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Jan 12, 2015

DealBook P.M. Edition - January 12, 2015: Top Story White Collar Watch: Elusive Middle Ground in Punishment of White-Collar Criminals

MONDAY, JANUARY 12, 2015
TOP STORY
Michael S. Dry, an assistant U.S. attorney, prosecuted the case against Bob McDonnell, the former governor of Virginia.
White Collar Watch: Elusive Middle Ground in Punishment of White-Collar Criminals Judges, defense lawyers and prosecutors have conflicting ideas on appropriate federal sentencing guidelines for white-collar crimes, leading to persistent criticism that they need to be overhauled to better fit the misdeeds, writes Peter J. Henning in the White Collar Watch column.
For the latest updates, go to dealbook.nytimes.com »
DEALBOOK HIGHLIGHTS
Regulators Again Reject Doral Financial's Capital Plan The troubled Puerto Rico bank warns of possible "additional regulatory enforcement actions up to and including the appointment of a receiver or conservator for the bank."
BATS to Pay $14 Million Penalty Stemming From Direct Edge Merger The S.E.C. says two exchanges that BATS acquired through its merger with Direct Edge failed to give investors a complete picture of certain order types for stocks.
Li Ka-shing, 86, is one of the world's richest people, with a net worth of $33.5 billion, according to Forbes.
Reuters Breakingviews: Falling Oil Prices Help Overhaul of a Hong Kong Empire Selling a stake in Husky Energy is vital to keeping Li Ka-shing's grip on the telcommunications-to-property empire, writes Una Galani of Reuters Breakingviews.
Portugal Telecom Shareholders Agree to Put Off Vote on Asset Sale The decision comes amid questions about whether an $8.7 billion deal with Altice would scuttle a proposed merger between Portugal Telecom and the Brazilian carrier Oi.
NPS Pharmaceuticals has developed a drug called Gattex to treat a condition called short bowel syndrome.
Reuters Breakingviews: Shire Gambles AbbVie Breakup Fee on a Risky Deal Shire is paying a 51 percent premium for NPS, and it is making a potentially risky deal ahead of an important regulatory ruling, Neil Unmack of Reuters Breakingviews writes.
London's Canary Wharf office-and-retail district.
Canary Wharf Owner Urges Investors to Reject Takeover Bid The Qatar Investment Authority and Brookfield Property Partners have offered to pay about $3.9 billion for the outstanding shares of Songbird Estates.
EMC to Add 2 Directors in Truce With Elliott Management The hedge fund had pushed for a breakup of EMC, but after the deal to expand the board to 13 members, Elliott will vote in favor of EMC's entire slate of director nominees.
Drug companies have become increasingly interested in the animal health sector.
AmerisourceBergen to Buy MWI Veterinary SupplyAmerisourceBergen, a drug distributor, will pay about $2.5 billion in cash for MWI, expanding into the animal health business.
Ireland Hires Goldman to Advise on Allied Irish Banks Stake The Irish government said Goldman Sachs would provide advice on how to make sure the bank is appropriately capitalized to maximize the potential return for taxpayers.
Family Dollar is proceeding with a merger with Dollar Tree despite a higher offer from Dollar General.
Family Dollar Urges Shareholders to Back Dollar Tree Deal In a public letter, Howard Levine, Family Dollar's chief executive, made a direct pitch to investors to try to win support for a merger with Dollar Tree despite a higher bid from Dollar General.
Aer Lingus Shares Fall 5% After Second Rejection of British Airways' Parent The International Consolidated Airlines Group confirmed late on Friday that the Aer Lingus board rejected a revised takeover bid.
Dutch Optical Retailer GrandVision Plans I.P.O. in AmsterdamThe offering would consist of 20 percent to 25 percent of the shares held by an indirect subsidiary of the Dutch investment group HAL Holding.
Roche to Buy Majority Stake in Foundation Medicine, Leader in Tumor Testing The Swiss pharmaceutical giant Roche will pay more than $1 billion in a deal aimed at improving both cancer treatment and drug development.
LOOKING AHEAD
Major U.S Banks to Report Earnings The country's largest banks will all report their fourth-quarter and year-end financial results this week. JPMorgan Chase and Wells Fargo will kick off the earnings season on Wednesday, with Bank of America and Citigroup reporting on Thursday and Goldman releasing its results on Friday. The Wall Street trading operations that helped lift bank earnings in the third quarter are expected to deliver much weaker results in the fourth.

