HALISTER1: Forbes: New Charges, New Defendant In School Funds & Tax Fraud Case Involving Former Congressman

Forbes: New Charges, New Defendant In School Funds & Tax Fraud Case Involving Former Congressman

Alert: HALISTER1
Source: FOR (Forbes)

Tickers
0229544Z US (United States Internal Revenue Service)

People
Chaka Fattah (United States House of Representatives)
Clifford Stearns (APCO Worldwide Inc)
John McHugh (K&L Gates LLP)

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UUID: 7947283

HALISTER1: U.K. Inflation Markets Add to FTSE Retail-Sector Woes: Analysis

U.K. Inflation Markets Add to FTSE Retail-Sector Woes: Analysis

(Bloomberg) -- Marmite shortage may just be the beginning. The extended rally in U.K. inflation markets underscores the risks British retailers face on their margins because of a weaker pound, Bloomberg strategist Tanvir Sandhu writes.
  • See chart here of FTSE 350 retail equities vs spread between CPI and PPI, and GBP TWI
  • Tesco’s recent Brexit-inspired price dispute with supplier Unilever caused products like Marmite spreads to get pulled temporarily from the U.K. retailer’s online store; the situation has been resolved
INFLATION RALLY
  • U.K. 10y breakevens have risen 67bp since the EU referendum to nearly 3% and 2y ZC inflation swap +55bp at 3.23% amid concerns about the pass-through effects of the pound’s plunge; the currency has tumbled more than 18% since the Brexit vote
    • GBP 5s30s inflation curve has flattened to 5bp from 83bp in Feb. while GBP 3y 3% cap has surged to 188bp from Jan. low of 33bp
  • Beyond the currency pass-through, front-end inflation breakevens are also underpinned by import tariff risks and Brexit-induced supply-side weakness
  • Household real incomes most likely to be squeezed as import prices rise and terms of trade deteriorate
  • Retail margins already remain squeezed in highly competitive sector and input price pressures will further compress margins
  • Possible relief may be seen at autumn budget; for example, a U.K. VAT cut that could improve gross margins if not passed through to consumers
  • BOE official Kristin Forbes’ 2015 paper had concluded that exchange-rate pass-through is relatively large in response to domestic monetary policy shocks, but smaller in response to domestic demand shocks
  • Rise in long-end gilt yields should provide some relief to those stocks with high pension liabilities vs market cap, such as Tesco
  • NOTE: Tanvir Sandhu is an interest-rate and derivatives strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
TSCO LN (Tesco PLC)

People
Kristin Forbes (Bank of England)

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UUID: 7947283

HALISTER1: Falcon Bank Deserved Second Chance, Swiss Regulator Tells SZ

Falcon Bank Deserved Second Chance, Swiss Regulator Tells SZ

(Bloomberg) -- Falcon management deserved a chance, faces suspension of license in case of repetition, Finma CEO Mark Branson tells SonntagsZeitung in an interview.
  • Says some 15 banks particularly exposed to risk of money laundering, especially those in wealth management with clients from emerging markets
  • Negative rates worry Finma, says the longer the situation continues, the more business model of banks is threatened and margins in traditional business with retail clients will decrease
  • Banks need to diversify and seek other source of income, like higher fees for managing bank accounts
  • NOTE: Oct. 13: FINMA Sees Increase in Banks Discovering Money Laundering: TdG
  • NOTE: Oct. 12: MORE: Swiss A-G Opens Proceedings Against Falcon Private Bank
  • NOTE: Oct. 11: Switzerland, Singapore Target UBS, Falcon Bank in 1MDB Crackdown
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
181586Z UH (Abu Dhabi Investment Authority)

People
Mark Branson (Eidgenossische Finanzmarktaufsicht FINMA)

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UUID: 7947283

HALISTER: Egypt Said to Hire Citigroup to Weigh Stake Sale in Lender AAIB

Egypt Said to Hire Citigroup to Weigh Stake Sale in Lender AAIB

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
C US (Citigroup Inc)
2738291Z KK (Kuwait Investment Authority)
1047672D EY (Central Bank of Egypt)

People
Mohammed Mubarak (Arab Republic of Egypt)
Tarek Amer (Central Bank of Egypt/Cairo)

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UUID: 7947283

HALISTER1: Former Clinic CEO Faces 18 Years for $16M Federal Grant Fraud

Former Clinic CEO Faces 18 Years for $16M Federal Grant Fraud

Alert: HALISTER1
Source: BNA (Bloomberg BNA)

Tickers
1017L US (United States District Court for the Northern District of Alabama)
1070L US (United States District Court for the Northern District of New York)

People
Barbara Rothstein ((US)Dist Court:WA-Western)
William Athanas (Waller Lansden Dortch & Davis LLP)

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UUID: 7947283

HALISTER: CBS Said Set to Hire Goldman, JPM as It Explores Viacom Merger

CBS Said Set to Hire Goldman, JPM as It Explores Viacom Merger

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
GS US (Goldman Sachs Group Inc/The)
CBS US (CBS Corp)
VIAB US (Viacom Inc)

People
Leslie Moonves (CBS Corp)
Philippe Dauman (Viacom Inc)
Shari Redstone (Cinebridge Ventures Inc)
Sumner Redstone (National Amusements Inc)
Thomas Dooley (Viacom Inc)

Topics
Who's News - People
Management Changes

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UUID: 7947283