Frontrunning: November 15

  • Biggest Global Bond Rout Since 2003 Pauses (BBG)
  • Oil prices jump 3 percent on hopes of OPEC output cut (Reuters)
  • Italy polls get worse for Renzi as referendum nears (Reuters)
  • Trump will get wake-up call when he takes office, Obama says (Reuters)
  • With Priebus, Ryan’s Speakership Has Direct Channel to Trump (BBG)
  • Supreme Court now in Trump’s hands (The Hill)
  • Trump could return Iraq war boosters to power (Reuters)
  • 2016’s battle for Senate: Crushing the Tea Party (BBG)
  • NATO says Crimea still a concern, day after Trump-Putin call (Reuters)
  • Thousands of students carry protests against Trump into second week (Reuters)
  • U.S. Businesses Bet on Which Trump Will Govern (WSJ)
  • Carney Says U.K. Inflation Slowdown Doesn’t Change Outlook (BBG)
  • Giuliani: Defeating ISIS Is an Early Focus for Trump (WSJ)
  • Schumer under pressure to add Sanders to leadership team (The Hill)
  • German Cooling, Italy Rebound Keep Euro-Area Growth at 0.3% (BBG)
  • Dirty Linen: Bed Sheets Scandal Hits the Cotton Industry (BBG)
  • 76 national security experts urge Trump to keep Iran deal (The Hill)
  • Trump Win Dims Greek Debt-Relief Expectations From Obama Visit (BBG)
  • Hong Kong court, in line with China ruling, bars pro-independence lawmakers (Reuters)
  • Berkshire Hathaway Discloses New Investments in Airlines, Slashes Wal-Mart Holdings (WSJ)
  • World’s Biggest Real Estate Frenzy Is Coming to a City Near You (BBG)
  • Apple’s Smart Glasses Could Be Here by 2018 (BBG)
  • Egyptian court overturns ex-president Mursi’s death sentence (Reuters)
  • Multinational firms dumping Venezuela operations in fire sales (Reuters)

 

Overnight Media Digest

WSJ

– Former New York City Mayor Rudy Giuliani said Monday that President-elect Donald Trump would likely focus much of his initial foreign-policy strategy on destroying Islamic State, setting aside more vexing problems in the Middle East and elsewhere. http://on.wsj.com/2eA25CS

– Securities and Exchange Commission Chairman Mary Jo White plans to step down in January, opening the door to a new Republican-appointed leader who could move to loosen rules on Wall Street and curb the aggressive enforcement approach White prosecuted. http://on.wsj.com/2fboqTG

– Facebook Inc and Alphabet Inc’s Google announced steps to prevent fake-news websites from generating revenue through their ad-selling services, signs that technology companies are moving to address a growing controversy about misinformation on the Internet. http://on.wsj.com/2ezc2kd

– Donald Trump has appeared as a populist who railed against global trade and unchecked immigration, and a more traditional Republican who promised to temper the regulatory state and overhaul the tax code. The view, or combination of views, that emerges from the White House will chart the course of American corporations for the next four years. http://on.wsj.com/2fQYxsg

– Samsung Electronics Co agreed to buy Harman International Industries Inc, a U.S. automotive technology manufacturer for $8 billion, the South Korean electronics giant’s biggest deal ever and its latest attempt to branch out beyond smartphones in the wake of its Galaxy Note 7 fiasco. http://on.wsj.com/2eS8kxh

– Donald Trump’s appointment of media executive Steve Bannon to an influential White House post drew sharp criticism from Democrats, who cited his news outlet’s incendiary articles about ethnic and religious minorities during his tenure. http://on.wsj.com/2fTiMJh

– Warren Buffett’s Berkshire Hathaway Inc slashed its investment in the world’s biggest retailer and placed fresh bets on three big US airlines. http://on.wsj.com/2fzTRHP

 

FT

Greencore Group Plc, producer of half the sandwiches sold on Britain’s high streets, will accelerate its U.S. expansion plans with the acquisition of Peacock Foods for $747.5 million, a deal that will quadruple its sales in the country.

Germany’s powerful IG Metall labour union will block any attempt by Chinese investors to buy Osram, the lighting company, in a further sign of the growing backlash against China’s involvement in the country’s high-tech sector.

Warren Buffett used to call the airline industry “a death trap for investors”, but the world’s most famous stockpicker has spent more than $1.2 billion building stakes in four U.S. airlines, he said on Monday.

Bob Greifeld is stepping down as the chief executive of Nasdaq Inc, bringing to an end a 14-year tenure in which he had transformed the high-profile US exchange.

 

NYT

– A fierce chorus of critics denounced U.S. President-elect Donald Trump on Monday for appointing Stephen Bannon, a nationalist media mogul, to a top White House position. http://nyti.ms/2fUjWT8

– President Vladimir Putin of Russia and Trump spoke by telephone for the first time on Monday, agreeing to review what both consider the poor state of relations between the two countries. http://nyti.ms/2fUleNW

– Emboldened by the Republican sweep of last week’s American elections, right-wing members of the Israeli government have called anew for the abandonment of a two-state solution to the conflict with the Palestinians. http://nyti.ms/2fUlwUO

– The FBI reported on Monday that attacks against American Muslims surged last year, driving an overall increase in hate crime against all groups. http://nyti.ms/2fUfWBM

– Facebook and Google responded to criticism over fake news by making it clear that they had zero tolerance for such misinformation by taking pointed aim at fake news sites’ revenue sources. http://nyti.ms/2fUpvAS

– Gwen Ifill, a groundbreaking journalist who covered the White House, Congress and national campaigns during three decades for the Washington Post, the New York Times, NBC and, most prominently, PBS, died on Monday, aged 61. http://nyti.ms/2fUnrcc

