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Deutsche Bank is done with North Carolina. For now.
On Tuesday, the German bank announced that due to a law that allows some private businesses and religious groups to refuse service to gay couples, the bank will put plans on hold to create 250 new jobs in the state.
“We’re proud of our operations and employees in Cary and regret that as a result of this legislation we are unwilling to include North Carolina in our US expansion plans for now,” Deutsche Bank co-CEO John Cryan said in a statement. “We very much hope that we can re-visit our plans to grow this location in the near future.”
Elsewhere in banking news, bank earnings season kicks off on Wednesday morning with JPMorgan’s quarterly report. Portia Crowe has a full preview here.
In the hedge fund world, former Paulsen & Co. partner Samantha Greenberg has received $130 million in funding from asset manager Ramius for her new hedge fund, Margate Capital. Ramius will be Margate’s first investor and the commitment will be for the next three years.
This commitment puts Margate’s raise on track to be one of the largest seed deals of the year, notable as this market has virtually dried up amid the poor performance of hedge funds across the board.
Over at Berkshire Hathaway, Tad Montross, CEO at the conglomerate’s Gen Re insurance units, will step down by the end of the year.
The big news here is that while Montross’ successor is yet to be named, the new CEO at Gen Re will report to Ajit Jain, who leads Berkshire’s reinsurance operations. Jain has long been seen as a potential successor to Warren Buffett.
Here are the other top Wall Street headlines at midday:
Crude oil is surging — Crude oil prices are surging on Tuesday, rising as much as 3% following reports that Saudi Arabia and Russia have reached an agreement on an oil-production freeze. A meeting between OPEC and non-OPEC producers is set for Sunday in Doha.
BI UK’s Ben Moshinsky spoke with Mohamed El-Erian about central banks, the global economy, and his career — “The last few years have been defined by two major characteristics,” El-Erian said. “One is that, while growth has been insufficient, it has been relatively stable. And the second is that central banks were willing and able to buy time for the system by borrowing growth and financial returns from the future. Those are two characteristics that underpinned the notion of the new normal. These are now coming under pressure.”
India has been a global economic bright spot — According to Jeff Kleintop at Charles Schwab, India has been the bright spot in the global economy with most of its growth coming from the services sector.
Deutsche Bank downgraded Starbucks — Analysts at Starbucks cut their rating on shares of Starbucks, citing the company’s customer loyalty program as potentially driving customers away.
Negative rates are working in Sweden — Torsten Sløk, chief international economist at Deutsche Bank, argues that negative interest rates are working Sweden with both growth and inflation outpacing European peers and benchmark rates in Sweden at -0.5%.
Dubai’s $1 billion tower could be an omen of economic doom — Big skyscrapers have often been bad signs for the global economy.