Readings: Goldman Sac(k)s, Capex slowdown, Jim Chanos
- FT Alphaville: Goldman’s travails: Rumours and reality
Persistent rumours — and some more hard evidence - of deepening difficulties at Goldman Sachs are fuelling debate over whether the investment bank will attempt another fund raising ahead of its fourth quarter results next month. The shares hit a five-year low, down 8.5 per cent to $71.21, on Monday after analysts at Barclays became the latest to forecast a Q4 loss for Goldman, citing in part its exposure to private equity.
Reuters reports Tuesday that the axe has already begun falling in Tokyo, where the bank laid off 10 per cent of its investment bankers including 10 from its mergers and capital markets teams.
- Business Standard: India Inc goes slow on capex plans, suffers 30% cost overrun
A study by Credit Suisse estimated a month back that capital expenditure for a clutch of 34 projects with an investment of about $190 billion (around Rs 9.16 lakh crore) faced a 19-month delay on an average. The consequent cost overrun, it reckoned, would be about 30 per cent.
. . . projects planned and under execution over the past couple of years are estimated at $1.5 trillion (around Rs 72 lakh crore).
Reliance Industries is believed to be taking it easy with the Special Economic Zone(SEZ) in Haryana because it anticipates less demand for such space.
- NY Post: Hedge Fund Chief Short & $weet
Chanos’ short-only fund, Ursus, is up 53.2 percent through the end of October, besting the 30 percent performance Chanos booked in 2007, when he was ranked one of the top 100 traders. For October alone, the $5 billion fund earned its investors a whopping 17.8 percent.
“We are short all of the satellite and most of the cable companies in the US,”.
He was short Moody’s too.
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