FT : The good, the bad and the Gross: A look back at the ‘Bond King’s’ best quot

The good, the bad and the Gross: A look back at the ‘Bond King’s’ best quotes


Bill Gross, who has described himself as a “70-year old Justin Bieber”, is known for his…unusual investment letters. In light of his latest — in which he declared “Bonds, like men, are in a bear market” — here is a look back at some of his eccentric missives:

The time he wrote about the pleasures of sneezing:

There’s nothing like a good sneeze; maybe a hot shower or an ice cream sandwich, but no – nothing else even comes close. A sneeze is, to be candid, sort of half erotic, a release of pressure that feels oh so good either before or just after the Achoo! The air, along with 100,000 germs, comes shooting out of your nose faster than a race car at the Indy 500.

The time Mr Gross mourned his pet cat:

Aside from sleeping, Bob loved nothing more than to follow me from room to room making sure I was OK. It got to be a little much at times, especially when entering and exiting the shower. I’m not a particularly shy guy, but then why was a female cat named Bob checking me out all the time? Her obsession carried over to the TV, sensing when I was on CNBC and paying apt attention no less. I often asked her about her recommendations for pet food stocks, and she frequently responded – one meow for “no,” two meows for a “you bet.” She was less certain about interest rates, but then it never hurt to ask.

The time he mourned his lack of a six-pack:

The midsection of a 67-year-old is not a pretty sight. No matter how many sit-ups I do during my daily workouts there are no six-pacs there, or anywhere in the vicinity for that matter. I can’t even get a one-pac going. Perhaps that’s because so many Budweiser six-packs made their way downstream over the past half century or so. In any case, not being able to avoid seeing my spare tire, I take my wife Sue’s advice when it comes to weighing herself – do it only first thing in the morning. In this case, there is the additional appeal of lights being dim and if I can creep past the bathroom mirror while turning my head the other way, then all the better.

The time he failed to get a girl into the backseat of his car:

Being somewhat of a high school star, I decided to try out for the taxi squad on the freshman team. Duke that year was well stacked with three future All Americans and NBA players but they needed some competition in practice and I was a prospective servant for the greater cause – not Duke – but my chance to show off and eventually get a girl into the backseat of a car for the first time in my life. Neither came to pass as I was cut during the first tryout session and cut frequently as well on second and third dates in parking lots behind the sorority houses.

The time he fancied himself a philosopher:

I am a philosophical nomad disguised in Western clothing, a wondering drifter, masquerading in a suit near a California beach. Sand forms the foundation of my being and its porosity is at once my greatest strength and deepest wound. I have become after 70 years, a man who believes that no belief is sacred. I have ideals and moral standards, but I believe them specific to me. Had I inherited your body and ego, “I” could just as clearly have assumed “yours.”

If so, I wonder, if values are relative, then what are mortals to make of them, and what would a judging God make of us? If a collective humanity is to be rooted in sandy loam, spreading its ideological seeds through howling winds only to root in mutant form at different places and different times, can we judge an individual life?

Thursday’s letter has already joined the ranks of his most quoteable, with one foot seemingly planted in the #MeToo movement and the other in the “Not All Men” camp:

Women have gotten the short stick or metaphorically the short rib ever since Eve, and I’m with Oprah for president and much, much more but hey, guys have got a few positive qualities that need to be mentioned. I mean when basketball players miss a free throw these days, they still get “low fives” from all their teammates. So here are a few low fives for men, men, men.

Men need fewer pairs of shoes and purses.
Men live 10 years less on average. They truly are the weaker sex. Feel sorry for ‘em ladies, not angry.
Men shouldn’t be criticized for not putting the toilet seat down. If they need to put it down, hey will. If women do too, they can use their foot just like everyone else.
Men run faster, jump higher and are much better at not communicating.
Sure men start wars but great things actually are a result of them. Canned foods owe their origin to Napoleon, microwave ovens to the invention of radar during WWII, and the Internet (not Al Gore) to the fear of Russia bombing U.S. telephone lines during the Cold War. Way to go guys. Keep starting those wars.
Men always know where the remote control is. Right next to them.

