Silver as an investment

Frontrunning: September 8

  • Stock futures flat ahead of economic data, ECB meeting (Reuters)
  • Trump in TV event with Clinton, says Putin better leader than Obama (Reuters)
  • 5 takeaways from Trump and Clinton’s military forum (The Hill)
  • Matt Lauer Fields Storm of Criticism Over Clinton-Trump Forum (NYT)
  • Vladimir Putin Just Wants to Be Friends (BBG)
  • Hanjin Shipping’s Troubles Leave $14 Billion in Cargo Stranded at Sea (WSJ)
  • Hanjin’s Ghost Ships Seek Havens With Food and Water Starting to Dwindle (BBG)
  • Tesla gets $300 million lease credit line from Deutsche Bank (Reuters)
  • Suspect Sales at Fiat Chrysler Could Be Bad News for Its Rising Star (BBG)
  • Duterte Outbursts Taking Toll as Philippine Stock Losses Mount (BBG)
  • Trump Campaign Details Tax Paid After Foundation’s Political Gift (WSJ)
  • Navistar Defense gets DoD subpoena over sale of some suspension systems (Reuters)
  • At Kmart, a Store Overhaul That Stands Out (WSJ)
  • Tens of Thousands of Jobs Go as China’s Biggest Banks Cut Costs (BBG)
  • HP Enterprise in $8.8 billion deal with Micro Focus for software assets (Reuters)
  • Retired Pope Offers Final Reflections on Papacy, Francis (BBG)
  • Second couple arrested after car with gas cylinders found in Paris (Reuters)

 

Overnight Media Digest

WSJ

– Hanjin Shipping’s financial and legal troubles have left as much as $14 billion worth of cargo stranded at sea, sending owners scrambling to try to recover their goods, according to industry executives, brokers and cargo owners. http://on.wsj.com/2clkCBa

– Donald Trump and Hillary Clinton sketched dueling visions Wednesday night of the U.S. role on the global stage, with both the leading presidential candidates arguing that their experience better prepared them to make the life-or-death decisions required of the commander in chief. http://on.wsj.com/2cGJkxm

– Apple Inc Wednesday announced improvements to the iPhone that stopped short of a major overhaul, hoping that the upgrades will revive sagging sales of its flagship product. http://on.wsj.com/2bThUhT

– Wells Fargo & Co, the biggest U.S. bank by market value, is to be the subject of a regulatory enforcement action related to its cross-selling of products and sales tactics, according to people familiar with the matter. http://on.wsj.com/2ceXJP9

– Wider aisles, clearer signs and a personal shopping service gives Kmart loyalists a taste of modern retailing. But analysts say the troubled company’s finances mean the uniqueness of the update will remain just that. http://on.wsj.com/2cDaZhs

– Pope Francis has trimmed the wide-ranging powers of Cardinal George Pell, the economy secretary he named in 2014 to clean up the city-state’s muddled accounts, in a setback for the broader overhaul of the Catholic Church’s central bureaucracy. http://on.wsj.com/2cBXlZn

 

FT

Hewlett Packard Enterprise Co agreed to spin off its software assets to Micro Focus International plc in a deal valued at $8.8 billion.

Liberty Media Corp agreed to take control of Formula One in a deal valued at $8 billion.

Investment firm TPG is buying a majority stake in Intel Corp’s security unit, for $3.1 billion in cash, valuing the company at $4.2 billion including debt.

Apple Inc unveiled the iPhone 7 and a new watch at its annual product launch on Wednesday.

 

NYT

– Intel Corp, which bought McAfee for $7.7 billion six years ago, said on Wednesday that it had sold a majority stake in its cybersecurity business to investment firm TPG, in a transaction valuing the security provider at about $4.2 billion, including debt. http://nyti.ms/2bUmXOV

– Caliber, a unit of Lone Star Funds, is one of the few financial firms to report a significant percentage increase this year in the dollar value of subprime mortgages it is managing and servicing for homeowners. http://nyti.ms/2bUpbhl

– China is in the midst of one of the biggest borrowing binges in recent history. Its debt load reached $26.6 trillion in 2015 – about five times what it was a decade ago, and more than two-and-a-half times the size of the country’s economy. That huge increase has prompted some economists and even prominent investor George Soros to compare China to the United States before the 2008 financial crisis. http://nyti.ms/2bUpLvt

