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Frontrunning: August 31

  • Hilsenrath: Fed Appears to Hold Line on Rate Plan (WSJ)
  • Europe, Asia stocks set for worst monthly drop in three years on China, Fed (Reuters)
  • Beijing abandons large-scale share purchases (FT), if only for a few hours
  • China’s Next Problem: Paying for Its Stock-Market Bailout (WSJ)
  • Crises Put First Dents in Xi Jinping’s Power (WSJ)
  • Man Group’s China Chief Said to Assist Police in Probe (BBG)
  • BNY Mellon Races to Fix Pricing Glitches Before Markets Open Monday (WSJ)
  • Rosneft Second-Quarter Profit Falls 22% After Crude Prices Slump (BBG)
  • Euro zone inflation defies expectations, unchanged in Aug vs July (Reuters)
  • Low-profile Signature Bank has become one of the nation’s fastest-growing lenders (WSJ)
  • 30-Minute VIX Frenzy Exposes Obsession With Volatility Hedging (BBG)
  • U.S. developing sanctions against China over cyberthefts (WaPo)
  • NatWest suffers online login and payments crash (Telegraph)
  • Refugee crisis suddenly Merkel's biggest challenge (Reuters)
  • Toshiba Delays Earnings Report on Further Accounting Probe (BBG)
  • Ukraine's parliament backs draft law giving east special status (Reuters)
  • Japan eyes defense budget hike to fortify island chain facing China (Reuters)
  • Swift leads winners but West, Cyrus rule MTV Video Music Awards (Reuters)

 

Overnight Media Digest

WSJ

- Before a planned visit to the United States, the Chinese President's image as a bold leader is being undermined by his botched handling of the stock market rout and the country's economic slowdown. (on.wsj.com/1JFYnzp)

- U.S. Federal Reserve officials emerged from a week of head-spinning financial turbulence largely sticking to their plan to raise interest rates before the end of the year. (on.wsj.com/1JFYvic)

- Apple Inc's move to make it easier to block ads on iPhones and iPads is troubling publishers and heightening tensions with its Silicon Valley neighbors like Google Inc . (on.wsj.com/1JFYBqf)

- Executives at Bank of New York Mellon Corp are racing against the clock to make it through a backlog of pricing issues before the U.S. markets open Monday morning. (on.wsj.com/1JFYF9t)

- Low-profile Signature Bank has become one of the fastest-growing U.S. lenders, attracting a fan base ranging from hip-hop mogul Irv "Gotti" Lorenzo to former Congressman Barney Frank. (on.wsj.com/1JFYIlC)

- An international court has ordered Volkswagen AG to sell its nearly 20 percent stake in Suzuki Motor Corp, allowing the Japanese auto maker to extricate itself from the tie-up after a four-year struggle. (on.wsj.com/1JFYQBq)

 

FT

Italian energy group Eni said on Sunday it had discovered the largest known gas field in the Mediterranean off the Egyptian coast, predicting the find could help meet Egypt's gas needs for decades to come.

German insurer Allianz SE has joined Borealis Infrastructure, which manages investments for Canada's Ontario Municipal Employees Retirement Systems, to explore a bid for London City Airport.

British peer-to-peer lender Zopa on Sunday appointed Jaidev Janardana as chief executive officer, taking over from Giles Andrews.

 

NYT

- Univision Communications Inc, the country's largest Spanish-language broadcaster, is facing questions about its business prospects ahead of its planned initial public offering because of worries over sharp declines in ratings and weak advertising sales and increased competition from its rival Telemundo. (http://nyti.ms/1Jr7qR6)

- Hedge fund manager Daniel Zwirn has teamed up with Westaim Corp, a Canadian investment company, to create Arena Finance Company and Arena Investors, according to people briefed on the matter. Arena Finance, which will begin with roughly $183 million, will buy and originate commercial and real estate loans. Arena Investors, which currently has around $15 million of Zwirn's family money, will invest money on behalf of institutional investors. (http://nyti.ms/1fQoFmq)

- Citing time lost to a tropical storm, the government of Puerto Rico postponed by one week a plan for a "negotiated moratorium" on $72 billion of debt. (http://nyti.ms/1IxsPXa)

- The opinions about Wall Street that are emerging from the presidential candidates suggest that the financial industry could face very different futures depending on which party wins the White House. (http://nyti.ms/1Kn32Is)

- An approaching action on interest rates is being closely watched as a broader debate divides liberals and conservatives over the management of the American economy. Investors, who always pay attention to the Fed, are paying particular attention now. (http://nyti.ms/1UgKC0L)

 

Hong Kong

SOUTH CHINA MORNING POST

- Hong Kong hotels will face a tough operating environment in the next two years but market turmoil could create opportunities to acquire land, says hotel operator Great Eagle Holdings. According to chairman Lo Ka-shui, slowing demand for rooms and the weakening purchasing power of Chinese tourists could dent the company's profit. (bit.ly/1N3oNNY)

- Dropping numbers of Chinese tourists to Hong Kong are the sole sore spot in the balance sheets of the country's three largest airlines' record 11 billion yuan ($1.72 billion) in profits for the first half, which jumped on low fuel and currency costs and mainlanders' strong wanderlust - for all places other than Hong Kong. (bit.ly/1VpK7Pd)

THE STANDARD

- Financial Secretary John Tsang Chun-wah expects the economy to grow slower in the second half amid a volatile financial market and weak exports and tourism, but stresses Hong Kong's economic fundamentals remain sound. Tsang expects the annual GDP rate to be between 2 percent and 3 percent. (bit.ly/1Eunu85)

- Sales of small flats have shown signs of a slowdown amid concerns about a likely correction in the prices of mass-market units when economies sputter and markets swing. Over the weekend, only 132 of the 234 flats with sizes ranging from 198 to 381 saleable square feet at Aspen Crest had been bought, though Far East Consortium tailored the project for first-time buyers. (bit.ly/1Euog57)

HONG KONG ECONOMIC JOURNAL

- Chinese property developer Helenbergh is seen raising up to US$200 million in an initial public offering in Hong Kong, according to market sources. Sources said another mainland developer Changsheng China Property Co Ltd is also seen planning an IPO in the city as the mainland real estate market shows sign of improving.

- System integration solutions provider HNA International Investment Holdings Ltd said it plans to raise up to HK$2.97 billion ($383.2 million) by a rights issue in the proportion of 9 rights shares for every five held at HK$0.376 per share - a 20 percent discount to the previous close.

- Swire Pacific Ltd's property unit Swire Properties Ltd said it is considering to sell its office development project in the city's Kowloon Bay.

HONG KONG ECONOMIC TIMES

- Polysilicon and wafers maker GCL-Poly Energy Holdings Ltd said its first-half net profit fell 8.3 percent from a year back amid falling polysilicon prices, but added the solar industry has entered a rational and mature developing stage after years of industry consolidation with most of excessive capacities being phased out.

 

Britain

The Times

Egypt stirs row with Britain over support for jailed reporters

Egypt issued a dressing down to the British ambassador in Cairo after he added his voice to a global chorus of criticism over the conviction of three Al Jazeera journalists on charges of "broadcasting false news". (http://thetim.es/1VpAlfQ)

Vue weighs blockbuster 600 mln stg bid for Odeon

Vue International is considering a 600 million pound ($924.66 million) bid for rival cinema operator Odeon. Sources close to Vue said it would consider making an offer for Odeon, the chain owned by buyout supremo Guy Hands' Terra Firma, when it is put up for sale in the next few months. (http://thetim.es/1NHBSwl)

The Guardian

Eni discovers largest known gas field in Mediterranean

Italian energy group Eni has discovered the largest known gas field in the Mediterranean off the Egyptian coast and predicted that the find could help meet Egypt's gas needs for decades. (http://bit.ly/1O2cIFQ)

Rolls-Royce cooperating with Brazilian investigation into Petrobras bribery

One of Britain's biggest corporate names has been dragged into a multibillion-dollar corruption scandal after Rolls-Royce Holdings Plc admitted it was cooperating with Brazilian authorities investigating bribery in the country's state oil business. (http://bit.ly/1F9RCAp)

The Telegraph

Channel Tunnel rail link owner and insurer eye London City Airport bid

A Canadian pension fund that co-owns the Channel Tunnel rail link has joined forces with the German insurer behind the Thames Tideway Tunnel project to enter the 2 billion pound bidding war for London City Airport. (http://bit.ly/1ErYIW9)

Sky News

BoE says China woes unlikely to stop UK rate rise

China's economic slowdown is "unlikely to change" plans to increase interest rates in the UK, the governor of the Bank of England has said. The Chinese concerns which have rocked financial markets this week have fuelled expectations that rate increases might be put on hold in the short term. (http://bit.ly/1hqeMg5)