Opening Bell: 9.11.18

Flo is ferreal; China posturing; Carney staying; More bad news about farts; and more!
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By VIIRS image captured by the National Oceanic and Atmospheric Administration's Suomi NPP satellite (NOAA View Global Data Explorer) [Public domain], via Wikimedia Commons

By VIIRS image captured by the National Oceanic and Atmospheric Administration's Suomi NPP satellite (NOAA View Global Data Explorer) [Public domain], via Wikimedia Commons

As Hurricane Florence Threatens the Carolinas, 1 Million Ordered to Evacuate [NYT]
The National Hurricane Center warned that the storm, which jumped to Category 4 strength on Monday with 140 mile-an-hour winds, could pummel the shore with life-threatening storm surges and soak a wide area with rains so heavy that freshwater flooding would become a major threat. It is expected to make landfall Thursday night near the North Carolina-South Carolina border.
In Myrtle Beach, S.C., Tneah Brown was listening to the warnings. At work on Monday afternoon, she weighed the many complications that would soon flow from the order issued by Gov. Henry McMaster of South Carolina, calling on people in eight counties nearest the shore to get out.

Billionaire Ray Dalio: We are in the 7th inning of the current economic cycle [CNBC]
To help keep the economy and stocks moving forward, the Federal Reserve should not increase interest rates faster than the market expects, said Dalio, co-chairman and co-chief investment officer of Bridgewater Associates.
Appearing on "Squawk Box" during the 10th anniversary week of the 2008 financial crisis, Dalio said the next crisis won't be a big bang-type affair but one that leads to more severe social and political problems.

China seeks WTO backing for sanctions on U.S. over dumping duties [Reuters]
The request is likely to lead to years of legal wrangling over the case for sanctions and the amount.
China initiated the dispute in 2013, complaining about U.S. dumping duties on several industries including machinery and electronics, light industry, metals and minerals, with an annual export value of up to $8.4 billion.
It won a WTO ruling in 2016, which was confirmed by an appeal last year.

Carney Extends BOE Term Again to Steer Economy Through Brexit [Bloomberg]
Chancellor of the Exchequer Philip Hammond ended days of speculation on the governor’s future, telling lawmakers on Tuesday that the Canadian won’t step down as planned in June 2019. Carney will now remain in office until roughly halfway through a prospective transition period intended for the U.K. to smooth its withdrawal from the European Union. The pound was little changed after the news.
“I have been discussing with the governor his ability to be able to serve a little longer in post in order to ensure continuity through what could be quite a turbulent period for our economy in the early summer of 2019,” Hammond said. “The governor has agreed, despite various personal pressures to conclude his term in June, that he will continue until the end of January 2020.”

New Way to Play FANG Stocks Falls Short for Some Investors [WSJ]
Citigroup Inc., UBS Group AG and Royal Bank of Canada are among the banks that have issued this year more than $1 billion worth of a type of structured notes linked to one or more of the four FANG stocks: Facebook Inc., Amazon.com Inc., Netflix Inc. and Google parent Alphabet Inc. Issuance has more than doubled from a year earlier through mid-July, according to mtn-i, a London-based firm that tracks private debt markets.
The notes are often sold to mom-and-pop investors seeking higher-yielding alternatives to government debt, which is reliably safe. Offering documents say that buyers can earn fixed payouts of as much as 25% of the purchase price annually without taking on the risk of outright common-share ownership.

Former big bull on Tesla says the stock is 'no longer investable' due to Elon Musk's behavior [CNBC]
Nomura Instinet lowered its rating to neutral from buy for Tesla shares, citing concerns Musk's actions may hurt the company's brand.
"We have been one of the most bullish on TSLA shares since initiating coverage last October … We continue to believe that Tesla could be a lot bigger than it is today," analyst Romit Shah said in a note to clients entitled "No Longer Investable" Tuesday. "The issue though is the erratic behavior of CEO Elon Musk. During the second quarter, the switch seemingly flipped … We are worried that this behavior is tainting the Tesla brand, which in terms of value is most important."

