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Sep 1, 2015

Illinois Court Orders Production of Second Set of Documents Claimed to Be Privileged by Navistar International Corporation in SEC Investigation: SEC Litigation Release - September 1, 2015.


SEC Seal


U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23330 / September 1, 2015

Securities and Exchange Commission v. Navistar International Corp., Civil Action No. . 1:14-cv-10163 (N.D. Ill., filed Dec. 18, 2014)

Illinois Court Orders Production of Second Set of Documents Claimed to Be Privileged by Navistar International Corporation in SEC Investigation

The Commission announced that on August 31, 2015, United States Magistrate Judge Sidney I. Schenkier issued an Order (“Order”) requiring production of a second set of documents that Navistar International Corporation (“Navistar”) claimed to be privileged in response to investigative subpoenas issued by Commission staff.  The Commission filed an Application for an Order Compelling Compliance with Administrative Subpoenas against Navistar in December 2014 and filed an Amended Application in January 2015.

DealBook P.M. Edition - September 1, 2015: Shares Fall on Bleak Chinese Manufacturing Data | Portugal, Missing Deadline for Novo Banco Sale, | Another View: A Call for a Free Market | GE Capital's Australian Units Said to Be Receiving Final Bids | Samsung's Next Smartwatch | E.C.B. Council May Talk China | Disney's Marketing Force | Eyes on August Jobs Report.

 
 
Tuesday, September 1, 2015
TOP STO
A worker at a textile plant in Huaibei, China. A report showed that Chinese manufacturing activity in August fell to a three-year low.
Shares Fall on Bleak Chinese Manufacturing Data United States and European markets dropped after a report from China showed activity in August had slipped to a three-year low.

  • NYT » | Another View: A Call for a Free Market
  •  
  •  
    DEALBOOK HIGHLIGHTS
    As part of a bailout of Banco Espírito Santo, the Portuguese authorities decided to break up the bank and transfer the healthy assets to a new entity, Novo Banco.
    Portugal, Missing Deadline for Novo Banco Sale, Turns to Second Bidder The auction of the lender is meant to complete a rescue of Banco Espírito Santo, which required a state-led bailout in August 2014 of about $5.5 billion.
    Another View: A Call for a Free Market The worldwide market turbulence of recent days is a strong indication that government intervention alone cannot restore the economy, says David Rocker.

It's a Bad Time to Depend on China: Bloomberg View - September 1, 2015.

bloombergview.com

It's a Bad Time to Depend on China

Leonid Bershidsky
Now that Chinese industry is slowing down, countries that became dependent on its spectacular growth -- especially raw materials suppliers -- will need to adjust. In some cases, they'll have to reinvent their economies.
Global trade volume dropped by 1.5 percent in the first quarter, and by 0.5 percent more in the following three months. This was the worst fall in six years, and there's a lively academic debate as to why it happened. No explanation, however, fails to mention China's role in the abnormally high trade growth of the last two decades, a phenomenon best visualized by comparing the expansion of Chinese exports against that of the global economy:
Chinexports
Menzie D. Chinn, VoxEU, 2015
China used its abundant and cheap workforce to produce competitively priced goods, exploiting this advantage to the fullest on the export market. China has, for example, used more favorable tariff rates for imports destined for processing and re-export, a business that accounts for between 30 percent and 50 percent of China's total trade, according to a recent paper by Jiansuo Pei, Cuihong Yang and Shunli Yao.

Stocks Close Nearly 3% Lower: Wall Street at Close Report on September 1, 2015.

cnbc.com

Stocks close nearly 3% lower: 

Do Not Miss CNBC Special at 7pm ET

Evelyn Cheng, Jenny Cosgrave, Fred Imbert
 
U.S. stocks plummeted Tuesday as continued signs of weakness in China and concerns about the Federal Reserve weighed heavily on investor sentiment.
The major averages ended in correction territory, down nearly 3 percent after a failed attempt in the minutes prior to cut some losses.

CMI Spot Prices as of Close of Trading in New York on September 1, 2015.

