The 1987 Crash and a Dose of Perspective
“This is not a ‘new normal’ but rather a regular, run of the mill, old-fashioned normal stock market,” Daniel Wiener, chief executive of Adviser Investments, a firm in Newton, Mass., that manages $3.2 billion, wrote to clients earlier this month.
The battle for the Senate
THE big prize in America’s mid-term elections, which will be held on November 4th, is control of the US Senate. The Republicans are expected to hold on to their majority in the House of Representatives without difficulty, and Barack Obama is not up for re-election, but the Senate is very much in play. Democrats currently enjoy a 55-45 majority (including two independents who vote with the party). All pollsters expect them to lose seats, and most expect the Republicans to capture a narrow majority. Our interactive map provides a handy guide to what is happening in each of the 33 states where S enate seats are being contested in the normal way. (There are also three “special elections” to confirm candidates who have filled or are filling vacant seats—in Hawaii, Oklahoma and South Carolina—but these are not included in our map.) The shading for each state showing who's ahead is based on the latest poll in each race. The graphic below the map shows what the final tally would be if the latest polls are accurate (a big if).
Christophe de Margerie, CEO of French Oil Giant Total, Dies in Plane Crash
PARIS—French oil company Total SA said Chairman and Chief Executive Christophe de Margerie died Monday in a plane crash at a Russian airport.
Why Chicago is mandating coding education
"I believe kids start dropping out of college in third grade. They don't drop out freshman year. They don't quit junior year. Our responsibility is to make sure they're ready for third grade at three years old," Emanuel said.
Fashion Designer Oscar de la Renta Dies at 82
First lady Michelle Obama in a design by Oscar de la Renta at her Fashion Workshop on Oct. 8 in Washington. The workshop was to connect students with leading fashion professionals to show what to takes to succeed in the industry.
Alex Wong/Getty Images
Redeeming the system
A NEW paper published by Theos, a London-based religious think-tank, will raise hackles on the right and left alike, if only because of its title: "Just Money: How Catholic Social Teaching can Redeem Capitalism". Advocates of capitalism will certainly retort that the system has no need of redemption. The core meaning of the word redemption is something like "to secure the freedom, or the very existence, of someone or something at a price...." And as a supremely efficient instrument for resource allocation and price discovery, so the argument would go, capitalism should have no need of any external agency to purchase its right to exist. It just needs to be allowed to do its job. At the other extreme, critics on the left will retort that capitalism is so wicked that it cannot be redeemed by anything, least of all the doctrines of Catholicism.
10 things the World Series won’t tell you
What’s behind the slide? The reasons are many, but sports experts say that baseball generally has fallen victim to the growing interest in other professional sports — football and basketball, in particular. Such controversies as steroid scandals and labor conflicts — most notably, the strike of 1994 that resulted in the World Series’ cancellation — have also diminished fans’ faith in the game. Finally, the advent of the cable and satellite era, with its explosion of channels and viewing choices, has made it hard for almost any sporting event (short of the super-hyped Super Bowl) to stand out. “When everyone across the nation was watching the same shows or events, they had greater importance to us all,” says Dennis Deninger, who teaches courses in sports communications at Syracuse University’s David B. Falk College of Sport and Human Dynamics.
Fear factor: Ebola is making Wall Street nervous
Need proof? The chart below shows how the VIX volatility index has spiked since the summer. At the same time, the number of searches on Bloomberg terminals (a key resource for many investors) for news related to the Ebola outbreak has also skyrocketed. Of course, correlation doesn't imply causality, but it's worth noting.
Total CEO dies in plane crash
French oil company Total has confirmed the death of its chairman and CEO, Christophe de Margerie, in a crash between his private plane and a snowplow at Moscow international airport.
Premarkets: 6 things to know before the open
Here are six things you need to know before the opening bell rings in New York:
Ebola Study Projects Spread of Virus on Overseas Flights
This study confirmed what is common sense. Why is it that we continue to pour money into programs that have little return, such as checking for fever when we miss those carriers who are usually the ones to fly because they are well at the time of leaving? (Did we forget how Mr. Duncan arrived?) Why not just get to the source of travel before they reach America, like ban all visas from the infected areas? But, this would be too logical. For those who think one or two cases more may not be that bad, just look at the ripple effects of one patient: at least $500,000 for his care, plus more for the two infected nurses, plus the cost of grounding and cleaning two planes, turning around a whole cruise ship, contact tracing and calling almost a thousand people, not to mention decrease income to affected businesses, including near collapse of Texas Presbyterian by pending suits and drop in census, and on and on. The economic costs alone will bankrupt our system, which by the way is on thin ice.
