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Frontrunning: October 6

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  • Millions flee as Southeast U.S. braces for Hurricane Matthew (Reuters)
  • Hurricane Matthew Is a $15 Billion Threat Headed to Florida (BBG)
  • Three Risks to the Global Financial System as Debt Hits Record Levels (WSJ)
  • Deutsche Bank’s $14 Billion Scare (BBG)
  • Deutsche Bank Mismarked 37 Deals Like Paschi’s, Audit Says (BBG)
  • Monte Paschi Said to Plan Debt-Swap Deadline Before Italian Poll (BBG)
  • Donald Trump Often Made Donations to State Attorneys General Reviewing His Business (WSJ)
  • Iraq requests U.N. emergency meeting on Turkish troops in north (Reuters)
  • Saudi Aramco prepares to publish accounts for the first time (FT)
  • International observers will watch U.S. vote closely (Reuters)
  • Some Big U.S. Cities See Apartment Rents Fall for First Time in Years (WSJ)
  • Dozens of Afghan troops missing from military training in U.S. (Reuters)
  • Uber Slayer: How China’s Didi Beat the Ride-Hailing Superpower (BBG)
  • 7-Eleven Seeks North American Expansion, in Bow to Daniel Loeb (WSJ)
  • Pound Rally Didn’t Last Long as Brexit Concern Sparks Selling (BBG)
  • Lawmakers Accuse Mylan of Overcharging Government for EpiPen (WSJ)
  • Wal-Mart's next move against Amazon: More warehouses, faster shipping (Reuters)
  • Goldman Employees to Pull $300 Million From Omega Advisors (BBG)
  • Philippines' Duterte says if EU, U.S. want to halt assistance 'go ahead' (Reuters)
  • Wall Street Might Have a Blind Spot When It Comes to Trump (BBG)
  • India arrests 70 call-center workers accused of duping U.S. citizens (Reuters)
  • Greek islanders tipped for Peace Nobel stoic about nomination (Reuters)

 

Overnight Media Digest

WSJ

- Theranos Inc said it will shut down its blood-testing facilities and shrink its workforce by more than 40 percent. http://on.wsj.com/2cVfJuz

- Monsanto Co said it expects a return to higher profits next year as the biotech seed maker rolls out new soybean varieties, despite a continuing slump in agriculture. http://on.wsj.com/2cVeXxT

- Constellation Brands Inc said strong beer sales helped increase its profit forecast for the year and drove profit growth for the quarter. http://on.wsj.com/2cVf7Fr

- Activist hedge fund Elliott Management Corp is pushing Samsung Electronics Co to simplify its ownership structure and add independent directions, in addition to paying shareholders roughly $27 billion in special dividend. http://on.wsj.com/2cVgbcm

- The federal government said that Mylan NV has overcharged the Medicaid program by millions of dollars over five years for its auto-injector product, EpiPen. http://on.wsj.com/2cVfDmR

 

NYT

- A system intended to scan emails for child pornography and spam helped Yahoo Inc satisfy a secret court order requiring it to search for messages containing a computer "signature" tied to the communications of a state-sponsored terrorist organization, several people familiar with the matter said on Wednesday. http://nyti.ms/2dwPMo2

- Theranos, the embattled blood-testing company, announced on Wednesday that it would close its laboratory operations, shutter its wellness centers and lay off about 340 employees, around 40 percent of its work force. http://nyti.ms/2dwPu0i

- A lawyer for New York State finished questioning Maurice Greenberg, the former chief executive of the insurance giant American International Group Inc, without cracking his insistence that he did not know of anything improper in the transactions at the heart of his civil accounting fraud trial. http://nyti.ms/2dwNBRt

- The Federal Bureau of Investigation secretly arrested a former National Security Agency contractor in August and, according to law enforcement officials, is investigating whether he stole and disclosed highly classified computer code developed by the agency to hack into the networks of foreign governments. http://nyti.ms/2dwOFEQ

- The call centers outside Mumbai looked like many others that have sprung up across India in recent decades. But investigators say the hundreds of people who worked at the nine centers had an unusual assignment: posing as Internal Revenue Service officers and demanding money from American taxpayers. http://nyti.ms/2dwPMVb

