The markets are freaking out about a 'dangerous experiment'
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Negative interest rates, which have been implemented around the world in a bid to catalyze economic growth, are doing more harm than good.
They are a "dangerous experiment" for banks, according to Morgan Stanley analysts, who said they incentivize banks to shrink, erode profits and discourage cross-border lending.
In other news, Wall Street's engine room is spluttering. The equities business, which had a stellar year in 2015, has gotten off to a lousy start this year.
And private equity firms are getting warmed up. They're deploying more cash as they spy an opportunity amid the market chaos.
Hedge funds filed their 13F filings, shedding a bit of light on what they've been buying and selling. Here are the top headlines:
- Carl Icahn sold 7 million shares of Apple
- Hedge fund billionaire David Tepper loaded up on energy stocks
- Omega Advisors ditched two of Wall Street's nightmare stocks
- Soros Fund Management initiated a new position in Synchrony Financial
- Tiger Global made a $1 billion bet on Apple
- Herbalife's largest individual shareholder sold a bunch of stock
- Jana Partners massively cut back its stake in Qualcomm
In other hedge fund news, Point72 Asset Management's president, Doug Haynes, said the firm would consider taking on outside money in the future if it was necessary to meet its long-term goals.
"We are not capital constrained - we are talent constrained," Haynes said.
Here are the top Wall Street headlines at midday:
Short sellers ducking for cover has sent stocks ripping higher in the last 2 days - The recent stock market rally has been all about short sellers running for cover.
Oil is so cheap even pirates don't want it anymore - Crude oil is no longer a major economic boon for many of the world's producers. And now, even pirates don't want it.
All the bad news for stocks is starting to disappear - Stocks have been plagued by bad news since mid-December.
Oil industry legend Rich Kinder thinks we're in a 'sky is falling' market that makes no sense - It seems that stocks have been plummeting on a crashing wave of bad news all year.
Saudi Arabia is using the Frank Underwood playbook - Saudi Arabia, Russia, Qatar, and Venezuela agreed to freeze oil production at the level of supply produced in January.