Christophe de Margerie on Russia - FT Business - Companies & Management Video - FT.com
Christophe de Margerie on Russia
Jul 11, 2014 : The Ukrainian conflict may be turning in Kiev's favour, but the spotlight is still on Moscow. There's talk of tougher sanctions on Russia if it antagonises the crisis, including sanctions on the energy sector. FT's Peggy Hollinger talks to Total's chief executive Christophe de Margerie about the company's ties with Russia.
SOS Note Delivered on Horseback From Himalayas Helps Save Hundreds of Lives
KATMANDU, Nepal—When Yehezkel Lifshitz, the rabbi at a Jewish community center in the Nepali capital, answered the phone on the afternoon of Oct. 14, he got an urgent message that helped set in motion an extraordinary, improvised rescue effort for hundreds caught by the ferocious blizzard that battered northern Nepal last week.
Total CEO dead in runway crash; plow driver drunk
MOSCOW (AP) -- Christophe de Margerie, the charismatic CEO of Total SA who helped establish the multinational oil company as one of the world's biggest, was killed at a Moscow airport when his private jet collided with a snowplow whose driver was reportedly drunk.
How Ebola Was Discovered
Microbiologist Peter Piot brought Ebola to the world's attention nearly four decades ago. With rarely seen footage from his visit to Zaire in 1976, he describes how his team solved the mystery of the virus. Photo: Institute of Tropical Medicine Antwerp
Ebola domain on sale for $150K: Good business or ghoulish?
Schultz’s company, Blue String Ventures, reportedly purchased the domain name in 2008 for $13,500, and also owns other disease-related domain names such as birdflu.com and H1N1.com. Schultz is quoted as saying the site is getting 5,000 page-views a day and he thinks the price increase is more than fair.
Total chief dies in Moscow air crash - FT.com
Total chief Christophe de Margerie dies in Moscow air crash
China economy grows at slowest pace in 5 years
BEIJING (AP) — China's economic growth waned to a five-year low of 7.3 percent last quarter, raising concerns of a spillover effect on the global economy but falling roughly in line with Chinese leaders' plans for a controlled slowdown.
Value Investors Hoarding Cash See Few Bargains After Rout
A global rout in stock markets has wiped $3.3 trillion from the value of equities worldwide this month through Oct. 16 and the Standard & Poor’s 500 Index has slumped 6.2 percent since reaching a peak for the year on Sept. 18. The plunge hasn’t been enough for Cinnamond and other money managers who hold unusually high levels of cash, such as Stephen Yacktman of Yacktman Asset Management LP and Wally Weitz of Weitz Investment Management Inc., who say bargains still aren’t easy to find.
Apple smashes through forecasts - FT.com
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Liberian Ebola Survivors Return to Help the Sick
MONROVIA, Liberia—Six mornings a week, Salome Karwah gets up and goes to work at the Ebola treatment unit where she watched her parents wither and die just three days apart and where she almost died of Ebola as well. Ms. Karwah, 26 years old, who had been a nurse’s assistant at a private clinic before the outbreak, recovered from the virus and was discharged on Sept. 5 as a patient from the Elwa treatment unit here. Less than a...
In market storm, a rush to trade volatility itself
This is not a problem for traders using VXX to express very short-term views on volatility, especially for intraday positions. But it makes the fund a terrible buy-and-hold vehicle, and too many investors seem to think it can be stashed in a portfolio as an ongoing hedge, as its steady asset base of more than $1 billion attests. The fund has done repeated reverse splits to keep from approaching zero. Adjusted for these splits, VXX – now trading around $36 – began life around $7,000 in early 2009.
