Frontrunning: September 16

  • Deutsche Bank to fight $14 billion demand from U.S. authorities (Reuters)
  • Exxon’s Accounting Practices Are Investigated (WSJ)
  • European leaders seek elusive 'road map' after Brexit shock (Reuters)
  • Johnson Said to Tell Italy Exit Talks Likely to Start Early 2017 (BBG)
  • Brexit Bulletin: Merkel Sings the Bratislava Blues (BBG)
  • Atlante manager's CEO says Popolare di Vicenza may need more capital (Reuters)
  • Unilever Is in Talks to Acquire Jessica Alba’s Honest Co. (WSJ)
  • Japan’s Central Bank Splits Over Easing Program (WSJ)
  • Japan Looks to Bring in More Foreign Workers as Population Falls (BBG)
  • Clinton visits North Carolina in campaign trail return; Trump up in polls (Reuters)
  • Donald Trump Promises Tax Cuts, Offset by Robust Growth  (WSJ)
  • In Pennsylvania Senate race, unfamiliar battle lines on gun rights (Reuters)
  • Earnings Secrecy to End in Junk-Bond Market Under EU Rules (BBG)
  • Investors reluctant to back Monte Paschi's cash call (Reuters)
  • In Places With Fraying Social Fabric, a Political Backlash Rises (WSJ)
  • White Ohio policeman kills black teen armed with BB gun (Reuters)
  • Apple’s 21% Rally Is Tough Pill for 295 Funds That Bailed (BBG)
  • Hedge Funds Find a New Short-Selling Guru (BBG)
  • Facebook steps up fight against fake news (Hill)

 

Overnight Media Digest

WSJ

- The U.S. Justice Department proposed that Deutsche Bank AG pay $14 billion to settle a set of high-profile mortgage-securities probes stemming from the financial crisis, according to people familiar with the matter, a number that would rank among the largest of what other banks have paid to resolve similar claims and is well above what investors have been expecting. http://on.wsj.com/2chMRQp

- Unilever PLC is in talks to acquire Honest Co., the consumer-products retailer co-founded by actress Jessica Alba, according to people familiar with the matter. http://on.wsj.com/2crWUW1

- Donald Trump offered an expanded economic blueprint and outlined an overhaul of his tax plan on Thursday, but skeptics in both parties questioned his promise to offset steep tax cuts with significantly stronger economic growth. http://on.wsj.com/2cufEAW

- The partial closing of a major pipeline running from the Gulf Coast to the East Coast could reduce gas supply and raise prices at the pump in several U.S. states during the next few days. http://on.wsj.com/2cK0KrB

- Hillary Clinton returned to campaigning Thursday after illness and a pair of self-inflicted wounds took her presidential quest off message and off the road for the better part of a week. http://on.wsj.com/2d4nl2t

- Samsung Electronics Co, faced with exploding batteries in some of its top-selling phones, exacerbated the situation in the way it communicated with regulators and consumers, say former U.S. officials and people familiar with similar product recalls. http://on.wsj.com/2cZXw0R

- Congressional lawmakers have launched a formal investigation into whether solar-energy companies improperly received billions of dollars in tax incentives from the Obama administration. http://on.wsj.com/2cdhKqt

- Pandora Media Inc rolled out a new version of its ad-free internet radio service Thursday, allowing subscribers to replay songs, skip more of them and listen offline for the same $4.99 monthly price. http://on.wsj.com/2czhPnv

- Oracle Corp's cloud-computing business posted another strong sales gain, but the quarterly growth was offset by steep declines in its conventional software-licensing business. http://on.wsj.com/2cYJyjQ

 

FT

Deutsche Bank asked to pay $14 bln in US probe http://on.ft.com/2cuNyFH

US recalls 1m Samsung phones after reports of burns and damage http://on.ft.com/2cuOZE0

Informa acquires US events and publishing rival for 1.2 bln stg http://on.ft.com/2cuOQ3r

US and Dutch plan to hand out $1.4 bln fine to Telia http://on.ft.com/2cuP6PZ

Overview

The U.S. Department of Justice asked Deutsche Bank AG to pay $14 billion to settle allegations of mis-selling mortgage securities.

The US Consumer Product Safety Commission issued a formal recall notice for 1 million Samung Glaaxy Note 7 smartphones on Thursday, after nearly a hundred reports of overheating batteries.

Informa Plc agreed to buy US rival Penton for 1.2 billion stg as it seeks to expand into the North American market.

