Your Daily Dose of Financial News

Demolition of an old house

Dealbook gives us this uncomfortable take on China’s “nuclear option” in the trade war with the United States—its holdings of more than $1 trillion in US foreign debt and the possibility of stepping back from buying (or even dumping) US Treasuries on the open market – NYTimes

[Brief, bloggy counterpoint here – CEPR]

Meanwhile, at home, Beijing’s central banking efforts to prop up a sliding economy is putting serious pressure on the yuan, and Chinese authorities are pushing up interbank lending rates to deter betting against the currency using borrowed funds – WSJ

Google played a tricky game of “look at the shiny new objects” yesterday, as it rolled out a slate of new products (including a new version of its Pixel phone) against the backdrop of a belated disclosure of a substantial data vulnerability on its Google Plus platform – NYTimes and WSJ and Bloomberg

While we’re talking breaches, a group of shareholders has sued Chinese hotel group Huazhu with a proposed class action claiming that it “failed to adequately protect consumer data from a breach in August that led to ta drop in the group’s stock price.” That August breach left nearly 500 million pieces of customer information vulnerable online – Law360

Bloomberg’s not backing down from its Supermicro motherboard tampering story, dropping new details on Tuesday of “tampering in China of critical technology components bound for the U.S.” – Bloomberg

Long-troubled retailer (and Eddie Lampert pet project) Sears is hurtling toward a bankruptcy filing that could come as soon as this week – WSJ

Japanese conglomerate SoftBank Group is in negotiations to take a majority state in WeWork Companies, the co-working startup that’s “seeking to raise more funds at a $35 billion valuation.”  The deal could see SoftBank’s investment rise to $15 to $20 billion – Bloomberg and WSJ

HSBC has inked a $765 million settlement with federal officials to resolve allegations that “it hid risks associated with residential mortgage-backed securities sold in the years preceding the 2008 financial crisis” – Law360

Royal Park’s bid to hold Morgan Stanley, Credit Suisse, Deutsche Bank, and UBS responsible for their alleged RMBS-related failings, however, is toast.  Again – Law360

The activists have been busy in October, it seems. Nelson Peltz’s Trian Mgmt recently disclosed a new 2.9% stake in paint company PPG (which failed in its bid to buy rival Akzo Nobel last year) [WSJ and Bloomberg], and Bill Ackman’s Pershing Square revealed its new 1.1% piece of Starbucks, whose shares have fallen recently due to slowing same-store sales growth – WSJ and Bloomberg

Great Britain and the EU are slowly moving towards a Brexit deal, as the two sides have reportedly made progress on the sizeable sticking point that is the Ireland/Northern Ireland border – WSJ

We’re 6 years removed from the London Games, and the city and Olympic organizers there managed to pull off not only an impressive games but the rare feat of revitalizing a part of the city in need of redevelopment as promised, even as other Olympic hosts have failed rather spectacularly – NYTimes


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