Morning Coffee: Traders' 12-hour thrill ride. Investment bankers try to be like Trump
While Donald Trump's supporters donned saggy red baseball caps and whooped at any passing camera, hedge fund traders in New York gathered in a loft apartment in Manhattan’s Soho expecting to toast Hillary Clinton's success. As it became apparent Trump was gaining an edge, instead of drinking wine, they were glued to their phones placing bearish futures trades. Then, they all called Ubers and made their way back into the office.
In Cornwall, UK, John Mappin was reaping the rewards of 35 bets on a Trump victory - £110k to be precise - having spent Tuesday evening devising mathematical formulas in a hotel he owns and consuming huge quantities of chicken consommé. The WSJ has spoken to traders around the world, charting Trump's unlikely victory over the course of 12 hours.
In London, Mark Dowding, co-head of investment-grade debt at BlueBay Asset Management, woke up at 2am when Trump won key swing states and decided to go into the office two hours later. Typically, in a commuter village outside of London, the train didn't show, so he shared a taxi with other finance professionals all "tapping away on their phones" for an hour until they made it into the City. Kevin Daly, a fund manager at Aberdeen Asset Management, checked a flood of emails from colleagues at 4.45am as Trump took Ohio and Florida and he sat open-mouthed in his PJs. “I needed a second source,” he said.
Hong-Kong-based Trader Gavin Parry wasn't shocked: “The joke on the desk was basically 2016 is the year to bet on the underdog. You have Leicester City winning soccer, you have the Cubs win, you have Ireland beating New Zealand [in rugby] for the first time in 115 years this weekend, and now you’ve got Trump!”
Separately, now that Trump is president, he's been held up in a new light as a master deal-maker. Rainmakers in New York are now snapping up copies of his autobiography The Art of the Deal, according to the FT. Fair enough, but you shouldn't forget that the book was ghostwritten by former journalist Tony Schwartz - Trump's 'Dr Frankenstein' - who has since made it very clear that he polished up Trump's ramblings.
“I put lipstick on a pig,” he told the New Yorker in July. “I feel a deep sense of remorse that I contributed to presenting Trump in a way that brought him wider attention and made him more appealing than he is. I genuinely believe that if Trump wins and gets the nuclear codes there is an excellent possibility it will lead to the end of civilization.”
Lloyd Blankfein speaks out about Trump: “I know that some of you may feel uncertain, or perhaps even disheartened or uncomfortable with the outcomes of these political cycles, while others of you feel just the opposite.” (Bloomberg)
Jamie Dimon has been tipped for Trump’s treasury secretary. There is a “less than 1%” chance of this happening (Telegraph)
Meet the financiers who predicted Trump’s victory (WSJ)
“Making America great again could mean expanding New York as a financial centre and giving the US banks freer rein to operate around the world." (Financial Times)
These are the 18 London-based partners at Goldman Sachs (Financial News)
Benoît d’Angelin, one of the founders of boutique investment bank Ondra Partners, has retired (Financial News)
Trump has close connections with Wall Street and a network of conflicts of interests never seen before in a U.S. president (Vox)
Wells Fargo, J.P. Morgan and Bank of America shares were the big gainers on Thursday (WSJ)
The case for the ‘London visa’ (Financial Times)
Barclays is shaking up its investment bank in Europe and Asia again (Market Watch)
Deutsche Bank is expecting a surge in Middle Eastern M&A next year (Bloomberg)
Deloitte has been fined £4m ($5m) and partner John Clennett £150k for an inadequate audit of Aero Inventory Plc. This is the biggest fine ever (Bloomberg)
Women do 60% of the housework and spend twice as long on childcare than men (Financial Times)