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Stocks
Nearly all of the largest U.S. banks are on steady enough footing to issue dividends or make share buybacks after passing the final round of the Fed's annual stress tests. Deutsche Bank (NYSE:DB) and Santander (NYSE:SAN) were the only lenders to fail for a second year in a row, meaning they cannot increase shareholder payouts until they establish a new plan. "Material weaknesses" were also seen at Morgan Stanley (NYSE:MS), but the Fed allowed the bank to proceed with a dividend hike and $3.5B buyback while it rectifies the issues.
Media leaks over who could buy Yahoo have died down ahead of the company's annual meeting today, where investors will likely ask for an update on the sales process. Shareholders are expected to approve Yahoo's (NASDAQ:YHOO) new board of directors, which in April was expanded to 11 from nine members, and drill executives about the web portal's slow progress in selling its core internet business (final bids are due in early July).
"Since China is a great opportunity, we continue to look into China," Ted Sarandos, Netflix's (NASDAQ:NFLX) chief content officer, said at a media event in Seoul. The streaming service has countered slowing U.S. growth by launching in more than 130 new markets, but remains absent in the world's most populous country, where content providers face stringent regulations and censorship challenges.
There's no Fire 2, but Amazon (NASDAQ:AMZN) is getting back in the smartphone business. Starting today, Prime members can buy an unlocked BLU R1 HD for just $50 or the Moto G for $150. Where's the money? Amazon's apps, services and ads are all over the phones even on a locked screen. If you're a dedicated shopper this may be desirable, but if you want to kill the ads, you'll have to pay back the $50 subsidy.
Japan's Fair Trade Commission has approved Canon's (NYSE:CAJ) acquisition of Toshiba's (OTCPK:TOSYY) medical equipment unit, but said it would prohibit further use of the deal's unusual structure. Hurt by an accounting scandal and in a hurry to raise cash before closing its books in March, Toshiba structured the ¥665.5B ($6.5B) sale in an unorthodox way so it could book proceeds before securing approval from regulators.
The SEC is examining SoftBank over possible conflicts of interest or questionable behavior involving former president Nikesh Arora, who stepped down last week. SoftBank (OTCPK:SFTBY) and Arora have described the departure as an amicable one, saying Masayoshi Son, chairman and chief executive of the company, recently decided he wanted to stay longer instead of handing over power next year.
It's been discussed extensively, but a deal for Lions Gate Entertainment (NYSE:LGF) to buy premium cable channel Starz (NASDAQ:STRZA) is now in advanced talks. A deal could come in the next few days valuing Starz at more than $30 per share, sources told Bloomberg. Lions Gate climbed 7.6% while Starz gained 9.1% during yesterday's postmarket session.
Looking to free up TV spectrum for cellular use, the FCC has acquired a whopping $86.4B worth of wireless airwaves from television broadcasters in the first phase of a complex auction. The agency hopes bidders will be willing to spend that much when it resells the airwaves in an auction that will start later this summer, but it may have to sell less spectrum than expected, or use multiple rounds to settle bidding by broadcasters. Spectrum players: VZ, T, TMUS, S, DISH, SBGI, EVC, CMCSA, CHTR, NXST, CBS, MEG
The U.S. Education Department has agreed to forgive $171M in debt held by former students of the defunct Corinthian Colleges (OTCPK:COCOQ), which liquidated in bankruptcy last year amid allegations that it advertised fraudulent career success statistics. The government turned to a law known as "borrower defense" and a rule that forgives debt for students whose schools close before they finish their studies.
AB InBev's roughly $108B takeover of SABMiller (OTCPK:SBMRY) has been cleared by South Africa’s Competition Tribunal, leaving only two more approvals before the deal can close. To appease U.S. and Chinese regulators, AB InBev (NYSE:BUD) has agreed to sell SABMiller's interest in MillerCoors to Molson Coors (NYSE:TAP) and CR Snow to China Resources Beer Holdings (OTCPK:CRHKY).
Aspartame-sweetened Diet Pepsi isn't the only soda making a comeback. PepsiCo (NYSE:PEP) is returning Crystal Pepsi to store shelves this summer as the company taps 1990s nostalgia. While no TV ads are planned, the clear soda will be supported by what Pepsi marketing director Linda Lagos describes as an "extensive paid media campaign on digital channels."
The Justice Department has told Anthem (NYSE:ANTM) its planned takeover of Cigna (NYSE:CI) threatens competition and probably can't be fixed by selling parts of their businesses, Bloomberg reports. The companies recently met with Bill Baer, the department's No. 3 official, in a bid to get the $48B deal approved. A decision on the combination is expected by mid-July.
Another driverless car collaboration? Intel (NASDAQ:INTC) is working with Mobileye (NYSE:MBLY) to develop self-driving car technology for BMW (OTCPK:BAMXY), according to Bloomberg. Senior executives from each company will hold an event on Friday to discuss the driverless vehicle initiative.
Bombardier has delivered its first CSeries jet to launch operator Swiss International Air Lines (OTCQX:DLAKY), marking the company's emergence as a direct competitor to challenge Airbus (OTCPK:EADSY) and Boeing (NYSE:BA) in the single-aisle passenger jet market. The plane's development ran 2.5 years late and blew billions past its initial $3.4B budget, weighing on Bombardier's (OTCQX:BDRAF, OTCQX:BDRBF) stock price and triggering the replacement of most of its executive team.
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