I could go on and on. I won’t. I don’t dare. Actually most of the world’s problems would go away if men just stayed home, watched football and learned to talk to their partners during commercial breaks. There are certainly enough of them.

>>> What to look at today - 12th of January 2018

Dow +0.81% S&P +0.70% Nasdaq +0.81% Russell +1.73%
US Market Rallied to new records. small-cap Russell 2000 set the pace, jumping 1.7% to 1585.63. Eight of eleven sectors advanced with the energy (+2.0%), consumer discretionary (+1.6%), industrials (+1.3%), and materials (+1.3%) groups being the top performers. energy sector was up as much as 2.4% thanks to a crude oil rally, which saw West Texas Intermediate crude futures jump 1.9% to $64.35 per barrel--their best level since December 2014. However, energy shares trimmed gains in the afternoon when WTI crude gave back much of its advance, settling higher by just 0.4% at $63.79 per barrel. On the downside, the consumer staples (-0.1%), utilities (-0.4%), and real estate (-0.7%) sectors declined on Thursday, extending their year-to-date losses to 0.4%, 4.0%, and 4.6%, respectively. For comparison, the S&P 500 has added 3.5% year to date. US AAfter Hours FNSR +2.8% as CEO news rekindles M&A speculation, ATRO +5% on guidance raise and AMD -3% following processor security update. Asian stocks are set to end the week on diverging paths as Japanese shares declined, while those in Hong Kong extended a record winning streak. Volatility in the Treasuries market subsided and the euro extended its advance. Equities rose in most Asia-Pacific markets with above-average volumes in Hong Kong and South Korea, while a stronger yen weighed on Japanese stocks. Treasuries steadied after a sell-off sparked by rising concerns on inflation and potential rollback of purchases by China. Bitcoin steadied after four days of losses for the largest cryptocurrency amid increasing scrutiny from regulators around the world with concerns ranging from investor losses to strains on power systems.

Nikkei -0.24% Hang Seng +0.63% CSI +0.37% Shanghai +0.10% Shenzen -0.18%

Eur$ 1.2045 CNH 6.4824 CNY 6.4770 JPY 111.35 GBP 1.3545 CHF 0.9763 RUB 56.5280 WTI$ 63.44 -0.56%

S&P +0.03% EuroStoxx +0.28% Dax +0.37% FTSE +0.08% SMI +0.22%

Macro :
- Bitcoin Could Tank Below $1,800 This Year, Quinlan Report Says
- Cohen Is Said to Raise at Least $3B for New Fund: Bus. Insider
- ECB Says Banks Should Adopt Conservative 2017 Dividend Policy
- Hedge Fund Oceanwood Moves Execution Desk to Malta From London
- Goldman Sees Capital Goods Recovery Having Further to Run

