Frontrunning: July 14

  • Greek lawmakers split over bailout as vote looms (Reuters)
  • Greek Bailout Rests on Asset Sale Plan That Already Failed (BBG)
  • Greece Needs $25 Billion to Get Through August, Scicluna Says (BBG)
  • Tsipras Enters Parliament Den to Sell Aid Deal to Greeks (BBG)
  • Greece makes samurai bond repayment (FT)
  • Iran, World Powers Have Reached Nuclear Agreement (BBG)
  • Janet Yellen’s Fed Flounders in Political Arena (WSJ)
  • CFO survey shows growing concern about earnings, revenue, hiring and CapEx (Yahoo)
  • Obama Seeking Overhaul of U.S. Prison Sentences by End of Year (BBG)
  • Einhorn was right: State-Owned Chinese Chip Maker Tsinghua Unigroup Makes $23 Billion Bid for Micron (WSJ)
  • Xiaomi success inspires every man and his dog to make smartphones in China (Reuters)
  • London Woos Oligarchs and Banks With Hub for Big-Money Lawsuits (BBG)
  • Shale Gas Supply Held Hostage by Oil to Drop by Most in a Year (BBG)

 

Overnight Media Digest

WSJ

* The top diplomats from Iran, the U.S. and other world powers planned to sign off on a nuclear accord Tuesday and announce the deal, officials from both sides said. (http://on.wsj.com/1Ldm7Ld)

* In the race to hammer out a bailout for Greece, Europe's most important bilateral relationship - the one between Berlin and Paris - was put to its most serious test in years. (http://on.wsj.com/1CDhLLV)

* Almost 18 months after taking the helm at the central bank, Janet Yellen is struggling to manage a strained relationship with Congress. (http://on.wsj.com/1L3MvIY)

* Tsinghua Unigroup Ltd, China's largest chip design company, has prepared a $23 billion bid to buy U.S. memory chip maker Micron Technology Inc, people familiar with the matter said, in what could be the largest foreign takeover by a Chinese firm. (http://on.wsj.com/1eXWv8O)

* There's a new obsession taking hold in the world of fantasy sports online: daily games played for cash. The twist has touched off a wave of investments in startups that are reinventing the season-long online pastime. (http://on.wsj.com/1eXWv8O)

* New York City has agreed to pay the estate of Eric Garner $5.9 million to settle a lawsuit over his death after he was placed in a chokehold by a New York Police Department officer. (http://on.wsj.com/1dXxp9a)

 

FT

The Department of Financial Services, New York's banking regulator, requested Deutsche Bank AG provide details of a suspected bribe offered to a Deutsche employee in Moscow in December by a counterparty to resume trading of stocks that may have breached anti-money laundering rules. The regulator is investigating whether trades worth $6 billion made by the bank for Russian clients constituted money laundering.

Apple Pay will launch in the UK on Tuesday. The payment service has received support from big brands like Marks and Spencer, BP and others.

Energy trading house Gunvor has sold a controlling stake in its Ust-Luga oil products terminal to Russian businessman Andrei Bokarev, the Swiss-based company said on Monday.

Scottish National Party is all set to vote against relaxing the fox hunting ban in England this week. The party said on Monday that it would vote against a plan to relax the ban in the Commons on Wednesday.

 

NYT

* Roughly 350 creditors were told they would have to wait several weeks until a working group of Puerto Rico leaders formed recommendations for resolving the island's fiscal crisis. (http://nyti.ms/1MqAJpd)

* Despite the tentative bailout deal, the European Central Bank, which has been keeping Greek banks propped up for months with emergency loans, declined on Monday to provide additional cash. (http://nyti.ms/1MqCeDY)

* Over the last month, trillions of dollars of value were wiped from the Chinese domestic market as stocks plunged by more than a third. The Chinese government stepped in, issuing a series of increasingly aggressive moves to prop up the market. Hedge funds are now reassessing their positions and questioning the role of the government in China's stock market. (http://nyti.ms/1M7tF3Y)

* U.S. fantasy sports startup FanDuel plans to announce on Tuesday that it has raised $275 million in a new round of financing, bringing its total haul from investors to $363 million. (http://nyti.ms/1M7tKEB)

* Uber, the ride-hailing service, is now out of the running to acquire Here, the mapping division of Nokia Oyj, according to three people with knowledge of the talks. The company had submitted an offer for Here this year for as much as $3 billion. (http://nyti.ms/1M7uj1t)

* CrowdStrike, a security services provider focused on stopping attacks before they happen, announced on Monday that it had raised $100 million in a new round of financing. (http://nyti.ms/1M7un0Z)

 

Canada

THE GLOBE AND MAIL

** Canadian video streaming services continue to come untethered from traditional television as Bell Media said on Monday that starting next year, CraveTV would be offered directly to any Canadian with an Internet connection. (http://bit.ly/1CBzUtV)

** Swiss bank Syz & Co said it would buy Royal Bank of Canada's Swiss private bank, including 10 billion Swiss francs ($10.57 billion) under management, the latest move by a foreign bank to exit Switzerland. (http://bit.ly/1HsZIVx)

** The technology allowing consumers to make purchases using credit and debit cards stored on their smartphones is rolling out in Canada, but fewer than 25 percent of consumers can use it, according to a white paper released by the six largest banks in conjunction with the Canadian Bankers Association. (http://bit.ly/1HrI1rJ)

NATIONAL POST

** Royal Bank of Canada (RBC) has been asked by the Federal Reserve in Washington to address a claim the Canadian bank "collaborated" to extend credit to a customer of City National Corp, a Los Angeles-based private and commercial bank RBC is proposing to buy for $5.4 billion, before the acquisition was approved by regulators. (http://bit.ly/1HsYqK4)