How holding in a fart could cause you to breathe it out of your mouth instead [Mirror]
According to experts if you hold a fart in the gas can recirculate around the body and come out from some shocking places.
Clare Collins, a professor in nutrition and dietetics at the University of Newcastle in New South Wales, Australia, writes for The Conversation to explain what farts are and what happens if you hold them in.
She said: "The next time you feel a large volume of intestinal gas getting ready to do what it does, try to move to a more convenient location. Whether you make it there or not, the best thing for your digestive health is to just let it go.
"A build up of intestinal gas can trigger abdominal distension, with some gas reabsorbed into the circulation and exhaled in your breath.

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Trump.Tequila

Opening Bell 8.3.17

The Dow is staying upbeat by ignoring Trump's chaos; Carney won't budge on rates; Gary Cohn would be a bully at The Fed; Cold nuggets start riot; and more!

Opening Bell: 05.25.12

J.P. Morgan Unit Made Risky Bets on Firms (WSJ) The JPMorgan unit whose wrong-way bets on corporate credit cost the bank more than $2 billion includes a group that has invested in financially challenged companies, including LightSquared Inc., the wireless broadband provider that this month filed for Chapter 11 bankruptcy protection...The Special Investments Group last year took a $150 million stake in closely held LightSquared, in a deal that J.P. Morgan lost money on, according to a person familiar with the bank. Both Campaigns Seize on Romney’s Years at Bain (NYT) ...the Romney campaign is actively recruiting testimonials from workers who have had positive experiences with Bain. It is getting ready to release advertising highlighting Bain’s marquee success stories, like the turnaround of Staples. It is considering seeking out middle-class surrogates — a fireman or members of a teachers union, for instance — who would be willing to talk about how Bain managed and increased the size of their pension funds, a lesser-known aspect of private equity...Mr. Romney’s advisers are betting that if they stay out of the nuances of private equity and tell a story about turning around failing companies, they can transform the Bain attacks into a narrative that underscores Mr. Romney’s image as a skilled executive who can steer a troubled economy back to prosperity. ECB Official: On Greece, ‘We Are Working on Plan A’ (CNBC) "It's our strong preference that Greece stays in the euro zone...We are working on plan A," Joerg Asmussen said in the interview yesterday. "I always work on plan A. I am not speculating, I am working to make plan A successful," he added. What Would A Greek Exit Mean For The US Economy? (Reuters) usiness investment would stall, banks would pull back on credit, and lost wealth as equity prices fall would cause consumers to slow their spending. Commodity prices would plunge, helping importers but hurting growth in export economies. Merkel May Be Persuaded On Euro Debt-Sharing Compromise (Bloomberg) Chancellor Angela Merkel left the door open to a compromise on debt sharing in the euro area as Italian Prime Minister Mario Monti said he can help bring Germany round to acting in Europe’s “common good.” Short Sellers Find Friends In Banks (WSJ) As traders at Morgan Stanley were frantically trying to shore up Facebook Inc.'s FB share price following the company's initial public offering, other managers on the deal were helping short sellers bet that the newly minted stock would fall. Trading desks at Goldman Sachs Group and J.P. Morgan Chase, two of the firms that helped Morgan Stanley underwrite the IPO, were among those lending out Facebook shares that hedge funds needed for short sales, according to people familiar with the matter. While it isn't uncommon for Wall Street firms to make shares available for shorting on IPOs they manage, Morgan Stanley, the lead underwriter, didn't lend shares, according to people familiar with the matter. Escaped monkey holds up flight at JFK for hours (NYP) Monkey business held up a Beijing-bound flight at Kennedy Airport nearly four hours yesterday. A monkey escaped its crate in the cargo hold of an Air China Boeing 747 scheduled to leave Terminal 1 at 4:50 p.m., said Port Authority police. Port Authority emergency services officers and an airport worker caught the monkey and handed it over to the airline. The animal never got out of the jet’s cargo hold. The foot-tall monkey was one of about 50 to 60 being shipped to China for medical research, said police sources. “He was a slippery little beast,” one source said. Bankia Shares Suspended Ahead of Board Meeting (WSJ) EFE news agency reported Thursday that the lender will ask the government for more than €15 billion ($18.80 billion). The bank said it requested the suspension ahead of the meeting, at which it will also approve its 2011 earnings report. The board meeting will begin at 2:30 p.m. GMT. Moody's Downgrades Major Nordic Banks (WSJ) Moody's said the funding and margin issues left the banks susceptible to unexpected losses from which it would be a challenge for them to rebuild capital. It also highlighted risks to asset quality, with the Swedish economy exposed to weakness in Europe and the banks' variable-rate mortgage books vulnerable to interest rate changes. USDA Is a Tough Collector When Mortgages Go Bad (WSJ) Unlike private firms, the USDA doesn't need permission from a court to start collecting on unpaid debts. It can in some cases seize government benefits and tax refunds before a foreclosure is completed. After foreclosure, the USDA can go after unpaid balances, even in states that limit such actions by private lenders. Nasdaq CEO went ahead with Facebook IPO despite signs new software had bugs (NYP) During a conference call on Monday evening, Nasdaq officials said that they were unaware of any problems with the system. However, sources said that there may have been signs that the system wasn’t glitch-free even at the 11th hour and that Nasdaq opted to roll the dice. “They may have thought they did not have any material issues with the systems,” said one exchange platform official. Lacrosse Party-Boy Image Worries Coaches Who See Slower Growth (Bloomberg) “It’s really important that the lacrosse world grows up a little bit,” Danowski said from his office in Durham, North Carolina. “We are getting more TV exposure; more people are able to make a living through lacrosse. If we want to be accepted in the mainstream, then it’s time for us to grow up.”

