Frontrunning: August 16

  • World stocks edge away from one-year peak, dollar on defensive (Reuters)
  • Central Banks Could Be This Market’s Pets.com (WSJ)
  • Clinton announces transition leadership should she win in November (Reuters)
  • Oil Trades Near $46 a Barrel as Nigeria Sees OPEC Cuts Unlikely (BBG)
  • BHP Billiton Reports Worst-Ever Annual Loss (WSJ)
  • Trump nation-building view not in line with Bush (AP)
  • Air strike on MSF hospital in Yemen kills at least 11: aid group (Reuters)
  • Yuan’s Volatility Slides to 10-Month Low as Currency Steadies (BBG)
  • Retirees Need $130,000 Just to Cover Health Care, Study Finds (BBG)
  • Morgan Stanley Targeted by ValueAct as Core Activist Stake (BBG)
  • China says seeks closer military ties with Syria (Reuters)
  • Gas Glut Upends Global Trade Flows as Buyers Find Leverage (BBG)
  • Obama Administration to Fund Nontraditional Training for Students (WSJ)
  • Brexit Bulletin: Banks Already Plotting City Exodus (BBG)
  • Icahn Says He May Boost Trump with Attack on EPA (BBG)

 

Overnight Media Digest

WSJ

- U.S. prosecutors and Volkswagen AG are negotiating a settlement that could result in significant financial penalties after Justice Department officials found evidence of criminal wrongdoing in the car company's diesel-emissions cheating. http://on.wsj.com/2aOP46M

- Activist investor ValueAct Capital Management said it had taken a $1.1 billion stake in Morgan Stanley, signaling a potential rallying cry for bank investors after years of poor returns. http://on.wsj.com/2aZN1d6

- The U.S. transferred 15 Guantanamo Bay detainees to the United Arab Emirates, the largest such movement yet in President Obama's push to remove most prisoners from the prison before he leaves office in January. http://on.wsj.com/2bcW4GK

- Aetna Inc will withdraw from 11 of the 15 states where it currently offers plans through the Affordable Care Act exchanges. Aetna's move puts at least one county, Pinal in Arizona, at risk of having no insurers offering exchange plans in 2017. http://on.wsj.com/2aVZqNB

- Tesla has failed to meet more than 20 projections made by its chief executive in the past five years, an analysis by The Journal shows. Tesla missed 10 of the stated goals by an average of nearly a year, including targets for the debut of two of Tesla's past three models. http://on.wsj.com/2b6qv3S

 

FT

- Warren Buffett's Berkshire Hathaway increased its stake in Apple in the second quarter, from $1.1 billion at the end of March to $1.5 billion at the end of June. Berkshire has cut its stake in Walmart to 1.3 percent of the company.

- AIG has agreed to sell its mortgage insurance business to Arch Capital for $3.4 billion. Arch will pay $2.2 billion in cash and the remainder in preferred stock.

- ValueAct has disclosed a $1.1 billion investment in Morgan Stanley which is about 2 percent of the company and this comes Morgan Stanley's CEO James Gorman, cuts costs and lays off staff in the debt-trading business.

- Praxair is in talks to acquire German rival Linde in a deal which would create the world's largest supplier of industrial gas with a combined market capitalisation of over than $60 billion.

 

NYT

- Volkswagen owners in the United States will receive about $20,000 per car as compensation for the company's diesel deception. Volkswagen owners in Europe at most get a software update and a short length of plastic tubing. http://nyti.ms/2bupkKD

- Lyft, an American ride-hailing service, recently rebuffed takeover interest from General Motors, its 9 percent owner. There are reasons for Lyft to steer clear of Detroit, despite a shared vision for autonomous cars. http://nyti.ms/2bupHEV

- Google released its latest mobile app Duo, a video-calling app that is a direct alternative to Apple's FaceTime. The app lets you place video calls between Android and iPhone users, and increases the universe of people with whom you can hold a video conversation. http://nyti.ms/2buqfuE

 

Britain

The Times

The closure of the final BHS stores that are still trading has been delayed by a week as the administrator faces allegations of holding staff "to ransom". http://bit.ly/2b9UxTA

Britain's blue-chip companies handed their shareholders five times more cash than they paid into their own pension schemes last year despite the fund deficits ballooning on the back of falling interest rates. http://bit.ly/2b9VPho

The Guardian

Damage to the economy caused by Brexit will more than offset the modest wage gains for British-born workers in low-paid jobs caused by cutting net migration to the tens of thousands a year, according to a report by the Resolution Foundation think tank. http://bit.ly/2b9V4oH

Workers for the takeaway delivery firm Deliveroo have staged a sixth day of protests over a new pay deal, saying concessions only apply to those who are willing to work in new areas. http://bit.ly/2b9VaN5

The Telegraph

A controversial proposal to water down final salary pensions could save large British firms 30 billion pounds ($38.64 billion) from their retirement bills, according to new research. http://bit.ly/2b9VlYK

British Sugar Plc, a subsidiary of Primark owner Associated British Foods Plc, has joined forces with a host of business groups to fight the mooted sugar tax on soft drinks, amid growing fears the controversial levy will lead to job losses. http://bit.ly/2b9WgIB

Sky News

UK's inflation rate for July is expected to remain unchanged at 0.5 percent when official figures are released by the Office for National Statistics later this morning. http://bit.ly/2b9VBXG

Banco Santander SA has announced it will be reducing the amount of interest its customers can earn from its hugely popular 123 current account. The rate will be cut in half, reducing the amount savers can earn to 1.5 percent from 3 percent. http://bit.ly/2b9V2x9

The Independent

Thousands of workers at British retailing group Sports Direct International Plc's warehouse are set to receive back pay totalling an estimated 1 million pounds for non-payment of the minimum wage, Britain's largest union Unite has confirmed. http://ind.pn/2b9UXJM