Many analysts are expecting profits to come in lower than they did a year earlier. The results will be closely watched for any indications of how much the recent economic weakness in Europe may be spreading around the globe. Banks had been planning for interest rates to rise for much of 2014, but recently rates have been heading down again.
Results of E.U. Hearings on Trade Agreement With the U.S.Cecilia Malmstrom, the European Union trade commissioner, is expected on Tuesday to present results of a public consultation on a hotly contested investment clause that has complicated trade negotiations with the United States. The clause, of a planned trans-Atlantic trade agreement, has sparked outrage among labor unions and environmental groups, which say it would give corporations too much power to override policies of sovereign governments.

But the United States and many European trade experts say the clause, allowing so-called investor-state dispute settlement, should be part of modern trade agreements. Ms. Malmstrom is not expected to make a definitive case for including or discarding the clause but to highlight the main issues raised by the consultation, announced in March last year.
December Sales Report for Retail and Food Services On Wednesday, the Commerce Department will release its advance retail and food services sales figures for December, a closely watched barometer of the strength of the economic recovery. Analysts say that sales may have cooled in December from the previous month, when retail sales jumped 0.7 percent and food services 5.1 percent from the same period last year.

Still, lower prices at the gas pump, as well as job growth, are breathing life back into retail spending after a year of uneven growth - good news for the economy overall.
Opinion on Debt-Purchase Plan From a European Jurist A senior adviser at Europe's highest appeals court is expected to issue a nonbinding opinion on Wednesday on a plan by the European Central Bank to buy bonds of stricken eurozone countries. The program, announced in 2012, has never been deployed but was widely credited with helping rescue the eurozone.

The opinion from Pedro Cruz Villalón, an advocate-general at the Court of Justice of the European Union in Luxembourg, will be closely studied for any sign that the court will restrict the remit of the central bank, amid expectations that the bank could soon unveil plans for large-scale purchases of government debt, or so-called quantitative easing. Judges endorse the advice of their advocates-general in the majority of cases, usually months later.
For the latest updates, go to dealbook.nytimes.com »
ADVERTISEMENT
DEALBOOK HIGHLIGHTS
Regulators Again Reject Doral Financial's Capital Plan The troubled Puerto Rico bank warns of possible "additional regulatory enforcement actions up to and including the appointment of a receiver or conservator for the bank."
BATS to Pay $14 Million Penalty Stemming From Direct Edge Merger The S.E.C. says two exchanges that BATS acquired through its merger with Direct Edge failed to give investors a complete picture of certain order types for stocks.
Li Ka-shing, 86, is one of the world's richest people, with a net worth of $33.5 billion, according to Forbes.
Reuters Breakingviews: Falling Oil Prices Help Overhaul of a Hong Kong Empire Selling a stake in Husky Energy is vital to keeping Li Ka-shing's grip on the telcommunications-to-property empire, writes Una Galani of Reuters Breakingviews.
Portugal Telecom Shareholders Agree to Put Off Vote on Asset Sale The decision comes amid questions about whether an $8.7 billion deal with Altice would scuttle a proposed merger between Portugal Telecom and the Brazilian carrier Oi.
NPS Pharmaceuticals has developed a drug called Gattex to treat a condition called short bowel syndrome.
Reuters Breakingviews: Shire Gambles AbbVie Breakup Fee on a Risky Deal Shire is paying a 51 percent premium for NPS, and it is making a potentially risky deal ahead of an important regulatory ruling, Neil Unmack of Reuters Breakingviews writes.
London's Canary Wharf office-and-retail district.
Canary Wharf Owner Urges Investors to Reject Takeover Bid The Qatar Investment Authority and Brookfield Property Partners have offered to pay about $3.9 billion for the outstanding shares of Songbird Estates.
EMC to Add 2 Directors in Truce With Elliott Management The hedge fund had pushed for a breakup of EMC, but after the deal to expand the board to 13 members, Elliott will vote in favor of EMC's entire slate of director nominees.
Drug companies have become increasingly interested in the animal health sector.
AmerisourceBergen to Buy MWI Veterinary SupplyAmerisourceBergen, a drug distributor, will pay about $2.5 billion in cash for MWI, expanding into the animal health business.
Ireland Hires Goldman to Advise on Allied Irish Banks Stake The Irish government said Goldman Sachs would provide advice on how to make sure the bank is appropriately capitalized to maximize the potential return for taxpayers.
Family Dollar is proceeding with a merger with Dollar Tree despite a higher offer from Dollar General.
Family Dollar Urges Shareholders to Back Dollar Tree Deal In a public letter, Howard Levine, Family Dollar's chief executive, made a direct pitch to investors to try to win support for a merger with Dollar Tree despite a higher bid from Dollar General.
Aer Lingus Shares Fall 5% After Second Rejection of British Airways' Parent The International Consolidated Airlines Group confirmed late on Friday that the Aer Lingus board rejected a revised takeover bid.
Dutch Optical Retailer GrandVision Plans I.P.O. in AmsterdamThe offering would consist of 20 percent to 25 percent of the shares held by an indirect subsidiary of the Dutch investment group HAL Holding.
Roche to Buy Majority Stake in Foundation Medicine, Leader in Tumor Testing The Swiss pharmaceutical giant Roche will pay more than $1 billion in a deal aimed at improving both cancer treatment and drug development.
LOOKING AHEAD
Major U.S Banks to Report Earnings The country's largest banks will all report their fourth-quarter and year-end financial results this week. JPMorgan Chase and Wells Fargo will kick off the earnings season on Wednesday, with Bank of America and Citigroup reporting on Thursday and Goldman releasing its results on Friday. The Wall Street trading operations that helped lift bank earnings in the third quarter are expected to deliver much weaker results in the fourth.