Opening Bell: 04.23.12

IMF And World Bank Meetings End With Little Agreement (NYT) To be sure, the additional $430 billion in lending capacity contributed by developed economies like Japan, Britain, Saudi Arabia and South Korea was seen as a major achievement. The contributions came after I.M.F. economists determined that countries around the world might require up to $1 trillion in new loans because of the combined effects of the sovereign debt crisis in Europe and sluggish global economic growth. The I.M.F. agreed to raise about half that amount if Europe would raise the other half. But finance ministers are still at odds over the effect of debt reduction on economic growth. Geithner urges 'aggressive' action to fight financial crisis (DowJones) US Treasury secretary Timothy Geithner said Saturday that the eurozone needed stronger action from authorities, including the European Central Bank, to tame a potential deterioration in the debt crisis. "The success of the next phase of the crisis response will hinge on Europe's willingness and ability, together with the European Central Bank, to apply its tools and processes creatively, flexibly and aggressively to support countries as they implement reforms and stay ahead of markets," Geithner told the International Monetary Fund's policy steering committee. Hedge Fund Short-Sellers to Target Wal-Mart Mexico (Reuters) Hedge fund managers are bracing for selling pressure in shares of Wal-Mart Stores on Monday, but market experts said it is the retail giant's less visible Mexican unit that could be the more attractive target for short sellers. The New York Times reported on Saturday that Wal-Mart de Mexico, which is 69 percent owned by Wal-Mart Stories, had orchestrated a widespread bribery campaign in 2005 to win market dominance. The investigative article alleged that senior Wal-Mart executives knew about the matter and tried to cover it up. "I would not consider Wal-Mart shares expensive, but I definitely would not be a buyer at these levels in the 60s. I'm more interested in shorting the Mexico traded 'pure play,'" said private activist investor Daniel Yu, who has presciently shorted such stocks including Green Mountain Coffee Roasters and Sino-Forest. Wal-Mart said in a statement on Saturday that it was "deeply concerned" about the allegations in the Times report and began an investigation into its compliance with anti-bribery laws last autumn. MF Global Customers Press JPMorgan For Funds (WSJ) In a letter set to be sent to regulators and lawmakers on Monday, an MF Global customer group calls for J.P. Morgan to "return hundreds of millions of dollars in MF Global customer funds transferred" to J.P. Morgan in late October. The group, called the Commodity Customer Coalition, urged U.S. officials to "demand" that the New York bank "disgorge all MF Global customer property immediately." J.P. Morgan is cooperating with the ongoing investigation, has said it did nothing wrong and lost some of its own money in the Oct. 31 bankruptcy because it was a creditor of MF Global. Vietnam Funds Beat India, China in Attracting Investors (Bloomberg) Vietnam-focused stock funds became the only emerging market equity assets in Asia to lure investors every week this year as the nation’s benchmark index rose to an 11-month high, Emerging Portfolio Fund Research said. Table Hockey, on Ice Since Heyday in 1970s, Makes a Comeback (WSJ) Carter Campbell leaned over the stick-figure hockey players, loosening up his wrists and hopping from one foot to the other. The 14-year-old's cap was turned around. His