Frontrunning: December 5

  • Clash Over Young Immigrants Hangs Over Year-End Budget Talks (BBG)
  • Businesses Lobby for Breaks After Last-Minute Tax Changes (WSJ)
  • Senate Bill ‘Bombshell’ Could Raise Taxes on Tech (BBG)
  • Europe sucked into sell-off, sterling suffers Brexit blues (Reuters)
  • After Tax Overhaul, GOP Will Pivot to Revamping Welfare (WSJ)
  • Exiled son of slain Yemen ex-leader calls for revenge (Reuters)
  • How AI Will Invade Every Corner of Wall Street (BBG)
  • Does Anything Back This $814 Million Cryptocurrency?  (BBG)
  • Want That House? You’d Better Pay in Cash (WSJ)
  • Can This 107-Year-Old Steelmaker Be Brought Back to Life?  (BBG)
  • iPhone market share slips in October-quarter: research firm (Reuters)
  • Nissan’s Self-Driving Taxis Will Hit the Road in March (WSJ)
  • Supporters free ex-Georgian leader Saakashvili from Ukrainian police amid chaotic scenes (Reuters)
  • GM puts an e-commerce marketplace in the dashboard (Reuters)
  • Ford Attempts a U-Turn in China (WSJ)
  • House Panel Questions Podesta on Trump Dossier Links (BBG)
  • Cineworld Agrees to Buy Regal in $3.6 Billion Theater Deal (BBG)
  • CVS Chief’s Path From Corner Pharmacy to Health-Care Giant (WSJ)

Overnight media Digest

WSJ

- Technology, banking and other industries mounted a new round of lobbying Monday to save a wide range of tax breaks following the last-minute switch in the federal tax overhaul by the U.S. Senate. on.wsj.com/2BzJ1fe

- CVS Health Corp and Aetna Inc are attempting to create something with little precedent: an integrated healthcare enterprise that isn't built around doctors. on.wsj.com/2Ay2ugX

- Broadcom Ltd opened the next front in its $105 billion takeover bid for Qualcomm Inc saying Monday it plans to submit its own candidates to sit on its target's board. on.wsj.com/2nrEs4j

- Apple Inc released an app that will enable it to test the Apple Watch's ability to track irregular heart rhythms as part of a study done in collaboration with Stanford University researchers. on.wsj.com/2ijqWdB

- Discovery Communications Inc is taking majority control of OWN, the cable network it co-owns with Oprah Winfrey. on.wsj.com/2jfu5fy

- Toys R Us Inc announced Monday its British division is seeking to restructure its real-estate portfolio under an insolvency procedure. on.wsj.com/2iS3AQj

 

FT

- Britain’s biggest car dealerships Pendragon will sell its entire U.S. operation and offload several UK new car forecourts as it shifts focus to used cars.

- A controversial ban imposed by the Trump administration has been allowed by the U.S. Supreme Court.

- UK-listed companies’ executives would be required to hold on to bonuses paid as shares for at least five years under revisions to Britain’s corporate governance code aimed at restoring public trust in business.

- Facebook launched Facebook Messenger for kids designed with controls that allow parents to decide who their children can connect with online.

 

NYT

- Broadcom Ltd is nominating 11 directors at Qualcomm Inc. Qualcomm had previously rejected Broadcom's roughly $105 billion unsolicited offer. nyti.ms/2jf4tzj

- Netflix Inc will film the sixth and final season of "House of Cards" with Robin Wright in the lead role, the company said. nyti.ms/2BJCM9g

- Alphabet Inc's YouTube said it is hiring more human reviewers to remove videos that violated its guidelines while teaching computers how to spot troublesome videos. The company plans to have 10,000 people dedicated to reviewing videos in 2018. nyti.ms/2jOPzPX

- Portuguese Finance Minister Mario Centeno will be the new president of the Eurogroup, the group that manages crises for the eurozone, a sign that the region's officials may be ready to leave behind an era during which the euro often appeared to be on the brink of collapse. nyti.ms/2Aup5er