Will Snapchat’s Ads Justify the $10B Valuation?: Video
Oct. 20 (Bloomberg) -- Snapchat will start showing advertisements to its users, taking a step toward justifying the $10 billion valuation investors have placed on the startup. NYU Stern School of Business’s Scott Galloway and Bloomberg Intelligence’s Paul Sweeney speak on “In The Loop.” (Source: Bloomberg)
The Case for Quitting Your Job
I worry about my medical care should I retire. As I get older, I need more and more medical treatments for new things that afflict this wearied body. More and more physicians on the Upper East Side of Manhattan, NYC have stopped taking Medicare. And more and more have stopped taking certain health insurance plans (even from insurers who are biggies with long-lived reputations). So, what I would like to see, in print, is a review of the hard numbers that would confront me in retirement: cost of medical insurance: medicare plus what's available from health insurance plans. Cost of dental insurance. Cost of long term disability. Cost of apartment insurance and personal liability. I have given up on owning a car, but I need insurance protection if I rent a car and damage it or, worse, hit someone. So, what would be the most conservative draw I would have to make from my pension funds without the subsidy that I now get through my employer's contributions?
Yes, prime minister
THOSE who hoped that Narendra Modi would prove a busy liberal reformer as prime minister have so far been disappointed. But that, says Gurcharan Das, a writer and former businessman who now advises the government, is to judge the man by the wrong measure. Rather than being mad about markets, he says, Mr Modi is a strong-willed moderniser, a man who thinks a capable bureaucracy can fix much of what ails India. It is the lesson of Mr Modi’s running of Gujarat, where he relied heavily on his civil service and got public-sector firms to flourish.
0% Forever, A Reality Check
One of the myths of the current bond bubble is that the Fed will have a lot of trouble hitting the 2% inflation target, because of the after effects of the Great Recession of 2008-2009. Yet, as you can see, the 12-month increases in the inflation rate, CPI-U, have been over 3% for substantial time periods since the 0% interest rate policy began. The feared debt-deflation has not occurred even during the depths of the recession. It is unlikely to be a legitimate concern in 2015. The University of Michigan surveys consumers about their inflation views. At last reading they expected 2.8% inflation next year. On average, that reading overstates the next twelve months’ inflation by 0.3%. Thus, that forecast is probably consistent with inflation of 2.5% over the next 12 months.
China-backed hackers may have infiltrated Apple's iCloud: blog
BOSTON/BEIJING (Reuters) - Apple Inc's (AAPL.O) iCloud storage and backup service in China was attacked by hackers trying to steal user credentials, a Chinese web monitoring group said, adding that it believes the country's government is behind the campaign.
For $65 million, you can buy Miami's most expensive home
Called La Brisa (The Breeze), the Coconut Grove compound sits on 6.9 acres, with more than 200 feet of waterfront property along Biscayne Bay.
Google leads $542 million deal in secretive startup Magic Leap
In one of the largest venture-capital deals on record, the tech giant and a slew of well-heeled firms are investing $542 million in Magic Leap Inc., a secretive visual-display company near Miami. The startup is developing its own eyeglasses-like device, different from Google Glass, designed to project computer-generated images over a real-life setting.
Long Wait in Kansas City Sends World Series Tickets to Record Prices
When the Kansas City Royals take the field on Tuesday to face the San Francisco Giants, it will be their first World Series game in 29 years. That long wait, coupled with the team’s undefeated steamroll through the playoffs so far, has created an extremely hot ticket market.
Total CEO Christophe de Margerie dies after drunken snowplow driver collides with executive jet on Moscow runway
Total SA’s Christophe de Margerie died when his airplane struck a snowplow on a Moscow runway, ending a career in which he oversaw the biggest expansion of oil reserves at the French energy giant in at least 15 years.
European Stocks Rise as Corporate Earnings Overshadow Macro Concerns
The Deal ) -- European stocks rose on Tuesday as a stream of corporate updates distracted investors from wider macro-economic and geopolitical worries.
UBS Reshuffles Leveraged Finance Team
UBS AG has named Brendan Dillon and Francisco Pinto-Leite joint global heads of leveraged finance and leveraged capital markets, according to an internal memo seed by The Wall Street Journal.
World's Fastest Flying Woman Vies in 100-MPH Contest: Video
Oct. 21 (Bloomberg) -- Death-defying stunts are all in a day's work for one group of adrenaline junkies as they compete in a sporting contest laced with danger. Competitors -- including Ellen Brennan, the so-called "world's fastest flying woman" -- launch themselves off China's Tianmen Mountain for Red Bull's 2014 Wingsuit World Flying Contest. (Source: Bloomberg)
The Silver Economy: Tech sector taps surge of connected boomers - FT.com
After his mother died, Stuart Arnott worried about how his elderly father would cope living on his own in Fife more than 450 miles away from the family in London.