iPod blared tunes from the classic-rock band Rush. Across from him, 35-year-old, No. 1 ranked table hockey champ Mark Sokolski hunched over his own players. "I'm gonna stomp this kid," Mr. Sokolski said. At stake was a slot in the elite eight of this year's Canadian Table Hockey Championships, the best-attended North American tournament that the game has seen in decades. Across the U.S. and Canada, a resurgence of table hockey is under way, drawing younger players and women to a sport that has long been the domain of older men in their basements reliving a game that hasn't been popular since they were kids. Global Crisis Not Over, China Reforms to Go On: Wen (Reuters) The global financial crisis is not over and technical innovation and investment will be key to sustaining what remains a "tortuous" recovery, Chinese Premier Wen Jiabao said on Sunday during a visit to Germany. Wen also said China, the world's biggest exporter and second largest economy, would press on with reforms aimed at creating better legal protection for foreign investors — a major concern for the growing number of German firms active in the country. Buffett Joined by 12 Families Pledging Wealth to Charity (Bloomberg) Twelve families promised to donate most of their wealth to philanthropy, joining the Giving Pledge initiative started by Warren Buffett and Bill and Melinda Gates. The families include hedge-fund manager Bill Ackman and his wife Karen, Tesla Motors Inc.’s billionaire owner Elon Musk and film producer Steve Bing, according to an e-mailed statement from the initiative. Arthur M. Blank, Edgar M. Bronfman, Glenn and Eva Dubin, Red and Charline McCombs, Michael Moritz and Harriet Heyman, John and Ginger Sall, Henry and Susan Samueli, John A. and Susan Sobrato, John Michael Sobrato, and Ted and Vada Stanley also signed the pledge. Aiming for Clarity, Fed Still Falls Short in Some Eyes (NYT) But as Mr. Bernanke prepares to meet the press for the fifth time Wednesday afternoon, after a scheduled meeting of the Fed’s policy-making committee on Tuesday and Wednesday, there are reasons to doubt that the efforts are increasing public understanding of monetary policy. Experts and investors have continued to disagree about the plain meaning of the Fed’s recent policy statements. Some say the increased volume of communication is creating cacophony rather than clarity. Political criticism of the Fed has continued unabated. Man's nightmare since NYPD labeled him ‘Gentleman Groper’ (NYP) A citywide manhunt ensued after four Manhattan women were fondled in tony neighborhoods in a 35-day stretch. On April 13, authorities paraded their main suspect past snapping cameras. He defied the conventional image of a creepy perv. He was young, handsome, well-dressed, affluent, educated, a churchgoer. A gentleman groper. That suspect, Karl Vanderwoude, says if the scene seemed implausible — that’s because it was. “I didn’t do it. I wasn’t even in the vicinity of these incidents,” he said in his first interview since his arrest. “It’s a case of mistaken identity.” The 26-year-old Bible-study leader’s nightmare began 10 days ago, when he left early from his job as an operations coordinator at a Flatiron District private equity firm because he felt sick. He was in his Park Slope apartment for about an hour when the doorbell rang. “I thought it was my roommate who had been locked out and forgot his keys, which has happened, so I go to answer the door,” he recalled. Instead, two NYPD detectives were standing in the threshold. “They’re like, ‘Are you Karl? May we speak with you?’"

