Arguably, the Hollywood human casino will give derivative traders the incentive and means to play with people’s lives very directly. So will they put their unproductive energies into destroying the hopes and dreams of others? If economic (recent) history tells us anything, they will. Max Keiser, who developed the virtual forerunner to the Hollywood Stock Exchange (HSX) computer technology, predicts that if his technology is approved for use with real money, Hollywood will go the way of Enron and Lehman within two years. – Ilene
As if attacks from paparazzi and star-crazed fans weren’t enough, Hollywood stars may soon have a literal price put on their heads by investors in the Cantor Exchange, a real-money trading platform where people can bet on the gross profits of upcoming movies. Sales of The Dark Knight skyrocketed after Heath Ledger died unexpectedly, and so did sales after the deaths of Michael Jackson, Elvis Presley and Marilyn Monroe. Will greed-driven investors now be laying in wait for the stars of movies they have bet on?
The Cantor Exchange (CE) is based on a virtual trading platform called the Hollywood Stock Exchange (HSX), a web-based, multiplayer simulation in which players buy and sell “shares” of actors, directors, upcoming films, and film-related options. The difference is that where the HSX uses virtual money, CE will turn the game into a real casino using real dollars.
On April 21, Cantor Exchange reported that it had just received regulatory approval from the Commodity Futures Trading Commission (CFTC), which oversees futures exchanges. “This is a significant step forward in achieving our ultimate goal,” it said in a letter, “which is to launch a market in Domestic Box Office Receipt Contracts.”
Having “contracts” out on movies and movie stars, however, has an ominous ring; and the Motion Picture Association of America (MPAA) apparently doesn’t like the sound of it. The Cantor letter said that its tentative launch date of April 22 was being delayed because the MPAA and others “raised concerns about the economic purpose of this market and its usefulness as a hedging vehicle.”
The legitimate hedgers, the moviemakers and equity holders with a real financial interest to protect, don’t want it. But Cantor is pushing forward, because gambling is big business and there are…
Hollywood may know a thing or two about how Wall Street works after all, regardless of what Shia LeBeouf may think about InterOil. And the movie lobby really seems to know a thing or two about Washington.*
For weeks, big movie studios have been fighting an effort by two financial firms to launch a new market in movie futures that would allow investors to bet on box office takings. The financial firms think this is an Oscar-worthy scheme. The movie studios panned it. Wall Street is used to getting its way in Washington. But this time, the James Camerons of the world appear to have outsmarted the Gordon Gekkos.
This Capitol Hill clash began with the Hollywood Stock Exchange (HSX), a fake-money internet game in which players try to predict the box office takes of Hollywood’s biggest flicks. In 2001, Cantor Fitzgerald, a Wall Street investment firm, bought the five-year-old HSX with the intention of perhaps starting a real-money market along the same lines.
Cantor Fitzgerald was nearly wiped out on 9/11 and it wasn’t until 2008 that the firm asked the Commodity Futures Trading Commission to approve HSX. The OK came this month for HSX and another exchange, Media Derivatives Inc. (MDEX). And that’s when the Motion Picture Association of America lobbyists decided it was time for their close-up.
Cantor Fitzgerald may be a big deal on Wall Street. But it doesn’t have nearly as much pull on the Hill. It hasn’t lobbied the Senate directly since 2002, according to disclosure databases. And while its employees give generously to congressional candidates, it doesn’t have a PAC exclusively promoting its interests. MDEX—an Arizona-based firm started in 2007—is even less of a Washington player.
Hollywood’s lobbying paid off. On April 16, as MDEX executives were no doubt celebrating their good fortune, Sen. Blanche Lincoln (D-Ark.) released her draft financial regulatory reform bill. In it, she proposed the first exclusion of a product from futures markets since angry onion farmers descended on Congress in 1958 to accuse Chicago-based traders of capturing the market and artificially driving down prices. The current law lays out rules governing the trade of derivatives of any product "except onions." If Lincoln’s
Cisco’s CRS-3 router made a bit of a splash when it was announced on March 9, but the power of this new device hasn’t yet sunk in. Consider: The CRS-3, a network routing system, is able to stream every film ever made, from Hollywood to Bombay, in under four minutes. That’s right — the whole universe of films digested in less time than it takes to boil an egg. That may sound like good news for consumers, but it could be the business equivalent of an earthquake for the likes of Universal Studios and Paramount Pictures.
Most people are familiar with routers, or desktop boxes used to provide connectivity between PCs, laptops and printers in a home or small office. These are tiny geckos compared with theT. rexes used by telcos such as Verizon and AT&T to distribute data among computer networks and provide Internet connectivity to millions of homes and wireless subscribers.
As it turns out, these megarouters sitting inside data centers of major telcos and cablecos are among the biggest bottlenecks of the Internet, because as bandwidth speed to end users has shot up in recent years, router technology has not kept up, resulting in traffic jams that can slow or freeze downloads.
