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Frontrunning: June 2

  • Global stocks struggle as ECB and OPEC meetings loom (Reuters)
  • Iran Resists Saudi Gesture for Unity as OPEC Fractures Reappear (BBG)
  • Clinton to blast Trump on North Korea, NATO in foreign policy speech (Reuters)
  • Hillary Clinton Shifts to California as Race Tightens There (WSJ)
  • Puerto Rico’s U.S. Rescue Won’t Come Soon Enough to Halt Default (BBG)
  • U.S. to Curb Payday Lenders (WSJ)
  • BOJ’s Sato Is Pessimistic on Economy, Central Bank’s Strategy (BBG)
  • PIMCO sees 'significant' chance of Brexit vote in UK (Reuters)
  • Internet Boom Times Are Over, Says Mary Meeker’s Influential Report (BBG)
  • Gigonomics: The Dismal Science Behind Today’s On-Demand Jobs (BBG)
  • Labor Fears Partisan Defections Toward Donald Trump (WSJ)
  • Alibaba Details Price for Buying Back Stock From SoftBank (BBG)
  • Apple Plans to Raise up to $4 Billion From Bond Sales in Asia Pacific (WSJ)
  • Use it or lose it: Occasional Ohio voters may be shut out in November (Reuters)
  • German Farmer Left Cold by Beer With Obama Shows TTIP in Trouble (BBG)

 

Overnight Media Digest

WSJ

- The Obama administration will announce Thursday the federal government's first move to regulate high-interest, low-dollar "payday loans," a $38.5 billion market currently left to the states. (http://on.wsj.com/1TKWRh1)

- Uber Technologies Inc raised $3.5 billion from the investment arm of Saudi Arabia, part of an arms race over the future of transportation that is attracting the world's largest technology companies and auto makers. (http://on.wsj.com/1TKWqmO)

- Alibaba Group Holding Ltd has agreed to repurchase 27 million shares from SoftBank Group Corp for $74 each, for a total of $2 billion, while the company's partnership of founders and managers has agreed to purchase 5.4 million shares for the same price, for a total of $400 million. (http://on.wsj.com/1TKX3Nh)

- Hong Kong's largest family-controlled bank, Bank of East Asia Ltd, said Thursday it will close its brokerage outlets and lay off staff as profits falter and activist investor Elliott Management maintains its call for the bank to sell itself. (http://on.wsj.com/1TKWJ0X)

 

FT

Overview

Munich Re's insurance business Ergo unveiled a deep restructuring on Wednesday in a bid to return to profit, cutting 13 percent of its German workforce and setting out plans to launch a digital insurer and a revamped product line.

London Stock Exchange Group said its planned $30 billion merger with German rival Deutsche Boerse could initially cut 1,250 jobs across the combined group and should eventually lead to 250 million euros ($279.68 million) in extra revenue a year.

Consumers may need tougher protection against "inherently higher" risks from investing in online platforms that offer loans, a senior British lawmaker, Andrew Tyrie, said on Wednesday.

Uber has raised $3.5 billion from Saudi Arabia's sovereign wealth fund, the U.S. ride-hailing service said on Wednesday, gaining a crucial partner in its expansion into the Middle East.

 

NYT

- At least four automakers - Toyota, Volkswagen , Fiat Chrysler and Mitsubishi - continue to sell new vehicles with defective Takata airbags that will need to be recalled, according to a Senate Commerce Committee report released on Wednesday. (http://nyti.ms/1r3mTnA)

- Uber said on Wednesday that it had raised $3.5 billion from Saudi Arabia's Public Investment Fund, in one of the largest-ever investments into a privately held start-up. (http://nyti.ms/1P7UgM5)

- The European Central Bank is not expected to make any changes to monetary policy when it meets Thursday. In fact, with the region trapped in a period of economic stasis, it may not do much of anything for many months to come. (http://nyti.ms/1TQTCKg)

- Steve Mosko, the chairman of Sony Pictures Television, has left the studio. The departure of Mosko, 60, came a day after NBC Entertainment pushed out Bela Bajaria as president of Universal Television, which suffered a sharp decline in orders for the fall season. (http://nyti.ms/22zf9HF)

 

Canada

THE GLOBE AND MAIL

** Fresh warnings are being issued about the Vancouver and Toronto real estate markets as a growing chorus urges further action from Ottawa amid a continual rise in housing prices. (http://bit.ly/1r3w0o3)

** A federal spy agency inadvertently shared logs of Canadians' phone calls and internet exchanges with intelligence allies such as the United States for years, a newly disclosed report says. (http://bit.ly/1O6velB)

** Saudi Arabia is arming Yemeni forces led by a controversial military commander accused of using child soldiers, a leading human-rights researcher is warning Parliamentarians. Ottawa must suspend sales of Canadian-made combat vehicles to Riyadh if it fails to obtain guarantees that they won't become embroiled in this, Belkis Wille, of Human Rights Watch told a Senate committee. (http://bit.ly/1O6tMiV)

NATIONAL POST

** Vantage Airport Group Ltd began work Wednesday on a $4 billion makeover of New York's rundown LaGuardia Airport, and said the massive contract will significantly raise its profile in the United States. (http://bit.ly/1sqzzWR)

** The NDP is planning to force debate on a special committee on Canada's electoral system Thursday, proposing a new model that would put the Liberals in a minority position. (http://bit.ly/1ZfA6VW)

** Bombardier Inc announced Wednesday that WestJet Encore has converted its remaining options into firm orders to beef up the Calgary company's fleet of 45 Q400s. Bombardier says the cost of the transaction - nine new planes - is about C$293 million ($223.60 million). (http://bit.ly/1sqze6y) (

 

Britain

The Times

- British manufacturers are putting decisions on hold in the build-up to the European Union referendum, causing activity to slow, according to a closely followed survey. (http://bit.ly/1Y3klTz)

- The chancellor has accused Boris Johnson and Michael Gove of "making up" plans that would damage the economy. (http://bit.ly/1Y3kOVT)

The Guardian

- George Osborne, the chancellor, and ministers from the UK's extensive network of tax havens are among key witnesses that Members of the European Parliament intend to call as part of a major inquiry set to be launched into the Panama Papers. (http://bit.ly/1Y3kFSv)

- Marks and Spencer is to switch off background music in stores in response to feedback from customers and staff. The new music-free policy will be implemented over the next few weeks at 300 clothing and home branches across the UK. (http://bit.ly/1Y3kEOv)

The Telegraph

- The father and son property tycoons who helped Dominic Chappell to fund his doomed acquisition of BHS have been called to appear before the two House of Commons select committees investigating its collapse. (http://bit.ly/1Y3kEhf)

- Ryanair has come under attack for deciding to close its base near Oslo - a move that is expected to result in the loss of 1,000 jobs - after Norway introduced a new tax on air passengers. (http://bit.ly/1Y3kFlx)

Sky News

- A vote to leave the European Union would have "substantial negative consequences" for the UK and the global economy, the Organisation for Economic Co-operation and Development (OECD) says. (http://bit.ly/1Y3keYm)

- Administrators to BHS are racing to finalise a rescue of the high street chain even as recriminations over the company's past financial management deepen as part of a parliamentary probe into the affair. (http://bit.ly/1Y3kSFa)

The Independent

- Deutsche Boerse's proposed acquisition of London Stock Exchange Group may result in about 1,250 job cuts across the companies. (http://ind.pn/1Y3kXJ0)