- Second-quarter GDP seen rebounding on consumer spending, housing (Reuters [22])
- China Stocks Fall as Traders Puzzle Over Sudden Late-Day Swings (BBG [23])
- Dents and Scratches May Hold Crash Clues for MH370 Investigators (BBG [24])
- European 'alliance of national liberation fronts' emerges to avenge Greek defeat (Telegraph [25])
- Thomas Cook warns on earnings over Greece (MW [26])
- Largest Greek toy seller Jumbo warns of hit from capital controls (Kathimerini [27])
- Russia vetoes bid to set up tribunal for downed flight MH17 (Reuters [28])
- Chevron and Exxon Get the Plaudits, but Some Smaller Drillers Faring Well (WSJ [29])
- Schäuble outlines plan to limit European Commission powers (FT [30])
- UBS Deal Shows Clinton’s Complicated Ties (WSJ [31])
- Facebook, Google Tighten Grip on Mobile Ads (WSJ [32])
- BNP Is Considering Its Biggest Bank Revamp Since the Crisis (BBG [33])
- China says U.S. 'militarizing' South China Sea (Reuters [34])
- Mexico delays auction of deepwater oil assets (FT [35])
- Cincinnati police officer indicted in shooting death of black man (Reuters [36])
- Banks ‘fail to learn’ from rigging scandal (Times [37])
- Shell to axe 6,500 jobs and cut spending to cope with lower oil prices (Reuters [38])
- $40 Oil May Force Russia Into an Emergency Rate Hike, Economists Say (BBG [39])
- Hong Kong government’s iBonds draw record 600,000 subscribers offering HK$36.1b (SCMP [40])
Overnight Media Digest
WSJ
* Facebook Inc offered fresh evidence of its allure to deep-pocketed big brands, as it and Google Inc increasingly take the lion's share of the fast-growing mobile advertising market. The social networking company posted a 39 percent increase in quarterly revenue, nearly three-fourths of which came from advertising on mobile devices. (http://on.wsj.com/1Jw3zGa [41])
* A few weeks after Hillary Clinton was sworn in as secretary of state in early 2009, she was summoned to Geneva by her Swiss counterpart to discuss an urgent matter. The Internal Revenue Service was suing UBS AG to get the identities of Americans with secret accounts. (http://on.wsj.com/1JSFiG8 [31])
* Investigators were trying to determine the provenance of a piece of airplane debris - said by aviation experts to be consistent with the design of the Malaysia Airlines jet that went missing more than a year ago - that washed ashore on an island near Madagascar. (http://on.wsj.com/1ShvRd0 [42])
* The health-insurance industry is being reshaped, in part because of efforts by Aetna Inc's Mark Bertolini, who has struck a $34 billion deal for Humana Inc, and Anthem Inc's Joseph Swedish, whose company is seeking to acquire Cigna Corp for $48 billion. (http://on.wsj.com/1gomkQQ [43])
* Giant oil companies are weathering the oil slump better than the average shale driller, but even their famous stability is at times being surpassed by much smaller companies that own some of the choicest U.S. oil-and-gas fields. (http://on.wsj.com/1ODiVId [29])
* Cybercriminals are exploiting publicly available information and weaknesses in corporate email systems to trick small businesses into transferring large sums of money into fraudulent bank accounts, in schemes known as "corporate account takeover" or "business email fraud." (http://on.wsj.com/1gomsQn [44])
* Federal Reserve officials face a conflict as they plan to start raising interest rates later this year: There has been a lot of progress in their goal for U.S. job growth, but little in their objective of modestly rising consumer prices. (http://on.wsj.com/1LYNB9w [45])a
FT
Mexico has postponed the auction of its deepwater assets by two months after its tender to open up its oil sector to investments from private sector flopped.
Germany's biggest commercial broadcaster ProSiebenSat.1 and Europe's largest newspaper publisher by sales Axel Springer have ended merger talks after governance issues, especially the role of Axel Springer's founder's wife could not be resolved.
British singer and actress Jane Birkin has demanded that her name be taken off the Birkin bag - one of the bags sold by luxury brand Hermes International SCA. The Birkin bag is made from crocodile leather.
