Why Wall Street fears a Socialist French leader

Financial executives are worried about tougher regulations should Socialist leader Francois Hollande win the French presidential election. They should be.

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start at 42:00

Flashback:

Remarkably, Exchange-Traded Funds have grown from $0 to $1 trillion in just 20 years. As they are still a relatively new and rapidly growing asset class, it is time to consider how they might contribute to the instability of financial markets.

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Last week it was Bank of America. This time it is the bank once again known as Margin Stanley. From the 10-Q: “In connection with certain OTC trading agreements and certain other agreements associated with the Institutional Securities business segment, the Company may be required to provide additional collateral or immediately settle any outstanding liability balances with certain counterparties in the event of a credit rating downgrade. At March 31, 2012, the following are the amounts of additional collateral, termination payments or other contractual amounts (whether in a net asset or liability position) that could be called by counterparties under the terms of such agreements in the event of a downgrade of the Company’s long-term credit rating under various scenarios: $868 million (A3 Moody’s/A- S&P); $5,177 million (Baa1 Moody’s/ BBB+ S&P); and $7,206 million (Baa2 Moody’s/BBB S&P). Also, the Company is required to pledge additional collateral to certain exchanges and clearing organizations in the event of a credit rating downgrade. At March 31, 2012, the increased collateral requirement at certain exchanges and clearing organizations under various scenarios was $160 million (A3 Moody’s/A- S&P); $1,600 million (Baa1 Moody’s/ BBB+ S&P); and $2,400 million (Baa2 Moody’s/BBB S&P).” As a reminder, on February 15 Moody’s warned it’s considering downgrades of US banks and may cut Morgan Stanley as much as, you guessed it, 3 notches. Needless to say this explains why “CEO James Gorman has met with the ratings firm more often than usual in the past quarter.” Net – if the firm sees a 3 notch downgrade as warned the hit will be an AIG-shudder inducing $9.6 billion, or one third of the company’s market cap, and enough to leave all shareholders wishing they had exposure to Greece, and no exposure to Morgan Stanley.

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John Travolta has been sued by a masseur, who claims the actor tried to have sex with him during a session.

According to the lawsuit, Travolta saw the masseur’s ad online, and scheduled an appointment for $200 an hour. The masseur did not know it was Travolta when the appointment was booked, but followed instructions and met up with a black Lexus SUV, which Travolta was driving.

According to the suit, Travolta and the masseur, who says he saw Trojan condoms in the center console, drove to the Beverly Hills Hotel and went to Travolta’s bungalow.

The suit claims Travolta stripped naked, appearing semi-erect. The masseur says he told Travolta to lay down on the table and the first hour went without incident. Then, according to legal docs, Travolta began rubbing the masseur’s leg, touched his scrotum and the shaft of his penis.

The masseur claims he told Travolta he did not have sex with his clients, but Travolta was undeterred, offering to do a “reverse massage,” adding, “Come on dude, I’ll jerk you off!!!”

The suit goes on to allege Travolta then masturbated and told the masseur he got to where he was “due to sexual favors he had performed when he was in his ‘Welcome Back Kotter’ days,” adding “Hollywood is controlled by homosexual Jewish men who expect favors in return for sexual activity.”

The masseur — who is only listed as John Doe — claims Travolta called him a loser, but then doubled the hourly rate and sent him on his way.

The suit seeks $2 million plus punitive damages.

Travolta’s reps could not be reached for comment.

source: TMZ

Here are today’s hybrid movers courtesy of The PPT. I’ve imported the tickers in finviz for you viewing pleasure, click here for charts.

[youtube:http://www.youtube.com/watch?v=T5DAhEhrYwM&feature=g-all-u 603 500]

If you haven’t heard of Kong, she and her husband run a little restaurant, the 60-stool Kay Lee Roast Meat Joint. So popular is its pork that patrons, according to Bloomberg, line up to be sure of getting in-sometimes an hour in advance.

The Kongs, however, are in their 60s are looking to retire. Neither of their kids wants to take the business over. So, they have put the Meat Joint up for sale, at an asking price of $2.8 million. Its assessed value is $1 million. The difference is the recipe.

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Related:

It looks like Stevie might be reading some outlandish websites.

Western Refining: SAC Capital discloses 5.4% stake in 13G filing

Yelp: SAC Capital discloses 5.1% stake in 13G filing

Source sec.gov

$300.04 mln consensus. The adjusted EBITDA margin for the quarter was 33.4% compared to 36.1% in the previous quarter and 33.0% for the first quarter of 2011. Total server count increased to 82,438 up from 79,805 servers at the end of the previous quarter, and total customers increased to 180,866, up from 172,510 at the end of the previous quarter.

Electronic Arts beats by $0.01, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY13 EPS in-line, revs below consensus (15.13 +0.01)
Reports Q4 (Mar) earnings of $0.17 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.16; revenues fell 1.8% year/year to $977 mln vs the $959.19 mln consensus. Co issues downside guidance for Q1, sees EPS of -$0.45-0.40 vs. ($0.33) Capital IQ Consensus Estimate; sees Q1 revs of $500 mln vs. $581.85 mln Capital IQ Consensus Estimate. Co issues mixed guidance for FY13, sees EPS of $1.05-1.20, excluding non-recurring items, vs. $1.13 Capital IQ Consensus Estimate; sees FY13 revs of $4.30 bln vs. $4.52 bln Capital IQ Consensus Estimate.