Opening Bell: 11.01.12

Wall Street Sputters Back To Life (WSJ) It wasn't until Mayor Michael Bloomberg and NYSE Euronext Chief Executive Officer Duncan Niederauer rang the opening bell that traders knew for sure that the systems would work. "Out of this postapocalyptic world that we're all looking at, that's a ray of good news, that they're actually able to get the exchange open," said Keith Bliss, senior vice president at Cuttone & Co., a brokerage with operations on the NYSE floor. Barclays Faces $435 Million Fine, Another Probe (WSJ) Barclays aced a double-barreled assault from U.S. authorities, as the federal energy-market regulator sought a record $435 million in penalties for the bank's alleged manipulation of U.S. electricity markets, and the lender also disclosed that it was facing a U.S. anticorruption investigation. The corruption investigation focuses on potential violations during the bank's efforts to raise money from Middle Eastern investors in the early days of the financial crisis. The probe, being conducted by the Justice Department and the Securities and Exchange Commission, is at an early stage. Wells Expands Into Investment Banking As Others Retreat (Reuters) The growth worries some investors who want the notoriously conservative bank to stick to its knitting, but Wells Fargo believes that now is a good time to hire. "Our eyes are wide open," said John Shrewsberry, head of the bank's investment banking and capital markets operations, known as Wells Fargo Securities. "There are a lot of very talented people at different stages of availability," he added in an interview this week. The fourth-largest U.S. bank says it can earn solid returns in investment banking while taking little risk for itself. It is focusing on services that its corporate lending customers need, such as stock and bond underwriting and merger advice. For investors, it is looking at areas like processing futures and swaps trades. The bank shies away from riskier undertakings like trading for its own account. The Wells Fargo Securities unit is relatively small now. It's biggest hub is in Charlotte, North Carolina, far from the storm that has hobbled Wall Street this week. In a few years, the unit could account for twice as much of the firm's revenue as it does now - an estimated 10 percent compared to its current five, Deutsche Bank analyst Matt O'Connor wrote in a report. Sandy's Economic Cost: Up To $50 Billion And Counting (CNBC) By contrast, the two costliest hurricanes in U.S. history to date were Katrina, with estimated losses of $146 billion, and Andrew, with loses estimated at $44 billion. But there are offsets and Moody's Mark Zandi and other economists note that there will be considerable rebuilding that will accompany the storm. Because the storm hit early in the quarter, Zandi points out that if $20 billion is spent cleaning up and rebuilding, the actual measured impact on gross domestic product could be zero. IHS Global Insight U.S. Economists Gregory Daco and Nigel Gault are doubtful. They note that the rebuilding often takes the place of investment elsewhere and often not everything is rebuilt. “The effect on growth for the fourth quarter will not be catastrophic but might still be noticeable, especially in an economy with little momentum anyway,” IHS wrote. The debate begs the question of whether such natural disasters can ultimately stimulate an economy. Eric Strobl, of the Ecole Polytechnique in Paris, who has studied the impact of hurricanes for more than a decade, found that hurricanes at the local level are usually negative for growth. NYC Struggles to Come Back to Life as Storm Chaos Lingers (Bloomberg) New York City struggled to return to normal life after superstorm Sandy, managing a partial resumption of mass transit amid a landscape of miles-long traffic jams, widespread blackouts and swarms of marooned residents. Limited service on the Metro-North and Long Island Rail Road commuter trains began today, and service on 14 of 23 subway lines will resume tomorrow, Governor Andrew Cuomo said at a news briefing in Manhattan. Still, power losses kept thousands of people and businesses in the dark and prevented trains from running below 34th Street in Manhattan. Basements and homes were waterlogged or submerged, and 6,300 remained in shelters...The lack of transit options is unprecedented, said Bernie Wagenblast, who has monitored metro traffic for more than 30 years, including stints as a radio reporter on WABC and WINS. “It reminds me a little of back in the ’70s when we had the gas crisis and cars were lined up for long, long distances trying to get gasoline,” Wagenblast