Spot Prices as of traditional New York closing times

Tuesday, September 01, 2015


Gold

Today Change Week Ago Month Ago Year Ago
$1,141.20 +$7.50 $1,140.40 $1,096.70 $1,265.15

Silver

Today Change Week Ago Month Ago Year Ago
$14.65 +$0.02 $14.65 $14.78 $19.18

Platinum

Today Change Week Ago Month Ago Year Ago
$1,010.90 -$1.20 $978.60 $987.90 $1,411.40

Palladium

Today Change Week Ago Month Ago Year Ago
$581.80 -$21.40 $542.90 $614.95 $886.40

Gold/Silver Ratio

77.90

To Farage the opportunist, the EU referendum is his chance for glory | Simon Jenkins: The Guardian | EU Referendum - September 1, 2015.

theguardian.com

To Farage the opportunist, the EU referendum is his chance for glory | Simon Jenkins

Simon Jenkins
The phoenix rises from the ashes. Nigel Farage’s Ukip today became the third army to join the crusade for Britain to leave Europe in the 2017 referendum. Why he should do so is hardly a secret: Farage is a master opportunist. The refugee crisis has plunged Europe into a turmoil of confusion over migration. To Farage, Britain’s membership of the EU is essentially about immigration. With a sporting chance of the referendum going in favour of not remaining in the EU, he is not going to deny himself a share in the glory.

:GDP, 2nd quarter 2015 (second est.); Corporate Profits, 2nd quarter 2015 (prelim. est.):Real Gross Domestic Product Increased 3.7%...: BEA News Release - September 1, 2015.

The U.S. Bureau of Economic Analysis (BEA) has issued the following news release today:

Real gross domestic product -- the value of the goods and services produced by the nation's economy less the value of the goods and services used up in production, adjusted for price changes -- increased at an annual rate of 3.7 percent in the second quarter of 2015, according to the "second" estimate released by the Bureau of Economic Analysis.  In the first quarter, real GDP increased 0.6 percent.  
The full text of the release on BEA's Web site can be found at www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

Europe Markets End 2.5% Lower After Weak China Data: European Markets at Close Report on September 1, 2015.

cnbc.com

Europe markets end 2.5% lower after weak China data

Catherine Boyle, Arjun Kharpal
 
European stock markets ended sharply lower on Tuesday after new data from China exacerbated concerns about the outlook for the world's second biggest economy.
The pan-European STOXX 600 provisionally closed 2.9 percent lower after weak manufacturing data from China fueled selling throughout the session.
London's FTSE 100 ended over 3 percent lower, reopening after a bank holiday on Monday. Germany's DAX finished around 2.6 percent lower, while France's CAC was off by nearly 2.6 percent at the close.

ABC NEWS: The Note: Inside Hillary Clinton's Inbox - September 1, 2015.

ABC News BannerABC News

The Note: Inside Hillary Clinton's Inbox

September, 01, 2015 
By SHUSHANNAH WALSHE

PHOTO: Democratic presidential candidate Hillary Rodham Clinton speaks on the campus of Case Western Reserve University in Cleveland, Aug. 27, 2015, during a Commit to Vote grassroots organizing meeting.
David Richard/AP Photo
NOTABLES

China growth fears slam U.S. stock futures; Dow futures slump 400 points: U.S. Stock Market Future Indications Update - September 1, 2015.

MarketWatch






marketwatch.com

China growth fears slam U.S. stock futures; Dow futures slump 400 points

Anora Mahmudova, Sara Sjolin
U.S. stocks looked set to plunge at the open Tuesday after another set of weak Chinese economic data roiled global financial markets.
Energy stocks were among the steepest decliners.
Futures for the Dow Jones Industrial Average YMU5, -2.58%  skidded 400 points, or 2.4%, to 16,109, while those for the S&P 500 index ESU5, -2.63%  dropped 48 points, or 2.5%, to 1,921. Futures for the Nasdaq 100 index NQU5, -2.71%  lost 108 points, or 2.6%, to 4,163.

DealBook Today's Top Headlines -September 1, 2015: David Einhorn Surveys Investors | Dreamers and the Defiant | China Cracks Down on 'Spreading Rumors'.

 
Tuesday, September 1, 2015
TODAY'S TOP HEADLINES
By AMIE TSANG
DAVID EINHORN SURVEYS INVESTORS David Einhorn has a reputation as one of the savviest stock pickers on Wall Street, but even he has not been spared in the recent market turmoil. This year is shaping up to be one of the worst in the history of his hedge fund. People briefed on the matter say the Greenlight Capital fund was down 5.3 percent in August and down 14 percent for the year. And Mr. Einhorn has been trying to find out what his investors think about the fund, Alexandra Stevenson and Matthew Goldstein report in DealBook.

This year, Mr. Einhorn's firm had retained an outside consulting firm to conduct a survey of investors, according to people briefed on the matter. The firm started contacting Greenlight's investors several weeks ago to conduct phone interviews, and gauge their thoughts about the hedge fund and its accessibility.

It is not clear what Mr. Einhorn intends to do with the results. He has conducted surveys from time to time before and a person briefed on the matter said the timing of the survey had nothing to do with the fund's recent performance. Still, it is a sign of how hedge fund managers, even famous ones like Mr. Einhorn, need to be sensitive to their investors.

