Morning Agenda: Peso Predictor, Salesforce Investors Speak, Calpers Standoff


Donald J. Trump and Hillary Clinton faced off for the second time at a highly charged debate at Washington University in St. Louis.

Doug Mills/The New York Times

The focus is again on the currency markets, but this time it is not just about the pound.

As Donald J. Trump and Hillary Clinton sparred in their second debate, the Mexican peso rose during Asian trading to its highest level in a month, Bloomberg News reports. That might indicate that traders and investors believe Mrs. Clinton’s chances of winning the presidential election are improving.

And what about the pound? The British currency, after a volatile session on Friday, was holding steady on Monday.

The sudden decline of the pound during early Asian trading on Friday startled many people, but economists see a silver lining in its decline — it has acted as “a giant shock absorber against Brexit,” The Wall Street Journal reports.

It might also be a signal to supporters of the British referendum on leaving the European Union that all is not well.

Salesforce Shareholders Say No to Twitter

Since news has come out that was in talks to buy Twitter, Marc Benioff, chief executive of Salesforce, and his investor relations team have heard an earful from investors who are adamantly against the deal.

Fidelity Investments, which holds about 14 percent of the company, has led the effort — at least one Fidelity portfolio manager emailed Salesforce about the deal being a bad idea, according to people briefed on the correspondence.

Other Salesforce investors, including hedge funds, said they would sell the company’s stock, according to two people with knowledge of the communications.

Salesforce is particularly vulnerable to what its large institutional investors think.

The unprofitable online software company relies heavily on its stock to make acquisitions and pay employees.

Since the Twitter news broke two weeks ago, investors have pushed the stock down by as much as 8 percent.

Potential Holes in ‘Bulletproof’ Pension

The small town of Loyalton, Calif., is shaping up as a test case that could shake the widespread belief that public pensions are untouchable.

Last month, the California Public Employees’ Retirement System, also known as Calpers, told Loyalton that it had 30 days to pay $1.6 million to fulfill the city’s pension liabilities.

If the city did not pay, Calpers said it would cut the pensions of four retirees. One of those retirees, Patsy Jardin, would see her annual pension of about $48,000 drop to about $19,000.

“I couldn’t live on it — no way,” she said. “I can’t go back to work. I’m 71 years old. Who’s going to hire me?”

Public pensions are supposed to be bulletproof because states never go bankrupt.

California has the strongest pension laws in the nation, experts say, requiring employers to fund public workers’ pensions for the rest of their careers, even if the cost was severely underestimated at the outset.

When Loyalton’s City Council voted in 2012 to drop out of Calpers, it was hoping to save the $30,000 a year or more that the town had previously sent in, said Pat Whitley, a former mayor and a Council member.

Loyalton had been paying its required yearly contributions to Calpers, so city officials thought its pension plan must be close to fully funded.

But Calpers came up with a vastly different estimate of the city’s pension costs — a practice that has caught many by surprise — sending a bill of $1.6 million, which is more than Loyalton’s annual budget.

Coming Up

• Speakers at the Conference on Inclusive Capitalism in New York include: Jamie Dimon, chief executive of JPMorgan Chase; Laurence Fink, chief executive of BlackRock; Nelson Peltz, chief executive of Trian Fund Management; Jack Ehnes, chief executive of the California State Teachers’ Retirement System; and Christine Lagarde, the International Monetary Fund’s managing director.

• Charles Evans, president of the Federal Reserve of Chicago, will speak at the Australian Business Economists Luncheon in Sydney at 10 p.m. E.D.T.

Continue reading the main story

If the article suppose to have a video or a photo gallery and it does not appear on your screen, please Click Here

10 October 2016 | 9:54 am – Source:


Leave a Reply

Your email address will not be published.