Many analysts are expecting profits to come in lower than they did a year earlier. The results will be closely watched for any indications of how much the recent economic weakness in Europe may be spreading around the globe. Banks had been planning for interest rates to rise for much of 2014, but recently rates have been heading down again.
Results of E.U. Hearings on Trade Agreement With the U.S.Cecilia Malmstrom, the European Union trade commissioner, is expected on Tuesday to present results of a public consultation on a hotly contested investment clause that has complicated trade negotiations with the United States. The clause, of a planned trans-Atlantic trade agreement, has sparked outrage among labor unions and environmental groups, which say it would give corporations too much power to override policies of sovereign governments.

But the United States and many European trade experts say the clause, allowing so-called investor-state dispute settlement, should be part of modern trade agreements. Ms. Malmstrom is not expected to make a definitive case for including or discarding the clause but to highlight the main issues raised by the consultation, announced in March last year.
December Sales Report for Retail and Food Services On Wednesday, the Commerce Department will release its advance retail and food services sales figures for December, a closely watched barometer of the strength of the economic recovery. Analysts say that sales may have cooled in December from the previous month, when retail sales jumped 0.7 percent and food services 5.1 percent from the same period last year.

Still, lower prices at the gas pump, as well as job growth, are breathing life back into retail spending after a year of uneven growth - good news for the economy overall.
Opinion on Debt-Purchase Plan From a European Jurist A senior adviser at Europe's highest appeals court is expected to issue a nonbinding opinion on Wednesday on a plan by the European Central Bank to buy bonds of stricken eurozone countries. The program, announced in 2012, has never been deployed but was widely credited with helping rescue the eurozone.

The opinion from Pedro Cruz Villalón, an advocate-general at the Court of Justice of the European Union in Luxembourg, will be closely studied for any sign that the court will restrict the remit of the central bank, amid expectations that the bank could soon unveil plans for large-scale purchases of government debt, or so-called quantitative easing. Judges endorse the advice of their advocates-general in the majority of cases, usually months later.
For the latest updates, go to dealbook.nytimes.com »

NYT Afternoon Update - January 12, 2015: Top News: France to Deploy Thousands of Troops to Protect Jewish Schools and 'Sensitive Sites'.

The New York Times

Afternoon Update

Monday, January 12, 2015

Top News
Police officers patrolling on Monday in the Marais neighborhood of Paris, which has many Jewish-owned businesses.
France to Deploy Thousands of Troops to Protect Jewish Schools and 'Sensitive Sites'

By ALAN COWELL

The authorities said that they would bolster security to protect potential targets of terrorism, putting in place one of the country's biggest peacetime security operations.
Obama Spokesman Says U.S. Should Have Sent High Profile Representative to March

By JULIE HIRSCHFELD DAVIS

Some Republican lawmakers had questioned why no top American officials, including the president, traveled to France to participate in a solidarity march in Paris.
The hacked Twitter page of U.S. Central Command.
ISIS Is Cited in Hacking of Central Command's Twitter and YouTube Accounts

By HELENE COOPER

Messages posted on the U.S. military accounts, the hackers claimed, listed the names and phone numbers of military personnel, but the documents appeared to be public records.
Phil Messina, a retired New York City sergeant, demonstrating a hold on Arthur Moody. Mr. Messina teaches self-defense tactics privately to officers.
Police Keep Using Chokeholds, Despite Bans and Scrutiny

By AL BAKER and J. DAVID GOODMAN

Since a police chokehold contributed to a Staten Island man's death in July, the tactic and the prohibition on it in New York City have come under intense review.
Arne Duncan, the education secretary. Annual testing has become a point of contention in the often-bitter discussions about how best to improve public education.
Education Secretary Says Administration Is Committed to Testing

By MOTOKO RICH

Arne Duncan outlined the administration's priorities for a revision of No Child Left Behind, indicating that testing was important to measuring achievement.
President Obama with Loretta E. Lynch, his nominee for attorney general, in Washington in November.
For Attorney General Nominee, a Career That Shied Away From Activism

By MATT APUZZO

Friends say Loretta E. Lynch, an African-American reared in the segregated South, sees herself more as a traditional prosecutor than a civil rights advocate.

