U.K. Preparing Groundwork for Brexit, Says David Cameron (WSJ)
Treasury Chief George Osborne, in his first speech since the vote, said the U.K.’s economy was strong and its banks and financial system were healthy. Boris Johnson, a key contender to replace Mr. Cameron as prime minister and a main driver of the campaign to leave the EU, spoke outside his home on Monday, saying “people’s pensions are safe, the pound is stable, the markets are stable, I think that is all very good news.” However, the vote continued to shake financial markets, with losses deepening in U.S. and European stocks on Monday. The British pound fell to a three-decade low and the pan-European stock index suffered its worst two-day decline since 2008.
U.K. Rating Cut Two Levels by S&P, One by Fitch After Brexit (Bloomberg)
The U.K. was stripped of its top credit grade by S&P Global Ratings, and Fitch Ratings also lowered its rank, the latest crushing verdicts on the country’s decision to leave the European Union that has left it in political and economic paralysis. S&P reduced the grade by two steps to AA from AAA, citing the risk of a less predictable, stable, and effective policy framework in the U.K. Fitch cut its credit rank by one step, to an equivalent level. Both have negative outlooks.
Gross Says U.S. Recession Odds May Be 30% to 50% Post-Brexit (Bloomberg)
The odds of a U.S. recession may be as high as 50 percent following last week’s vote in the U.K. to exit the European Union, according to Bill Gross, manager of the Janus Global Unconstrained Bond Fund.
World’s Top Fortunes Fall $196.2 Billion Since Brexit Bombshell (Bloomberg)
Global markets erased another $69.2 billion from the combined net worth of the world’s 400 richest people Monday, bringing the total since the U.K. shocked investors with a vote to leave the European Union to $196.2 billion in the last two trading days.
Currency Woes Rack Central Banks (WSJ)
The problem is currencies can’t all weaken at once. The Swiss have been trying to push the franc down against the euro. The European Central Bank has nodded to the benefits of a weaker currency as it lowers interest rates into negative territory and expands its bond-buying programs. Japan has tried to weaken the yen against the dollar. And Federal Reserve officials have cited the stronger dollar as an impediment to growth. All are showing little success, and investors have raised concerns that central-bank tools for influencing currency values are losing their effectiveness.
Dead Man’s Parrot Could Become Key Witness In Murder Trial (HP)
Glenna Duram was charged last Thursday in connection with the May 2015 murder of her husband, Martin, at their Ensley Township home. Authorities said Martin was shot five times, including once in the head. Glenna also sustained a shotgun wound to her head. At first, police believed an intruder was to blame. But Glenna became a suspect after investigators found a handgun in the home, as well as apparent suicide notes allegedly written by her to her ex-husband and children. Martin Duram’s ex-wife, Christine Keller, is convinced his beloved African gray parrot, Bud, saw the whole tragic event. Keller inherited the bird after the murder and was shocked by what came out of its mouth. “Two weeks after the incident, Bud started going into rants I couldn’t explain,” she told Fox17Online.com. “Screaming, yelling, and always ending with ‘don’t f***ing shoot!’ I believe with all my heart that those are pretty close to last words of Marty.”
Lyft Hires M&A Banker Best Known for Finding Buyers for Tech Firms (WSJ)
Ride-hailing startup Lyft Inc. hired Qatalyst Partners LP, the boutique investment bank best known for helping tech companies find a buyer, according to people familiar with the matter. Frank Quattrone, the founder and executive chairman of Qatalyst, has contacted companies including large auto makers about acquiring a stake in Lyft, the people said. It isn’t clear whether Lyft is aiming to sell itself or raise new funding.
Two SolarCity board members will consider Tesla deal (Reuters)
Solar panel maker SolarCity Corp (SCTY.O) said on Monday it has formed a special committee of just two directors to evaluate Tesla Motors Inc's (TSLA.O) $2.8 billion takeover offer. The committee will evaluate the offer and "a broad range of strategic alternatives," the top U.S. solar installer said in a statement. It did not elaborate on those alternatives, and a spokesman was not immediately available for comment. The electric car maker announced its proposed acquisition last Tuesday, sending its shares sharply lower.
Oil Investor Zukerman Pleads Guilty in Tax Evasion Case (Bloomberg)
Oil-industry investor Morris Zukerman faces more than seven years in prison after pleading guilty to federal charges of evading more than $40 million in taxes. Zukerman’s plea comes just a month after prosecutors accused the 72-year-old of aggressively seeking to evade taxes beginning in 2007, falsely claiming millions of dollars in deductions and providing false information for IRS audits. He admitted to failing to report $28 million in profits from the sale of an oil company and repeatedly lying to his accountants -- in one instance creating backdated documents to support his claim.
'World's Oldest' Twinkie marks 40 years on display at Maine school (UPI)
Libby Rosemeier, dean of students at George Stevens Academy in Blue Hill, said the Twinkie on display in a glass case in her office started out as an impromptu chemistry lesson when she was a student in former teacher Roger Bennatti's class. Bennatti had students buy a package of Twinkies from a nearby store during a 1976 lesson on food additives and shelf life. He placed the Twinkie on the blackboard for the class to observe, and there it remained until Bennatti retired in 2004 and passed custody of the aging snack cake to Rosemeier, who placed it in a case in her office. "When I retired I could have taken it with me, but I wanted it to stay with George Stevens," Bennatti told ABC News.