Judge refuses to block merger
A judge refused to block a merger between American Airlines and US Airways on Friday, saying a bankruptcy judge correctly rejected arguments made by a lawyer for some consumers. San Francisco attorney Joseph Alioto argued that the deal would harm fliers because it would result in less competition and higher prices. However, US District Judge Loretta Preska repeatedly said that his arguments relied on outdated facts, had no evidence to support them and sometimes made no sense. American has said it plans to complete the merger with Tempe, Arizona-based US Airways on Monday. Preska said a federal bankruptcy judge was “correct in all respects” in deciding last week to let the merger proceed.
Ex-Goldman trader gets jail
Former Goldman Sachs Group Inc trader Matthew Taylor was sentenced on Friday to serve nine months in prison and pay US$118 million in restitution to his former employer after he pleaded guilty to pursuing an unauthorized US$8.3 billion futures trade in 2007. In imposing a sentence well below the 33-to-41-month term that the US Department of Justice had recommended, US District Judge William Pauley in New York castigated both Goldman and government authorities for failing to immediately address Taylor’s conduct when it occurred. The case is a “paradigm of everything that is wrong with Wall Street and the regulators charged with protecting the public,” Pauley said. Prosecutors claimed Taylor lied to supervisors and fabricated trades in December 2007 to conceal an US$8.3 billion position in Standard & Poor’s 500 E-mini futures contracts, which bet on the direction of that index. Goldman fired him shortly thereafter.
Countrywide settles US$500m
Bank of America Corp’s Countrywide unit won final approval of a US$500 million class-action settlement with investors who claimed they were duped into buying its mortgage-backed securities. US District Judge Mariana Pfaelzer in Los Angeles said the settlement was a fair outcome because her previous rulings prevented the investors from recovering damages from Bank of America as Countrywide’s parent and because the Charlotte, North Carolina-based bank said as recently as June that it might put Countrywide in bankruptcy. The settlement resolves claims that Countrywide misled investors in offering documents about the quality of the home loans that were pooled for the securities.
Drones a ‘fantasy’: EBay
EBay Inc chief executive officer John Donahoe called the delivery of products by drones — a project that rival Amazon.com Inc is working on — a fantasy. “We’re not really focusing on long-term fantasies,” Donahoe said in an interview with Emily Chang on Bloomberg Television when she asked if he would be showing her a drone. “We’re working on things that will change consumers’ experiences on Friday,” he said. Amazon CEO Jeff Bezos said this week that the world’s largest e-commerce company is testing drones to deliver small packages, an initiative that he anticipates will happen within five years. The endeavor was met with resistance from regulators and skepticism from couriers.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion