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Frontrunning: September 28

  • Headline winner: "Read Beyond Massive Job-Cuts Headlines: Labor Market Is Fine" (BBG)
  • And speaking of lies: The More Yellen Talks Up Inflation, the Less Traders Believe Her (BBG)
  • How Some Investors Get Special Access to Companies (WSJ)
  • Victorious Catalan separatists claim mandate to break with Spain (Reuters)
  • Russia seizes initiative in Syria (Reuters)
  • Former VW boss Winterkorn investigated for fraud (Reuters)
  • Investors Pull Back From Junk Bonds (WSJ)
  • VW's New CEO Is Moving Forward With a Strategy Shift (BBG)
  • Qatar to Invest $35 Billion in U.S. With New York Office (BBG)
  • Alcoa splits into mining and metal groups (FT)
  • Fed’s Tarullo Suggests U.S. Will Change Rules for Big Insurance Firms (WSJ)
  • Billionaire Carl Icahn Endorses Donald Trump (BBG)
  • Trump Plan Cuts Taxes for Millions (WSJ)
  • Oil prices slip as demand outlook eclipses supply falls (Reuters)
  • Clinton Clashes With Xi Over Women's Summit She Attended in 1995 (BBG)
  • Big US banks lose patience with Fed (FT)
  • House conservatives vie for clout over Boehner successor (Reuters)

 

Overnight Media Digest

WSJ

- China's President Xi Jinping sought to mollify concerns about his country's growing power by pledging billions of dollars to fight poverty and gender discrimination during a United Nations meeting. (http://on.wsj.com/1YJh0ZC)

- The clamor for corporate bonds in China is enabling companies like RiseSun Real Estate Development Co to issue debt at the lowest yields in five years. The weak state of China's real-estate market, once a favored investment, has helped divert more funds toward the perceived safety of bonds. (http://on.wsj.com/1VhUZSq)

- Volkswagen AG faces higher financing costs and a strain on its ability to offer loans to boost sales amid an unfolding emissions scandal, which is rippling through all aspects of the auto maker's business. (http://on.wsj.com/1iVeL5k)

- U.S. President Barack Obama and Indian Prime Minister Narendra Modi are scheduled to hold talks Monday, as their two countries continue to tighten strategic and economic ties in the face of an increasingly assertive China. (http://on.wsj.com/1VhSPST)

- Richard Rainwater, a legendary deal maker who helped turn the Bass brothers of Texas into billionaires and later became one himself, while serving as a mentor to a new generation of investment wizards, died on Sunday at 71. (http://on.wsj.com/1O3SfnI)

- U.S. President Barack Obama is set to address the United Nations General Assembly on Monday. Increasingly complex dynamics in a volatile Middle East will test Obama while he tries to advance his longer-term policy goals on issues such as global development and climate change. (http://on.wsj.com/1OBA3Sa)

- Iraq joined Russia, Iran and Syria in a new agreement to strengthen cooperation against extremist group Islamic State, extending the Kremlin's reach in the Middle East as it rivals Washington for influence. (http://on.wsj.com/1LfRZBi)

- Investors are pulling back from the junk-bond market, in a shift that threatens to slow the global mergers-and-acquisitions boom. United States issuance of high-yield bonds or junk bonds, so far in 2015 has fallen 1.4 percent from a year ago. (http://on.wsj.com/1RaF9mT)

 

FT

India's Prime Minister Narendra Modi, who is on an official visit to the United States, signed deals with Google and Microsoft, highlighting his government's focus on initiatives like "Digital India." Google agreed to launch free Wi-Fi across 500 railway stations in India while Microsoft pledged to bring low-cost broadband to 500,000 villages in India.

Industry experts say Italian oil and gas group Eni's Arctic platform, built at a cost of 5.6 billion euros ($6.27 billion) in Arctic's Barents Sea, is undergoing final tests and will begin production soon.

Facebook's Chief Technology Officer Mike Schroepfer told the Financial Times that the social-networking company's investment in virtual reality will increase year over year and that the company has a multi-year plan worked out for the new medium.

Accel and KKR have raised $1.3 billion for a new buyout fund which is 50 percent bigger than their previous investment vehicle raised about two years ago.