Cisco’s superrouter is expected to turn what is now the equivalent of a country road into an eight-late superhighway for Internet data traffic, including 3-D video, university lectures and feature films such as Harry Potter and the Half-Blood Prince and The Twilight Saga: New Moon. "Video is the big driver behind all this," says analyst Akshay Sharma of technology-research company Gartner Inc., noting that voice and texting will soon be overtaken by richer multimedia content and applications.
While it’s already possible to stream a feature film in real time, in the best-case scenario it takes about two hours to download to a personal film archive, at home or on a mobile device, for repeat viewing. With the predictable slowdowns and interruptions now so common, the process can eat up four hours or more of computer time — to say nothing of time lost managing the process.
But routers are not the only cause of bottlenecks, and Cisco is not alone in working to maximize the Internet’s full potential. Google is also concerned about the speed limitations imposed by wires that run to the home. Last…
A bunch of legendary comedians got together to make a sketch, where the punchline is: "establish a Consumer Financial Protection Agency". It’s kinda a funny, but mostly because of the Darrell Hammond’s imitation of Clinton making sexual innuendos, and Fred Armisen’s impersonation of Barack Obama. It seems director Ron Howard was trying to find something to ‘do good’, so he chatted with the earnest and overeducated Elizabeth Warren, and decided consumer financial regulation was the kind of smart idea that would obviously work. After all, who’s against consumer protection?
I am! This is the same government that goaded banks to lower standard to lend more to historically damaged communities, and then when those borrowers defaulted, blamed such lending on the banks. Avoiding the poor is redlining, targeting the poor is predatory, which means, whatever goes wrong can be blamed on the banks. Government always wants to have its cake and eat it too: low taxes & high spending, high growth and union-type work rules, banks lending more today and raising their capital.
The CFPA tries to do what most regulators try to do: improve efficiency, eliminate waste, consolidate regulations,simplify regulations, protect consumers, and protect jobs! It seems banks are greedy and basically uregulated, leading directly to the 2008 housing crisis. There are seven government bodies already regulating banks, highlighting how incredibly naive this proposal is. If there’s a magic bullet for improving efficiency, etc., share it with existing regulators…unless you think that all the regulators have been captured by some interest group, which if true just means we are bringing in one more interest group to advocate why they should get a better deal.
More importantly, if your concern is about the irrational poor people easily duped by huckster bankers, lower prices and penalties on the poor doesn’t help them, it enables them. Life has carrots and sticks, and one definition of a vice is that which generates bad outcomes in the long run. If you are constantly overdrafting your account, don’t have enough money to make a 20% down payment on a property, you need better financial discipline. Helping the poor from being trapped by debt should try to minimize they amount of debt they have, say by increasing rather than lowering prices on credit cards.…
In my larval, pre-blogging days, I always faced the back-to-school moment with abject dread. It meant returning to a program of the most severe, mind-numbing regimentation in the ghastly New York City public schools after a summer of idyllic unreality in the New Hampshire woods, where I went to a Lord of the Flies type of summer camp. And so here I am, many decades later, still uneasy as the final page of the August calendar flies away in a hot Santa Ana wind, and a great hellfire closes in on the far eastern reaches of Los Angeles, and the American money system falls into a peculiar limbo, and every fifth person is out of work, or going bankrupt, or glugging down the seawater of default, or being denied coverage by health insurance that he-or-she has already shelled out ten grand for this year, or getting shot in a trailer park.
I was in Los Angeles for a few days last week, as chance had it, marveling at the odd disposition of things there. I’ve been there many times over the years, but you forget how overwhelmingly weird it is. Altogether the LA metro area has the ambience of a garage the size of Rhode Island where someone happened to leave the engine running. To say that LA is all about cars is kind of like saying the Pacific Ocean is all about water. But one forgets the supernatural scale of the freeways, the tsunamis of vehicles, the cosmic despair of the traffic jams. The vistas of present-day LA make the Blade Runner vision of things look quaint in comparison.
You motor out of the LAX airport – personally, I love the name "LAX" because it so beautifully describes the collective ethos of the place – and you discover quickly that the taxi cab’s windows are not that dirty, it’s the air itself colored brown like miso soup. Going north on the 405 freeway, you see the looming Moloch of the downtown skyline through the brown miso soup. And you begin to understand why the products of the film industry are so fixated on the theme of machine apocalypse. Downtown LA looks like just such a gigantic machine as the FX crews would dream up, as if a day will come when those gleaming mirrored office towers will pull themselves
First we had the $5.5 billion dollar deal between Baker Hughes and BJ Services. Now Disney picks up Marvel. It’s suddenly feeling like the old days when Monday mornings meant merger announcements. That’s $9.5 billion in deal flow today.