Keep an eye on :
- AZA IM : Alitalia attracts solo bid from Delta
- ARYN SW : Aryzta Names New Chief Strategy Officer, North America CEO
- ATCOA SS : Sandvik Raised to Hold, But Atlas Copco Preferred: Jefferies
- USE GY : Beate Uhse attracts interest from Orion
- BP/ LN : BP to Pay $102m in Natural Gas Lawsuit Settlement With Calif.
- CA FP : Carrefour Buys 17% of Showroomprive for EU79M From Conforama
- CLLN LN : Carillion pension trustees, pensions regulator, UK government officials to hold emergency meeting on 12 January
- DBK GY : Deutsche Bank’s Schenck Doesn’t See 2018 Major Writedowns: HB
- DTE GY : Deutsche Telekom Risks ‘Overrated,’ Raise to Buy: Bankhaus Lampe
- ELE FP : Allianz Offer For Euler Hermes to Start on January 15
- EUCAR FP : Hertz, Avis Jump as Delta Boosts Optimism on Air Travel Demand
- FCA IM : FCA Reports Plan to Invest Over $1b in Michigan Plant
- FORTUM FH : Fortum Top Pick, Recommends Overweight on Utilities: Berenberg
- JMT PL : J. Martins Fourth Quarter Revenue Meets Estimates
- KER FP : Kering Is Said to Mull Options For Puma Including Spinoff: Rtrs
- LIAB SS : Lindab Names Ola Ringdahl New CEO
- MGI US : MoneyGram Pares Gain Amid Doubts Over Benefits of Ripple Pact
- MGI US : MoneyGram to Set Up EU Base in Brussels Due to Brexit: L’Echo
- NDA SS : Nordea’s Danish M&A Unit Seeks More Mid-Sized Deals, Borsen Says
- ORSTED DC : Orsted Faces Lawsuit Over its New Name, Borsen Says
- RDSA NA : Itochu in Talks to Buy 20% Stake in Iraq Oilfield From Shell
- RIO LN : Rio Could Raise $3.9b in Pacific Aluminium Sale, Macquarie Says
- SGO FP : Saint-Gobain to Become Partner in Kuwait’s Kimmco
- GLE FP : Societe Generale Sees $307m Charge to Be Recorded in 4Q ’17
- SNH GY : Steinhoff’s S. Africa Investors Ask to Join Dutch Lawsuit: BD
- VEC LN : VEC LN (potential target for GSK LN) - Telegraph
- VIV FP : Vivendi: Preliminary Positive Trends 2017 Op Results

>>> Europe : Brokers Upgrades & Downgrades - 12th of January 2018

>>> Up
* Axa Upgraded to Buy at Citi
* Deutsche Telekom Upgraded to Buy at Bankhaus Lampe
* EDF Upgraded to Hold at Berenberg
* Endesa Upgraded to Buy at Berenberg
* Fortum Upgraded to Buy at Berenberg
* Metso Upgraded to Neutral at Goldman; PT 30 Euros
* Puma SE Upgraded to Buy at Equinet
* SSP Upgraded to Overweight at JPMorgan; PT 7.65 Pounds
* Verbund Upgraded to Buy at Berenberg

>>> Down
* Amundi Downgraded to Neutral at Natixis
* Eltel Downgraded to Hold at SEB Equities; Price Target 33 Kronor
* Kingspan Downgraded to Hold at Berenberg
* Ladbrokes Coral Cut to Neutral at JPMorgan; PT 1.95 Pounds
* Puma SE Downgraded to Underperform at BofAML
* Schoeller-Bleckmann Cut to Hold at Erste Group; PT 94.50 Euros
* TUI Downgraded to Neutral at JPMorgan

>>> Initaition
* Brunello Cucinelli Rated New Buy at Berenberg; PT 31 Euros
* Dialog Semi Rated New Reduce at Kepler Cheuvreux; PT 26 Euros
* FACC Rated New Buy at Kepler Cheuvreux; PT 22 Euros
* Tornos Holding Rated New Buy at Research Partners; PT 9 Francs

>>> Call
>> Sector
* Goldman Sees Capital Goods Recovery Having Further to Run

>>> Beate Uhse attracts interest from Orion

Beate Uhse attracts interest from Orion (translated)
12 JAN 2018
Beate Uhse, the German erotic products company, has attracted takeover interest from rival Orion, Frankfurter Allgemeine Zeitung reported.
The German-language daily cited a spokesperson for Orion as saying that the company has made no official decision, however, is examining a possible participation in the bidding. According to the spokesperson, Uh­se is probably the best-known brand in its field. Orion, a former Uhse subsidiary was separated from the company in the 80s, the report noted.
The report cited unidentified sources as saying that the management of Beate Uhse, which entered insolvency four weeks ago, has been in contact with possible buyers together with its official administrator and experts from the advisory firm One Squa­re Ad­vi­sors.
In the coming weeks, indicative offers are expected, with binding offers for parts or all of the company anticipated by the end of February, according to the report. An unidentified involved person was cited as saying there is strong interest, with a range of investors hoping to take a close look at the business.
The report noted that Uhse's management, led by Chief Executive Mi­cha­el Specht, this week announced the granting of a mass credit from financial investor Ro­bus Ca­pi­tal in the value of EUR 2.7m.