said. “Now you’ve got cars in addition to people with their gas cans waiting on line who are trying to get fuel.” In Manhattan, an unofficial line divided the haves with power from the have-nots. South of about 34th Street, far fewer shops or restaurants than usual were open. Traffic lights were inoperable, though an unspoken etiquette emerged as many drivers took turns letting one another pass through intersections. Work was stopped at the Ground Zero construction site, which is still flooded. LaGuardia Airport, the only one of the three major New York-area airports that remains closed, can’t resume flights until floodwaters are drained and ground lights and equipment are checked. Labor Dept. Report on Jobs to Appear Friday as Planned (NYT) The hurricane had shut down government offices on Monday and Tuesday, and threatened to delay the release of the monthly jobs numbers. That led to hand-wringing in the presidential campaigns and even some accusations that the Obama administration might delay the numbers for its political benefit. But a Labor Department spokesman said Wednesday in an e-mail message that the report would come out as planned, at 8:30 a.m. E.S.T. on Friday. The Philadelphia 76ers unveil the world’s largest T-shirt cannon (YS) On opening night, the Sixers [unveiled] Big Bella, the world's largest T-shirt launcher that fires 100 tees in just 60 seconds. Big Bella weighs 600 pounds and, when firing T-shirts into the upper reaches of the Wells Fargo Center, can be up to 10 feet high. The team commissioned the creation of Big Bella from FX in Motion, an entertainment elements company out of New Berlin, Wisc. The team will also drop T-shirts, free game tickets and other promotional items from the rafters of the Wells Fargo Center down to fans below in a new themed "Sixers Parachute Drop." Australia Targets China’s Rich With “Millionaire” Visa (Deal Journal) Got 5 million Australian dollars (US$5.2 million) spare and need a residency visa? Australia’s doors will soon be open. From Nov. 24, Australia will accept applications under a new program, known as the Significant Investor Visa scheme, aimed at attracting the world’s wealthy to make the move and park their money Down Under. The only catch is that the A$5 million must be invested in state and territory Australian government debt, privately-owned Australian companies and managed funds that invest in Australian assets regulated by the Australian Securities & Investment Commission for four years. The new visa has already got financial advisers throughout Australia devising investment solutions for applicants. Consultants expect no shortage of takers especially from China, which is seeing an increasing flow of wealthy citizens sending money overseas, investing in assets as diverse as condos in Cyprus, or education for children overseas. A Wall Street Journal analysis of these flows suggests that in the 12 months through September, about US$225 billion headed out of China, equivalent to about 3% of the nation’s economic output last year. Harvard Business School Survey: HBS Students Favor Obama (Harbus) Surveys completed by 668 members of the HBS student body last week revealed that President Barack Obama had the support of 65% of the student community. Challenger Mitt Romney captured 32% of the vote while the remainder said they supported a third-party candidate, were unsure, or did not plan to vote. A Year After MF Global's Collapse, Brokerage Firms Feel Less Pressure For Change (Dealbook) For their part, many MF Global employees remain chastened by their firm’s collapse. Lawmakers hauled Mr. Corzine, a former senator from New Jersey, to Washington three times to testify before Congressional committees. Some MF Global employees remain unemployed while others took major pay cuts to work for the trustee unwinding the firm’s assets. Several MF Global employees planned to gather on Thursday for drinks at a Midtown Manhattan bar, just blocks from their old firm, to commiserate on their trying year. They canceled the event after another disaster, Hurricane Sandy, left some people stranded without power. Hawaii Tourist Saved By Taekwondo Skills (ABC) A 12-foot-long tiger shark messed with the wrong person. Mariko Haugen, a taekwando black belt, was enjoying a swim in Maui, Hawaii, when she was confronted by the creature. “She saw it a few seconds before it hit – and she gave it her best Tae Kwon Do black belt punch in the nose,” Don Haugen, Mariko’s husband, wrote on Facebook. Haugen’s husband and another man saw the attack and helped carry her to safety. She received more than 100 stitches to close wounds on her right hand and thigh.