FireChat, the messaging app that protesters in Hong Kong used to communicate and collaborate, will be launched as a private messaging service for the first time. "We have what we call off-the-grid messaging that's free, private and very resilient," said Micha Benoliel, chief executive of OpenGarden, the start-up behind the app.
NYT
* United Parcel Service Inc said it will buy as much as 46 million gallons of renewable diesel over the next three years, helping the company reach a goal of displacing 12 percent of the petroleum-based fuels in its ground fleet by 2017. (http://nyti.ms/1H2Flx0 [46])
* The Belgian chemical company Solvay SA said that it had agreed to acquire its American rival Cytec Industries Inc for $5.5 billion in cash. (http://nyti.ms/1KzWINm [47])
* The Royal Bank of Scotland Group Plc said that it had sold $2.2 billion in shares of the Citizens Financial Group Inc, an American retail bank, in a larger-than-expected offering as it further reduces its stake in the lender. (http://nyti.ms/1SiF2Kd [48])
* The private-equity firm Lone Star Funds has agreed to acquire the British property investment company Quintain Estates and Development Plc for 700 million pounds, or about $1.1 billion, in cash, the companies said on Wednesday. (http://nyti.ms/1SiF8BC [49])
* Dan Fellman, one of Hollywood's most experienced movie distribution executives, beginning his studio career in 1964 and recently playing an influential role in the digital transformation of the exhibition business, said on Tuesday that he would leave Warner Bros at the end of the year. (http://nyti.ms/1LYQvep [50])
Canada
THE GLOBE AND MAIL
** The effects of falling oil prices are only starting to be felt in Calgary's housing market, the city's local real-estate board warned, with home prices expected to fall further as unemployment continues to rise. Resale home prices likely will end the year 0.2 percent lower for the year, the Calgary Real Estate Board predicted in a mid-year forecast. (http://bit.ly/1h7g7ZD [51])
** Trading was halted on Home Capital Group Inc's stock after the company revealed late Wednesday that it cut ties with dozens of mortgage brokers in the wake of an investigation that revealed they had falsified documents about borrowers' incomes. The details of the internal investigation, which began last fall, were made public at the request of the Ontario Securities Commission, the company said. (http://bit.ly/1MvjR2V [52])
** Open Text Corp dished out a serving of surprisingly good news with a side order of worse-than-expected news as it announced its fourth-quarter results on Wednesday. The business software company said it earned $482.7 million in revenue in the period ended June 30, after warning just two months ago that it would only bring in between $440 million and $455 million. (http://bit.ly/1Mvk5qW [53])
NATIONAL POST
** The Conference Board of Canada cut its forecast to just 1.6 percent growth for the year, the worst since 2009, and warned that more disappointment could lie ahead. Topping the board's list of suspects dragging down economic activity are the oil-price rout and weak business investment by Canadian companies. (http://bit.ly/1MVS7Ct [54])
** TransUnion, a leading U.S. credit agency, is predicting consumers in oil-dependent provinces will face "sharp" increases in credit and loan product delinquencies in the coming quarters. "Based on an historical analysis of the last oil crash and recent payment behavior trends, we expect materially higher delinquency rates in Alberta and Saskatchewan in the second half of 2015," said Jason Wang, director of research and industry analysis in Canada for TransUnion. (http://bit.ly/1MVSgG0 [55])
** Torstar Corp surprised Bay Street analysts on Wednesday by announcing it had spent $200 million to acquire a 56 percent stake in VerticalScope Inc, a Toronto-based company that operates more than 600 digital properties that cover everything from cars to pets to powersports. (http://bit.ly/1MVSgWF [56])
Hong Kong
SOUTH CHINA MORNING POST
- A massive surge in crime involving telephone con artists posing as mainland officials has cheated Hongkongers out of HK$85.4 million ($11 million) in this month alone, police said. A total of 263 people had fallen victim to the fake-official scam, police director of crime and security Lo Mung-hung said. (bit.ly/1U7TgLr)