 

NYT

- Netflix Inc plans to announce on Monday that it has landed global streaming rights to 'Jane the Virgin', the critically acclaimed CW telenovela about a virgin who ends up accidentally pregnant; 'Zoo', the CBS thriller about violent animal attacks; and the post-apocalyptic drama 'Colony'. (http://nyti.ms/1PIzbbQ)

- India and its 1.25 billion residents have become the hottest growth opportunity - the new China - for American Internet companies. Blocked from China itself or frustrated by the onerous demands of its government, companies like Facebook Inc, Google Inc and Twitter Inc, as well as start-ups and investors, see India as the next best thing. (http://nyti.ms/1NWc0M6)

- Gary Reback, who persuaded the federal government to bring a case against Microsoft Corp in the 1990s, is now pursuing a case against Google Inc. Brussels has become the venue of choice for United States antitrust lawyers and technology companies, which find European authorities more receptive to their complaints that Google is using the power of its search business to snuff out competitors. (http://nyti.ms/1h1wWEC)

- The pledges that countries are making to battle climate change would still allow the world to heat up by more than 6 degrees Fahrenheit, a new analysis shows, a level that scientists say is likely to produce catastrophes ranging from food shortages to widespread extinctions of plant and animal life. (http://nyti.ms/1FuJpMY)

 

China

SHANGHAI SECURITIES NEWS

- China has seen a jump in major company restructuring deals this year as the country looks to reform its giant state-owned enterprises. The combined value of restructuring deals on the Shanghai exchange is around 247 billion yuan ($39 billion), up 186 percent against 2014, according to exchange data.

SHANGHAI DAILY

- Chinese watchdog the State Administration of Industry and Commerce (SAIC) pinpointed 10 adverts on Sunday as violating rules about using celebrities to mislead shoppers. The country is trying to boost consumer protection rules.

CHINA SECURITIES JOURNAL

- Major shareholders at 1,310 listed companies have increased their holdings and 157 companies have bought back shares since the stock market started to crash in mid-June, according to a survey by the newspaper.

- Stock futures investors are turning to the commodities futures market due to trading crackdowns, the official newspaper said. Trading volumes for stock index futures has dropped from 3.2 million per day at the end of June to 17,284 on Sept. 25.

CHINA DAILY

- Chinese embassies have been trying to rein in unruly tourists ahead of the week-long national holiday which begins this week. Embassies, including in Thailand and Canada, posted notices on their websites warnings travelers to avoid loud arguments and refrain from drawing graffiti.

PEOPLE'S DAILY

China's economic prospects are still "bright" despite a growth slowdown and volatile markets, the paper which acts as a mouthpiece for the ruling Communist Party said in a commentary. Growth will remain "steady" and there is no basis for continued yuan depreciation, it added.

 

Britain

The Times

AB INBEV could table a 70 billion pound ($106.35 billion) bid for SABMiller this week, firing the starting gun on the biggest-ever takeover of a British company. Over recent days the world's two biggest brewers have begun "friendly" talks, sources said. (http://thetim.es/1O3ECEO)

Struggling department store Debenhams' three biggest investors - Schroders, Milestone Resources and Old Mutual - are pushing for a board shake-up with help from the broker Cenkos. (http://thetim.es/1O3ESnv)

The Guardian

John McDonnell, the shadow chancellor, will promise to match Jeremy Corbyn's new politics with a new economics, including a pledge that the next Labour government will live within its means but run a different kind of economy. (http://bit.ly/1O3F1r5)

Lawyers for UK drivers have urged Volkswagen AG to "come clean" over exactly which cars have been affected in Britain by the emissions-rigging scandal that has rocked the global car industry. (http://bit.ly/1O3F7yI)

The Telegraph

Managing director of Formula 1 circuit Silverstone, Patrick Allen, said the future of British Grand Prix is at risk as the race track is in dire need of funds and an investor. (http://bit.ly/1O3Fx8v)

Germany's Volkswagen AG faces tough times ahead as investors flee its bonds, driving up the cost of borrowing. The ECB is believed to have stopped buying VW bonds, which it had been buying as part of its quantitative easing package. Private investors are also dropping out of the market, in a sign that they fear for VW's financial health. (http://bit.ly/1O3GEF1)

Sky News

Lawyers are being approached by large numbers of Volkswagen owners and shareholders as motorists wait to hear how the UK is affected by the emissions scandal. (http://bit.ly/1O3GQ7j)

Barclays PLC is in preliminary discussions with potential buyers to exit from parts of its investment banking business in Brazil, Sky News reported citing sources. (http://bit.ly/1O3HgdJ)

The Independent

Warring politicians have contributed to the UK's "productivity slowdown", according to evidence passed to the House of Commons' Business Select Committee. (http://ind.pn/1O3Lpyl)

Scotland would "welcome" junior doctors from England threatened by a new contract imposed by Westminster, according to the Scottish Health Secretary. (http://ind.pn/1O3LyC4)