Jul 31, 2014

DealBook | P.M. Edition - July 31, 2014: French Cellphone Carrier Iliad Makes Offer for T-Mobile US, but Is Turned Down

For the latest updates, go to dealbook.nytimes.com »
A T-Mobile store  in New York.
French Cellphone Carrier Iliad Makes Offer for T-Mobile US, but Is Turned Down The move by Iliad, the fourth largest cellphone operator in France, would be a huge test of its financial capabilities and comes as T-Mobile and Sprint have been in merger talks.
For the latest updates, go to dealbook.nytimes.com »
The Palo Seco Power Plant in Cataño, Puerto Rico.
Lenders to Puerto Rico Utility Extend Payment Deadline The Puerto Rico Electric Power Authority owes about $800 million on two main credit lines. But if the banks force the utility to pay immediately, that could increase their likelihood of losses.
Richard Cordray, the director of the Consumer Financial Protection Bureau.
Regulators Still Find Problems in Overdraft Fees In a new report released on Thursday, the Consumer Financial Protection Bureau said fees for customers who overdraw their accounts continue to pile up, particularly among young people.
Windstream provides cloud computing to businesses.
Reuters Breakingviews: Inversions May Be the Least of U.S. Corporate Tax Issues Politicians are indignant over firms that move overseas - even when home-grown tax loopholes, like real estate investment trusts and master limited partnerships, are costlier, Christopher Swann of Reuters Breakingviews writes.
Deal Professor: In Real Estate Listings Deal With Zillow, Trulia Bears All the Risk Trulia is at a significant competitive disadvantage while it waits to see whether its deal with Zillow will clear regulatory scrutiny, writes Steven Davidoff Solomon.
Wesley R. Edens, the co-chairman and co-founder of Fortress.
Fortress Investment's Results Are Buoyed by Private Equity Gains The Fortress Investment Group, which manages a range of hedge funds and other strategies, said its distributable earnings rose 16 percent, to $172 million.
Jon Stewart on the inversion of the money snatchers.
Jon Stewart and Stephen Colbert Take Aim at Tax Inversions Comedy Central's "The Daily Show With Jon Stewart" and "The Colbert Report" mocked the growing trend of companies seeking to elude taxes through overseas mergers.
Synchrony Financial, which handles private-label credit cards for major retailers like Banana Republic and Walmart.
Synchrony Shares Open Flat After Largest I.P.O. for Year Shares in Synchrony Financial, the retail finance unit being spun off by G.E., opened largely unchanged on Thursday after the firm raised about $2.9 billion in an initial offering.
Howard Marks, chairman of the investment firm Oaktree Capital Management, in 2010.
Oaktree Capital Earnings Fell 55% in Quarter The Oaktree Capital Group said it received lower returns from the funds it manages when compared with the second quarter of 2013, which was a particularly bountiful period for the firm.
FTI Consulting Names New C.F.O. David M. Johnson, a former executive at the mortgage finance giant Fannie Mae, is joining the business advisory firm FTI Consulting.
Tower cranes next to St. Paul's Cathedral in London in 2008.
British Construction Giant Balfour Beatty Calls Off Merger Talks With Rival Carillion Balfour Beatty said Carillion's board made a "wholly unexpected decision" to only progress with the merger if a Balfour unit, Parsons Brinckerhoff, remained part of the combined entity.
A branch of the Swiss bank Credit Suisse in New York.
Credit Suisse Is Facing Inquiries Over Its 'Dark Pool'Credit Suisse says it is facing inquiries over its alternative trading systems, after similar disclosures this week from UBS and Deutsche Bank.
The Icelandic bank Kaupthing went bankrupt and is now called Arion.
British Fraud Office Reaches Second Settlement in Inquiry Over Icelandic Bank The Serious Fraud Office will pay 1.5 million pounds to settle civil claims by Robert Tchenguiz and his company after a flawed investigation into the collapse of the Icelandic bank Kaupthing.
The Swedish drug maker Meda is a specialty pharmaceuticals company.
Meda to Buy Italian Drug Maker Rottapharm for About $3 Billion The deal to acquire the specialty drug maker Rottapharm is expected to bolster Meda's consumer health care business.
Offices of the Spanish lender Banco Santander in London.
Santander Profit Rises 38% as Loan Losses DeclineBanco Santander posted second-quarter net income of €1.45 billion, or about $1.95 billion, outpacing the €1.05 billion it earned in the same period in 2013 as it benefited from an improving economic environment.
A branch of Lloyds Bank in London.
Lloyds Bank's First-Half Profit Fell 63% on Legacy Charges The British bank said profit fell 63 percent, to about $972 million, and reported that it took a charge of 1.1 billion pounds in the second quarter related to regulatory issues.
A branch of BNP Paribas in Paris.
BNP Paribas Posts $5.8 Billion Loss on U.S. SettlementBNP Paribas posted a second-quarter net loss of about $5.8 billion and set aside about $7.7 billion to cover the costs of a settlement with regulators in the United States.
Jinwon Pae of Marion, Ind., takes part the Scripps National Spelling Bee. E.W. Scripps will hold on to contest.
E.W. Scripps and Journal Communications to Merge, Then Spin Off Newspapers E.W. Scripps and the publisher of The Milwaukee Journal Sentinel said they planned to merge and spin off their combined newspapers, leaving behind a company focused on broadcast television.
GetYourGuide is a five-year-old compendium of tourism activities.
GetYourGuide, a Tourism Start-Up, Raises $25 Million in Financing Round The five-year-old start-up GetYourGuide, a compendium of tourism activities, plans to announce on Thursday that it has raised $25 million in new financing.
SpotXchange is an online video advertising start-up.
RTL Group, a European Content Producer, Buying Majority Stake in Online Ad Company The deal is the latest in the rapidly expanding online ad industry, particularly for companies that can automate the process of buying and placing ads.
Healthy Labor Numbers Anticipated for U.S. On Friday, the Labor Department will announce the latest data on hiring and the job market in July. Economists estimate the economy will have added 230,000 jobs in July, with the unemployment rate unchanged at 6.1 percent. Although a gain in the range of 230,000 would be well below the 288,000 surge recorded in June, it would still represent a healthy pace of job creation, and come amid other recent signs that the labor market is finally healing, including lower initial claims for unemployment benefits by newly laid-off workers.
For the latest updates, go to dealbook.nytimes.com »

BIV | Today's Business News - July 31, 2014: Housing sales forecast to hit highest level in five years: BCREA | Real Estate and Development.