The Washington Post Wonk P.M. Edition - January 12, 2014: Map: Literally every goat in the United States.

The Washington Post
WonkPM
The latest from Wonkblog  •  Mon., Jan. 12, 2015
View in your Web browser
Map: Literally every goat in the United States
There were 2,621,514 goats in the United States as of 2012, the year of the most recent USDA Agricultural Census. If America's goats were their own state, its population would be larger than that of Wyoming, Vermont, D.C. and North Dakota -- combined. This is what all those goats look like on a map. Now. This may …  Read full article »

McDonald’s new tone deaf commercial
  Yesterday, McDonald's aired a new television spot, a montage of its franchises around the United States using roadside signs to bring attention to people, events, and movements around the country. In place of menu offerings, restaurants in various parts of the country swap in messages of support, like "Thank you veterans," "Boston strong," and "Keep jobs in Toledo." …  Read full article »
For Europeans, terror attacks are still a tragic part of life
This post comes via Know More, Wonkblog's social media site. Check out Know More's homepage, Twitter or Facebook for the best and most interesting visuals, videos, and data hits from around the Web. The shooting at satirical magazine Charlie Hebdo and the related attacks killed 17 and injured 21 people in France last week. The …  Read full article »
How low can oil prices go? Welcome to the oil market’s old normal
How low could oil prices go? It’s anybody’s guess. The price of oil fell to its lowest level in five and a half years Monday, with both Goldman Sachs and Societe Generale lowering their projections. Oil price forecasting is a hazardous business. In June 2014, Barclays was forecasting a $109 a barrel price in the …  Read full article »
It says a lot that a strong economy is bad news for Mitt Romney in 2016
Nothing says democracy like a private-equity-manager-turned-governor whose dad ran for president facing off against a governor-turned-private-equity-manager whose dad was president over, you guessed it, the presidency. That's what we might get, though, if Mitt Romney, who's "considering" a run in 2016, and Jeb Bush, who's already formed a political action committee, end up duking it out over …  Read full article »
How Cadillac got left behind in the booming luxury car market
With interest rates low, gas prices down, and the economy finally on the march, 2014 was a banner year for luxury car sales. But don't tell that to the folks who run Cadillac. The iconic brand saw sales decline by 6.5 percent last year despite boasting what auto critics call an impressive lineup of cars. …  Read full article »
Wonkbook: Democrats take a sharp left on the economy
Are the states still "the laboratories of democracy," as Louis D. Brandeis said? Aaron Chatterji, a White House economist during President Obama's first term, is worried about the nation's R&D department: "The power of state policy innovations is that they traditionally had bipartisan fingerprints, allowing an enterprising national politician from either party to lay claim to them. …  Read full article »
If we stop telling kids what to read, they might start reading again
As a treat for Hanukkah last month, Sandra Stotsky took her grandchildren to the New England Mobile Book Fair in Newton, Mass. They were wandering around aimlessly. The store in a suburb of Boston has 32,000 sq. ft, of books, but the kids had no favorite authors, nothing they'd been longing to read. Stotsky, a self-described "professional Jewish grandmother," had plenty of suggestions. …  Read full article »
The Washington Post is the #1 print and online media source for opinions leaders inside the beltway. Read more at washingtonpost.com/opinionleaders
U.S. car travel has been on the decline for a decade. Will cheap gas change that?
Cheap gas changes a lot of things — the kind of vehicles we buy, the places where we want to live, even the political odds on unpopular ideas like raising the gas tax. The price of gas also potentially influences how much of it people buy, which, in turn, would change how much we all …  Read full article »

Federal Reserve Bank of New York Press Release - January 12, 2015: Tentative Small Value Agency MBS Sale Operation Schedule.

The latest tentative small value agency MBS sale operation schedule is now available.  The Federal Reserve Bank of New York’s Open Market Trading Desk conducts agency MBS small value exercises from time to time as matter of prudent advance planning by the Federal Reserve. The exercises are conducted under the annual authorization for domestic open market operations for the purpose of testing operational readiness. They do not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future.