Opening Bell: 06.13.13

Nikkei Enters Bear Market (WSJ) Markets across Asia suffered another bruising day as investors scrambled for the exits, with Japanese stocks falling over 6% and into a bear market, and heavy losses in China and across Southeast Asia. Declines continued in U.S. stock futures and in Europe. ... The most dramatic move was in Japan, with the Nikkei Stock Average falling 6.4% to 12445.38 and putting it 21.9% down from the intraday peak reached on May 23, the day Japan's 6-month rally turned south and begun three weeks of wild trading. The big money bails on Argentina - again (Reuters) The mass exodus, which has been limited only by leftist President Cristina Fernandez's capital controls, is threatening to undermine Latin America's No. 3 economy even further by leaving it short of hard currency and new jobs. The underlying problems range from Fernandez's hostile treatment of the private sector, to severe financial distortions such as a parallel exchange rate, to the general feeling that Argentina is due for one of the periodic spasms that have racked the country every 10 years or so going back to the 1930s. EU Urges U.K. to Probe Currency Rigging in Libor’s Wake (Bloomberg) “They need to get to the bottom of it,” Sharon Bowles, 60, chairwoman of the European Parliament’s economic and monetary affairs committee and a member of the U.K. Liberal Democrat party, said in an interview. “It’s quite upsetting we have got another bad-news story. It’s time we managed to restore the reputation of our banks.” Singapore Regulator Said to Plan Bank Reprimand on Rates (Bloomberg) Singapore’s central bank plans to reprimand banks in the city-state as early as Friday following an 11-month review into how benchmark interest rates are set, five people with knowledge of the matter said. ... The monetary authority isn’t planning to impose criminal sanctions on the banks or any employees, said two of the people. MAS will probably require some of the banks to set aside funds as a deposit with the central bank for a period of time and strengthen their internal controls, two people said. U.K. Committee Says Google Avoids Tax (WSJ) Google Inc. has aggressively avoided paying corporation tax in Britain and its reputation won't be restored until it begins to pay what is due, a U.K. parliamentary committee said Thursday, in the latest sign that governments around the world are stepping up scrutiny of the tax affairs of multinational firms. In a strongly worded 64-page report, the public affairs committee also criticized the U.K. tax authority, Her Majesty's Revenue and Customs, for failing to challenge Google about its "highly contrived" tax arrangement and called on it to fully investigate the Internet giant. ... "It's clear from this report that the public accounts committee wants to see international companies paying more tax where their customers are located, but that's not how the rules operate today. We welcome the call to make the current system simpler and more transparent," the spokesman said. Soccer star Lionel Messi used the same trick as Apple to cut his tax bill (Qz) Lionel Messi, the Argentine soccer sensation who plays for FC Barcelona, has IP worth at least $21 million a year. That’s the value of his endorsement deals, led by his relationship with Adidas. And according to the Spanish government, he has dodged nearly €4.2 million ($5.5 million) in taxes by using that IP in a very Apple-like way. Spain accuses Messi and his father, who manages the player’s finances, of selling the rights to his brand image to shell companies in tax havens like Uruguay and Belize, and then licensing those rights to the companies and products he endorses. Such a move would shift Messi’s income from Spain, where he lives and pays taxes, to those lower-tax states. Girl group bases style on Nikkei ups and downs (Japan Times) “We base our costumes on the price of the Nikkei average of the day. For example, when the index falls below 10,000 points, we go on stage with really long skirts,” Mori explained. The higher stocks rise, the shorter their dresses get. With the Nikkei index ending above 13,000 [in late April], the four went without skirts altogether on the day of their interview with The Japan Times, instead wearing only lacy shorts. ... Machikado Keiki Japan (roughly translated as Economic Conditions on the Streets of Japan) released their debut single, “Abeno Mix,” on April 7. It pays homage to Abe’s ultraloose economic policies that have been dubbed “Abenomics” by the media. Debt Makes Comeback in Buyouts (WSJ) Shareholders in BMC Software Inc. will receive $6.9 billion to sell the corporate-software developer to a group of private-equity