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Jul 2, 2016

DealBook P.M. Edition on July 1, 2016: Top Story Taking Refuge in Dollar Could Expose World Economy to New Perils

The New York Times

Top Story
A worker rolls a sheet of leather at Justin Paul, a handbag manufacturer in Brooklyn. Brexit has reinforced the dollar as the foundation of global finance, but a stronger dollar hurts exports.
Taking Refuge in Dollar Could Expose World Economy to New Perils
After the Brexit vote, the American currency is soaring — threatening a fragile recovery in the United States and risking trouble for emerging markets.

DealBook Highlights
After the 2011 tsunami and earthquake in Japan, the Nikkei stock index fell 16 percent over two days, but recovered within four months.
Why Will Markets Recover From ‘Brexit’? Clues From Past Crises
History provides some limited reassurance to the market turmoil after Britain’s vote to leave the European Union.
A neighborhood in Sunderland, England, where “Brexit” was heavily favored.
Why the European Union Could Break if It Does Not Learn to Bend
More responsiveness and foresight on issues like immigration will probably be needed to head off other drastic outcomes like “Brexit.”
Private Equity Funds Balk at Disclosure, and Public Risk Grows
Efforts to require more transparency from private equity firms have hit a wall, even as investors like public pension funds realize diminishing returns.
BMW is working with Mobileye, which makes sensors and software that help vehicles follow roads, read signs and detect hazards.
BMW Announces Self-Driving Car a Day After a Tesla Fatality Is Confirmed
BMW said it would produce the car, to be called the iNext, in cooperation with Mobileye, an Israeli company, and the semiconductor maker Intel.
A gas pipeline under construction in North Dakota.
Activist Investors Vow to Continue Fight With Williams
The investors, Eric Mandelblatt and Keith Meister, had quit the company’s board after a vote to oust the chief executive failed.
“Daniel Tiger’s Neighborhood” will be available only on Amazon Prime.
Amazon Prime Strikes Deal for Most PBS Children’s Shows
Popular shows like “Daniel Tiger’s Neighborhood” will be removed from rivals Netflix and Hulu as Amazon becomes the only premium service to stream them.
Buzz Tracker
Puerto Rico to Default “Even if the commonwealth were to devote every last penny” in its operating account to Friday’s debt payments, “it would still owe holders of the public debt hundreds of millions of dollars,” the island’s Government Development Bank said in a statement. – The Wall Street Journal
S.E.C. Is Investigating SoftBank The U.S. regulator is investigating the Japanese internet and telecommunications giant and its former executive Nikesh Arora, according to a lawyer for disgruntled investors in the company. – The Wall Street Journal
Hyperloop One’s Co-Founder Is Out Brogan BamBrogan, the chief technology officer at Elon Musk’s company, has “stepped back from his role.” – ReCode
Pershing Square Lays Off Eight William Ackman told his staff this week that the cuts of lower-level employees have nothing to do with the poor performance of the hedge fund. Instead, he said, the firm has gotten better in technology and automating tasks. – The Wall Street Journal
Hedge Funds Are the Worst, Study Says Hedge funds provided lower average net annual returns to U.S. pension funds than any asset class except cash, according to a report analyzing $8.4 trillion in defined-benefit plans from 1998 through 2014. – Bloomberg
Deutsche Bank Survey Most staff aren’t proud to work there, the survey found. “The results paint a sobering picture of the mood inside our bank,” John Cryan said in a memo to staff. The bank trades at about a third of its tangible book value. – Bloomberg
Trump’s Hamptons Fundraiser A Florida sugar baron and the founder of the hedge fund Hunter Global Investors are among the the hosts at billionaire investor Wilbur Ross’ home in Southampton on July 9. – Bloomberg
The Many Faces of Alexander Hamilton After digging deep into their storage rooms, four New York institutions are showing off what they’ve got related to the country’s new favorite founder. – The New York Times
Our Most Refreshing Summer Drinks Enjoy your Fourth of July holiday weekend with these cocktail recipes. – The New York Times