VALEANT IS TANKING: What you need to know on Wall Street today

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Pharmaceutical company Valeant reported fourth quarter earnings this morning, and it did not go well.

The company cut its guidance in a statement, and then cut it again on a conference call. It missed big on revenues for its blockbuster drug Xifaxan. Wall Street analysts questioned the credibility of management.

The stock is down around 45% at the time of writing, hammering a group of hedge funds which have stood by the stock.

Bill Ackman, the billionaire investor and long-time Valeant supporter, is down more than $600 million on paper today alone. Trading in Pershing Square Holdings, his publicly traded vehicle, was halted for a period.

Ackman responded by publishing a letter to investors saying, among other things, that the “underlying business franchises that comprise Valeant are worth multiples of the current market price.”

In non-Valeant news, Jefferies published an ugly set of first quarter results which hinted at improved trading conditions in recent weeks.

One of the top hedge funds of 2016 is betting on a crisis that blindsides everyone, and these 10 short-sellers had ideas that crushed it.

Lastly, Grenson, a 150-year-old English shoemaker, just opened its first overseas shop in New York City.

Here are the top Wall Street headlines at midday:

Wall Street banks are making an important shift with $62.2 billion they have spent on tech Big Wall Street banks, after spending massive amounts of money and time to get their old, creaking systems in better shape, are now trying to sell technology they have developed in-house to other companies.

LEON COOPERMAN:We’ve seen the stock market bottom for the year At least one hedge fund billionaire thinks we’ve seen the worst of it.

A massive Chinese company is trying to get its hands on some of America’s most iconic hotel brands The Chinese company that bought the Waldorf Astoria in 2014 is at it again.

Sage Kelly — the banker from one of Wall Street’s messiest divorces — just landed a huge job – Sage Kelly, the former Jefferies healthcare investment banker who resigned amid a messy divorce, has returned to Wall Street.

42 Wall Street titans have pledged $10,000 each to compete in this March Madness bracket – It is that time of year again.

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