Welcome to the Crisis Economy, Where Tumult Reigns (WSJ)
The earthquake that began with the 2008 financial crisis in the U.S. and that later rumbled through Europe has finally shaken China, in turn crippling countries and companies from Africa to South America that prospered feeding Chinese demand. As a result, the early weeks of 2016 have been marked by paroxysms in financial, energy and commodity markets.
Deutsche Bank to Face British Lawsuit Over High-Speed Trading (Dealbook)
The lawsuit is to be filed later this year on behalf of companies, investors and even some central banks that frequently buy and sell currencies. The lawsuit would mirror one filed in New York last month by some of the same law firms. That lawsuit asserts that Deutsche Bank used a software platform known as Autobahn to take advantage of millisecond changes in exchange rates to give clients worse prices than they were entitled to.
Merrill’s Broker Herd Eyes Greener Pastures (WSJ)
The No. 1 brokerage in the country for most of the past decade, Merrill is now at risk of slipping to No. 2 behind Morgan Stanley in terms of annual revenue. Morgan Stanley was slightly ahead of Merrill by that measure through three quarters last year. Bank of America and Morgan Stanley report earnings on Tuesday. Equally significant, many of Merrill’s so-called thundering herd of brokers are eyeing greener pastures for the first time since the merger, with the expiration this month of lucrative retention packages that kept many of them from joining other firms, brokerage recruiters say.
Exclusive: China's chief stock regulator has offered to resign (Reuters)
The embattled head of China's securities regulator, Xiao Gang, widely blamed by investors for mishandling a recent crisis that wiped over $5 trillion off the value of the Shanghai and Shenzhen stock markets, has offered to resign, sources said. The China Securities Regulatory Commission (CSRC) denied Xiao had offered to resign. "This information does not conform to the facts," it said via Weibo, a popular microblogging site.
Woman faces jail for tagging former in-law on Facebook (NYP)
A New York woman faces a year in jail for violating an order of protection involving her former sister-in-law — because the violator linked the woman in a Facebook post that called her “stupid.” Maria Gonzalez tried to argue that the protection order “did not specifically prohibit [her] from Facebook communication” with her former sister-in-law, Maribel Calderon. Westchester County Supreme Court Justice Susan Capeci disagreed, writing, “The order of protection prohibited the defendant from contacting the protected party by electronic or any other means.” The order against Gonzalez was related to her divorce from Calderon’s brother, Rafael Calderon.
Puerto Rico Says Shortfall to Increase to $23.9 Billion (Bloomberg)
Revenue will fall short of covering principal and interest payments each year through 2025, according to an updated fiscal and economic growth plan released by Governor Alejandro Garcia Padilla’s administration Monday. The payment deficit over the next five years has widened to an estimated $16.06 billion, up from a $14 billion forecast in September. Creditors asked Puerto Rico to extend the plan to 10 from five years, the administration said.
Barclays’s New CEO Beats a Retreat in Africa (WSJ)
The bank is drawing up plans to sell some of its 62% stake in Barclays Africa Group Ltd., the publicly traded entity that houses most of its African business, these people said.
Pharma sell-off threatens IPO appetite (FT)
Last year was a record for healthcare deals, with much of the activity being driven by a group of drugmakers loosely known as “specialty pharma”, which typically increase profits and sales through acquisitions rather than discovering their own drugs. That is unlikely to be the case in 2016. Allergan, the largest specialty pharma group, has said it will refrain from large deals ahead of its takeover by Pfizer. Valeant, the beleaguered Canadian drugmaker, has pledged to abstain from acquisitions so it can pay down a $31bn net debt position that is making its investors nervous.
‘Pharma bro’ Martin Shkreli doesn’t want to be called ‘pharma bro,’ calls fraud case against him ‘fictitious’ (NYDN)
So-called “pharma bro” Martin Shkreli says he doesn’t like that mocking nickname — and also doesn’t believe anyone hates him, despite swallowing bitter pills of public derision and legal troubles last year. “I’m not a ‘pharma bro,’ right?” Shkreli told Fox 5 NY Sunday in his first interview since his December arrest for alleged fraud...As for the federal case against him for an alleged Ponzi scheme, Shkreli dismissed it as “fictitious.” The ex-exec was arrested in his Manhattan apartment Dec. 17 for his alleged scheme from one of his old companies. He pleaded not guilty and posted $5 million bail. Since then, he has kept a relatively low profile, relegating himself to regular chats with online admirers while his drug empire crumbles.