Good morning New York,
FT ALPHAVILLE
The SEC vs Scott London: Joseph had a look at the allegation which the SEC has levied at Scott London, the former KPMG partner embroiled in a scandal over audits of companies including Herbalife and Skechers. In return for $50k in cash, a Rolex, and the bestowal of "reputational enhancement as a source of stock tips," the SEC alleges Shaw made $1.2m in profit.
NEW
Eurogroup to consider Portugal's repayment schedule today: Portugal could struggle to avoid a second international rescue even if it, alongside Ireland, is granted more time to repay its existing bailout loans by eurozone finance ministers meeting in Dublin today. (Financial Times) A delay to Portugal's payment schedule of up to seven years is being discussed, but Germany has reservations. A leaked 'troika' paper prepared ahead of the meeting makes clear that Portugal will have a very hard time avoiding a second bailout, since its financing needs in 2014 and 2015 – its first years after bailout funding runs out in July 2014 – will be substantially higher than they were during the pre-crisis period. (FT Brussels Blog)
Japan, U.S. agree on Tokyo joining Trans-Pacific trade talks: "Japan and the United States have agreed on a deal to allow Tokyo to join talks on a U.S.-led Asia-Pacific free trade pact that Prime Minister Shinzo Abe is making a keystone of his strategy to open Japan's economy and spur long-sought growth. The agreement brings Japan closer to entering talks on the Trans-Pacific Partnership (TPP), which Japan hopes to participate in as early as July." (Reuters)
Tougher European bank stress tests to be floated at today's eurogroup meeting: "The push is being led by several key officials in Brussels and Frankfurt, who want to see a new round of much-tougher stress tests before the European Central Bank becomes the euro zone's main banking policeman next year, according to four European officials familiar the talks." Germany, the Netherlands and Finland reportedly back the changes. (Wall Street Journal)
JAB in €7.7bn DE Master Blenders bid: DE Master Blenders has reached agreement with family-led investment group Joh A Benckiser on a takeover bid that gives the Dutch coffee group an enterprise value of €7.7bn. The acquisition is part of an effort by JAB to build a global coffee and tea powerhouse, having acquired US-based companies Peet's Coffee & Tea and Caribou Coffee Company last year. DEMB says it will recommend that its shareholders accept the €12.50 a share bid, which includes guarantees that the company's headquarters and research and development facilities will remain in the Netherlands. (Financial Times)
Woodside to reconsider $45bn LNG plant: Australia's biggest oil and gas company by market value, is to examine other development concepts for its US$45bn Browse liquefied natural gas project in a remote part of Western Australia after its initial plan was judged to be uneconomic. (Financial Times)
Myanmar has opened a long-awaited auction for 30 offshore oil and gas exploration blocks, which is expected to attract fierce bidding competition despite even though it comes amid signs that Myanmar is likely to review, and possibly renegotiate, existing natural resources deals as it prepares to sign up to the Norway-based Extractive Industries Transparency Initiative. (Financial Times)
"Singapore's GDP shrank an annualised 1.4 % in the three months through March 31 from the previous quarter. The Monetary Authority of Singapore said it won't change the slope and width of the currency trading band that it uses as the main policy tool." (Bloomberg)
J.C. Penney, bleeding cash, seeks to raise $1bn: "J.C. Penney has hired bankers at Blackstone Group for advice on how the department-store chain can shore up its fast-eroding stockpile of cash, people familiar with the matter said Thursday." Analysts were sceptical it would be able to generate enough cash to cover the company's needs beyond a year. (Wall Street Journal) The weak state of JC Penney's business – its sales tumbled by 25 per cent to $13bn in the past year – is likely to limit its bargaining power with potential investors or lenders. (Financial Times)
Man Group is preparing a sweeping reorganisation of its core quant fund business, AHL, in an effort to diversify its revenue base and regain ground lost to competitors. The division is to launch new funds and is poised to embark on a hiring spree, say people at the company. (Financial Times)
US warns on North Korea nuclear missile: The Defence Intelligence Agency said in a report prepared last month that it had "moderate confidence" the North Koreans now had a nuclear device small enough to be "capable of delivery by ballistic missiles", the first time a US intelligence agency has come to that conclusion. However, the report still insisted that "the reliability will be low" for such a missile, an indication of the considerable technical barriers that North Korea still faces, including developing dependable medium-range and long-distance missiles. (Financial Times) However, the assessment by the Pentagon was swiftly dismissed by several U.S. officials and South Korea. Asked if war was imminent, a U.S. official in South Korea said: "Not at all". (Reuters)
Markets: A cautious tone persists ahead of the opening salvo of US bank first-quarter earnings, and consumer-based economic data that may impact the debate about the Federal Reserve's "exit strategy" from its $85bn-a-month support programme. The FTSE All-World equity index is slipping 0.2 per cent from its highest mark since June 2008, as the FTSE Eurofirst 300 opens down 0.3 per cent and after the Asia-Pacific region lost 0.1 per cent. US index futures suggest the S&P 500 will dip 0.2 per cent. There was no follow-through in Asia from the sight of the S&P hitting a fresh record of 1,593 at Thursday's close. They yen has dropped down to near Y99 writes Jamie Chisholm, the Gandalf of global markets.
