A Chinese native has been charged by the US Department of Justice with stealing trade secrets from Apple, including information on autonomous vehicle technology. Weibao Wang, a former software engineer accused of stealing thousands of documents, is one of five individuals to be pursued as part of a government task force created to combat the theft of critical technology by foreign countries. Wang, who told investigators he had no plans to travel to China, immediately flew to Guangzhou upon being questioned by law enforcement officers who discovered a large volume of Apple data at his California home in 2018.
Raine Group stands to make $65.5m from World Wrestling Entertainment's (WWE) merger with free-fighting organisation the Ultimate Fighting Championship, according to US securities filings. The bank helped sell Chelsea Football Club for £2.5bn ($3.22bn) in 2018 and, more recently, it has been advising on a prospective sale of Manchester United for the Glazer family. JPMorgan and Moelis are also expected to make around $25m each from the $21bn transaction. Raine founded in 2009, has about 25 partners and managing directors and employs about 175 staff.
China's property market showed signs of slowing growth, with data revealing house prices rose in April for the third consecutive month but at a slower rate. According to the National Bureau of Statistics, the average price of a new home in 70 cities rose 0.3% in April, less than March figures of 0.4%.
US antitrust tsars Lina Khan and Jonathan Kanter are scaring corporate executives with their willingness to sue to block deals that promote rampant consolidation, according to the FT. The Federal Trade Commission’s recent decision to file a lawsuit to block Amgen's $28.3bn acquisition of Horizon Therapeutics surprised many in the industry. So far, mergers challenged or blocked by the duo (with the help of friendly regulators in the UK and EU) include Microsoft’s $75bn acquisition of gaming company Activision Blizzard, Lockheed Martin’s planned $4.4bn acquisition of US missile products supplier Aerojet Rocketdyne, and the $2.2bn merger of Penguin Random House and Simon & Schuster. The duo have said they will try to sue to block deals even if they know they might lose. Vince McMahon, the founder of World Wrestling Entertainment, relied on merchant bank Raine Group for strategic advice and its help in selling his company. Raine will earn $65m from the $21bn transaction.
Chinese home prices rose in April for the fourth consecutive month, but the gains have slowed, indicating pent-up demand is fading. New home prices rose 0.4% compared to 0.5% in March, according to the National Bureau of Statistics. Investments, sales and imports sharply contracted in the wake of the coronavirus outbreak, leaving economists concerned that there may be a greater need for policy stimulus to secure economic recoveries.
Tracking the decline in other Asian currencies, the Indian rupee hit a more-than-six-week low against the U.S. dollar, reaching 82.4425. However, it recovered by the close, ending up 0.21% at 82.38. The decline in currencies including the rupee has been caused by data showing China's post-Covid recovery losing steam, said Dilip Parmar, research analyst at HDFC Securities. While the RBI wishes to replenish forex reserves, Goldman Sachs says it is unlikely that appreciation pressures on the rupee will rise.
Investors holding Credit Suisse credit insurance-linked bonds will receive no payout as the bank's state-engineered merger with UBS fails to constitute a credit event, according to the EMEA Credit Derivatives Determination Committee. The decision comes after UBS took over Credit Suisse in a state-assisted deal, thus wiping out Credit Suisse's Additional Tier 1 bondholders; however, the CDDC said the governmental intervention credit event had not occurred, meaning investors will not receive a payout.
Barclays is said to be planning a major push to grow business in Paris, with the aim of expanding its headcount in the city by around 200 people over the next two to three years. The bank already has around 300 employees in the French capital and plans to move to larger premises next year. In March, Paris overtook London as Europe’s largest stock market with the UK capital now $250bn (£204bn) smaller than the French equivalent. It lost its place as Europe’s largest centre for trading equities for the first time last year when Paris overtook it.
Column: Investors favor Japan's rising sun over China's fading star: McGeever
Reuters
23-05-18 00:21
Bank of America's latest surveys, reissued Wednesday, shows investors both in favour of Japanese equities and selling off Chinese assets amid changing economic fortunes for both countries. While Japanese stocks are now at levels not seen for over 30 years, Chinese assets - particularly bonds - are falling out of favour among investors as the country's economic growth slows.
Charles Schwab Corp is seeking to raise $2.5bn in long-term debt, a filing with the SEC said. The company will issue $1.2bn in debt due in 2029 and $1.3bn due in 2034, according to a report in the Wall Street Journal. Charles Schwab said it will use the proceeds for "general corporate purposes". The banks managing the offering are BofA Securities, Citigroup, Credit Suisse, Goldman Sachs & Co, JPMorgan and Wells Fargo Securities.
George Santos, embattled Republican Representative, compared US Congress to Mean Girls as he faces federal charges and a potential expulsion vote. Santos spoke to the Macrodosing podcast, responding to a question asking what Congress was like, and comparing it to Mean Girls. Last week, the Justice Department announced 13 criminal charges against Santos, leading to him turning himself in and facing arrest. Representative Robert Garcia filed a resolution to force an expulsion vote for Mr Santos, though it needs two-thirds of the House to pass, and Republicans hold a narrow majority.