Mr. Einhorn said in July that his investment in SunEdison was the "only significant winner," but even its stock took a sharp dive in August. Along with gold, General Motors and Apple rank among his biggest long positions and both have had uneven returns in recent months.

Some investors speculate that Mr. Einhorn might be managing too much money and his firm is not as nimble as it once was, making it more difficult to exit losing positions. The poor results come after Mr. Einhorn opened the doors of his firm to new investors, raising money for the first time in years.

Other investors are willing to give Mr. Einhorn the benefit of the doubt, noting that the firm has generated an annualized return of just over 19 percent since it opened for business in 1996. August was also a torrid month for other hedge funds.

In his most recent note to investors, Mr. Einhorn made an appeal to investors to sit tight, signing off with a quote from the inventor Thomas A. Edison.

"A diamond is a piece of coal that stuck to the job," Mr. Einhorn wrote.
DREAMERS AND THE DEFIANT This relentless summer of business news has left little time for other reading, but if you have time in what is left of it, Andrew Ross Sorkin has a list of the best business books this year. "I'm obsessed with business books, especially ones that provide insight into the people behind the companies and inventions that drive the global economy," Mr. Sorkin writes in the DealBook column.

Top of the list is Ashlee Vance's "Elon Musk: Tesla, SpaceX and the Quest for a Fantastic Future." Questions may remain about the sustainability of Mr. Musk's business, but this biography gives a glimpse of what keeps the 44-year-old South African dreamer going. It is also reveals that he had a difficult childhood with an abusive father. Says a schoolmate of Mr. Musk: "Honestly, there were just no signs that he was going to be a billionaire."

Mr. Sorkin also recommends, "The Richest Man Who Ever Lived: The Life and Times of Jacob Fugger," by Greg Steinmetz. Jacob Fugger, a German banker in the 15th century, "could have been a Russian oligarch, a Latin American telecoms boss or an American railroad baron from the 19th century," Mr. Steinmetz says. The grandson of a peasant, Mr. Fugger cornered the copper market in Europe and then became one of the world's most influential bankers, counting even the pope as a client.

If you're aiming to create your own billion-dollar start-up, or you just want to understand Silicon Valley, Mr. Sorkin recommends Peter Thiel's "Zero to One: Notes on Startups, or How to Build the Future." One of the venture capitalist's rules is to never invest in a company that pays its C.E.O. more than $150,000. He thinks a "cash-poor" executive will be hungrier to create value and it sets a good example to the rest of the company.

Mr. Sorkin's other recommendation range from an examination of Fannie Mae and Freddie Mac, to a look about the transformation of the television industry, to a book on the financial machinations behind modern baseball. He also recommends Nathaniel Popper's fly-on-the-wall narrative of Bitcoin's origins and the memoir of Bill Browder, an early hedge-fund investor in Russia, which reads like a John Grisham thriller.

All of these books, Mr. Sorkin says, give readers an understanding of the human drama behind every business saga.
ON THE AGENDA The Institute for Supply Management releases August's manufacturing report at 10 a.m. Data on construction spending in July will be released at 10 a.m.
CHINA CRACKS DOWN ON 'SPREADING RUMORS' The Chinese Ministry of Public Security announced that it had punished at least 197 people in recent days for "spreading rumors" online, Edward Wong reports in The New York Times. The so-called rumors related to uncertainty in China's stock market, the explosion in Tianjin and the parade scheduled for Thursday to commemorate the 70th anniversary of the end of World War II. Xinhua, the state-run news agency, reported that the ministry's actions were the core of a "special campaign" by the police.

One of the most prominent targets of the recent campaign was Wang Xiaolu, a reporter for a respected business magazine, Caijing. He was compelled to make a confession on television in which he said he had written a "sensational" and "irresponsible" article on the stock market. Chinese authorities have increasingly used confessions on the state network to humiliate detainees and to use as a warning for others.

Mr. Wang wrote an article published on July 20, reporting that the China Securities Regulatory Commission was seeking to withdraw funds from the stock market. He was detained by police on Aug. 25. Caijing issued a statement saying it did not know why he had been detained. Xinhua said his report had caused "abnormal fluctuations" in the stock market.