NEW YORK (CNNMoney) — European Union officials are expected to begin debating ways to boost economic growth, after voters in France and Greece rejected austerity.

The focus on growth comes after Socialist party leader Francois Hollande defeated incumbent Nicolas Sarkozy in France’s presidential election Sunday. In Greece, voters punished the two main political parties, raising concerns that a weak coalition government will backtrack on the nation’s bailout program.

At the same time, many European economies have tumbled into recession as austerity measures — budget cuts and tax hikes — take a toll on growth.

Hollande has said he would renegotiate the “fiscal compact” that most EU leaders signed late last year to incorporate a “growth dimension.” The pact is designed to increase fiscal discipline and prevent a future crisis by ensuring that governments respect deficit rules and do not overspend.

Eurozone unemployment hits record 10.9%

But analysts say Hollande will probably back down on this issue to avoid a conflict with German Chancellor Angela Merkel, who has been the most vocal supporter of austerity.

Given the shifting political winds, the most likely outcome will be a new “growth compact” to complement the fiscal treaty, according to James Goundry, an analyst at IHS Global Insight.

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American taxpayers are encountering a drumbeat of bad news from Afghanistan: Insurgents are launching coordinated complex attacks and implanting record numbers of IEDs. Strained by more than a decade of war, US troops, are implicated in Koran-burning, desecration and renegade killings.

Today the news broke that United States officials, in a futile hope of quelling violence, have been party to a pernicious “catch-and-release” system that facilitated the secret release of high-level insurgent detainees, who are then free to strike at American forces again.

As American taxpayers try to process these indicators of a failing war, do they also know that their taxes are helping to bankroll the Taliban?

When I was embedded with American troops in insurgency-wracked eastern Afghanistan, soldiers began telling me that the U.S. government wastes tens of billions of taxpayer dollars each year on scandalously mismanaged aid and logistics contracts connected to the war. The soldiers told me there was a toxic system that links distracted American officials, private U.S. corporations, powerful Afghan insiders-and the Taliban. One way or another, everyone was in on the take.

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The pendulum doesn’t normally swing this fast.

In a matter of a few short months, Europe has swung from a continent burdened by debt and consumed by the idea of austerity as a means of sharply reducing the cost of government to a continent sill laden by debt but now consumed by growth.

Voters on Sunday made clear in elections in France, Greece and Germany that they’ve had enough austerity. No more layoffs, no more pay cuts, no more scaled-back benefits.

Instead, the French voters who threw out incumbent President Nicolas Sarkozy in favor of Socialist Francoise Hollande and the Greek and German voters who supported anti-austerity parties in national and local elections are seeking something far more nebulous than mandated budget cuts: sustainable economic growth.

“The problem is, while we are now looking at ‘growth’ as a solution, that’s highly likely to disappoint,” said Peter Tchir, a founder of TF Market Advisors in Connecticut.

Tchir said austerity measures drafted and approved in recent months for debt-addled European nations, usually as part of a bailout agreement with the International Monetary Fund, the European Union and the European Central Bank, “attempted to be good for the economy.”

Tchir is skeptical that shifting that strategy 180 degrees virtually overnight will benefit Europe or global markets.

“There are no magic bullets,” he said. “Growth will fail and we are back to having too much debt.”

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SAN FRANCISCO – A federal jury in San Francisco has reached an impasse on a key issue in Oracle’s copyright-infringement case against Google, handing the database-software company a major setback.

Oracle had been seeking up to $1 billion in damages on copyright claims after alleging that Google Inc. built its popular Android mobile software by stealing some of the technology from Java, a programming platform that Oracle Corp. bought two years ago.

In delivering a partial verdict Monday, the jury found that Google infringed on the largest of Oracle’s claims, but it couldn’t agree on whether Google’s use was legally protected “fair use.” Without that determination, it will be difficult for Oracle to win major damages.

Monday: Lawyers make closing arguments on the copyright issues. Judge sends case to jury for deliberation.

The jury also found that Google infringed on Oracle’s copyright on nine lines of Java code that is in Android, but Oracle can only go after statutory damages on that one. Those damages can range from $200 to $150,000.

Google is moving for a mistrial. Google prevailed on other claims.

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“Barton Biggs, founder of the Traxis Partners LP hedge fund, said he isn’t adding to bearish equity bets in Europe after elections in France and Greece this weekend signal voters are seeking leaders who support more stimulus.

The U.S. economy is still strong and will avoid a double-dip recession while seeing a “soft patch” for the next month or two, Biggs said during the television interview.

“The U.S. economy is still cranking along at 2.5 percent real gross domestic product growth,” he said. “That’s a good healthy level.”

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“Food prices may stabilize at high levels and keep government import bills near a record, increasing the risk of social unrest in the world’s least developed countries, the United Nations said.

The UN Food & Agriculture Organization is asking international lenders to accelerate the release of funds to help poor countries cope with high food costs through subsidies and avert riots, Hiroyuki Konuma, assistant director general at the FAO, said in an interview.”

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A similar performance to 19080 says Knapp.

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