South Korea to hold joint military exercises involving the aircraft carrier USS George Washington in the Yellow Sea on Sunday." The Journal article suggests the that the protests were "noticeably more restrained than when the U.S. announced similar plans," and that "The statement also appeared to offer all sides a face-saving compromise," —but still, skepticism perhaps should remain the order of the day. Have we so soon forgotten Chairman Bernanke's remarks on currency issues made just a week ago today?
"Stocks Sink as Worries over Europe's Debt Linger" (Yahoo Finance via AP)
"Stocks are sinking during a shortened session on Wall Street amid lingering uncertainty surrounding Europe's debt troubles and a warning from North Korea.European stock markets and the euro fell Friday as worries mount that Portugal will need cash from other European Union countries to help manage its debts. The Dow Jones industrial average fell 100, or 0.9 percent, to 11,086. The S&P 500 index was down 8, or 0.7 percent, to 1,190. The Nasdaq composite index fell 10, or 0.4 percent, to 2,533." The trading session will close at 1:00 p.m. today.
It's almost an open secret: American businesses are on strike.
Hiring remains staggering slow and unemployment grimly high. Business expansion is at a slow-slog. Banks aren't lending, but businesses aren't borrowing either.
Anyone paying attention to these things has heard a lot of explanations. It's Obama's fault: the threats of higher taxes, Obamacare and Dodd-Frank is creating regulatory uncertainty. Or it's the fault of Republicans and deficit hawk Democrats who are resisting calls to replace falling private sector spending with more government sector spending. Or it's the animal spirits haunting us for our past sins of excess.
But what is really going on, I think, is a refusal by businessmen to play the business cycle.
All too often the American debate about immigration seems to be about a fantasy world in which the value and economic needs of the United States will decide our immigration future.
The usual economic debate is about whether we need low-skilled workers to do "jobs Americans won't do" and high-skilled workers to do jobs Americans allegedly can't do. The values debate swirls around the vagaries of America's commitment, on the one hand, to provide a safe haven for the world's "huddled masses yearning to breathe free" and, on the other hand, the importance of America's cultural integrity to the success of our political and economic systems.
There's always been some obvious sense of unreality to all of this. In a very real sense, our immigration reality has long been out of our control entirely. Family reunification policies mean that recent immigrants control a vast portion of new immigration. The lack of effective means of border enforcement means that economic conditions beyond our southern border are far more important than whatever our policies are favored in Washington, DC.
Here's the disturbing headline statistic: Portugal, Ireland, Greece, and Spain have sucked out 93 percent of the total liquidity taken from the ECB and other central banks.
The Financial Times reports, in a disconcerting Alphaville blog post today , the sordid details. Basically, the net capital usage of eurozone member states is seriously out of whack. In fact, Alphaville has republished a data table from CreditSights that sums up the problem with and almost devastating simplicity.
Why the phrase 'devastating simplicity'?
The recent insider-trading dragnet conduct by federal authorities, in the most public way, has created a wave of fear stretching from Goldman's offices in lower Manhattan through the hedge-fund strip of Connecticut and beyond.
This is not an accident. The Justice Department and the Securities and Exchange Commission view fear as one of their best friends. They know full well that they cannot catch every violator of securities laws. Instead, they depend on the deterrent effect—which is to say, fear—to prevent violations before they occur.
But the recent terror campaign by federal regulators may be going too far. Instead of just preventing violations of securities laws, it may have a chilling effect on gathering information to aid in better investing and trading.
It's the Anna Pereira "Prosperity" custom t-shirt JWoww of MTV's "Jersey Shore" wore while punching the Mike the Situation in season one. The shirt was not for sale on the boardwalk, the local mall or department store. It's available on handmade marketplace Etsy.com.
It all started with a leap of faith. Pereira, who has been on Etsy for a little over a year, gifted the t-shirts to the cast hoping they would wear them.
"I've seen a few more sales on Etsy since the 'Jersey Shore.' But, it was never mentioned on the show where to purchase the shirts, since I wasn't a paid sponsor. So, most of my marketing has been through Twitter. Twitter and Etsy are a great combo, " says Pereira.
Nicole Lapin, of CNBC's Worldwide Exchange, explains what she's long and what she's short this week.
Black Friday marks the official kick off to the holiday shopping season and the battle over the gaming space is no child's play. This is serious business and it has come a long way from its meager beginnings in 2000 when total video game sales including PC games totaled $7.98 billion. According to researchers at NPD, game sales at brick-and-mortar retail alone has since grown more than 250 percent in recent years.
One of the companies in this tech gauntlet is Sony's PlayStation. The company has also been in the news as of late with the rumors surrounding a smart phone which, if the rumors are true, the may come to be considered the ultimate gamer "must have."
I sat down with Jack Tretton, President and CEO of Sony Computer Entertainment America , to talk about his expectations this holiday season and to dig into the rumors on a phone launch.
Black Friday Underway (Wall Street Journal) "Lines wrapped around stores and parking lots across the nation as shoppers sought early morning deals, especially on consumer electronics and toys. About 138 million Americans are expected to go shopping this weekend, and the Friday after Thanksgiving—frequently referred to as "Black Friday"—is expected to be the busiest shopping day of the year. 'We do it for the fun of it,' said Gail Giordano, who was in line preparing to enter a Target Corp. store in Hackensack, N.J., opening at 4 a.m." (I'm pleased Gail is having fun—but I'd rather have root canal without anesthesia.)
Portugal Claims no Bailout Immanent; Approves 'Austere' 2011 Budget (CNBC via Reuters) "Portugal denied on Friday a news report that it is under pressure from most euro zone countries and the European Central Bank to seek a bailout." In reference to reports about a push on the country to seek an aid package, a Portuguese government spokesperson said: "This news article is completely false, it has no foundation." Optimism in Lisbon notwithstanding, does anyone else recall this nearly identical BBC news headline – from just nine days ago? "Ireland denies bailout rumours after record budget cuts ."
Spain: We're not Next (Financial Times) "Spain has warned financial traders betting against its debt that they will lose money, in a defiant challenge to the markets which are driving Madrid’s cost of borrowing sharply higher." Let's hope not: Spain's economy may simply be too big for an effective bailout. Spain also has enormous private liabilities to foreign investors.
More on the 'warning': "José Luis Rodríguez Zapatero, Spanish prime minister, on Friday ruled out any rescue package for the country even as the premiums demanded by investors to hold Spanish sovereign debt over that of Germany’s rose to euro-era highs. This week’s sharp rise in Spanish 10-year bond yields to 5.2 per cent is an indication of growing concern in eurozone bond markets that the fiscal crisis in Ireland could spread to other debt-laden countries including Portugal and Spain. 'I should warn those investors who are short selling Spain that they are going to be wrong and will go against their own interests,' Mr Zapatero said in an interview with Barcelona-based broadcaster RAC1, according to Bloomberg. He 'absolutely' ruled out any need for a rescue." You have to wonder: Is threatening investors an effective national economic strategy?
The New York attorney general's office has subpoenaed about a half-dozen high-frequency trading firms, a source told CNBC.
China's Weibo has priced its initial public offering at $17 per American Depository Share, at the bottom of its planned range.
Some high profile earnings beats by General Electric, Pepsico and Morgan Stanley helped counterbalance the hangover of Wednesday's big tech earnings misses.