- The U.S. Consumer Financial Protection Bureau (CFPB) will allow payments to victims of financial crime to go forward as usual, the agency's acting director, Mick Mulvaney, said on Monday, reversing a freeze he put in place last week. Mulvaney also said he had no interest in firing Leandra English, who had attempted to block him from taking control of the agency. nyti.ms/2BBB4G6

 

Canada

THE GLOBE AND MAIL

** Tougher mortgage stress-testing rules could make it impossible for 40,000 to 50,000 Canadians to buy a home each year, driving down real estate sales and reducing the anticipated pace of new mortgage-lending growth, according to a report by Mortgage Professionals Canada. (tgam.ca/2korcMQ)

** Canadian cannabis producer Aphria Inc has inked a deal to supply medical marijuana to Shoppers Drug Mart, the country's biggest chain of pharmacies. (tgam.ca/2kovOSX)

** Home buyers seeking refuge in Vancouver's suburbs face a harsh reality - it has become increasingly tough to find bargains in recent years. (tgam.ca/2knxBrv)

NATIONAL POST

** Emboldened by an improved outlook for oil prices, Husky Energy Inc will boost spending next year for the first time since 2014 even as its direct competitors pare their budgets back. (bit.ly/2kl7UYK)

** Airbus SE has selected Bombardier Inc to supply a new engine part for its A320neo program, weeks after the two companies announced a partnership that will see Airbus acquire a majority stake in the CSeries program. (bit.ly/2kjqLDk)

** Municipal permitting delays related to the C$7.4 billion ($5.85 billion) Trans Mountain pipeline expansion were due to Kinder Morgan Canada Ltd's incompetence, not political interference, the city of Burnaby told the National Energy Board Monday. (bit.ly/2kmI32y)

 

Britain

The Times

- The Financial Conduct Authority decided not to publish a highly critical investigation into Royal Bank of Scotland's systematic mishandling of thousands of small and medium-sized companies because it feared being sued for "unfair treatment" by the bank. bit.ly/2A247GJ

- Business tycoon Vijay Mallya secured hundreds of millions of pounds in bank loans for an airline that he knew to be in financial trouble before laundering the cash to fund his Formula One motor racing team, a court was told on Monday. bit.ly/2iRLbTE


The Guardian

- The UK and other European Union governments are planning a crackdown on bitcoin amid growing concerns that the digital currency is being used for money laundering and tax evasion. bit.ly/2Au7cfE

- U.S. retailer Toys R Us Inc (IPO-TOYS.N) has confirmed plans to close to a third of its permanent UK stores but says all the branches will remain open through Christmas and the new year. bit.ly/2BA5kRX

The Telegraph

- Uber Technologies Inc's request to take its appeal to overturn a ruling over drivers' rights directly to UK's highest court, skipping the Court of Appeal, has been rejected. bit.ly/2kmlmeX

Sky News

- British lawmakers called for a competition probe into the merger between SSE Plc and Innogy SE's UK retail energy businesses. bit.ly/2jeAkAi

- Sky News understands that Institutional Shareholder Services will make a potentially crucial intervention in the row over London Stock Exchange Chairman Donald Brydon's future on Tuesday. bit.ly/2nsRa2W

Comments

Arnold Tue, 12/05/2017 - 08:57 Permalink

Can This 107-Year-Old Steelmaker Be Brought Back to Life? (BBG)

Kestenbaum says his new company is ready for the worst. On the threat of reduced access to the U.S., he points out he’s also looking to boost sales to Mexico and Europe, taking advantage of the company’s location on the Great Lakes. And he says he’ll be more careful than previous owners in preserving a clean balance sheet.

Well, good luck to you.
no sarc.

Arnold Tue, 12/05/2017 - 09:04 Permalink

- Business tycoon Vijay Mallya secured hundreds of millions of pounds in bank loans for an airline that he knew to be in financial trouble before laundering the cash to fund his Formula One motor racing team, a court was told on Monday. bit.ly/2iRLbTE

I, too, love the smell of burning Castrol in the morning.
It smells like.... winner take all winning.

