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Warhol head piece goes up on e-auction. Minimum opening bid: $750,000
<p>Paying over a million bucks for a hat made of ten-dollar bills may not look like you have a head for money. But in the case of this 1972 Andy Warhol, it could be a savvy investment.</p> <p>Warhol made the unconventional headwear using a wide-brimmed, black, straw Halston hat. He wove $10 bills to the hit, and presented it as a gift for his doctor friend Robert Giller in the 1970s. It is being put under the hammer by NYE&amp;Co through on November 11. Minimum bid: $750,000. The online auction group expects the piece to go for $800,000 to $1.2 million.</p> <p>The hat features in a photo, worn by Giller, in the 1979 book Andy Warhol’s Experiences. An edition of the book given to Giller by Warhol, and signed "to the doc, Love, Andy" with a doodle, is also included in the auction. Both were kept by Giller’s widow after he died in car wreck in 1996.</p> <p>Photo:</p> <p>&nbsp;</p> <p>&nbsp;</p>
7 ways the global economy is going to change, according to Nouriel Roubini
Capital Markets
<p>Sometimes referred to as Dr. Doom because of his accurate prediction that the U.S. housing market would collapse, Roubini gave a lecture on Saturday and FinBuzz presents his top seven economic ideas from the event, Finbuzz reports.</p> <p>Aging population and the end of the ‘golden era’</p> <p>Until 2013, markets were growing robustly. Now the golden era of growth is over. Economic slowdown worldwide has several causes: both governments and corporations have entered a deleveraging stage, saving more, and spending and investing less. The aging populations in both in Europe and Asia are changing the consumption model on an individual level, and people are saving more, too. Although corporations have enough cash, most of them are not inclined to invest money into new projects the way they have done before, as the level of political, economic, and geopolitical uncertainty has dramatically risen.</p> <p>China: expect a “bumpy landing” but no crash<br /> All eyes are on China. Further development of the world economy largely depends on how China’s economy, the second largest economy in the world, will slow down, and whether it will have a smooth or hard landing. A hard landing would mean a massive collapse in commodity prices and a sharp devaluation of China and other emerging markets’ economies. Due to substantial dollar debt, the amount of debt in local currencies will increase, which will lead to the global recession. The risk of the hard landing, is however, relatively low, according to Roubini. He calls what is likely to happen with China a “bumpy landing” – a 6.5% growth slowdown this year and between 5 and 6 percent potential growth next year, rather than complete collapse.</p> <p>On Silicon Valley<br /> There is a lot of technological and scientific innovation in different fields of global economy, however, it is concentrated in some spots like Silicon Valley. At the moment, it does not lead to productivity growth, which is the key to the growth of global economy.</p> <p>Are robots taking over our jobs?<br /> Technological innovation is increasingly capital intensive, skill-biased and saves on labor. The demand for labor is going to shrink further, partly because of robotic substitution and structural changes as well. That will surely bring changes to the labor force structure and hence economy structure.</p> <p>The central banks are broken<br /> Government policies are not optimal. The instruments of monetary policy do not seem to satisfy the current needs. Fiscal policy instruments are not used to their full potential. There is a huge need for structural reforms worldwide, however, both in democracies and in “less democratic countries” implementation of structural reforms is hard because of the election cycles and the inability of politicians to act in the long-term.</p> <p>The hyped-up Grexit<br /> Greek Exit. A lot of worries were concentrated around Greece this year. This is particularly interesting given that Greece is responsible only for 2 percent of European GDP. The solution of the Greek problem has more of a symbolic meaning for the whole Eurozone. The Grexit would mean the beginning of the end of the Eurozone, politically.</p> <p>Commodity super cycle<br /> The commodity super cycle is over not only spurred by the economic slowdown in China, but also due to supply issues such as innovative shell gas, oil technologies, and a significant amount of reserves in Latin America and Africa. Demand for raw materials is obviously low at the moment.</p> <p>A professor at New York University’s Stern School of Business, Roubini is also the chairman of Roubini Global Economics, a private macroeconomic research firm in New York.</p> <p>This story first appeared in FinBuzz<br /> Photo: FinBuzz</p>
Q&A: Ex-Mt.Gox exec Thomas Glucksmann-Smith shares the perils of the fintech frontier
For every success on a new frontier there is also a horror story. For many Bitcoin users that horror was Mt. Gox, the Japanese Bitcoin exchange that went from handling 70% of all bitcoin transactions in early 2013 to losing $473 million of the cryptocurrency a year later. Thomas Glucksmann-Smith had a front row seat on the collapse. He joined the
Daily Scan: Stocks end Friday unmoved; Berkshire Hathaway slays profits
Capital Markets