>>> Carillion pension trustees, pensions regulator, UK government officials to h

Carillion pension trustees, pensions regulator, UK government officials to hold emergency meeting on 12 January

Trustees of Carillion’s [LON:CLLN] pension schemes will on Friday, 12 January, hold an emergency meeting with the UK’s Pensions Regulator (TPR), the Pension Protection Fund (PPF) and civil servants, Sky News reported. The report did not cite a source for the information.
Carillion presented an amended business strategy to its lenders on Wednesday, as previously reported.
The UK-based construction services group’s pension scheme is about GBP 580m (EUR 652m) in deficit, the item said. That deficit would likely increase substantially if the figure was to be determined based on a full buyout of its pension schemes, according to the report.
The meeting on Friday is unlikely to include Carillion itself, the article added.
The report quoted a spokesperson for TPR, which said it has been “closely involved” with talks between Carillion and its pension scheme trustees, but added that it will not make any further comment unless such comment is appropriate.
The PPF would be responsible for pension payments to Carillion employees in the event that the company collapses. The PPF said it knows of the talks between Carillion, its lending banks and the government, according to the report.
Carillion will need short-term financing as of the end of January due to problems including its reported 1HY loss of GBP 1.15bn in September 2017. The group disclosed late in December that it had secured a deferral of a covenant test on its loans from 31 December to 30 April.
One insider cited by the report estimated that Carillion will require new short-term financing of about GBP 300m at the end of January. The company would probably be put into administration if it does not secure that funding, the item said.
The proposals put forward by Carillion to its lenders on 10 January include relinquishing loss-making contracts, securing revised terms for other contracts and possibly securing financial assistance from the state if such support is not forthcoming from the private sector, the report said.
Carillion also plans to sell assets to raise cash, although to date it has only sold a package of healthcare outsourcing contracts to its competitor Serco [LON:SRP] in a GBP 50m deal, the item noted.
The company is also preparing to exchange at least GBP 1bn of its debt for equity, the article continued. Doing so would hand a large stake to its pension scheme, or to the PPF, the report said.
Separately, the Ft.com website reported on Thursday evening that UK government ministers held a meeting on Thursday to discuss the prospect of Carillion collapsing. Carillion has contracts with the government's defence, justice and transport departments, the item noted.

Potential job losses among Carillion's 19500 UK employees were also on the agenda at the meeting on Thursday, the report said.
Carillion's share price closed 2.62p down at 19.98p in London on Thursday, giving the company a market capitalisation of GBP 85.9m.

>>> Alitalia attracts solo bid from Delta

Alitalia attracts solo bid from Delta

Delta Airlines [DAL:US] has made a bid for the aviation assets of Alitalia, an Italian airline, according to a report in the Italian-language daily Il Sole 24 Ore reported. The unsourced report said that Delta is at present making a solo bid.
The report noted that Delta has refused to comment on the claims but has confirmed that it has met with Alitalia's commissioners.
The item added that Alitalia commissioners are meeting with private equity fund Ceberus today, 12 January.
The report noted that Delta's participation in the auction, together with Air France-KLM's [EPA: AF] rumoured partnering-up with easyJet [LON: EZJ] in a joint offer, is likely to lengthen the bidding process.
As previously reported, Lufthansa [ETR:LHA], the other bidder in the race, is understood to be offering EUR 300m for the aviation assets.

