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Jul 11, 2016

DealBook P.M. Edition - July 11, 2016: Top Story: Can We Ignore the Alarm Bells the Bond Market Is Ringing?

The New York Times

Monday, July 11, 2016

Top Story
Janet Yellen of the Federal Reserve during a June news conference, as reflected in a specialist’s screen on the floor of the New York Stock Exchange.
Can We Ignore the Alarm Bells the Bond Market Is Ringing?

Interest rates are ultralow across the globe. Here’s what that may be telling us about the economic future.

DealBook Highlights
Home Secretary Theresa May campaigning in Birmingham, England, on Monday. She is expected to be the first female prime minister of Britain since Margaret Thatcher.
Theresa May Poised to Be Britain’s Next Premier as Andrea Leadsom Quits Race
Prime Minister David Cameron said the handover of power would be completed by Wednesday evening, and there appeared to be no hurdles to her ascension.
S.&P. 500 Closes at a Record High
Shares of banks and technology stocks rose the most, while traditional safe-play stocks fell. Stocks have rallied since February as worries about slowing growth in China eased.
Thomas Donohue, president and chief executive of the United States Chamber of Commerce, in 2014. He has recently openly criticized the presumptive Republican presidential nominee, Donald Trump.
U.S. Chamber of Commerce in Awkward Sparring Match With Trump
Differences over trade policies have led to an acrimonious relationship between the business association and the presumptive Republican nominee.
Christopher Bailey in London last month. He will remain at Burberry in the dual role of president and chief creative officer.
Burberry C.E.O. to Step Down, Ending Dual-Role Experiment at Helm
Christopher Bailey’s resignation as chief executive — though he will stay on as president and chief creative officer — comes after a slowdown in sales and a fall in profit.
Meaningless Titles and Empty Promises in the Money Business
No matter what title a financial professional has, for the most part there is no requirement to put a client’s needs first.
Deutsche Börse Lowers Threshold for London Stock Exchange Merger
At least 60 percent of Deutsche Börse’s outstanding shares must be tendered for the deal to be successful, down from 75 percent.
Valuation Quirks Help End Proposed Ploycom-Mitel Merger
Investors were unimpressed after both companies lost money while under threat from larger rivals like Cisco.
Buzz Tracker
Under fire, Theranos C.E.O. stifled bad news. At a presentation to employees last month, Elizabeth Holmes displayed a slide saying the company had developed 304 tests using small volumes of blood. Left unsaid: Most of those experiments hadn’t progressed beyond laboratory research, according to an attendee. – The Wall Street Journal
Justice Dept. overruled recommendation to pursue charges against HSBC, report says. A House committee report prepared by Republicans that sheds new light on the bank’s 2012 settlement. – The Wall Street Journal
Banker sitting in Alabama prison has a most incredible tale to tell.  He was an accomplice or eyewitness to widespread looting and corporate bribery in an obscure former Soviet republic. He even served as a bag man at times, was kidnapped and became mixed up with the Italian mob. – Bloomberg
The fraud-hunting short-sellter taunting Bill Ackman on Valeant. John Hempton has posed as part of a gay couple trying to buy a home beyond their means and talked to Bangkok prostitutes about their hair dye. – Bloomberg
Germany’s Thyssenkrupp confirms talks with Tata Steel over possible merger. A tie-up would drive a new round of consolidation in Europe’s troubled steel industry. – The Wall Street Journal
Why is the U.F.C. worth as much as ‘Star Wars’? Live, of course. U.F.C. repeatedly denied reports that they were selling themselves. “In the real world, we call this “lying”,” writes Peter Kafka. “In business journalism, this is standard practice, and no one cares.” — Recode
Nintendo is worth $9 billion more today than it was last Wednesday. Analysts at Nomura said the surge in stock price “looks excessive based on profits from Pokémon Go alone,” which they estimated to be only about $10 to $20 million annually for Nintendo itself. – Buzzfeed
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Looking Ahead
Yahoo Asset Sale a Likely Topic at Annual Meeting
Yahoo will hold its annual shareholder meeting on Thursday. There are no big questions on the ballot since the company avoided a threatened proxy fight in April after agreeing to appoint four directors chosen by the Starboard Value hedge fund to the board. Still, executives and board members are likely to face questions from restive stockholders about Yahoo’s slow progress in selling its core internet business, even as that business continues to deteriorate. Final bids are due in early July, with Verizon and several private equity consortia remaining top contenders. VINDU GOEL