Mon, Nov 06, 2017 - Page 14 News List

World Business Quick Take

Agencies

BANKING

Wells Fargo legal fees grow

Wells Fargo & Co on Friday added US$1 billion in the third quarter to what it said the bank might face in possible legal expenses. Legal costs could potentially be US$3.3 billion more than what the San Francisco-based bank has reserved, Wells Fargo said in a regulatory filing. While that figure was unchanged from the previous three-month period, it constitutes a US$1 billion increase because Wells Fargo moved a similar amount into legal reserves during the period. The bank announced a surprise US$1 billion charge in the third quarter for a previously disclosed regulatory investigation into its pre-financial crisis mortgage activity when it reported third quarter earnings.

CELLPHONES

iPhone activations see issue

Some iPhone X customers in the US on Friday said they could not activate their new devices, a hiccup for Apple Inc’s most important product launch in years. One of the first steps in the activation process requires connecting the phone to customers’ chosen wireless carrier. Those connections did not work for some people, essentially making their devices unusable, multiple complaints on Twitter said. Activation issues affected the launch of early iPhone models, but have been rare in recent years. The problems might stem from carrier activation servers being slammed by all the new iPhone X users, which could imply especially strong demand.

ECONOMIES

Britain shows Q3 expansion

A day after the Bank of England raised interest rates for the first time in a decade, a closely watched survey shows the British economy to be in relatively good health. In a monthly update, financial information firm IHS Markit found a “marked and accelerated” rise in service sector output. For an economy reliant on services, that is an important driver for growth. The firm on Friday said that its purchasing managers’ index for the services sector rose to a six-month high of 55.6 points last month from 53.6 in September. Anything above 50 indicates expansion and last month’s reading points to a healthy quarterly growth rate of 0.5 percent.

MEDIA

CNN to offer paid content

CNN is getting into the digital subscription business, part of an ambitious plan by the cable news channel to generate US$1 billion a year in online revenue in the next five years. The cable news network plans to charge for access to exclusive content and live events with some of its biggest stars, such as Fareed Zakaria, CNN spokesman Matt Dornic said. The material would be in addition to what CNN already offers for free online. The price of the new subscription service has not been determined. The network plans to do market research early next year and launch the product by next summer.

INVESTMENT

Vision Fund seeks Auto1

Softbank Group Corp’s Vision Fund is in talks with Auto1 Group GmbH to invest in the German used-car portal, according to a person familiar with the matter. The Vision Fund is set to invest more than 100 million euros (US$116 million) in Berlin-based Auto1 at a valuation greater than 2.5 billion euros, said the person, who declined to be named as the discussions are private. No final decision has been made, the person said. The investment would be SoftBank’s first major deal in Germany, where a burgeoning tech scene has developed in Berlin with companies including Rocket Internet SE, Zalando SE and Delivery Hero AG.

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