Frontrunning: August 25

  • Stock futures lower as countdown to Yellen speech begins (Reuters)
  • Italy quake death toll nears 250 as rescuers search demolished towns (Reuters)
  • Central bankers eye public spending to plug $1 trillion investment gap (Reuters)
  • Chelsea Clinton Plans to Stay on Board of Family Foundation (WSJ)
  • Bond Traders Are Desperate for Direction From Yellen in Jackson Hole (BBG)
  • China’s Central Bank Moves to Clamp Down on Speculation (WSJ)
  • Iran vessels make ‘high speed intercept’ of U.S. ship: U.S. official (Reuters)
  • How to Stay Rich in Europe: Inherit Money for 700 Years (BBG)
  • Companies made deals that could run afoul of U.S. whistleblower rules (Reuters)
  • Tiffany Sales Miss Estimates as Global Uncertainty Hurts Demand (BBG)
  • Chicago’s detective force dwindles as murder rate soars (Reuters)
  • SEC Seeks Review of Treasury Market Trading Rules (WSJ)
  • Uber to let Londoners book journeys weeks in advance (Reuters)
  • Boeing Dreamliner Engine Issue Prompts ANA to Check Entire Fleet (BBG)
  • German military mulls options if planes withdrawn from Turkish base (Reuters)
  • A $67,000 Home Robbery Exposes $500 Billion Problem in Argentina (BBG)
  • Look Who’s Coming to Private Equity’s Defense on Fee Secrecy (BBG)


Overnight Media Digest


– The Clinton Foundation is considering exceptions to its plan to stop accepting corporate and foreign donations and reduce family involvement as a way to insulate Hillary Clinton from potential conflicts of interest if elected president.

– The Dow Jones Industrial Average’s recent rise has lifted many stocks in Berkshire Hathaway portfolio, but the rally in Dow Chemical has put the chemical firm’s dividends to Warren Buffett’s company at risk.

– A 6.2-magnitude earthquake struck central Italy early Wednesday, flattening towns and killing at least 159 people, with dozens missing and many trapped beneath the rubble of buildings that collapsed while they slept.

– Mylan NV became the latest pharmaceutical company to face popular outrage about higher drug costs, as attacks mounted Wednesday on the company’s substantial price increases for the EpiPen emergency allergy treatment.

– Hyundai Motor reached a tentative wage deal with its unions, which puts an end to damaging strikes and paves the way for a similar deal at its Kia affiliate.

– HP Inc revenue and earnings shrank in its most recent quarter, but the company showed signs of stabilizing its declining personal-computer business, its largest revenue generator. The company said its personal-systems revenue was flat in the latest quarter after five quarters of declines, with unit PC sales up 4 percent.

– China’s central bank has made a subtle change to the way it supplies the financial system with cash, a move that market watchers see as an attempt to cool investments in assets such as bonds, which have ballooned on an influx of cheap, short-term money.

– Some of the world’s largest energy companies are saddled with their highest debt levels ever as they struggle with low crude prices, raising worries about their ability to pay dividends and find new barrels. Exxon Mobil Corp, Royal Dutch Shell Plc, BP Plc and Chevron Corp hold a combined net debt of $184 billion – more than double their debt levels in 2014.



The U.S. Treasury department said on Wednesday that the European Commission was becoming a “supranational tax authority” that threatened international agreements on tax reform.

Nigel Farage intends to address a Donald Trump rally in Mississippi on Wednesday to push his message of how the “anti-establishment beat the establishment” to bring about Britain’s impending departure from the European Union – and draw parallels with the Republican presidential candidate’s insurgent campaign.

Swedish bank Handelsbanken said on Wednesday it planned to sell its 29.4 million shares in its parent Industrivarden to institutional investors.

Credit Suisse Group AG, UBS Group AG, Swisscomm AG have joined other local companies to invest 3.8 million Swiss francs ($3.9 million) to launch Kickstart, an “accelerator” that will help develop 30 start-ups from 19 countries in areas including financial technology, robotics, and drones.



– Detailed plans for stealth submarines being built by a French military manufacturer for the Indian navy have been leaked, raising concerns over the company’s digital security just months after it signed a multi-billion dollar deal to build submarines for Australia. The data leak leaves France and India scrambling to assess the damage.

– Mylan’s price hikes for the allergy treatment device – EpiPen – highlight a common tactic in the industry: raising prices just before a generic competitor reaches the market.

– The Williams Companies, which recently lost a court battle to preserve a takeover by another pipeline operator, is facing a new fight. This time, it is from a former director who owns a big stake in the company and has an unconventional plan to overhaul the entire board.

– The ride-hailing service Uber told drivers in four large American cities on Wednesday that it had teamed up with the robo-adviser Betterment to offer individual retirement accounts.






The Times

** An employment agency that supplies warehouse workers to Sports Direct has put itself on a collision course with Members of Parliament after declining to amend evidence it gave at a parliamentary hearing.

** The pound’s sharp fall after the Brexit vote is boosting results at WPP Plc but the world’s biggest advertising group said that it was having to “grind out” growth when slow global expansion was making clients fearful of spending.

The Guardian

** The United States has warned the European Commission that it will consider retaliating if Brussels goes ahead with plans to demand billions of dollars in unpaid taxes from Apple Inc and other U.S. multinational companies.

** Sports Direct will open its doors to the public on the day of the retailer’s annual general meeting, giving people an opportunity to speak to board directors following months of criticism over the treatment of workers.

The Telegraph

** LoopUp, a Shoreditch-based start-up that provides software for conference calls, has been valued at 40 million pounds ($52.94 million) in the first technology stock market float since the UK voted to leave the European Union.

** Global youth unemployment is on course to rise for the first time in three years in 2016 as commodity exporters grapple with recession and advanced economies stagnate, according to the United Nations.

Sky News

** Lloyds Banking Group Plc boss Antonio Horta-Osorio has broken his silence over allegations about his private life in a memo to staff expressing his deep regret for any “damage done to the group’s reputation”.

** Britain’s biggest supermarket Tesco Plc is planning to offer a new same day “click and collect” service on grocery orders at nearly 300 stores nationwide.

The Independent

** Investors pulled 5.7 billion pounds ($7.54 billion) out of UK-based stock market funds, preferring to put their cash into safe havens due to concerns over Britain’s vote to leave the EU.


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