U.S. Department of Commerce Communications - January 12, 2015: Dept. Commerce & Energy Trade Mission to China - Apllication Deadline, January 23, 2015

Secretary of Commerce Penny Pritzker and Secretary of Energy Ernest MonizJoint Business Development Mission to China
Beijing, Shanghai and Guangzhou | April 12-17, 2015

Smart Cities – Smart Growth: Exciting Opportunity to Expand Your Business in Asia

The United States Secretaries of Commerce will co-lead a Business Development Mission to China from April 12-17, 2015. This mission will promote U.S. clean technology products and services in the areas of green building/construction, energy efficiency, carbon capture, utilization and storage (CCUS) and environmental technologies in support of the Smart Cities-Smart Growth theme.
On November 12, President Obama and President Xi jointly announced the two countries’ respective post-2020 climate targets in Beijing. This announcement is a pivotal step in addressing the global challenge of climate change and movement towards achieving the deep decarbonization of the global economy. The mission will build on strong climate change progress during the first six years of the Obama Administration, and supports the intent of the announcement, as it will help to achieve its ambitious goals. It is one of several measures that will strengthen and expand U.S.-China clean energy cooperation, and will support the deployment of cutting edge, innovative technologies to combat and adapt to climate change. Additionally, the recent announcements from President Obama and President Xi will spur new opportunities for U.S. clean technology companies in China.
If you’re interested in participating in the upcoming business development mission, please visit the mission website to apply:http://www.export.gov/ChinaMission2015
Why participate in the Smart Cities-Smart Growth China Mission?
Business Development Missions organized by the U.S. Government provide a unique opportunity for businesses interested in exploring export opportunities overseas. Participating U.S. companies will meet with prescreened potential partners, agents, distributors, representatives, and licensees. The agenda will also include meetings with high-level national and local government officials, networking opportunities, and country and industry briefings.
Below are statements from two past trade mission participants highlighting their mission experience:
“I recently returned from Japan and South Korea where I took part in a five-day trade mission organized by the Department of Commerce, led by Secretary Penny Pritzker. Just as soldiers protect our freedom, the Department of Commerce is on the front lines supporting American businesses, making valuable connections that enable expansion into new markets that drive growth at home and abroad. They focus on facilitating job creation, economic growth, and sustainable development in the U.S., while encouraging global trade in new markets: a herculean task similar to what is known in the business world as the position of chief commercial officer.” Read more…
-         Bryan Speilman, Executive Vice President, Medidata (2014)
“The high calibre of the meetings was incredible, with access to top level government officials and decision makers. One particular high point during the mission in Ghana was meeting John Dramani Mahama, the Ghanaian President, where the group was given the opportunity to ask direct and frank questions - and received clear and fair responses. It was remarkable to have this level of access to the President and a number of the cabinet ministers, and to be able to talk frankly about business opportunities and issues. We left these meetings with confidence in doing business in Ghana.”Read more…
-       Allistair Jessop, Senior Vice President, Development, SolarReserve (2014)
Additional Information?
Please see attached mission flyer, visit the mission’s website at http://www.export.gov/ChinaMission2015, or by contacting the Department of Commerce Office of Business Liaison at BusinessLiaison@doc.gov or 202-482-1360.
Quick Facts
Dates:
April 12-17, 2015
Cities/Countries:
Beijing, Shanghai and Guangzhou
Optional Add-on stop in Hong Kong
Participants:
Secretary of Commerce Penny Pritzker
Secretary of Energy Ernest Moniz
Selected U.S. Government Officials
Senior Executives (equivalent to C-suite) from 20-25 U.S. Companies
Industries
Construction and Green Building
  • Design, Smart Urbanization, Better Cities
Energy Efficiency
  • Smart Grid, Green Data Centers, Certain Engineering Services
Carbon Capture, Utilization, and Storage
Environmental Technologies
  • Cement Plant Air Pollution Reduction, Power Plant Emissions Reduction, Groundwater Monitoring, Pollution Prevention, and Remediation, Municipal Water and Wastewater Treatment and Plant Development, Process and Produced Water, Water Efficiency and Reuse, Sludge Treatment
Application Deadline:
The application deadline for this mission will be Friday, January 23, 2015.

Applications received after the January 23rd deadline will be considered as time and space permits.
Application Notification:
Companies should receive final notification regarding the status of their application no later than February 6, 2015.
Participation Fee:
After a company has been selected to participate on the mission, a payment to the Department of Commerce in the form of a participation fee is required. The fee schedule for the mission is below: 
  • $12,500 for large firms
  • $10,000 for a small or medium-sized enterprises (SMEs)
  • $3,500 each additional firm representative (large firm or SME)
 Expenses for air travel, lodging, most meals, and incidentals will be the responsibility of each mission participant.