Along with Mr. Wang, several financial officials and executives were detained last week for contributing to stock market volatility and have been dealt with by "criminal compulsory measures," according to Xinhua. Those detained include Liu Shufan, an official with the China Securities Regulatory Commission, and four executives from Citic Securities Company, the country's leading securities dealer.
MERGERS & ACQUISITIONS »
Prospective Buyers of GE Capital Reportedly Narrowed Down to 3 Sankaty Advisors, Lone Star and HNA Group are said to be the final participants in an auction of the Australian commercial lending and leasing businesses of GE Capital.
Valeant Strikes Psoriasis-Drug Pact With AstraZeneca Canada's Valeant Pharmaceuticals has struck a deal with AstraZeneca for the rights to sell the psoriasis treatment brodalumab. It said it would pay AstraZeneca $100 million up front, with another $170 million in prelaunch milestones and up to $175 million following the drug's introduction.
The Battle for the British Stove Whirlpool, the world's biggest home appliance company, is set to battle Middleby for Britain's Aga Rangemaster, the maker of stoves synonymous with affluent British middle-class country life.
Bwin.Party Gets New Bid Proposal From 888 Bwin.party Digital Entertainment said it got a revised takeover proposal from 888 Holdings, the latest twist in a bidding contest for the online gaming company.
Stakes Are High as Big Four Push for M&A Work As new opportunities in traditional audit and tax work have reached a plateau, the "Big Four" - Deloitte, EY, KPMG and PwC - have turned to management consulting and mergers and acquisitions for growth.
China Seeks to Bolster M&A, Dividends and Buybacks China will encourage listed companies to conduct mergers and acquisitions, buy back shares when prices are low and pay higher cash dividends as the government extends efforts to bolster share prices.
M&A Stays Hot Last week's stock-market turmoil caused stomachs to churn on trading floors, but it didn't stop executives and investment bankers from announcing several large deals.
INVESTMENT BANKING »
Shareholders Want Bank of America to Separate Roles of Chairman and C.E.O. The California Public Employees' Retirement System and California State Teachers' Retirement System joined the drive for Bank of America shareholders to oppose a corporate bylaw change that would let Brian Moynihan serve as both chief executive and chairman.
Blythe Masters Tells Banks the Blockchain Changes Everything "You should be taking this technology as seriously as you should have been taking the development of the Internet in the early 1990s," the former JPMorgan banker explains. "It's analogous to email for money."
BNY Catches Up With Pricing Backlog Bank of New York Mellon said it had finished working through a backlog of mutual and exchange-traded fund-pricing issues before the market opened on Monday, ending a weeklong struggle by the company to provide accurate asset values to about 1,200 funds.
Breakingviews: Slowing Growth Exposes Chinese Banks' Debt Debris Although overall bad debt levels remain relatively low, continued deterioration threatens to reverse years of profit growth, Peter Thal Larsen writes.
For the latest updates, go to NYTimes.com/DealBook
ADVERTISEMENT
 
HEDGE FUNDS »
Court Rules Against Seizure of Assets at Argentina's Central Bank The decision was a reversal of a district-court ruling that would have opened the sovereign nation's reserves to hedge funds that sought to declare Banco Central de la Republica Argentina an "alter ego" of the South American nation.
RadioShack Creditors Sue Hedge Fund Standard General The lawsuit also names Wells Fargo and the former chief executive officer Joseph Magnacca, saying they helped Standard General take over the company at creditors' expense.
Asia Hedge Fund Start-Ups Slow Hedge fund launches in Asia are on track to decline for the third straight year as equity market volatility prompts investors in the region to pare risk.
William Ackman's Tennis Protégé Makes U.S. Open Debut The hedge-fund billionaire William Ackman has amassed a fortune by recognizing potential, so it made perfect sense to pledge his financial support when he saw young Frances Tiafoe on a tennis court.
LEGAL/REGULATORY »
Democrats Pressure S.E.C. to Force Disclosure of Political Spending More than 40 Democratic senators signed a letter Monday urging the Securities and Exchange Commission Chairwoman Mary Jo White to require that public companies disclose their spending on political campaigns.
A trader at the New York Stock Exchange in August. As China's markets fell precipitously, Wall Street indexes registered big losses before starting to climb back.
A Wild Month on Wall St. Ends Quietly August's turbulence interrupted an unusually long period of tranquillity, but some analysts found reasons to believe that the markets may have found a bottom.
 

Bush Is Still Waiting for Polling to Catch Up With Fund-Raising: NYT First Draft on Politics - September 1, 2015.

9/1/2015 nytimes.com/firstdraft »
First Draft

Bush Is Still Waiting for Polling to Catch Up With Fund-Raising

Jeb Bush spoke at the New Hampshire Education Summit meeting in Londonderry on Aug. 19. Brian Snyder/Reuters
9/1/2015
By Maggie Haberman
Good Tuesday morning. Though the political world will be poring over the latest batch of emails from Hillary Rodham Clinton’s time as secretary of state, Jeb Bush’s campaign is hoping a new month will help bridge the sustained gap between his success in fund-raising and his lagging poll numbers.