7Bloomberg Businessweek August 19, 20 19EPSTEIN: RICK FRIEDMAN/CORBIS/GETTY IMAGES. GREEN SEA TURTLES: MARK CONLIN/GETTY IMAGES. *THROUGH AUG. 14. DATA: COMPILED BY BLOOMBERG
◼ IN BRIEF
By Benedikt Kammel● CBS, the most-watched
U.S. broadcast network,
and Viacom, the owner of
the Paramount movie studio
and cable channels such
as MTV and Nickelodeon,
revealed a merger plan. The
companies expect annual
cost savings of about
$500 million from the deal.● A failed missile test on
Russia’s White Sea near
the Arctic Circle killed
five atomic scientists
and released radiation in
the area. The detonated
weapon may have been the
SSC-X-9 Skyfall, a nuclear-
powered cruise missile
President Vladimir Putin
unveiled last year.● Jeffrey Epstein, charged
with molesting
minors and sex
trafficking, died
on Aug. 10 in an apparent
suicide. On Aug. 14 a woman
who says he raped her
in 2002, when she was a
teenager, said she’s suing
his estate and three of his
associates. A New York law
took effect that day allowing
victims of alleged abuse to
file claims even if the statute
of limitations has expired.● Saudi Aramco cemented
its status as the world’s
most profitable company,
reporting net income of$46.9b
for the first six months of- Saudi Arabia wants to
raise a record $100 billion
by selling a 5% stake in
Aramco, which would rank
as the biggest IPO in history.
● The Volcker Rule, a
postcrisis safeguard that
limits banks’ ability to trade
with their own funds, is set
to get a major overhaul.
Regulators seek to loosen
restrictions on lenders
investing their own money
in private equity and hedge
funds, according to people
familiar with the plan.● The U.S. fiscal deficit
grew to almost$867b
for the first 10 months of
the fiscal year, exceeding
the figure for all of last
year. Republican tax cuts,
increased federal spending,
and an aging population
have contributed to
the strain.● Argentina’s
stocks, bonds,
and currency fell
after President
Mauricio Macri
lost in primary
elections.● On Aug. 14 the yield on 10-year U.S. Treasury notes briefly dropped below
that of 2-year notes. That reversal, known as a yield curve inversion, is considered
a sign that a recession will occur within about 18 months. By the market’s close,
10-year yields had rebounded.Investors fear his shock upset on
Aug. 12 may set the stage for a
populist government that could
seek to renegotiate billions in
foreign currency debt and hard-won
agreements with the IMF. ▷ 32● Verizon will sell the Tumblr blogging platform to the parent of the WordPress publishing tool for a nominal sum.● The People’s Bank of China is “close” to issuing its own cryptocurrency, according to a senior official.● Uber reported a $5.24 billion quarterly loss and sales that missed estimates, raising doubts about its growth prospects.
● Guatemala elected former prisons director Alejandro Giammattei, who’s vowed to crack down on crime, as president.● “He can
take all the
people
aboard
back to
Hollywood
on his
private
plane and
support
them in his
villas.”
Italian Deputy Prime Minister Matteo
Salvini lashed out at actor Richard
Gere, who came to the Italian island
of Lampedusa to ask European
leaders to find a port for a ship with
160 migrants that the country has
refused to allow into its waters.▼ Yield curve invertedDifference between yields on 10-year and 2-year Treasuries, in percentage points8/1985 8/2019*Recession3210● The Trump administration plans to
impose limitations on the Endangered
Species Act. The law has protected
threatened plants and animals for more
than four decades. Agencies such as
the Fish and Wildlife Service will have
to cite economic repercussions in their
assessment of whether to list a species
as threatened or endangered.