Real Estate and Development

Housing sales forecast to hit highest level in five years: BCREA

Residential sales will increase 9.8% to 80,100 units in 2014, making it the first time since 2009 that sales climb above ... READ MORE

Economy and Finance


B.C. wage growth continues to lag behind the rest of the country

The average weekly earnings in British Columbia increased by 2% in the 12 months to May, while nationwide ... READ MORE

Real Estate and Development


City floats idea of partnering with private sector to build new aquatic centre

City of Vancouver staff has floated the idea of having a private developer build a new aquatic centre at the northern foot of ... READ MORE

Mining and Energy


West Vancouver council says no to LNG tankers

Tankers carrying liquefied natural gas should stay out of Howe Sound, according to ... READ MORE

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Canada sees fifth monthly GDP increase

Vancouver's Naked Brand underwear relocating to New York City 

This Week's Issue


What's Bitcoin worth to Vancouver? So far, not much

As Ottawa enacts legislation regulating the digital currency in Canada, local merchants are having ... READ MORE

CMI | Spot Prices as of close of trading in New York -July 31, 2014-.

Spot Prices as of close of trading in New York

Thursday, July 31, 2014











Wall Street at Close Report - July 31, 2014: Dow industrials tumble 317 points in worst day since Feb. 3 S&P 500 has steepest percentage drop since April

NEW YORK (MarketWatch) — The Dow Jones Industrial Average skidded more than 300 points Thursday in its biggest one-day drop in six months, as a combination of earnings, economic news and a default by Argentina triggered a broad selloff.
Investors weighed the implications of robust economic growth and signs of rising wage inflation on Federal Reserve policy ahead of the key monthly jobs report on Friday.
The day’s losses mean both the S&P 500 and Dow industrials suffered their first monthly decline since January.
The S&P 500 SPX -2.00% fell 39.40 points, or 2%, to 1,930.67, its steepest one-day percentage drop since April, and lost 1.5% over July. All 10 main sectors dropped more than 1.5% on Thursday, as the energy and telecom sector stocks lead losses.
The Dow Jones Industrial Average DJIA -1.88%  dropped 316.99 points, or 1.9%, to 16,563.37, its worst showing on both counts since Feb. 3. It finished the month 1.6% lower and its performance for 2014 turned negative.
The Nasdaq Composite COMP -2.09%  lost 93.13 points, or 2.1%, to 4,369.77 and fell 0.7% over July.
The implied volatility on the S&P 500, as measured by the CBOE Vix index and dubbed “Wall Street’s fear gauge”, jumped 27% to 17.
Kim Caughey Forrest, investment analyst at Fort Pitt Capital, said there was no single reason that should warrant such a selloff, making the drop more difficult to explain. “At the same time, we were surprised to see markets go up in light of all of the uncertainty and geopolitical tensions. Perhaps, investors finally caught up with some of the news,” Forrest added.
Kristina Hooper, U.S. investment strategist at Allianz Global Investors, said investors are still assessing stronger-than-expected economic growth in the second quarter as well as the Fed’s policy statement, both issued on Wednesday, and are nervous ahead of Friday’s jobs report.
“Markets love certainty and right now there is too much uncertainty about the Fed’s trigger points for raising rates. Instead of looking at one number, such as the unemployment rate, the Fed is looking at a mosaic of data points. Investors are unsure what the Fed would consider a tolerable level of higher inflation,” she said.
On Thursday, weekly jobless claims rose slightly less than expected a week after hitting a 14-year low. However the employment cost index rose due to a larger-than-expected increase in wages. Many analysts watch for wage inflation as a precursor to inflation.
Investors continued to focus on company earnings and it appeared that beating consensus estimate by a small amount did not impress them. Also in the spotlight was Argentina. Standard & Poor’s Ratings Services declared the country in selective default after talks aimed at a settlement between Argentina and holdout creditors fell apart late Wednesday.

Corporate news

Among individual stocks, Yelp Inc.YELP +0.03%   plunged 11% as investors focused on a slowdown in growth in Yelp’s local-based advertisers.
Yum Brands Inc. YUM -4.93% shares skidded 4.9% after the company said illegal activities involving a Chinese supplier have significantly hurt sales over the last couple of weeks.
Shares in Synchrony FinancialSYF -0.13%  fell 1% after a giant initial public offering was priced at $23, near the low end of expectations. Read more about the day’s notable movers here.
In the commodities market, crude-oil futures CLU4 -2.23%  fell below $100 a barrel on bearish U.S. inventory data, while gold futures GCQ4 -0.95%  turned lower.
European stocks XX:SXXP -1.31%  fell, and Asian equities closed mixed, with Japan’s Nikkei Average JP:NIK -0.16%  ending down by 0.2%.

More must-reads from MarketWatch:

Anora Mahmudova is a MarketWatch markets reporter based in New York.Carla Mozee is a reporter for MarketWatch, based in London. Follow her on Twitter@MWMozee.

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