US and Dutch authorities indicated they intend to fine Nordic telecom operator Telia Company AB over its entry into Uzbekistan in 2007.

(Compiled by Abinaya Vijayaraghavan in Bengaluru)

 

NYT

- Senator Ted Cruz, who once led a government shutdown in his efforts to defund President Obama's healthcare law, has turned his sights on a more obscure target: the federal government's plan to end its oversight of the internet's master directory of website addresses. http://nyti.ms/2cdVlcO

- Mutual funds that mimic hedge fund strategies - the so-called liquid alternatives sector - were among the hottest investments just a few years ago. Despite lagging returns and setbacks at several noteworthy funds, retail investors until recently have stuck with them even as they have pulled billions of dollars out of other funds. http://nyti.ms/2cZitNy

- Safety regulators in the United States have issued warnings in recent days cautioning consumers not to turn on their Samsung Note 7's on airplanes - and not to use their phones at all. South Korea's flight regulator, in a reversal, followed suit, as have others around the world. http://nyti.ms/2cCQA8h

- U.S. President Obama, beginning a final uphill push for a trade initiative that is opposed by both party's presidential candidates, will host an Oval Office meeting on Friday to showcase support among public figures in both parties. http://nyti.ms/2cK2i4A

- In a move that is sure to draw the ire of Republicans, California officials are asking the Obama administration this week to approve a plan that would allow undocumented immigrants to buy health insurance on the state's public exchange. http://nyti.ms/2crnQ2N

 

Canada

THE GLOBE AND MAIL

** Magna International Inc will likely need to build a new assembly plant if it wins more contracts to manufacture vehicles, chief executive officer Don Walker says. http://bit.ly/2crRqFp

** British Columbia will haul in more tax revenue from the sale of homes this year than its combined revenues from the province's historical economic foundation of mining, energy, forestry, Crown land tenures and natural gas. http://bit.ly/2crSyIX

** Unhappy with flood damages this spring, a group of Muskoka property owners has launched a class-action suit against the Ontario government, underlining long-held complaints by area residents about the way the province operates water-control structures in the region. http://bit.ly/2crRIMx

NATIONAL POST

** For the first time, the level of debt held by Canadians has exceeded the country's gross domestic product as the red ink spilled over in the second quarter to 100.5 per cent of GDP, up from 98.7 per cent during the previous three-month period. http://bit.ly/2crRxAL

** More pain is likely in store for Sobeys owner Empire Co. as the grocery retailer seeks to cut costs and drive up flagging sales in the wake of its botched integration of the Western Canadian Safeway chain. http://bit.ly/2crSmcW

** NewLeaf Travel Co Inc will temporarily cease flights to four cities as part of its new core schedule, which allows travellers to book out to April 2017. http://bit.ly/2crS6KR

 

Britain

 

The Times

First-half profits have plunged by nearly 15 percent at the John Lewis Partnership Plc after it had to absorb higher pay costs and pricing pressures. http://bit.ly/2cuQOAW

Informa Plc, the publishing and events group, is expanding in America with the 1.2 billion pounds purchase of U.S. rival Penton. http://bit.ly/2cuQqSX

The Guardian

The Bank of England left the door open to another interest rate cut this year, but decided that the safest option for now was to wait and see if the economy can continue to weather the initial shock of the Brexit vote. http://bit.ly/2cuRfLv

Shares in Sports Direct International Plc have fallen by more than 5 percent after the company's joint house broker cut full-year profit expectations for the beleaguered retailer by a fifth. http://bit.ly/2cuRy9g

The Telegraph

Shareholder adviser Glass Lewis recommended that SABMiller Plc shareholders support the takeover by Anheuser-Busch InBev, which is designed to soften the tax hit suffered by the two biggest shareholders in the London-listed beer giant. http://bit.ly/2cuU1jE

Sky News

George Osborne is vowing to save his Northern Powerhouse initiative in a move likely to be seen as a challenge to Theresa May after she sacked him. http://bit.ly/2cuTgY1

The Hinkley nuclear power station deal will go ahead after months of doubt, the government has announced - but there will be new conditions. http://bit.ly/2cuTgqX

The Independent

Fiat Chrysler Automobiles NV has said it is recalling 1.9 million vehicles worldwide for an air bag defect that is linked to three deaths and five injuries. http://ind.pn/2cuUNgF

Waitrose, the supermarket arm of the John Lewis partnership (JLP), has scrapped plans to open new stores, opting to revamp existing ones with wine bars and bakeries instead. http://ind.pn/2cuUBOC