No details yet on the banks working the deals or the financing involved.
From the Associated Press:
Walt Disney Co. says it is acquiring Marvel Entertainment Inc. for $4 billion in cash and stock, bringing characters like Iron Man and Spider-Man into the Disney family.
Under the deal, Disney will acquire ownership of 5,000 Marvel characters.
Disney said Monday that Marvel shareholders will receive $30 per share in cash plus 0.745 Disney shares for every Marvel share they own.
It said the boards of Disney and Marvel have both approved the transaction, but it requires an antitrust review and the approval of Marvel shareholders.
Disney (DIS) announced this morning it was acquiring Marvel Entertainment (MVL) for about $4 billion, or $50 per Marvel share. The acquisition price represents a 30% premium to Marvel’s current share price.
Operationally Marvel appears to be a good fit for Disney. Disney’s distribution could quickly exploit Marvel’s strong licensing business. In addition, Marvel has recently gotten into making its own productions (versus just licensing its characters for films), which has helped drive better-than-expected results the past few quarters.
For the first time ever, Chinese State television has aired construction work on the artificial island known as the Fiery Cross, or Yongshu, Reef in the Nansha Islands, located in the contested territory inside the South China Sea.
Fiery Cross is also claimed by the Philippines, Vietnam and Taiwan however China has been the fastest in actually settling the reef which it converted into a man-made island in 2014 to which it has deployed hundreds of troops.
In yesterday's ADP employment report we got a March estimate of 156K new nonfarm private employment jobs, April estimate of 156K new nonfarm private employment jobs from ADP, a decrease from March's 194K, which was a downward revision from 200K. The popular spin on this indicator is as a preview to the monthly jobs report from the Bureau of Labor Statistics. But the ADP report includes a wealth of information that's worth exploring in more detail.
Here is a snapshot of the monthly change in the ADP headline number since the company's earliest published data in April 2001. This is quite a volatile series, so we've plotted the monthly data points as dots along with a six-month moving average, which gives us a clearer sense of the trend.
A huge wildfire near Canada's oil sands region and escalating tensions in Libya stoked concern among investors over a near-term supply shortage, driving crude prices up for the first time in a week on Thursday.
Two years after Newsweek wrote an inaugural article upon returning to print in which it "unmasked" bitcoin creator Satoshi Nakamoto and which turned out be a hoax (the author "found" Nakamoto using a white pages search), earlier this week the world was fixated on the story of another self-professed bitcoin "creator", this time Australian entrepreneuer Craig Wright, who &quo...
How many of you like “Choppy/Sideways” markets? I humbly suspect that most don’t. They do present some short-term trading opportunities for sure, nothing wrong with that. From a trend perspective, I would understand if some think a sideways pattern is boring.
Below takes a close look at the S&P 500 over the past couple of years.
CLICK ON CHART TO ENLARGE
The S&P 500 has spent the last couple of years, forming...
Relypsa Inc (NASDAQ: RLYP) shares have plummeted 51 percent year-to-date, under pressure from debt-financing related concerns. Cantor Fitzgerald’s Mara Goldstein reiterated a Buy rating for the company, while reducing the price target from $42 to $41. The analyst believes the 1Q16 results would be “a stabilizing force for the shares.”
Positive Data Points For Veltassa Launch
Veltassa metrics look favorable so far, including a low payer rejecti...
By Jacob Wolinsky. Originally published at ValueWalk.
Pension Funds – Taking the Long View: The Dangers of Short-Termism
Scott Minerd, Managing Partner, Chairman of Investments and Global Chief Investment Officer, Guggenheim Partners
Christopher Ailman, Chief Investment Officer, California State Teachers? Retirement System; Co-Chair, Global Capital Markets Advisory Council, Milken Institute
Scott Evans, Deputy Comptroller, Asset Management, and Chief Investment Officer, New York City Retirement Systems
Vicki Fuller, Chief Investment Officer, New York State Common Retirement Fund
Hiromichi Mizuno, Executive Managing Director and Chief Investment Officer, Government Pension Investment Fund, Japan
Intensifying global competition, flagging corporate earnings and emboldened activist investors ...
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Although we try to stay focused on finding and managing promising trade ideas, the comments in the comment section sometimes take a political turn (for access, try PSW — click here!). So today, Jean Luc writes,
The GOP debate last night was just unreal – are these people running to be president of the US or to lead a college fraternity! Comparing tool size? The only guy that looks semi-sane is Kasich. The other guys are just like 3 jackals right now.
And something else – if Trump is the candidate, that little Romney speech yesterday is probably already being made into a commercial. And all these little snippets from the debate will also make some nice ads! If you are a conservative, you have to be scared now.
Phil writes back,
I was expecting them to start throwing poop at each other &n...
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Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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