Updated throughout the day November 6 Stocks were fairly stagnant Friday. The Dow added 0.3%. The S&amp;P 500 barely fell, and the Nasdaq added 0.4%. The jobs report crushed expectations: Nonfarm payrolls grew by 271,000 in October vs the consensus expectation for 190,000. The unemployment rate edged down to 5.0% from 5.1% -- near the Federal Reserve's full employment of 4.9%. No plans
Elite startup club names top UK tech companies
Venture Capital
Silicon Roundabout doesn't sound quite as sexy as Silicon Valley, but it's looking to compete with the California tech space. Silicon Valley Comes to the U.K. (SVC2UK) has chosen 58 new startups they think have potential to hit revenue of 100 million pounds in the next three to five years, writes Business Insider. The 58 companies added to the "Scale Up
Maybe it's not so hip to be Square
Venture Capital
Square announced Friday that it will price its upcoming IPO at $11 to $13 a share, making a valuation of about $4.2 billion. Square was most recently valued at $6 billion, so where's the beef? Square is erring on the side of caution as it has watched other tech companies fall short with their own IPOs, reports Wired. At the
Aberdeen CEO stands strong as firm shakes
Asset Management
<p>Aberdeen Asset Management co-founder Martin Gilbert withstood a 97% fall in share price 13 years ago amid scandal. Now Gilbert is on shaky ground again as Aberdeen gets pummeled by emerging market performance and outflows. Rumors are swirling that Gilbert is looking to sell his Scottish firm, but Aberdeen denies the claims and the fact that the company could be in trouble, reports the Financial Times.<br /> Mr. Gilbert’s opinion on this is clear: “Everyone is talking about Aberdeen like we are in some sort of crisis. Of course we’re not, we’re a business with £300bn of assets under management and more than £550m in net cash.”<br /> Aberdeen has made more than 40 acquisitions, including the massive purchase of the Scottish Widows Investment Partnership in 2014, in attempts to expand the business. But the firm has undeniably been bleeding assets for the last two years. Gilbert is putting up a strong front, and has certainly survived turmoil in the past, but is it time for him to step aside? With SWIP and other businesses now under Aberdeen, the firm could start to turn away from the emerging markets that are dragging it down. Perhaps it's time for Gilbert to let someone else take the reins during this transition.<br /> Photo: Aberdeen</p>
People Moves: Allianz hires UK institutional sales head; Pimco loses head of product management
Asset Management
<p>Allianz hires U.K. institutional sales lead. Tim Bird has joined Allianz Global Investors as director of the U.K. institutional sales and client servicing team, a new role for the firm. Bird comes to the firm from T. Rowe Price, where he worked as head of the U.K. and Irish institutional business. That role is now being filled by Andrew Skeat.  Pensions &amp; Investments</p> <p>Pimco head of product management to retire. Wendy Cupps will leave Pimco at the end of the year, after 21 years working for the California firm. Jennifer Bridwell, head of Pimco's alternative products, will replace Cupps. Cupps has been involved in the executive level turmoil at Pimco since founder Bill Gross's departure last fall, but says the firm's upheaval has nothing to do with the timing of her retirement. Reuters</p> <p>Legal &amp; General grows U.S. index team. Legal &amp; General Investment Management America has hired Greg Behar as head of index investment strategy, a newly created position for the firm. Behar joins from Northern Trust Global Investments, where he served as senior v.p. for global equity.</p> <p>Invesco Perpetual CEO to step down. Mark Armour is leaving the U.K. firm less than two years after becoming CEO. Armour will be replaced by Andrew Schlossberg, currently head of U.S. retail distribution and global ETFs at parent company Invesco. Gulf News</p> <p>&nbsp;<br /> Photo:  ©<br /> &nbsp;</p> <p>&nbsp;</p>
Hourly wages jump in October jobs report; up 2.5% on year
Capital Markets
<p>From the Bureau of Labor Statistics:<br /> In October, average hourly earnings for all employees on private nonfarm payrolls rose by 9 cents to $25.20, following little change in September (+1 cent). Hourly earnings have risen by 2.5 percent over the year. Average hourly earnings of private-sector production and nonsupervisory employees increased by 9 cents to $21.18 in October.<br /> Full release from the BLS here.</p>
Liberal interpretation of IPO helps this etf enjoy facebook's surge
Asset Management
<p>There are a few certainties surrounding Facebook Inc (NASDAQ: FB)'s meteoric rise. It is irrefutable that the stock is up more than 17 percent over the past month. Likewise, it cannot be debated that now home to a market value north of $306 billion (as of Thursday's close), Facebook is worth more than all but a handful of S&amp;P 500 companies.</p> <p>What can be debated is whether or not Facebook is a “new” stock. Three and a half years removed from its initial public offering, Facebook might be new compared to some public companies, but in this case, it depends on what one's view of “new” actually is. In the eyes of the First Trust US IPO Index Fund (NYSE: FPX) and the IPOX®-100 U.S. Index, that ETF's underlying index, Facebook ...</p> <p>Full story available on<br /> Photo: Jason McELweenie </p>