Frontrunning: August 9

  • Search for yield drives stocks higher, pound falls vs dollar (Reuters)
  • China’s slowing wholesale deflation takes pressure off central bank (Reuters)
  • Rajan Holds India Rates in Final Move as Inflation Quickens (BBG)
  • Brent above $45 on U.S. inventories, producer action speculation (Reuters)
  • Republican national security experts: Trump would be ‘dangerous’ president (Reuters)
  • House Speaker Paul Ryan faces primary test after belated Trump endorsement (Reuters)
  • China Warns U.K. That Relations Hang on Hinkley Point (BBG)
  • Spain’s Yield Curve Flattest in More Than a Year on ECB Stimulus (BBG)
  • Are Negative Rates Backfiring? Here’s Some Early Evidence (WSJ)
  • China Sees Second Shipbuilder Default This Year as Economy Slows (BBG)
  • Saudi-led air strikes on Yemen capital resume, nine civilians killed (Reuters)
  • Fannie, Freddie Could Need as Much as $126 Billion in Crisis (BBG)
  • Valeant Maintains 2016 Forecast Despite Sales, Earnings Miss (BBG)
  • Struggling Japan Display says state fund promises full financial support (Reuters)
  • U.K. SFO to Decide Charges in BOE Fraud Probe by Year-End (BBG)
  • Colorado Activists Submit Petitions for Referendums on Fracking  (NYT)
  • Turkey says rising anti-Americanism can be calmed by Gulen extradition (Reuters)
  • Buffett Cash Pile Climbs to $72.7 Billion, Setting Record: Chart (BBG)

 

Overnight Media Digest

WSJ

– Online lender LendingClub Corp said Monday that its finance chief had resigned to pursue a new opportunity, a management shift that comes three months after the company ousted its founder and CEO. http://on.wsj.com/2ba0GyG

– A federal appeals court in Manhattan upheld a decision preventing Ecuadorean plaintiffs from enforcing a multibillion-dollar award against Chevron Corp, a significant win for the oil giant in a legal dispute that has lasted decades http://on.wsj.com/2b9ZvQ1

– Barclays PLC agreed to pay $100 million to end investigations by 43 states and the District of Columbia into its alleged manipulation of the London interbank offered rate benchmark in the mid-2000s. http://on.wsj.com/2ba0rUw

– A power outage at Delta Air Lines Inc grounded thousands of passengers world-wide during the height of the summer travel season, wreaking havoc on the carrier’s reservations system and drawing attention to antiquated technology that has plagued many airlines. http://on.wsj.com/2ba0sI0

 

FT

China has warned Britain that bilateral ties stand at a “crucial historical juncture” over London’s deferral of an 18 billion pound ($23.47 billion) nuclear power project, the Financial Times reported on Monday.

Wal-Mart Stores Inc, vying to better challenge Amazon.com Inc, will pay about $3 billion for internet retailer Jet.com and its innovative pricing software in the largest-ever deal for an e-commerce startup.

A German court will adopt a rarely used class-action style procedure to more efficiently process claims by investors seeking damages from Volkswagen over a diesel emissions cheating scandal, according to a ruling. The regional court in Braunschweig near Volkswagen’s Wolfsburg headquarters said on Monday it will pick one case to act as a model to help resolve as many as 170 other damages claims, the closest thing Germany has to class-action lawsuits common in the United States

 

NYT

– In an effort to halt the advance of the oil industry in Colorado, environmental activists said they submitted enough signatures on Monday to place on November’s ballot two initiatives aimed at severely limiting hydraulic fracturing. nyti.ms/2b2tQSf

– Starting in 2018, all eight “Harry Potter” films, and the coming films of the spinoff series “Fantastic Beasts and Where to Find Them,” will be seen on the NBCUniversal stations Syfy and USA, the company announced on Monday. nyti.ms/2b2u4so

– Lawyers for former Fox News chairman Roger Ailes have agreed to keep the sexual harassment lawsuit brought against him by former anchor Gretchen Carlson in New Jersey, according to a court filing on Monday. nyti.ms/2b2uAXu

– Fifty of the nation’s most senior Republican national security officials, many of them former top aides or cabinet members for President George W. Bush, have signed a letter declaring that Donald J. Trump “lacks the character, values and experience” to be president and “would put at risk our country’s national security and well-being.” nyti.ms/2b2vkeV

 

Britain

The Times

Thousands of retail investors are likely to be denied the chance of buying shares in Lloyds at a discount as the government is expected to abandon the plan in the aftermath of market uncertainty caused by Brexit. http://bit.ly/2aVoZB1

At least 30 international trade deals worth more than $20 billion to American businesses are stuck in limbo because of a political spat over the fate of the US Export Import bank. http://bit.ly/2aVsSWD

The Guardian

Warm weather and heavy discounts have helped drive a rebound in retail sales, potentially tempering fears of the UK economy grinding to a halt following the Brexit vote. http://bit.ly/2aVoWF1

EDF’s decision to invest in the 18 billion pound ($23 billion) Hinkley Point should be declared invalid, French trade unions have said, as pressure builds against the troubled nuclear power plant project. http://bit.ly/2aVpFpO

The Telegraph

Barclays is paying $100m to 44 U.S. states to settle an investigation into interest rate manipulation. http://bit.ly/2aVp5se

Britain’s pension system is facing a monumental shake-up as a select committee investigates the powers of the Pensions Regulator and the future of defined-benefit pension funds. http://bit.ly/2aVpBqc

Sky News

Trains across London, East and West Sussex, Kent, Surrey, Buckinghamshire and Hampshire are affected by the strike, which started on Monday morning. http://bit.ly/2aVpomK

UK supermarket chain Wm Morrison is likely to announce within days that it has reached a deal with the online grocer, Ocado, to take capacity at its warehouse in Erith, Kent. http://bit.ly/2aVpElF

The Independent

Three of the UK’s biggest banks have paid out billions of pounds in dividends to investors while turning a blind eye to huge capital holes in their balance sheets, researchers argue. http://ind.pn/2aVqezS

Companies in London and the South East were most severely impacted by the shock vote to leave the EU, according to a manufacturing survey. http://ind.pn/2aVq0sJ

 

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

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