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Jul 25, 2016

DealBook P.M. Edition - July 25, 2016: Fed Prepares New Action Against Goldman Sachs in Leak Case

The New York Times

Top Story
Goldman Sachs headquarters in New York. Sources say the Federal Reserve is preparing an enforcement action against the bank in connection with a leak of confidential government information in 2014.
Fed Prepares New Action Against Goldman Sachs in Leak Case

Two men had pleaded guilty in the 2014 case, which involved the passing of confidential information from the New York Fed to a Goldman banker.

DealBook Highlights
Verizon Announces $4.8 Billion Deal for Yahoo’s Internet Business
The telecommunications company is buying an entity that has made repeated missteps for years, but the deal gives it a bigger footprint in digital content.
Verizon and Yahoo: Internet Also-Rans With Big Hopes
The Verizon boss, Lowell McAdam, is betting the deal will help attract digital advertisers by meshing Yahoo with AOL, which Verizon bought last year.
The DKNY show in February. The sale of the Donna Karan brand, which includes DKNY, will most likely be regarded as a rare admission of failure on the part of LVMH.
Ivanka Trump’s Manufacturer Just Bought Donna Karan Label From LVMH
The transaction is only the second in its nearly 30-year history in which the French conglomerate has sold a fashion brand.
Private companies like Uber are not required to share financial information.
This Company Will Give a Peek Inside How Much Private Start-Ups Are Worth
The lack of transparency around private companies has kept the market for start-up stocks small. Equidate, a San Francisco company, hopes to change that.
Redbox Owner Outerwall to Be Acquired for About $900 Million
Apollo Global will buy Outerwall, known for its Redbox film rental kiosks and Coinstar coin-counting machines, for $52 a share and take the company private.
Buzz Tracker
A fraud probe ricochets through a hedge fund with ties to Jewish communityPlatinum Partners has reported strong returns for years but now is liquidating. – The Wall Street Journal
Federal judge faults Uber and bans background check. U.S. District Judge Jed Rakoff banned Travis Kalanick from using the information on a passenger bringing a price-fixing lawsuit, saying the firm conducting the probe may have engaged in criminal conduct. – Reuters
Has Wall Street Been Tamed? Fines, job cuts and anger have taken a toll. Traders and brokers are struggling to adapt to stark new realities. – Bloomberg
Looking Ahead
Four tech giants to report earnings. This is a big week for tech company earnings, as Twitter, Facebook, Apple and Alphabet — Google’s parent company — are expected to report their quarterly financials. The theme remains the same for all four companies: to describe how well they are monetizing their mobile customers, whether it is iPhone sales for Apple or the performance of mobile advertising for Facebook, Twitter and Google. – Mike Isaac
Merger deadline for Deutsche Börse shareholders. Shareholders of the German exchange operator Deutsche Börse have until Tuesday to approve a merger with the London Stock Exchange Group. Nearly two weeks ago, the exchange agreed to lower the acceptance threshold for investors in Deutsche Börse to exchange their stock for shares in a new holding company for the combined entity. The vote by Britons to leave the European Union has raised questions about whether the merger could be completed under its current terms and, in particular, whether the combined entity’s holding company should be based in Britain, as planned. – Chad Bray
Earnings from BP, Shell, Exxon and Chevron. Major oil companies are planning to report their second-quarter earnings this week. BP will lead off on Tuesday, and Royal Dutch Shell and Total, of France, will report on Thursday. Exxon, Chevron and Eni, of Italy, will follow on Friday. Shares of most of these companies have performed well this year as investors bet that the industry’s heavy cost-cutting combined with stabilizing oil prices would improve results. In a sign of the pressures on the industry’s work force, maintenance crews on seven Shell platforms in the British North Sea plan to strike for 24 hours on Tuesday to protest reduced pay. – Stanley Reed
The Fed to meet, but rate increase is unlikely. The Federal Reserve is unlikely to raise its benchmark interest rate when its policy-making committee meets on Tuesday and Wednesday. The domestic economy continues to expand, and concerns about the global economy have eased, but Fed officials see little downside in waiting a bit longer. The Fed’s postmeeting statement, however, could indicate the first step toward rate increases later this year. – Binyamin Appelbaum

Monday, July 25, 2016