Listen to this Breakfast Briefing
JPMorgan Settles With US Gov
The SEC and the DOJ will collect $264m from JPMorgan Chase & Co in regards to it hiring relations of major Chinese officials to garner business.
Editor’s Remarks: JPMorgan’s Asian unit operated a program until 2013 called Sons and Daughters. Chinese officials recommended potential hires that would circumvent the usual hiring process in return for deals and more clients. On one level, it pushes the poor perception that the establishment has with the general public, but it also highlights to Western nations the difficulty in doing business in China. Both underscore and explain the current sentiment sweeping across the US.
What to watch: Donald Trump, US Trade Deals, JPMorgan, USD/CNY
McDonald’s Continues Shakeup
McDonald’s will introduce ordering via mobile in 2017 across ten markets and will increase the number of restaurants offering table service.
Editor’s Remarks: Despite recent good performances, McDonald’s wants to win back more customers that are moving away from fast food and unhealthier products. Mcdonald’s is hoping to build upon the success of food delivery companies as well as gourmet burger chain restaurants. The company’s willingness to try new ideas on a mass scale, i.e. the success of the self-service kiosks, and its new executives, suggest a bright future for McDonald’s.
What to watch: Yum Brands, Yum, McDonald’s, Burger King, Starbucks
Yellen Here To Stay
Janet Yellen announced that she intends to stay for her entire term at the Fed and suggested that a rate hike will come sooner rather than later.
Editor’s Remarks: Regardless of the criticism coming Yellen’s way concerning when interest rates should be raised, Yellen has done a relatively good job of giving markets plenty of warning. Global markets have already priced in a rate hike despite the uncertainty of Trump’s anti-Fed critiques as well as unclear policies. Yellen has also been clear enough to indicate that future rate hikes will not be rushed, but rather gradual. Investors will be happy about at least that.
What to watch: Janet Yellen, December Fed Meeting, Donald Trump, GBP/USD, EUR/USD
Nigeria In $5.1bn Oil Payout
Nigeria has forked out $5.1bn in payment to oil companies for previous operations conducted
Editor’s Remarks: Oil companies are desperate to maintain current work, and that includes the likes of Exxon Mobil, Shell and more to cut the initial amount owed to them by almost $2bn. Nigeria owes oil companies billions in operating costs, but the oil price has hit them all very hard, and the country must use increasing future production to pay off the bills. Nigeria is hoping that once it has begun the payments, foreign investment can restart to help the suffering economy. How any expect oil production to be capped is now a growing mystery.
What to watch: Exxon Mobil, Royal Dutch Shell, Total, Eni, Chevron, WTI, Brent Crude
Valeant Executives Charged
Former Valeant employees Gary Tanner and Andrew Davenport have been charged with being involved in a kickback scheme and fraud.
Editor’s Remarks: Despite the good news of Trump’s election, the pharmaceutical industry will not appreciate the constant presence of Valeant in the media for yet another indiscretion. The employees promoted work for Philidor, a pharmacy, in return for kickbacks in the millions. Valeant’s stock is now 10% of what is was mid last year. Pharmaceuticals may benefit from Trump being in office, but if enough support is built in Congress, Trump may have no choice but to come down hard.
What to watch: Philidor, Valeant, Donald Trump