Not sure I would leverage it that way though.

TeethVillage88s Tue, 12/05/2017 - 09:45 Permalink

No Jobs Program from either Dems or GOP... despite automation, offshoring, use of H1 VISAs for foreign workers, and Special Economic Zones in the USA.

So naturally they are going to prove they can't see any Economic Problems or Pain for the commom people, Working Class, Tradesmen, Blue Collar, uneducated.

"After Tax Overhaul, GOP Will Pivot to Revamping Welfare (WSJ)"

TeethVillage88s Arnold Tue, 12/05/2017 - 10:07 Permalink

Maybe. But they have destroyed 20 - 40 Million from 1979 and offshoring, WTO, Globalization.

Economists agree USA needs 200K new jobs every month to keep up with population growth.

200K X 12 = 2.4 Million Annually

I see 1/3 of US Jobs are Govt when you include health care.

B-1 Table from Federal Reserve (thousands of employees)

Government = 22,511
Health care & social assistance = 19,609.7
Total in USA Working = 146 Million

How many Contractor Jobs in MIC, Telecom, Hi-Tech, subsidized by Medicare/Medicaid?

In reply to by Arnold

TeethVillage88s Arnold Tue, 12/05/2017 - 10:23 Permalink

Maybe use of Local Currencies, community currencies would say money from leaving the local economies.

Maybe this could save Jobs.

There is a Youtube Video on one maybe Bill Still in Virginia and in DC.

There is a Mid-West Construction Index that has been collapsing since like 2008... showing negative investment. I imagine the deeper story is money flow is out of the states in the Mid-West even though there is old money & wealth enough to keep Grand Kids happy.

https://fred.stlouisfed.org/series/RCONSTRM683SFRBCHI
https://fred.stlouisfed.org/series/RCONSTRUCTIONM683SFRBCHI (Not sure the difference btw the two)

In reply to by Arnold

TeethVillage88s Tue, 12/05/2017 - 09:58 Permalink

Speaking of Trump Strategies...

If Trump proposed Jobs Program to US Voters, then even as GOP & Dems would resist... the people would not "allow" impeachment Nor Mueller abuse of President Trump.

- Think about it, get to Trump Team, run in up the flagpole

TeethVillage, Institute for Terminating Idiocracy

CheapBastard TeethVillage88s Tue, 12/05/2017 - 12:22 Permalink

Trump voters want jobs, as you say, and Trump would be popular with them. However, Many Dem voters do not want jobs. They want welfare --- free shit. The two running-ups in the Houston mayoral contest last years showed a banker GOP who promised jobs and infrastructure repair. The Dem promised more welfare and soft on crime attitude. Soros heavily backed the Dem candidate. Can you guess who won?

In reply to by TeethVillage88s

TeethVillage88s CheapBastard Tue, 12/05/2017 - 13:51 Permalink

wow. But see we now have more people employed in Finance, FIREs, than before the subprime housing crash, 2008.

- So I don't think the Economic-Capitalist-Trade-Model really wants people with bargaining power to increase Labor Compensation Rates.

- Actually I see only like 100,000 jobs created in Non-Store Retail... despite Amazon and Ebay... Warehouse employment is up pretty big

https://fred.stlouisfed.org/series/CES4349300001 Warehousing & Storage 960K employed

http://research.stlouisfed.org/fred2/series/USFIRE 8.4 Million employed

https://fred.stlouisfed.org/series/CES4245400001 All Employees: Retail Trade: Nonstore Retailers

In reply to by CheapBastard

TeethVillage88s CheapBastard Tue, 12/05/2017 - 14:23 Permalink

Looks like 1.5 Million more people self employed in last 16 years or so. 2 Million incorporated minus .5 unincorporated (negative Trend).