- Elliott Management proposed in a letter on Wednesday that Samsung essentially split its electronics business into two separate companies as part of a broader reshaping of the business. http://nyti.ms/2dwOV6E

- A Southwest Airlines Co flight scheduled to leave Louisville, Kentucky, on Wednesday morning was evacuated on the runway after a passenger's Samsung cellphone caught fire, passengers and the airline said. http://nyti.ms/2dwPei8

 

Canada

THE GLOBE AND MAIL

** Amaya Inc's former CEO David Baazov played loose with the company's corporate disclosure policies ahead of its acquisition of Cryptologic Ltd in 2011, Quebec's securities watchdog told a hearing considering insider trading allegations on Wednesday. http://bit.ly/2dxcPix

** Precious metals investors cheered after a U.S. district judge ruled that two lawsuits accusing a number of major banks, including Bank of Nova Scotia of fixing gold and silver prices for about a decade, can proceed. http://bit.ly/2dxdQHh

** The Royal Canadian Mounted Police is set to announce a major settlement of hundreds of complaints of sexual harassment at a cost of more than C$10 million ($7.58 million), sources said. http://bit.ly/2dxdS22

** Canada must publicly declare that it will not vote human-rights abusers such as China onto the United Nations Human Rights Council, and it should pressure other democracies to make the same pledge, former Liberal justice minister Irwin Cotler and an all-party alliance of MPs say. http://bit.ly/2dxdXme

NATIONAL POST

** Canada's dependence on housing appears to be as stretched as it was in the U.S. back in 2005, and the degree to which new mortgages rely on risky borrowers is equally as troubling, a new report warns. http://bit.ly/2dxeDIf

** Home sales could fall back as much as 8 percent in the next year, department of finance officials reported in a technical briefing this week to detail how changes to mortgage rules could affect the housing market, according to sources. http://bit.ly/2dxeYuK

 

Britain

The Times

Tesco's chief executive declared yesterday that the supermarket group's crisis was over as he revealed healthy sales growth and set a new profit target that sent the share price soaring. http://bit.ly/2cUy1wi

The battle for one of Britain's biggest private equity investment trusts SVG Capital has been thrown into confusion after a consortium co-led by Goldman Sachs came up with a last-minute proposal to buy all its assets. http://bit.ly/2cUya2R

The Guardian

Deutsche Bank needs a convincing business case to attract investors, senior officials from the International Monetary Fund have said, amid fears Germany's biggest bank will need to raise funds to avoid being crippled by the penalty from the US for a decade-old scandal. http://bit.ly/2cUx8Ug

Chancellor Philip Hammond will attempt to reassure bankers on Wall Street on Thursday that he wants the City to be a leading financial centre after Brexit. http://bit.ly/2cUxYjZ

The Telegraph

The massive programme to build replacement nuclear submarines for the Royal Navy "cannot and must not slip," the Defence Secretary warned as he pushed the button to start work on the massive 41 billion euros project. http://bit.ly/2cUB5IG

Smaller firms are taking a pragmatic view of Brexit and already planning for the possible fallout on their business models, according to the head of the accountancy firm BDO. http://bit.ly/2cUBkDw

Sky News

TalkTalk has been given a record 400,000 euros fine for security failings over a cyber attack, according to a watchdog. http://bit.ly/2cUzK4r

Bidders for MBNA, one of the UK's biggest credit card issuers, are trying to limit their exposure to future costs related to insurance mis-selling ahead of a likely 2019 deadline for compensation claims. http://bit.ly/2cUyKNT

The Independent

British companies have earned more than $60 billion (47.07 billion pounds) from U.S. military contracts under the presidency of Barack Obama, a major new analysis of Pentagon spending has found. http://ind.pn/2cUz7rH

Eight years after colossal amounts of bad loans caused a financial meltdown that almost sunk the global economy, total debt has hit a new record level of $152 trillion (119.15 trillion pounds), the International Monetary Fund said on Wednesday. http://ind.pn/2cUzrXD


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