firms. But the buyers, led by Bain Capital LLC and Golden Gate Capital, only intend to pay $1.25 billion in cash out of their own pockets. The rest will come from debt raised by BMC to finance its takeover. The little-noticed acquisition is another milestone in the return of cheap debt and higher-risk deals to Wall Street: The cash put down by BMC's private-equity buyers is the lowest as a percentage of the purchase price of any buyout with loans exceeding $500 million since 2008, according to data-provider Thomson Reuters LPC. Apollo Tyres skids 24% on Cooper deal fears (FT) Shares in Apollo Tyres, India’s largest tyre company by sales, plunged by a quarter on Thursday amid investor concerns about higher debt related to the group’s planned $2.5bn acquisition of US-based Cooper Tire and Rubber. The all-cash deal, which would be the largest-ever Indian acquisition of a US company, is also set to increase Apollo’s consolidated net debt to equity ratio from 0.8 to around 3.8, according to Angel Broking, a Mumbai-based brokerage. “The deal will leave the company with a huge debt and that is the biggest concern,” said Yaresh Kothari, an automotive analyst at the broker. Shares in Apollo were down 24 per cent at Rs67 by 2pm in Mumbai on Thursday. The deal was announced after markets closed in Mumbai on Wednesday. Clearwire Endorses Dish’s Sweetened Bid (DealBook) Clearwire on Wednesday switched its allegiance to Dish Network, recommending that shareholders accept its bid of $4.40 a share over a rival offer from Sprint Nextel. Clearwire also postponed a shareholder vote from Thursday to June 24. Meanwhile, Dish extended its tender offer, which had been set to expire on Friday, to July 2. The change in recommendation is a setback for Sprint, which is seeking to buy the roughly 49 percent of Clearwire that it does not already own for about $3.40 a share. Its approach for Clearwire is meant to gain full control of an important affiliate whose wireless spectrum holdings are the cornerstone of a campaign to improve its network and make the company more competitive. Coty Raises About $1 Billion in Its Public Debut (DealBook) The company, whose products include Sally Hansen nail polish and perfumes endorsed by Beyoncé and Katy Perry, priced its initial public offering at $17.50 a share on Wednesday, in the middle of its expected range of $16.50 to $18.50. The stock sale values the company at about $6.7 billion. The offering, which raised just less than $1 billion in proceeds, is one of the three biggest initial offerings in the United States this year, according to data from Renaissance Capital. Washington pushed EU to dilute data protection (FT) The Obama administration successfully lobbied the European Commission to strip its data-privacy legislation of a measure that would have limited the ability of US intelligence agencies to spy on EU citizens, according to three senior EU officials. The measure – which was known within the EU as the “anti-Fisa clause”, after the Foreign Intelligence Surveillance Act that authorises the US government to eavesdrop on international phone calls and emails – would have nullified any US request for technology and telecoms companies to hand over data on EU citizens, according to documents obtained by the Financial Times. However, the safeguard was abandoned by commission officials in January 2012, despite the assertions of Viviane Reding, the EU’s top justice official, that the exemption would have stopped the kind of surveillance recently disclosed as part of the National Security Agency’s Prism programme. Miracle-Gro’s Potty-Mouthed CEO Should Have Known Better (Bloomberg) Responding to the use of rough language during World War II, Norman Vincent Peale, a minister (and author of “The Power of Positive Thinking”), lamented to the New York Times, “The public men of other years may have cussed plenty in private, but they had the good taste to keep it out of public address.” Public expletives have become more common, and executives have moved to leverage, or perhaps weaponize, foul language to their benefit. A San Francisco appeals court has ruled that a werewolf erotica novel must be returned to Andres Martinez, an inmate of Pelican Bay State Prison, after prison guards took it away from him on the grounds that it was pornography. Although the court grants that novel in question, The Silver Crown, by Mathilde Madden, is "less than Shakespearean," it argues that the book nevertheless has literary merit and shouldn't be banned under prison obscenity laws. The court also notes that "the sex appears to be between consenting adults. No minors are involved. No bestiality is portrayed (unless werewolves count)."