– As a spiritual revival sweeps China, Longquan has become a haven for a distinct brand of Buddhism, one that preaches connectivity instead of seclusion and that emphasizes practical advice over deep philosophy. http://nyti.ms/2bUpsku

– Cable television conglomerate Liberty Media Corp announced a $4.4 billion deal on Wednesday to purchase 67-year-old racing series Formula One from a group led by CVC Capital Partners, a Luxembourg-based investment fund. http://nyti.ms/2bUpEAe

 

Canada

THE GLOBE AND MAIL

** The Royal Canadian Mounted Police (RCMP) has been probing a Canadian-owned company for more than three months over its sales of armored vehicles to war-torn Libya despite a ban on military exports to that country – a review that now has been expanded to include shipments to Sudan. (http://bit.ly/2c0SNj9)

** Ontario Premier Kathleen Wynne is now promising to extend a ban on politicians attending fundraising events to all candidates for provincial office – not just sitting members of provincial parliament (MPPs). It is the Liberals’ second pledge in as many weeks to toughen up new rules on campaign finance, and comes as the Premier tries to regain control of the issue with pressure mounting from the opposition and experts to clean up the system. (http://bit.ly/2bUU4Ct)

** Quebec’s securities watchdog says it has uncovered a sophisticated system of insider trading involving former Amaya Inc Chief Executive David Baazov, by which kickbacks were paid in exchange for stock tips on several impending takeovers. The deals stretch back six years – long before Amaya took over gambling behemoth PokerStars in 2014. (http://bit.ly/2bUR49f)

** The federal government says the cost to fix its new Phoenix payroll system has nearly doubled in the past two weeks, and will now ring in at C$45 million ($35 million) to C$50 million. The problem-plagued system has affected the pay of more than 80,000 public servants, forcing some to max out credit cards or borrow money to pay their bills after missing paychecks for months. (http://bit.ly/2c0rZgl)

NATIONAL POST

** Drilling activity in the oilfield has slowed to the point that 2016 will be the worst year on record for the oil and gas industry, the Canadian Association of Oilwell Drilling Contractors said on Wednesday in a revised activity forecast. The association’s updated forecast for the fourth quarter of this year shows a 25 percent drop in new oil and gas wells drilled from its original forecast in November. (http://bit.ly/2cmQCVA)

 

Birtain

The Times

Ian Gorham is to step down as Hargeaves Lansdown’s chief executive after almost seven years at the helm of the FTSE 100 financial adviser. (http://bit.ly/2c8ikSk)

Activity in Britain’s factories collapsed in the month after Brexit, according to the first official figures on the state of the economy since the referendum. Manufacturing shrank 0.9 percent between June and July. (http://bit.ly/2c8jI7J)

The Guardian

Hewlett Packard Enterprise will spin off and merge its non-core software assets with Britain’s Micro Focus International in a $8.8 billion deal. (http://bit.ly/2c8juNN)

Denmark became the first country in the world to apparently buy data from the Panama Papers leak to probe if 500-600 Danes who feature in the leak may have evaded tax. (http://bit.ly/2c8iAkw)

The Telegraph

Amazon has begun offering free one-hour restaurant deliveries to its Prime customers in London in a bid to take a slice of Britain’s £9 billion ($12.00 billion) takeaway market. (http://bit.ly/2cjr3oi)

White Rivers Exploration, in which British-born prospector Mark Creasy holds a 64 percent stake, is to list on the LSE in early 2017, as it pushes ahead with a joint venture in South Africa’s Witwatersrand gold province. (http://bit.ly/2bTVe12)

Sky News

US firm Liberty Media acquired Formula One motor racing in a £6 billion ($8.00 billion) deal. (http://bit.ly/2c8gBg8)

Sports Direct shareholders rejected the reappointment of its chairman Keith Hellawell to the board. The company’s Annual General Meeting saw 53% of independent investors vote against Hellawell. (http://bit.ly/2c8hKEb)

The Independent

House prices in Britain fell 0.2 percent in August, dragging the growth rate for the year to its slowest since 2013 during the Brexit vote period, according to new figures from Halifax. By contrast, Nationwide’s survey recorded two consecutive monthly rises. (http://ind.pn/2c8i0mK)

The Governor of the Bank of England Mark Carney defended his warnings about the negative impact of Brexit on the economy as signs show that economic activity has been better than expected since the Brexit vote. (http://ind.pn/2c8hYuZ)