Frontrunning: May 29

  • Italy Sparks Global Fear of Fresh Euro Crisis (WSJ)
  • Brazil Truckers Strike to Cost Government $2.6 Billion Through End of Year (WSJ)
  • Delays and poison pills: NAFTA talks run out of road (Reuters)
  • Oil Drops After Saudi-Russia Output Revival Plan Rattles Traders (BBG)
  • Italy's fresh election risks being referendum on euro (Reuters)
  • China and Russia Push Into Iran, Exploiting Europe’s Caution (WSJ)
  • Kim Jong Un Sends Right-Hand Man to U.S. for Pre-Summit Talks (BBG)
  • Shipping Pulls Back From Iran as New Nuclear Sanctions Loom (WSJ)
  • FX Abuses Persist Even After $10 Billion in Fines, Traders Say (BBG)
  • "Everything Has Gone Wrong": Soros Warns "Major" Financial Crisis Is Coming (ZH)
  • China $10 Trillion Shadow Bank Crackdown Has Long Way to Go (BBG)
  • iPhone Display Makers Dip on Report Apple Will Go All-OLED in 2018 (BBG)
  • In ‘Founder Friendly’ Era, Star Tech Entrepreneurs Grab Power, Huge Pay (WSJ)
  • The World Isn’t Prepared for Retirement (BBG)
  • Mexico Foiled a $110 Million Bank Heist, Then Kept It a Secret (BBG)
  • Deutsche Bank chief economist lashes out at former CEO Ackermann (HB)
  • Trudeau’s Hipster Economics Looked Great Until Trump Cut Taxes (BBG)
  • After Santa Fe School Shooting, Texas Town Grapples With Bullying (WSJ)
  • Neighbors of Lottery Winners Are More Likely to Go Bankrupt (BBG)

Overnight Media Digest


- U.S. software company Verint Systems Inc is in talks to buy NSO Group, an Israeli maker of cybersurveillance products, for about $1 billion.

- The United States decided to defer launching a major new sanctions push against North Korea, part of a flurry of weekend moves by both sides aimed at reviving a summit between President Donald Trump and North Korean leader Kim Jong Un.

- Canada-based Bank of Montreal and Simplii Financial, online-bank unit of Canadian Imperial Bank of Commerce, reported that some of their customer accounts may have been breached, saying that they were contacted on Sunday by "fraudsters" claiming they were in possession of customer information.

- The European Union's top trade official will meet U.S. counterparts on Wednesday in a last-ditch effort to secure waivers from steel and aluminum tariffs and to engage Washington on efforts to tackle China's market-distorting policies.



French billionaire industrialist Serge Dassault, whose group builds the Rafale war planes and owns Le Figaro newspaper, died in Paris on Monday aged 93, a spokesman for Dassault Group said.

The private equity backer of fast food chain Pret A Manger is likely to sell the company to Nestle’s European rival JAB Holdings for 1.5 billion pounds ($2.0 billion) including debt.

Spanish Prime Minister Mariano Rajoy will face a vote of confidence in his leadership on Friday as corruption convictions handed down to dozens of people linked to his centre-right People’s Party (PP) threatened his six-year rule.



- Starbucks Corp will temporarily shut 8,000 stores for four hours Tuesday afternoon to conduct racial bias training for its employees. It follows an incident in Philadelphia last month in which two black men were arrested simply for waiting in a store.

- In a sign that the American shale gas revolution is spreading to the Middle East, Saudi AramCo reached a deal with Halliburton Co over the weekend to lift its production program in three Saudi Arabian shale fields.

- On Monday, Italy's quiet, white-haired president, Sergio Mattarella, emerged as the most contentious figure in Italian and European politics. His refusal to confirm a euroskeptic economist as a government minister set off the collapse of a populist coalition hours before it was expected to take control of the European Union's fourth largest economy.

- In a new television ad, Uber Technologies Inc's chief executive, Dara Khosrowshahi, pledges to move the ride-hailing giant beyond its bad-boy past. "One of our core values as a company is to always do the right thing," declares Mr. Khosrowshahi, who joined the business nine months ago.



A lack of funding has forced the Canadian Space Agency to abandon plans to participate in a NASA-led space telescope project that Canadian astronomers say is a top priority for the coming decade.

Bank of Montreal and online bank Simplii Financial have both disclosed apparent data breaches, warning that "fraudsters" claim to have accessed personal and account information belonging to tens of thousands of customers.

Shares of upscale U.S. marijuana retailer MM Enterprises USA LLC are expected to begin trading on the Canadian Securities Exchange Tuesday, following the reverse takeover of a Canadian shell company and a C$143 million ($109.69 million) raise that gives the company an implied value of more than $2 billion.

Corus Entertainment Inc may have to cut its dividend more than expected after the federal competition watchdog blocked its C$200 million sale of two French-language specialty television channels to Bell Media.



The Times

- Clifford Chance is facing an investigation from the solicitors' regulator after a complaint that it overlooked an allegation of fraud during a contentious review of Royal Bank of Scotland Group Plc's treatment of thousands of small companies.

- UK's accounting watchdog, the Financial Reporting Council has been accused of "outrageous ineptness" in its five-year investigation into the accounts of Autonomy, which could become its slowest inquiry yet.

The Guardian

- KPMG has quietly abandoned a longstanding practice of making donations in kind to MPs and political parties by providing researchers to help in formulating policy and legislation.

- Discovery Inc is to shut its European broadcasting base in London as the US TV giant behind channels including Animal Planet and Eurosport mulls post-Brexit plans for a new continental hub.

The Telegraph

- ITV Plc is considering entering into a 1 billion pounds ($1.33 billion) joint venture with the BBC by buying half of the Dave broadcaster UKTV, in a move to fortify British television against the increasing power of US tech giants.

- Codemasters has emerged as the latest video games company to hand ­investors a slice of the booming market by pressing ahead with a 280 million pounds London listing.

Sky News

- UK government is poised to sell a multibillion pound stake in Royal Bank of Scotland Group Plc, resuming a huge privatisation programme that has been stalled for three years.