Four Afghan Soldiers Killed in Taliban Attack in Kabul
KABUL, Afghanistan—At least four Afghan soldiers have been killed in a roadside bomb attack on a bus in the capital.
Whole Foods Tries First National Ads in Sustainability Arms Race
The other goal is to shift consumers’ focus from the chain’s “Whole Paycheck” reputation as it tries to offer more low-priced options. “We’re not doing a national advertising campaign to try to drive short-term sales,” Co-Chief Executive Officer John Mackey said during an earnings call earlier this year. “We’re trying to, in some ways, change what we think is a negative narrative about our company” and articulate what distinguishes Whole Foods from competitors.
ECONOMIST readers are not the panicky type, but just in case you weren't sure: it is okay to travel in the age of Ebola. This sort of reassurance seems to be necessary, at least for some people. A remarkable survey conducted in August found that a quarter of Americans are worried that they or someone in their immediate family will contract Ebola in the near future. And this week, the Associated Press reported that some Americans are cancelling trips because they are afraid of catching the disease, especially after reports emerged that health-care workers who were exposed to the virus were allowed to travel earlier this month.
Why you weren’t invited to the Fed’s ‘ethics’ talk with Wall Street
Even if the New York Fed comes through with the promised information, it is too little, too late. And the secrecy shrouding these talks is endemic to a central bank and regulator that has no problem in comforting Wall Street executives who, God forbid, may be embarrassed to be honest while, at the same time, is cavalier with whatever public trust it has left.
Russia Opens Criminal Probe Into Death of Total CEO Christophe de Margerie
MOSCOW—Russian investigators blamed negligent airport management and the alleged intoxication of the driver of a snowplow that drove on to the runway for a crash that killed Total SA’s chief executive and three crew.
Morning MoneyBeat: Technicals Back in Focus, But This Time for Positive Reasons
“We are still in the early stages of what could be a bottoming pattern,” said Jeffrey Saut, chief investment strategist at Raymond James. “Friday’s high in the S&P 500 was stopped practically right at the 200-day moving average and that appears to be the first resistance level in the way of higher prices. If we cannot overcome the 200-day soon, then we could fall right back toward the lows of last week.”
Why Coca-Cola Wants to Follow Your Pet Pooch: Video
Oct. 21 (Bloomberg) -- Big companies have a lot going for them: millions of customers, years of experience and -- usually -- plenty of money...but when it comes to innovation, it can be hard to keep up with startups. Coca-Cola, one of the world’s biggest companies, has found its own innovative solution: join them. Bloomberg's Elliott Gotkine reports. (Source: Bloomberg)
Rage over Pistorius verdict on Twitter: ‘Almost as if women’s lives don’t matter’
Rage over Pistorius sentence on Twitter: ‘Almost as if women’s lives don’t matter’
Training U.S. Workers to Fight Ebola on the Front Lines: Video
Oct. 21 (Bloomberg) -- The CDC is training volunteer health-care workers before they go to West Africa at an old Army base in Anniston, Alabama. Bloomberg's Brendan Greeley traveled to the site and donned a hazmat suit for an inside look at the training. Video by: Sadie Bass, Justin Beach. (Source: Bloomberg)
GERMANY’S parliament, the Bundestag, has produced some memorable moments over the years. Whether they qualify as oratory is less clear. In 1984 a young Joschka Fischer (nobody dreamt of a Green foreign minister just 14 years later) yelled: “With your permission, Mr President, you are an arsehole!” Herbert Wehner, a leading member in the 1960s and 70s, told one opponent to “go wash yourself first” and another that “you are a pig, do you know that?”
Oscar Pistorius Sentenced to Five Years in Prison
Wall Street Journal reporter Matina Stevis reports live from outside the courtroom where Oscar Pistorious is sentenced to five years in prison for killing his girlfriend.
War-war, not jaw-jaw
ON OCTOBER 13th Turkish fighter jets rained bombs on rebels from the Kurdistan Workers’ Party (PKK) thought to be positioned along Turkey’s border with Iraq. The attack came after PKK fighters had opened fire on Turkish soldiers near the border post of Daglica. Until early last year this would have been routine news. But in March 2013 the PKK’s imprisoned leader, Abdullah Ocalan had said the era of armed struggle was over and that a deal with the government was within reach. Before this week, the Turkish army and the PKK duly held their fire. Are the peace talks now over?
ASOS surges; Reckitt Benckiser slips: Europe’s big stock movers
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