Argentine Debt Team to Meet With Mediator (WSJ)
Argentina said Monday night that it will send a delegation to meet with a court-appointed lawyer on July 7 as it tries to resolve a dispute with a small group of creditors that could see the South American country default for a second time in 13 years. Argentina’s long-running battle with hedge funds in U.S. courts entered a critical phase after U.S. District Judge Thomas Griesa on June 27 blocked the country from making $539 million in interest payments that were due on some of its bonds Monday. Argentina will likely default if it can’t get that money to bondholders before a 30-day grace period expires in July. The judge has ruled that Argentina must pay the hedge funds that are suing to collect on defaulted bonds at the same time it pays investors who own bonds the country issued after its 2001 default.
Peltz’s Trian Plants Its Flag in BNY Mellon (WSJ)
The sleepy world of back-office banking is about to get a bit of action following Trian Fund Management LP’s purchase of a large stake in Bank of New York Mellon Corp. Trian, led by Nelson Peltz, said Monday that it has bought a position valued at $1.05 billion in BNY Mellon, representing a 2.5% stake. The move is rare in the world of activist investors, who typically avoid regulated businesses such as banks.Mr. Peltz, 72 years old, and Trian haven’t had any discussions with the bank’s leaders, according to a person familiar with the matter, but plans to reach out to management to discuss ideas for creating more shareholder value.
Economy could accelerate substantially: Summers (CNBC)
There’s a prospect that the economy could accelerate “quite substantially” over the next couple of quarters, former Treasury Secretary Larry Summers told CNBC’s “Closing Bell.” “That would be an important and obviously positive development,” he said Monday. “[There's] no assurance that will be the case, but I think that could be a surprise.” However, while he is concerned that rapid economic growth could lead to a market bubble, he doesn’t think the U.S. is in one yet despite the narrower credit spreads and certain asset prices that are inflated.
Not looking at pot as ‘windfall’ for economy: Colorado Gov. (CNBC)
Colorado’s increased tax revenue from the sale of marijuana isn’t necessarily a windfall, Gov. John Hickenlooper said Monday. Instead, he’s looking to use that money to maintain the state’s high quality of life.
I’m Sorry, I Think I’m Allergic to You (WSJ)
As with a lot of allergies, it’s the repetition that gets to us. “The first time you are seated next to a co-worker who is loudly snapping bubble gum, you don’t care,” says Michael Cunningham, a psychologist and professor of communication at the University of Louisville. “After three weeks, you are praying they’ll choke on it.” According to Dr. Cunningham, who has studied the phenomenon for more than 15 years, social allergens can be grouped into four main types, depending on whether the behavior is intentional or not, and whether directed personally at an individual or not. The first grouping is uncouth habits. They are unintentional and they aren’t directed personally. They include noisily chewing gum or talking loudly into a phone in a crowded public space. “The person isn’t really thinking of you, even though the behavior has implications for you,” Dr. Cunningham says. The second category is egocentric actions, he says. These behaviors aren’t necessarily intentional, but they are directed personally at you. There’s the friend who keeps you on the phone for 45 minutes after you said you can only talk for five, or the family member who never orders dessert at a restaurant but eats all of yours (you know who you are). This person still isn’t thinking about you, but the behavior affects you specifically. The third category, norm violations, encompasses offensive behaviors that are intentional but impersonal. Examples include smoking right outside the front door, talking in a theater during the show or texting while driving. The fourth, and most irritating, social-allergen group includes actions that are both intentional and directed personally, Dr. Cunningham says. It may be an imperious command (“Bring me some coffee, will you?”) instead of a request for a favor. Often, it is a backhanded complaint or criticism: “Are you really going to eat that?” or “You bought a car? I thought you were saving for college.”
Formerly Tubby Police Horse Turns Life Around, Chases Down First Suspect (AP)
Murphy, carrying Officer Cassandra Wells, chased down a man suspected of breaking into a building last week and kept him trapped next to a building until officers could cuff him. The Oregonian reports Murphy galloped about six blocks. Murphy was added to the mounted patrol last year, but when he arrived at the barn he weighed 1,900 pounds. The unit didn’t have a saddle big enough for him. After losing 200 pounds he went through training and is now on Portland streets.
Emerging-Market Issuers Vulnerable on $2 Trillion Debt Binge (Bloomberg)
“Like an elephant in a paddling pool, the huge size disparity between global investor portfolios and recipient markets can amplify distortions,” the analysts wrote. “It is far from reassuring that these flows have swelled on the back of an aggressive search for yield: strongly pro-cyclical, they surge and reverse as conditions and sentiment change.”
Renouncing Corporate Citizenship (Dealbook)
A little less than two years ago, Gregory D. Wasson, the chief executive of Walgreen, sought a series of tax breaks from Illinois, where his company is based. “We are proud of our Illinois heritage,” he said at the time. “Just as our stores and pharmacies are health and daily living anchors for the communities we serve, we as a company are now recommitted to serving as an economic anchor for northeastern Illinois.” The state gave Walgreen $46 million in corporate income tax credits over 10 years in exchange for a pledge to create 500 jobs and invest in upgrading its offices. The state also provided $625,000 in training money and $875,000 in other tax incentives. Mr. Wasson’s actions, however, could soon run counter to his words. The same chief executive who said he was so “proud of our Illinois heritage” is now considering moving the company’s headquarters to Switzerland as part of a merger with Alliance Boots, a European drugstore chain. Why? To lower Walgreen’s tax bill even further.
How Memphis Firm Decoded Bond Secrets Mystifying Wall Street (Bloomberg)
Working for a firm based about 1,000 miles (1,600 kilometers) from Wall Street with roots that date back to the Civil War, FTN’s Jim Vogel and Chris Low were among the few who correctly urged investors to ignore the consensus calling for an inevitable selloff in bonds this year. Since at least 2011, FTN’s head of interest-rate strategies and chief economist have rightly gone against the pack by calling for low yields.
Man Pulls Trooper Over For Alleged Speeding (HP)
In a video uploaded last week to YouTube, a man identified as Brian Miner flags down an Illinois state trooper, allegedly because the officer was speeding and talking on his cellphone. “You pulled me over with your horn, I don’t know what that was about,” the unidentified officer said. “Because you were speeding and had your cellphone in your hand,” Miner responded. The officer then says “Police officers can actually use technology when we’re driving.” The officer then asks Miner for his license and registration and, after asking him if he was speeding, says he’s going to write Miner a ticket for “unlawful use of horn”. Then Miner tells the officer that he’s being recorded and shortly after the officer decides not to write him a ticket. “I didn’t want to hurt your record,” the officer said.