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Frontrunning: December 11

  • Futures down sharply as oil hits seven-year low (Reuters)
  • Oil slides to new seven-year low as IEA warns of worse glut (Reuters)
  • But... but... they all said... Cheap Oil Gives Little Help to U.S. Spending (WSJ)
  • Disappearances in China Highlight Ruling Party Detention System (BBG)
  • China’s Credit Rebounds as Stimulus Helps Boost Loan Demand (BBG)
  • Junk Fund’s Demise Fuels Concern Over Bond Rout (WSJ)
  • No cheer as China yuan hits four-and-a-half-year low, oil at seven-year low (Reuters)
  • Fixing the Falling Yuan (WSJ)
  • China says loss-making state firms should exit market (Reuters)
  • U.S. Posted $65 Billion Deficit in November (WSJ)
  • Donald Trump Has America's CEOs Nervous and Very Quiet, for Now (BBG)
  • U.S. Is Bracing for Influx of Central American Migrants (WSJ)
  • Manhattan Apartment Vacancies Rise to the Highest in Nine Years (BBG)
  • Merkel Denied Time to Bask in Praise as Refugee Rebels Loom (BBG)
  • South Africa Faces Watershed as Investors Despair of Zuma (BBG)
  • Multimillion-Dollar Homes Face the Wrecking Ball (WSJ)
  • Nobel Laureate Says IMF Move Won't Propel Yuan to Rival Dollar (BBG)

 

Overnight Media Digest

WSJ

- The potential merger of DuPont Co and Dow Chemical Co could spur agricultural rivals to forge their own partnerships, further shrinking the handful of companies that dominate the global seed and pesticide business. (http://on.wsj.com/1Y0WdTz)

- More than a year after it was announced, Halliburton Co's $35 billion deal to buy Baker Hughes Inc is facing a growing list of antitrust concerns from the U.S. Justice Department and other competition authorities worldwide that could threaten the combination. (http://on.wsj.com/1Y0WfuA)

- United Parcel Service Inc is straining to handle a surge in online sales that has resulted in more holiday volume than it had expected, causing a wave of disruptions that could spell trouble for the holiday season. (http://on.wsj.com/1Y0WhTd)

- Volkswagen AG on Thursday blamed a damaging emissions crisis on a "chain of mistakes" that began with the company's diesel push into the United States in 2005 and "culture of tolerance" for rule-breaking that allowed the deception to continue for a decade. (http://on.wsj.com/1Y0Wm9t)

 

FT

France's Publicis Groupe SA lost L'Oreal SA as a client in North America, in less than a week, after Procter & Gamble shifted all of its North American assets from Publicis to Omnicom.

AstraZeneca Plc is partnering with the Wallenberg family and the Swedish government to invest $100 million in a new research venture in Sweden.

The European Union proposes a standing border force to take control of the bloc's external frontiers. The Commission is set to unveil plans next week regarding a permanent border force to replace Frontex border agency.

 

NYT

- The chairman of Volkswagen said on Thursday that the decision by employees to cheat on emissions tests was made more than a decade ago, after they realized they could not meet United States clean air standards legally. (http://nyti.ms/1HXR1sv)

- As part of a $70 million settlement with federal regulators, Fiat Chrysler said on Thursday that it would overhaul its operations to ensure disclosure of deaths and injuries tied to potential defects in its vehicles. (http://nyti.ms/1HXR07P)

- Over the past two years, aviation experts and regulators have become increasingly concerned about the growing number of drones flying near airports and the risks they could potentially create for aviation safety. Last Saturday, for instance, a California Highway Patrol helicopter nearly crashed into a drone and the pilot avoided a collision only because he veered away. (http://nyti.ms/1HXR3k1)

- The House is expected to approve bipartisan trade and customs legislation on Friday that would empower the administration to more forcefully counter unfair trading practices, though the measure's provisions against suspected currency manipulation by other countries fell short of demands from critics in both parties. (http://nyti.ms/1HXR8Ep)

- The commissioners of Port Authority agreed on Thursday to a deal that would reduce the proposed rent that two Murdoch corporations would pay at the World Trade Center by $155 million. Leaders of the Port Authority said they would provide part of that rent subsidy, breaking a pledge that its board made in 2010. (http://nyti.ms/1HXRafI)

 

Canada

THE GLOBE AND MAIL

** SNC-Lavalin Group Inc struck a deal giving it the right to do business with the Canadian government despite unresolved corruption and fraud charges against the engineering firm - the first of what could be other similar pacts between Ottawa and supplier companies in the months ahead. (http://bit.ly/21Sk8nI)

** The first planeload of Syrian refugees coming to Canada in the government's ambitious airlift - aiming to bring 25,000 Syrians to Canada by the end of February - arrived from Beirut late Thursday night, its landing time delayed by more than two hours. (http://bit.ly/1QAa9y1)

** Canada Post is fighting back against the new Liberal government's efforts to push out president Deepak Chopra. Chopra is among more than 30 Conservative appointments that the Liberals have deemed illegitimate and want reversed. (http://bit.ly/1IZq5nd)

NATIONAL POST

** A new hard cap on greenhouse gas emissions in the oilsands won't impact Cenovus Energy Inc growth plans, president and CEO Brian Ferguson said Thursday. (http://bit.ly/1Z2SWA9)

** The federal government sat on close to C$9.5 billion ($6.95 billion) in approved expenditures last fiscal year, including C$2 billion in unspent funding for the Department of National Defence, as it tried to balance the books during an election year. (http://bit.ly/1mekswD)

 

Britain

The Times

Volkswagen AG was unable to put a figure on the cost of the emissions scandal yesterday as it admitted that a "chain of errors" dating back a decade were to blame. (thetim.es/1SR1zKs)

Shares have plunged in Sports Direct International Plc this morning after the sportswear retailer posted a lower than expected rise in profits and was forced to again defend its working practice. (thetim.es/1Z2cLrs)

The Guardian

UK Prime Minister David Cameron has delayed the decision on whether to allow a third runway at Heathrow airport until summer 2016 over environmental concerns. (bit.ly/1NPY6aI)

Mulberry Group Plc is back in the black and back on the catwalk after the British luxury brand benefited from a surge in sales at British stores and online. (bit.ly/1Q51xB0)

The Telegraph

The UK's trade deficit with the European Union in goods has widened to its largest level on record, reflecting sterling's ascent against a weakening euro. (bit.ly/1Y6tKXl)

Sky News

Olivier Sarkozy, a partner at the global private equity and alternative investment firm Carlyle, is in advanced talks to buy a stake in PIB, which was established last year by a group of experienced industry executives. (bit.ly/1TDgEPZ)

Jaguar Land Rover will pave the way to enter the electric car market next week when it announces the launch of a team to compete in the Formula E motorsport series. (bit.ly/1OT3E9s)

The Independent

The number of job opportunities in finance in London has taken a dive as employers are priced out of the City, according to a report by financial services firm Morgan McKinley (ind.pn/1SQdoRc)