Fox Corp. struck a deal to acquire a 67% stake in Credible Labs Inc., a U.S.-based consumer finance marketplace operator, for about $265 million. Under the deal, which is expected to be completed in the fourth quarter, Fox Corp. will invest up to $75 million in Credible Labs over about two years to propel its growth.
Wells Fargo & Co. disclosed that the high end of its estimated range for possible litigation losses was about $3.9 billion as of June 30, up from $3.1 billion as of March 31. The increase was due to a variety of factors, including retail sales practices matters.
JPMorgan Chase & Co. might just be the first foreign company in China to hold a majority stake in a mutual fund business, sources told Reuters. China International Fund Management, where JPMorgan has a 49% share, auctioned off a 2% stake at the Shanghai United Assets and Equity Exchange. While the buyer was not disclosed, two sources with knowledge of the deal informed the news outlet that JPMorgan Asset Management Co. was the sole bidder.
Meanwhile, Morgan Stanley took a step closer to having a majority stake in its Chinese securities joint venture, Morgan Stanley Huaxin Securities, Reuters reports. Huaxin Securities transferred a 2% stake in the joint venture to the U.S. bank, which paid $54 million. Morgan Stanley was the only bidder for the stake.
In the U.S., JPMorgan is likely to lead the planned initial public offering of The We Co., parent of coworking giant WeWork Cos. Inc., while Goldman Sachs Group Inc. might also take a prominent role in the offering, Reuters reports, citing sources familiar with the matter. JPMorgan was tapped to head an upcoming debt offering of the company, and sources told the news outlet any lender involved in the transaction will have a direct impact on its role in the IPO.
U.S. lawmakers are split over whether the central bank's plan to put up its own real-time payments system is a good idea or not, The Wall Street Journal reports. Sen. Thom Tillis, R-N.C., called the plan either a "competition" to private banks or "a takeover." But others, like Sens. Elizabeth Warren, D-Mass., and Chris Van Hollen, D-Md., are pushing a bill to require the Fed to put up its own system and require banks to make funds immediately available to their customers.
Kansas City Federal Reserve President Esther George and Boston Fed President Eric Rosengren, the two central bank officials who voted against the July 31 interest rate cut, explained their positions in separate statements on Aug. 2. George signaled she was open to a rate cut if she saw clear signs that the economy was experiencing substantial weakness. But she said the economy's more moderate growth in 2019 was already part of her expectation. Rosengren said he did not "see a clear and compelling case" for a rate cut, given an unemployment rate of near 50-year lows and near-record high stock prices and corporate borrowings.
In other parts of the world
Asia-Pacific: Hong Kong, China stock connect update; India fines banks over fraud reporting
Europe: HSBC CEO resigns; ReAssure, Quilter reach £425M deal; UBI Q2 profit down 46.6%
Middle East & Africa: ADFG completes merger with Shuaa; S&P revises outlook on DR Congo
Now featured on S&P Global Market Intelligence
US financial services Q2'19 M&A scoreboard: YOY activity up, deal value down: U.S. financial services M&A activity rose by deal count in the second quarter but fell sharply by deal value year over year.
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, Hang Seng dropped 2.85% to 26,151.32, while the Nikkei 225 shed 1.74% to 20,720.29.
In Europe, around midday, the FTSE 100 fell 2.18% to 7,245.47, and the Euronext 100 lost 2.19% to 1,028.29.
On the macro front
The US Services purchasing managers' index, the Institute for Supply Management non-manufacturing index and the TD Ameritrade investor movement index are due out today.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
The Daily Dose has an editorial deadline of 7:30 a.m. ET. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.