– Wall Street regulators began an exodus from Washington on Monday as Mary Jo White, the chairwoman of the Securities and Exchange Commission, announced plans to leave the agency. http://nyti.ms/2fUnUe6

– Prime Minister Theresa May called on business leaders on Monday to help her government win back Britons disillusioned with liberal elites and globalization by forging an economy that “works for everyone”. http://nyti.ms/2fUkzvC

– Seventy-six national security experts urged Trump on Monday to reverse his hostility to the nuclear agreement signed with Iran last year and to use it as a tool to ease other tensions with the country. http://nyti.ms/2fUqQHV

– President Barack Obama said on Monday that he had urged Trump to reach out to minority groups, women and others who were alienated by his campaign. http://nyti.ms/2fUnEMz

 

Canada

THE GLOBE AND MAIL

** Amaya Inc’s former chief executive officer put forward a C$3.5 billion ($2.59 billion) takeover proposal for the online gambling company, backed by four overseas investment firms. https://tgam.ca/2fQkpoQ

** The federal government has tapped long-time public servant Judith LaRocque for a temporary stint in a vice-chair role at the country’s telecom and broadcast regulator. https://tgam.ca/2fQdCvc

** Gildan Activewear Inc has made an offer to buy American Apparel in a bid by one Canadian company to rescue from the ashes of bankruptcy a valuable trademark built by another. https://tgam.ca/2fQlVXV

NATIONAL POST

** Electricity companies in Alberta fear Premier Rachel Notley’s government is preparing legislation to retroactively change power contracts signed 15 years ago, a move critics say would create an investment chill in the province. http://bit.ly/2fQipgr

** First-time homebuyers’ break on the land transfer tax will double under a new proposal by the Ontario government, but wealthy purchasers will pay the price once new land transfer rules come into effect Jan. 1, 2017. http://bit.ly/2fQjBQL

** Canadian utility, telecom and REIT stocks are all vulnerable to price dips now that Donald Trump has been elected president of the United States, a new report from RBC Capital Markets says. http://bit.ly/2fQm6lW

 

Britain

The Times

* Hermes Investment Management said yesterday that firms’ boards should be compelled to justify chief executive pay rises in a letter written every year to all company employees. Hermes played a role in the ousting of Jurgen Fitschen and Anshu Jain from Deutsche Bank last year. http://bit.ly/2gbBTPv

* Interserve Plc’s Chief Executive Officer Adrian Ringrose is to leave the outsourcing group in a surprise move after being at the helm of affairs for 13 years. http://bit.ly/2gbE9X9

The Guardian

* Construction work in central London has hit the highest level for eight years. The amount of office space being built in the area is 14.8 million square feet (1.4 million square metres), up more than 4 percent compared with six months ago and before the EU referendum. http://bit.ly/2gbEARc

* A report from the consultancy firm PwC warns that slowdown in the UK economy will hit tax receipts and leave the chancellor Philip Hammond with little scope for tax cuts. http://bit.ly/2gbFhtM

The Telegraph

* Speculation is rife over the future of Italy’s biggest bank UniCredit after it emerged that it is considering a 13 billion Euros fund-raising. Rumours about a possible merger with French rival Societe Generale spiked UniCredit’s shares as much as 5.8 percent. http://bit.ly/2gbESaE

* Merlin Entertainments Plc said it would cut about one tenth of its workforce at Alton Towers as it continues to reel from a rollercoaster accident that led to two young women having legs amputated. http://bit.ly/2gbyvEa

Sky News

*Co-operative Bank is understood to have been exploring an auction of a further chunk of the balance sheet of its non-core operations following a slew of disposals since it was plunged into crisis in 2013. http://bit.ly/2gbCTTT

* According to a report from financial services firm Hitachi Capital 42 percent of large and medium-sized firms cancelled or put off investing following the Brexit vote. http://bit.ly/2gbGi4U

The Independent

* A German minister Volker Bouffier is meeting major U.S. banks representatives this week as Frankfurt increases its efforts to lure businesses from London while the Britain is set to exit the European Union. http://ind.pn/2gbH0iO

* Royal Bank of Scotland Group Plc Chairman Howard Davies warned that banks will quit Brexit Britain without urgent government action. http://ind.pn/2gbDHb3

 

Russia

VEDOMOSTI

www.vedomosti.ru

PepsiCo will build a large baby food factory next to the existing dairy plant of the company Wimm-Bill-Dann in the city of Timashevsk. The factory will become one of the 15 largest Russian processing companies, the daily reports. PepsiCo has owned Wimm-Bill-Dann since 2011.

The finance ministry of and central bank have proposed to tighten the rules for the external auditors and to introduce criminal liability for auditors as well as their compulsory rotation, the newspaper said.

VimpelCom Ltd is to launch Veon messenger, which will be available to more than 200 million clients, including in Russia, by the end of 2017, daily reports.

KOMMERSANT

www.kommersant.ru

The daily reports that Russia’s central bank has hammered out a proposal to the shareholders and creditors of the bank Peresvet for its financial recovery. The main owner of Peresvet is the Russian Orthodox Church (49.7 percent) and the Chamber of Commerce and Industry of Russia (24.4 percent).

Two deputy governors of the Siberia’s Kemerovo region became involved in a criminal case related to an extortion, daily reports.

NEZAVISIMAYA GAZETA

www.ng.ru

According to a national agricultural census, which was carried out in the period from July 1 to Aug 15 2016 by the Russian Federal State Statistics Service, the number of agricultural organizations and farms have almost halved in 10 years. The massive consolidation of the farms is under way, which could lead to monopolization of the market, the daily said.

 

via http://ift.tt/2fSnvYa Tyler Durden

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