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Aug 4, 2016

DealBook Top Story on August 4, 2016: Everyone Despises SolarCity Deal, Except Tesla Shareholders

The New York Times

Top Story

Thursday, August 4, 2016

Elon Musk, left, Tesla Motors’ chief executive, at a news conference in July at the Tesla Gigafactory in Nevada.
Everyone Despises SolarCity Deal, Except Tesla Shareholders
Focusing on the conflicts of interest in Tesla Motors’ proposed takeover of SolarCity misses the bigger picture, some investors say.

DealBook Highlights
A security guard speaking into a microphone in his sleeve outside the Viacom headquarters in New York in 2013. The company has been engulfed in turmoil over the mental capacity of its controlling shareholder, Sumner M. Redstone.
Viacom’s Profit Slumps 29%, Providing a Lens Into a Business in Turmoil
The company has struggled for stability over the last several months as the mental capacity of its controlling shareholder, Sumner M. Redstone, is questioned.
“There is a clear case for stimulus, and stimulus now,” Mark Carney, the governor of the Bank of England, said on Thursday.
Bank of England Cuts Interest Rate to Historic Low, Citing Economic Pressures
The central bank’s Monetary Policy Committee lowered its benchmark interest rate to 0.25 percent, the lowest level in the bank’s 322-year history.
Taylor Swift performing at the Grammy Awards in February. The Justice Department said Thursday that it would not make changes to the regulatory agreements that govern the two large clearinghouses for performing rights that process royalty payments for the music industry.
How a Justice Department Ruling Could Affect Your Favorite Musician
The department, after a two-year investigation, decided to keep the complex regulatory environment of music licensing largely intact, with the addition of a rule requiring “100 percent” deals. This breaks down what that means.
Walmart’s Bid for Could Help It Compete Against Amazon
Such a move by Walmart would fit into a plan to enhance its lackluster digital and e-commerce efforts as Amazon adds new products and services.
Buzz Tracker
Companies routinely steer analysts to deliver earnings surprises. With nudges and phone calls, analysts are urged to lower their estimates, making it easier for companies to beat them. “A rigged race,” says Barry Diller. – The Wall Street Journal
A food start-up ran an undercover project to buy up its own products. Hampton Creek ordered workers to buy Just Mayo in U.S. stores. The company says its main objective was to ensure product quality. – Bloomberg
Steve Cohen’s new firm will meet with investors ahead of 2018. Stamford Harbor Capital is working with a third-party marketing company that’s meeting with potential clients. – Bloomberg
Bitcoin recovered, but an exchange remains offline. Myriad questions about the hack itself remain unanswered, however. – The Wall Street Journal
Goldman Sachs isn’t sure it can sell private equity stakes. The bank has a July 2017 deadline set by regulators to sell $7 billion worth of private-equity and hedge-fund investments. – The Wall Street Journal
The case for Viacom to buy Buzzfeed. It’s the only major media company that hasn’t made a big digital acquisition, says Edmund Lee. – ReCode
The Theranos founder’s conference invitation angered scientists. AACC members threaten to resign over speaking slot allotted to Elizabeth Holmes. – Financial Times
Marissa Mayer on corporate motherhood. “Could you work 130 hours in a week?” The answer is yes, if you’re strategic about when you sleep, when you shower, and how often you go to the bathroom. – Bloomberg
The Harvard Republican Club will not support Donald Trump. The group called for Republican leaders to withdraw their support of the candidate they called a “threat to the survival of the Republic” – The Crimson
Blake Krikorian, Silicon Valley entrepreneur, is dead. The Slingbox founder had been involved with Microsoft, Amazon and dozens of startups. – ReCode
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Looking Ahead
Labor Department to release July’s jobs report. On Friday, at 8:30 a.m., the Labor Department will release data on the job market in July. Economists and investors will be paying close attention to this report, after the up-and-down results in recent months. Employers cut way back on hiring in May, only to follow with a burst of job creation in June.
The consensus for July calls for a gain of 180,000 jobs as well as a slight decline in the unemployment rate to 4.8 percent. But another surprise could be in the offing. If the final figure is significantly better than expected, as was the case in June, it will increase the odds of an interest-rate increase by the Federal Reserve in September. – Nelson D. Schwartz