What does it mean for Business Dynamics of young companies and self employed competing with Giant or Older Corporations? Population Growth includes 1 Million Immigrants Annually and figure 200,000 new working aged per month, 2.4 Million new workers per year. The number of working in USA doesn't not always increase by 200k people per month. from 2008 to Nov 2017 looks like 4.3 Million Jobs created.

4.3 Million Jobs / 10 years / 12 Months = 35.8 thousand jobs created per month? But we need 200,000 Jobs per month.

Employment Level: Total wage and salary, incorporated self employed (LNU02048984)
Oct 2017: 6,171 Thousands of Persons, Not Seasonally Adjusted, Updated: Nov 3, 2017
https://fred.stlouisfed.org/series/LNU02048984

Employment Level: All industries Self-employed, unincorporated (LNS12027714)
Oct 2017: 9,700 Thousands of Persons, Seasonally Adjusted, Updated: Nov 3, 2017
http://research.stlouisfed.org/fred2/series/LNS12027714

Civilian Labor Force (CLF16OV)
Jan 2016: 158,362 Thousands of Persons, Seasonally Adjusted, Updated: Nov 3, 2017
https://fred.stlouisfed.org/series/CLF16OV#0

Anyone else have different Job Creation numbers? 35.8 thousand jobs created per month?

In reply to by CheapBastard

TeethVillage88s Tue, 12/05/2017 - 10:27 Permalink

"Back in the 1930s on the Olympic peninsula, people were paying their taxes in alternative money…The banks shut them down. This is an example of the monopoly the banks have, and the level of control they have over peoples' economic lives… People need to know [local currency] is a possibility, an option, a realistic tactical and powerful way to take back your economic power from the bankers." Fourth Corner Exchange co-founder Francis Ayley says the current debt-based global money system is an unsustainable Ponzi-scheme that will crash. By contrast, local currencies are unlimited, based on whatever members want to exchange. He and director Lia Ayley share the nuts and bolts for new members starting to exchange, how values are set, and exchanges involving both Life Dollars and US dollars. The biggest challenge, they say, is changing our mindset from the scarcity built into the existing monetary system to one based on relationships, cooperation and plenty. Episode 292. [fourthcornerexchange.org]

https://www.youtube.com/watch?v=77zGy1Fl8YE

TeethVillage88s Tue, 12/05/2017 - 10:31 Permalink

Keep money in your own community instead of going to foreign businesses, Wall Street Banks.

"Berkshire County, Massachusetts has started printing up community currency they are calling Berkshares, that work for purchases at local businesses. Is this some kind of counterfeit operation or a viable way for people to keep their money local? We look at it with Lissette Padilla and Mark Sovel on the Lip News."

https://www.youtube.com/watch?v=rpD7aMRymRg

TeethVillage88s Tue, 12/05/2017 - 10:58 Permalink

Terrible Christmas shopping:

Contributions to the Chicago Fed Relative Midwest Economy Index: Midwest Region Contribution: Consumer Spending Sector (RCONSURM683SFRBCHI)

Observation:
Oct 2017: 0.00185 (+ more)
Updated: Nov 30, 2017

Units:
Index Standard Deviation,
Seasonally Adjusted

TeethVillage88s Tue, 12/05/2017 - 14:43 Permalink

Drilling Jobs down like 200K in just 2 years

All Employees: Mining, Drilling, and logging (USMINE)
Oct 2017: 717 Thousands of Persons, Seasonally Adjusted, Updated: Nov 3, 2017
http://research.stlouisfed.org/fred2/series/USMINE

So where are Anglo Jobs going to come from?

- MIC, Security, Govt Contracts
- Education & Health Care, subsidized by Medicare/Medicaid & HHS
- Hospitality & Leisure
- FIREs, Finance Jobs, Real Estate
- Lawyers, Morticians, Lobbyist, Politicians/Activists
- Automation, Robots
- Landscaping, Tree Trimming, Lawn Mowing, City Jobs

TeethVillage, Trends Forecaster