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Frontrunning: January 28

  • Unease over Fed rate path dents European stocks (Reuters)
  • Global Stocks Pressured After Fed Statement (WSJ)
  • Japan's Economy Minister Amari to Resign Over Graft Scandal (BBG)
  • Authorities working to clear remaining protesters in Oregon occupation (Reuters)
  • China Sharpens Efforts to Halt Money Outflow (WSJ)
  • Eurozone January Economic Sentiment Falls Sharply, Hits 5-Mth Low (MNI)
  • Glencore Said to Store Oil in Ships Off Singapore Amid Contango (BBG)
  • Investors Hedge Bets on Crude-Oil Revival (WSJ)
  • Deutsche Bank Securities Unit Reports Loss on Revenue Slump (BBG)
  • Deutsche Bank Board Members Won't Get 2015 Bonuses, Cryan Says (BBG)
  • The One White-Collar Job in Hot Demand in Busted Brazil Economy (BBG)
  • Ford Posts $1.9 Billion Profit: North America operations lifted by record U.S. industry sales (WSJ)
  • EU's Too-Big-to-Fail Bank Bill Won't Be Withdrawn, Hill Says (BBG)
  • The $29 Trillion Corporate Debt Hangover That Could Spark a Recession (BBG)
  • South Africa Sees 32,000 Possible Mining Job Cuts, Minister Says (BBG)
  •  Weekly carload traffic down nearly 20% (Railway Age)
  • Campaigning in style: How Jeb Bush blew through his warchest (Reuters)
  • Europe Faces Another Million Refugees This Year, UN Report Says (BBG)

 

 

Overnight Media Digest

WSJ

- Alibaba Group Holding Ltd reached a roughly $900 million deal to sell its stake in Meituan-Dianping, which is China's largest online provider of movie ticketing, restaurant bookings and other on-demand services, as the Internet giant builds its own competing platform. (http://on.wsj.com/1SkMend)

- Federal Reserve officials expressed worry about financial-market turbulence and slow economic growth abroad, leaving doubts about whether the central bank will raise interest rates as early as March. (http://on.wsj.com/1SkMvqc)

- Facebook Inc posted more than $1 billion in quarterly profit for the first time, showing the social network's mobile strength as advertisers increasingly look to reach younger users. (http://on.wsj.com/1SkMCBV)

- Federal inspectors found "deficient practices" at a Theranos Inc laboratory that "pose immediate jeopardy to patient health and safety",. The Centers for Medicare and Medicaid Services said an inspection completed in November uncovered five major infractions that violate the federal law governing clinical labs. (http://on.wsj.com/1SkMNNK)

- If BG Group Plc investors support the deal on Thursday as analysts and investors expect, the combination would nearly double Royal Dutch Shell Plc's production of liquefied natural gas within two years, and turn it into the world's largest marketer of the fuel by the end of the decade. (http://on.wsj.com/1SkN6YU)

 

FT

French utility EDF said in a statement on Wednesday that its board had agreed to buy the reactor business of Areva based on a value of 2.5 billion euros.

British Prime Minister David Cameron will fly to Aberdeen, Scotland, on Thursday to announce a 250-million-pound ($356.20-million) package to prop up the North Sea oil industry.

In October last year, Zeus Capital announced that it will acquire rival broker Novum Securities. However, that plan appears on the brink of falling apart as the Financial Conduct Authority plans to bring tax fraud charges against Zeus co-founder Richard Hughes.

Five former brokers were acquitted on Wednesday of conspiring with convicted trader Tom Hayes to manipulate crucial benchmark interest rates as London's second Libor trial dealt a blow to the UK's Serious Fraud Office.

 

NYT

- Even as petroleum prices plummet and the kingdom burns through its financial reserves, the Saudis are betting they can win an oil war of attrition. (http://nyti.ms/1PUnxsX)

- A report from the New York attorney general portrays a complex business in which technologically adept ticket brokers are able to profit at the expense of ordinary fans. (http://nyti.ms/23vhOnh)

- Gilead Sciences may face legal action in Massachusetts unless it drops prices for its hepatitis C drugs. In California, it is being sued over patents for an H.I.V. treatment. (http://nyti.ms/1KcfUBy)

- The quarter was another blockbuster for Facebook Inc and its shares jumped in after-hours trading. (http://nyti.ms/1SLtQoO)

 

Canada

THE GLOBE AND MAIL

** Bombardier Inc was sued on Wednesday for at least C$14.2 million ($10.1 million) by a unit of Comerica Inc , after the Canadian aircraft maker was unable to find buyers for four planes whose leases had expired. (http://bit.ly/1Sl1L6c)

** Rogers Communications chief executive Guy Laurence is defending the escalating prices of wireless plans, comparing the value customers get from the money cellular carriers pour into their networks every year to the cost of a daily coffee. (http://bit.ly/1Sl1MHk)

** Housing markets across the Prairies are showing major signs of stress as job losses mount in the energy sector and rental vacancy rates soar, Canada's federal housing agency, Canada Mortgage and Housing Corp, warned in a quarterly assessment. (http://bit.ly/1Sl1Yqh)

NATIONAL POST

** The federal government will take extra time to weigh approvals for both the Energy East and Trans Mountain pipeline projects, and will assess both projects' impacts on Canada's greenhouse gas emissions. (http://bit.ly/1Sl2fcy)

** Canada's top energy regulator, the National Energy Board, forecasts crude oil production in the country to grow 56 percent to reach 6.1 million barrels per day by 2040 from its current level of 4.3 million bpd. (http://bit.ly/1Sl2oge)

** Canadian vehicle sales will be flat in 2016 as weakness in commodity-producing provinces is offset by strength in the industrial heartland, according to a new report from Scotiabank. (http://bit.ly/1Sl2rbX)

 

Britain

The Times

The trial of six brokers accused of rigging Libor ended in defeat for the Serious Fraud Office yesterday when a jury cleared five of the men. (http://thetim.es/1OZ9hPG)

The chances that the payment protection insurance scandal will exceed £30 billion rose yesterday after Santander took a fresh £450 million provision to pay compensation. (http://thetim.es/1KGeJ8p)

The Guardian

Shell has won shareholder approval for its £35bn takeover of BG Group despite nearly a fifth of investors opposing the deal. (http://bit.ly/1VrjqIQ)

One of the most powerful opponents of Google's controversial tax structures, European tax commissioner Pierre Moscovici, is expected on Thursday to call on Britain and Ireland to drop their objections to radical tax reform across the EU. (http://bit.ly/1Vshi3M)

The Telegraph

Royal Bank of Scotland has set aside an extra £2.5bn to cover legal bills, compensation payouts and reduced income due to low interest rates, just weeks before it announces its financial results for 2015. (http://bit.ly/20rZMjj)

The City watchdog has issued a warning to people considering taking out a self-certification mortgage from a company based outside the UK. (http://bit.ly/1nxKhsz)

Sky News

A fund backed by Britain's biggest banks has agreed to back a fast-growing app-based advertising platform founded by a trio of 20-something entrepreneurs. (http://bit.ly/1UrHzPi)

Apple's Safari browser suddenly crashed on iPhones, iPads and Macs worldwide on Wednesday. (http://bit.ly/1SbPgvA)

The Independent

Scotch whisky makers have called on the UK Government to cut tax on the bottle from an "onerous" 76 per cent. (http://ind.pn/1OZ4ca7)

America's central bank stressed today that it is "closely watching" global markets in the wake of January's turmoil, suggesting that it is likely to slow the pace of its monetary tightening. (http://ind.pn/1PTLqRr)