>>> Asian Update

Asia Market Update: Equities trade mixed ahead of US CPI, Retail Sales and Bank earnings; China expresses caution regarding trade outlook

***Headlines/Economic Data***
General Trend: Energy shares outperform
- China Dec Trade Surplus above estimates amid lower than expected imports; China Customs Dept expresses caution regarding 2018 trade outlook
- Japan 40 year JGB auction has highest bid to cover since 2014
- Earnings expected in NY morning from BlackRock, JPMorgan, PNC and Wells Fargo
- India’s Infosys due to report Q3 results

China/Hong Kong
-Hang Seng opened +0.6%, Shanghai Composite flat
Hang Seng Energy Index +1.9%, Materials +1.3%, Consumer Goods +0.6%, Financials +0.5%
-(CN) CHINA DEC TRADE BALANCE ($): 54.7B V 37.0BE (highest monthly surplus since Jan 2016); Exports Y/Y: 10.9% v 10.8%e; Imports Y/Y: 4.5% v 15.1%e
-(CN) China Customs Dept Comments on drivers of 2017 Trade: For 2017, trade growth was driven by better than expected global recovery, domestic economic improvement, policies to boost imports, 'Belt and Road Initiative' and low comparison base.
-(CN) China Customs Dept Comments on Trade Outlook: China Trade outlook ‘upbeat’ in 2018; will be difficult to maintain double digit trade growth in 2018; Dec Export Leading Index 41.1, down 0.7 m/m; Says data shows pressure facing Q1 exports.
-(CN) China PBoC OMO: Injects CNY270B v CNY60B injected in 7, 14-day reverse repos prior: Net injects CNY180B v CNY30B drained prior; For the week, PBoC injects net of CNY40B v CNY510B drain w/w
-(CN) PBoC sets yuan reference rate at 6.4932 v 6.5147 prior
-(CN) China should keep its property controls continuous and stable
-China press-(CN) Trust companies in China have placed limits on leveraged funds used for equities – China Securities Journal

Japan
-Nikkei 225 opened flat; closed -0.2%
TOPIX Real Estate Index -0.7%, Information/Communications -1%
Fast Retailing +6% (Q1 results above ests; affirmed FY outlook)
Softbank -1%
Nikkei 225 Jan options said to settle at ~23,723
- JAPAN NOV TRADE BALANCE BOP BASIS: ¥181.0B V ¥310.6BE
- Japan Dec Bank Lending Ex-Trusts Y/Y: 2.4% v 2.7% prior; Incl Trusts Y/Y: 2.5% v 2.7% prior
- JAPAN NOV BOP CURRENT ACCOUNT ADJUSTED: ¥1.70T V ¥2.17TE; CURRENT ACCOUNT: ¥1.35T V ¥1.84TE
- Japan Dec Eco Watchers Survey Current: 53.9 v 55.1e; Outlook: 52.7 v 53.5e
- Japan MoF sells ¥500B v ¥500B indicated in 0.90% 40-yr bonds, bid to cover 3.67x v 3.00x prior (highest bid to cover since 2014)

South Korea
-Kospi opened +0.5%, has since pared gains
Samsung Electronics -3%: Shares remain weaker following release of prelim Q4 results earlier in week
-South Korea Presidential Office officials to discuss measures related to cryptocurrencies – South Korea Press
-South Korea and China to hold Finance Chief meeting on Friday, Feb 2nd

Australia/New Zealand
-ASX 200 opened +0.2%: closed flat
ASX 200 Resources Index +1.5%, Energy +0.8%; Financials -0.1%, REIT -0.5%
-(NZ) New Zealand Nov Building Permits M/M: +10.8% v -9.6% prior

North America
-US equities markets closed higher: Dow Jones +0.8%, S&P500 +0.7%, Nasdaq +0.8%, Russell 2000 +1.7%
S&P 500 Energy Sector +2%, Consumer Discretionary +1.6%
-(US) Pres Trump: will terminate NAFTA unless we reach a fair deal - press interview
-(US) US Commerce Sec Ross: Submitted results of probe into national security impact of steel imports to President Trump; - President Trump now has 90-days to decide on any potential action based on the findings of the Section 232 Steel probe.
-(US) Fed's Dudley (dove, FOMC voter): worried growth overheating is a real risk in the next few years; Fed may have to press harder on the brakes at some point; Case for rate rises remains strong; A more aggressive Fed policy could increase risk of a hard landing; Fed forecast for 3 rate hikes this year is a reasonable starting point; We should try to achieve current 2% inflation target before talking about moving the goal higher;
Looking Ahead : US Dec CPI and Retail Sales due for release

Europe
-(UK) PM May reportedly told bankers that their industry is a priority for her in Brexit talks - press
-(UK) US President Trump said to cancel UK visit planned for Feb, expected to send US Sec of State Tillerson instead – UK Press; Trump was said to have been concerned about the welcome he would receive in the UK.