US House Speaker Kevin McCarthy has referred a resolution to expel Republican Representative George Santos, who has been charged with unemployment fraud, to the House Ethics Committee, rather than holding a full floor vote. The resolution had been introduced by California Democrat Robert Garcia, but a vote to expel Santos would require two-thirds of the House to agree. McCarthy opposed expelling Santos, but said he would not endorse Santos’s re-election.
Alibaba has recorded a 2% rise in revenue to RMB208bn ($30bn) in the first quarter of 2021, and has announced it intends to complete the initial public offering for its Freshippo grocery business in the next year and to list its Cainiao Smart Logistics in the next 12 to 18 months. It will also spin off the cloud computing arm as the struggling business moves to become an independently listed company. The six new chief executives and board members for the companies created through the split have been revealed.
Left-wing presidents have come to power across Latin America, but while they all promise change, they face major hurdles. Inequality levels remain high, and growth has stagnated, with the annual GDP growth averaging 3.4% between 2011 and 2013 and just 0.9% from 2013 to 2019. Twelve of 19 Latin American countries are run by left-wing governments, but despite this, inequality remains a problem, with what Chile’s interior minister called levels of inequality that would never have been possible in Europe. According to a recent Ipsos Mori survey, many in the region remained fond of globalisation as countries in the area shift their attitudes to democracy.
The social and economic situation in Latin America is spurring a shift to the right. Brazil’s recent left-wing turn has been reversed by Jair Bolsonaro, El Salvador’s right-wing leader Nayib Bukele is popular, and a recent election for a body to rewrite the constitution in Chile was dominated by a far-right party. Nonetheless, the new glimmer of hope brought forth by newly elected left-wing presidents from Mexico to Brazil has an enviable environmental stance and wants bigger government. They have promised to reduce inequality through higher taxes on the rich, bigger welfare systems, and more state-funded healthcare.
These left-wing governments are becoming more protectionist and more determined to stop foreign exploitation of green resources, such as lithium. However, there are many differences between the left-wing governments, with some officials displaying concerns over climate change. The region needs higher growth, investment flows are tepid, and inconsistent policies have been driving off investors. There are major concerns about the region’s ability to fulfil the promises it makes.
Italian investment bank Mediobanca is to acquire independent financial advisor Arma Partners, which currently works across the software and cloud computing sectors as well as fintech. The purchase will encourage Mediobanca to expand overseas and win more tech clients in Europe and the US. Meanwhile, the move to acquire Arma Partners, which advises clients from around the world, will enhance its wealth management and investment banking capabilities, said the Italian bank. No details have been given on the price of the deal for Arma Partners, which is valued at over twice its €100m annual revenue.
As AI changes jobs, Italy is trying to help workers retrain
Washington Post
23-05-18 11:48
Italy will spend $30m to help workers develop digital skills that will better prepare them for automation. While the programme is not solely focused on AI, it will fund companies and non-profits to help workers adopt new technologies, including data science and robotics. The country aims to “adapt the know-how of workers with training on digital and soft skills so that people can do their jobs in a complementary way” to technological advances, according to Martina Lascialfari, head of institutional activities at the Fondo per la Repubblica Digitale (FRD), a fund established to improve digital skills in the country. Italy has a specific need for such skills, with 54% of the population between the ages of 16 and 74 lacking basic digital expertise, compared with an average of 46% in the European Union. The remainder of the $30m fund will be used to help people who are unemployed to develop digital skills that would allow them to enter the job market.
Bank of Israel to raise rates 25 bps next week, may be last in cycle - Reuters poll
Reuters
23-05-18 11:38
Israel's central bank is expected to raise short-term interest rates next week by another quarter-point to a more than 16-year high. The move is expected to cap an aggressive tightening cycle aimed at battling persistent inflation. All 15 economists polled by Reuters predicted a 25 basis points hike to 4.75%, which would be the highest the rate has been since late 2006. Israel's annual inflation rate stayed at 5% in April, which is higher than official annual targets of 1-3%.
Consumer credit data from the New York Federal Reserve this week indicates Americans are being cautious about withdrawing equity from their homes, compared with years gone by and refraining from aggressive borrowing against their homes during the pandemic. Despite an increase in borrowing against the value of homes, it remains a small percentage of Americans’ disposable personal income. The rise of interest rates from zero to more than 5% in the past 14 months has led to a decrease in spending due to refinancing.
The UK Bank of England may reject digital financial services firm Revolut's application for a banking licence, indicating concerns over its balance sheet. The Prudential Regulation Authority had planned to issue a warning notice to Revolut earlier this year over failed accounts, however the notice has been postponed. The bank said it is asking Revolut to present accounts with an unqualified audit opinion and to simplify its share structure before receiving a licence. Customers' money, which is already protected via safeguarding rules, is not expected to be affected.
Software developer Ramp is launching new AI capabilities, including a feature that detects if companies are overspending on software contracts. Businesses will be able to identify unusual employee spending in real time through Ramp's improved corporate finance tools, according to CEO Eric Glyman. With AI synthesis techniques, the company's accounting co-pilot also makes manual tasks faster. New York-based Ramp has secured $1.4bn in investment since its foundation in 2019 and counts Satya Nadella, CEO of Microsoft, and Goldman Sachs among its backers.