- The Hong Kong government's fifth batch of inflation-linked bonds attracted a record 600,000 subscribers offering a total of HK$36.1 billion ($4.66 billion), according to initial data released by the city's de facto central bank as subscriptions closed on Wednesday. (bit.ly/1I9HZ5O)
- Four mainland tourists who took part in an attack on ground crew at Hong Kong International Airport after a flight delay on Tuesday were on Wednesday jailed for a combined total of 39 days. Acting Principal Magistrate Cheang Kei-hong called the assaults "uncivilised" and said it was the ground crew's duty to safeguard restricted zones so the court had to protect them. (bit.ly/1LYPjrs)
THE STANDARD
- Top global luxury brands, including Burberry Group Plc and Kering's Gucci, intend to negotiate lower store rents as business in Hong Kong, Macau and the mainland continues to drop. Prada's Finance Director Jean-Jacques Guiony said the group will attempt to renegotiate rental arrangements with landlords in view of the weakening sales in Hong Kong. (bit.ly/1Dc1Mol)
- KGI Securities is planning an initial public offering in Hong Kong next year, its Taiwan-based parent firm China Development Financial said. The deal would make KGI the first Taiwanese financial firm to list in the territory. (bit.ly/1ILRnlN)
HONG KONG ECONOMIC TIMES
- CITIC Dameng Holdings Ltd saw its first-half net loss widened to HK$281 million as price of manganese ores dropped on weak demand, and said it expects the commodity market to remain subdued amid slower growth in global economy, oversupply of major commodities and weak commodity demand.
Britain
The Times
BANKS 'FAIL TO LEARN' FROM RIGGING SCANDAL
Despite billions of pounds in fines, several years of investigations and a slew of criminal prosecutions, many banks have yet to take on board the lesson of the market-rigging scandals, the Financial Conduct Authority has found. (http://thetim.es/1DaaT9n [57])
NEW BRIBERY CLAIMS CAST PALL ON GSK RESULTS
GlaxoSmithKline Plc has confirmed it is looking into claims raised in a letter by a whistleblower that it had paid hundreds and even thousands of euros to doctors in Romania to prescribe drugs, such as Avodart, a prostate treatment. (http://thetim.es/1DadujD [58])
The Guardian
MARKS & SPENCER TRIGGERS LOCAL ANGER AFTER CONFIRMING STORE CLOSURES
Marks & Spencer has sparked uproar in local communities by confirming it will close nine shops across the UK, putting hundreds of jobs at risk. On Wednesday, the retailer said 430 workers would be affected, but that they would be offered jobs at nearby M&S stores. (http://bit.ly/1DaeLY4 [59])
FIRMS IN UK WILL HAVE TO REVEAL EFFORTS TO STOP SUPPLY CHAIN SLAVERY AND TRAFFICKING
From October, all companies doing business in the UK with a turnover of 36 million pounds ($56.12 million) or more will have to deliver an annual slavery and human trafficking statement covering their manufacturers, farmers and wholesalers elsewhere in the world. (http://bit.ly/1Daiy7E [60])
The Telegraph
Uber faces legal action in UK over drivers' working rights
Uber Technologies Inc, the controversial minicab-hailing app, is facing legal action in the UK over allegations that it mistreats its drivers. GMB, the trade union with more than 700,000 members, claims Uber is not honouring the basic workers' rights of its drivers by failing to ensure that they are paid minimum wage or receive the minimum amount of paid holiday. (http://bit.ly/1DafmsD [61])
BOSSES WARN GOVERNMENT'S ECONOMIC PLAN HINGES ON HEATHROW RUNWAY
Next Plc boss Lord Wolfson, WPP Plc chief Sir Martin Sorrell, and George Weston, the boss of Primark-owner Associated British Foods, have warned the prime minister that the credibility of his government's long-term economic plan is at risk if he does not allow a third runway at Heathrow. (http://bit.ly/1DagNHM [62])
Sky News
LORD COE'S AGENCY CHIMES WITH PROVIDENCE BID
Sky News can reveal that Chime Communications has received a joint bid approach from Providence Equity, one of the world's biggest buyout firms, and WPP Group, Chime's FTSE-100 rival. (http://bit.ly/1D9rH0l [63])
The Independent
UK is now one of the top three countries for international investors
The UK is the third most popular destination for international investors' cash, up from fourth last year and risen from the modest rank of eighth in 2013, according to a report published by the World Economic Forum. (http://ind.pn/1Dai2Xa [64])