***Levels as of 01:00ET***
- Hang Seng +0.4%; Shanghai Composite +0.1%; Kospi flat
- Equity Futures: S&P500 flat; Nasdaq100 flat, Dax flat; FTSE100 -0.1%
- EUR 1.2067-1.2029 ; JPY 111.06-111.35; AUD 0.7875-0.7905 ;NZD 0.7248-0.7277
- Feb Gold +0.5% at $1,328/oz; Feb Crude Oil -0.3% at $63.62/brl; Mar Copper +0.3% at $3.237/lb

>>> US After Hours Summary: FNSR +2.8% as CEO news rekindles M&A specu


After Hours Summary: FNSR +2.8% as CEO news rekindles M&A speculation, ATRO +5% on guidance raise and AMD -3% following processor security update

After Hours Gainers:

Companies trading higher in after hours in reaction to guidance: ATRO +5% (announces Q4 bookings were approx. $229 mln; co also raises FY 18 revs guidance above consensus)

Companies trading higher in after hours in reaction to news: SAEX +24% (announces receipt of additional Alaskan tax credit certificates), PFMT +21.1% (thinly traded - continued strength), DYSL +12.7% (Dynasil Corporation of America's Xcede Technologies submits application for first-in-human clinical trial ), SGRP +9.7% (acquires Resource Plus; financial terms not disclosed), TVPT +3.8% (will replace Bob Evans in the S&P SmallCap 600), FNSR +2.8% (Chairman/CEO Jerry Rawls to retire and Michael Hurlston appointed CEO effective today; also hearing analyst suggesting increased potential for M&A), SKLN +2.6% (ticking higher after confirming it has regained compliance with Nasdaq's minimum stockholders' equity listing requirements), FRAN +2.5% (Pres/CEO disclosed the purchase of 10k shares), FCAU +1.4% (Fiat Chrysler to invest more than $1 bln in Michigan Plant and pay bonus to approx 60k U.S. Employees), ZG +1.3% and DISCA +1% (continued strength)

After Hours Losers:

Companies trading lower in after hours in reaction to news: ARDM -45.6% (FDA Advisory Committee did not recommend approval for Linhaliq as treatment for non-cystic fibrosis bronchiectasis patients with chronic lung Pseudomonas aeruginosa infections), KODK -3.6% (continued weakness), AMD -3% (releases update on processor security; GPZ Variant 1 and 2 are applicable to AMD processors), TMHC -2.9% (commences public offering of approx 19.2 mln shares of class A common stock, includes 1.5 mln by holders, and additional concurrent repurchase from equity sponsors), SBGI -0.6% (FCC pauses 180-day transaction 'shot clock' in Sinclair merger)

>>> Vectura mentionned in The Telegraph

City chatter mooted that GSK is preparing to deliver a knockout bid in excess of 175p per share, which would value the company at close to £1.2bn.

Vectura has become vulnerable to a swoop after its share price tumbled 14pc last year and traders have speculated that GSK could be the first to launch an opportunistic bid.

One analyst noted that Vectura’s smart inhaler technology could prove alluring for GSK but added that a move would be a step change as new boss Emma Walmsley attempts to put her stamp on the company.

Vectura’s strategy shift towards partnerships elicited a tepid response from shareholders last week and the company was highlighted by City analysts as one of a handful of mid-cap pharma stocks that are sitting ducks for takeover action. Its shares have been put under pressure by its dispute with US regulators over receiving approval to launch a generic copy of GSK’s Advair drug, as generic drugs snap up more market share.

A final decision is expected from the US Food and Drug Administration during the first quarter of this year. Vectura’s shares were still under the cosh from the looming verdict on Thursday, finishing up 0.5p at 113.9