** Toronto's City Council voted last week to crack down on Uber drivers, but that isn't stopping the ride service from expanding its offerings to include a new car-pooling option during the Pan American Games. UberPool will be available in Toronto until July 26, and Uber is offering it for free during Tuesday's morning and evening rush hour. (http://bit.ly/1HsYSIs)

** The pipeline unit of refiner Marathon Petroleum Corp plans to buy MarkWest Energy Partners LP for about $15.8 billion in stock and cash, the latest example of consolidation among companies that move and process fuel. (http://bit.ly/1HsZ36q)

 

Hong Kong

SOUTH CHINA MORNING POST

-- Chief Executive Leung Chun-ying, who sought a pivotal role for Hong Kong in the mainland's overseas economic expansion during his trip to the capital, said Beijjng was "very satisfied" with his performance. Summing up his two-day trip, Leung dropped a strong hint he would seek a second term. (bit.ly/1HEns8q)

-- Hong Kong's "silver economy" that taps elderly spending is worth HK$50 billion a year and growing but too few businesses are wooing this market, says Wilson Tong, director of Vertico Expo Services and organiser of the recently concluded Retiree and Senior Fair for the elderly. (bit.ly/1HZnKeD)

THE STANDARD

-- Young people have for a third consecutive year failed to be impressed by the Hong Kong government, a study by the Chinese University of Hong Kong backed by MTR Corp Ltd shows. Another key finding is that the quality of life for the young has fallen in the past 12 months. (bit.ly/1gxPxID)

-- Thirty-four children being educated at home are in line to be the subjects of orders issued by the Education Bureau to ensure they go to proper schools. According to the bureau, there are 34 current cases of home schooling in Hong Kong but none of them are in learning environments approved by education authorities. (bit.ly/1HqYoEU)

-- Sun Hung Kai Properties is aiming at double-digit revenue growth this year at its apm shopping center via expansion and attracting more foreign visitors despite fewer mainland arrivals. SHK Development (China) director Maureen Fung expects apm's revenue to grow 10-15 percent to HK$3.8 billion ($490 million) and visitor flow to rise 10 percent to 100 million. (bit.ly/1UW3dgn)

HONG KONG ECONOMIC JOURNAL

-- Film distributor China Star Cultural Media Group Ltd said it would sell 459.9 million new shares, or 10.93 percent of its enlarged share capital, to a subsidiary of CITIC Ltd for HK$629 million. CITIC will become the second largest shareholder of the company on completion of the deal.

-- Asian Citrus Holdings Ltd said Changjiang Tyling Management Co Ltd had completed the purchase of 14.34 percent of the company from Market Ahead Investments Ltd for HK$200 million, making it the single largest shareholder of the Hong Kong-listed fruit juice concentrates maker.

 

Britain

The Times

NINTENDO CHIEF SATORU IWATA DIES OF CANCER AT 55

Satoru Iwata, the popular and respected chief executive of the video game maker Nintendo, has died of cancer. He was 55. In a brief statement the Kyoto-based firm - the maker of Donkey Kong and Super Mario - said that Mr Iwata passed away on Saturday. (http://thetim.es/1gxIGyU)

RAPPER AND ENTREPRENEUR 50 CENT FILES FOR BANKRUPTCY

The rapper and entrepreneur 50 Cent, who released a book of advice on how to operate in the twenty-first century, today claimed that he doesn't have a dime to his name. (http://thetim.es/1O84QTF)

The Guardian

DAVID CAMERON TO FORCE COMPANIES TO DISCLOSE GENDER PAY GAPS

Large companies will finally be forced to disclose whether they are paying men more than women from next year, Prime Minister David Cameron will say on Tuesday. (http://bit.ly/1CAOBgK)

INTEREST RATES ON PERSONAL LOANS FALL TO LOWEST LEVELS ON RECORD

Interest rates on personal loans have dropped to the lowest levels on record in the latest evidence that the cost of borrowing is continuing to fall for consumers. While mortgage rates slumped to record levels in May when the Co-operative Bank launched a two-year rate at 1.09 pct, the Bank of England said rates on personal loans had also reached the lowest levels since records began 20 years ago. A 10,000 pound loan costs just above 4 pct. (http://bit.ly/1K4Hk8L)

The Telegraph

EU DEMANDS BRITAIN JOINS GREEK RESCUE FUND

Britain will be liable for close to 1 billion pounds of emergency loans to Greece, it can be revealed, after Jean-Claude Juncker tore up a "black and white" deal to protect UK taxpayers from Eurozone bailouts. (http://bit.ly/1LcgKfq)

BANK OF ENGLAND PLANS TO ACCEPT EQUITIES AS COLLATERAL FROM BANKS

Banks could be able to offer the Bank of England shares as collateral under a scheme being considered by officials, executive director Chris Salmon has revealed. (http://bit.ly/1TyxvEm)

Sky News

TUBE DRIVERS TO STAGE FRESH 24-HOUR STRIKE

London Underground drivers are to stage another 24-hour strike amid a dispute over the new all-night Tube service. The ASLEF union said the walkout would take place from 9.30pm on Wednesday, 5 August, threatening more severe disruption to journeys. (http://bit.ly/1LcKUix)

PENTAGON 'TO LIFT MILITARY TRANSGENDER BAN'

The Pentagon is finalising a plan to lift a ban on transgender individuals serving in the US military, according to a report. (http://bit.ly/1HqVi3O)

The Independent

APPLE PAY ABOUT TO LAUNCH IN THE UK

Apple Pay is about to go live in the UK, with shops' signs being updated for the launch and HSBC's official account apparently confirming the date. The company is gearing up to launch the new service on July 14, the leaks indicate. That fits with previous rumours, based on information shared by shops that were gearing up for the launch. (http://ind.pn/1Gh8DaQ)