WEDNESDAY, MARCH 11, 2020 The Boston Globe Business B
TALKING POINTS
BANKING Agenda
CEOOFWELLSFARGO
SAYS IT WILL TAKE
UNTIL NEXT YEAR
TO FIX PROBLEMS
The third chief executive of Wells Fargo in four
years appeared in front of Congress on Tuesday,
saying that there’s much the bank needs to do to
fix its cultural problems, and isn’t expecting it to
be done until 2021. Charles Scharf took over the
troubled bank late last year. He replaced Tim
Sloan, who resigned in March only a couple of
weeks after being lambasted by members of
Congress in his own hearing. Unlike Sloan, Scharf
is an outsider, previously holding the jobs of CEO
of Bank of New York Mellon and Visa. Since
taking the job, Scharf has been candid that the bank still has much work to do and has been
trying to resolve all of the bank’s legal problems. Wells Fargo’s sales practices scandal is
nearly four years old at this point, and the bank continues to remain mired in legal and
regulatory trouble. The San Francisco-based company paid a $3 billion fine just last month
for its illegal sales practices, on top of the roughly $1.2 billion in fines it had already paid.
The bank remains under restrictions imposed by the Federal Reserve, not allowing Wells
Fargotogrowanylargeruntilitsculturalproblemsarefixed.—ASSOCIATEDPRESSINTERNATIONAL
CANADA SAYS IT WILL
NOT BE PRESSURED BY
US INTO RESTRICTING
HUAWEI’S ACCESS
Justin Trudeau’s industry minister said Canada won’t be strong-armed into a decision on
restricting a Chinese technology giant’s access to next-generation wireless networks. The
comments by Navdeep Bains come on the heels of a push by a group of US senators seeking
to remove a preferred investment status for countries that allow for the installation of
Huawei Technologies Co. equipment in their 5G networks. The Trump administration is
pushing allies for an outright ban. Canada is the last member of the so-called Five Eyes
network of English-speaking nations that share intelligence to make a call on Huawei.
Australia followed the US lead in banning it. New Zealand has blocked it, while
maintaining no final decisions have been made. Boris Johnson’s government opted for a
mixed approach in the UK, allowing the Chinese company access to non-sensitive parts of
its wireless network. — BLOOMBERG NEWSSPORTINGGOODS
DICK’S REMOVING
GUNS FROM ABOUT
440 MORE STORES
Dick’s Sporting Goods Inc., the largest US
sporting-goods retailer, plans to accelerate its
retreat from gun sales, removing weapons
and other hunting products from about 440
more stores. — BLOOMBERG NEWSINTERNET
TWO SENATORS SAY
ANTITRUST PROBE OF
GOOGLE SHOULD
INCLUDE SEARCH
The US Justice Department should expand its antitrust investigation of Alphabet Inc.’s
Google to include the Internet giant’s conduct in online search, in addition to digitial
advertising, two senators said. Missouri Republican Josh Hawley and Democrat Richard
Blumenthal of Connecticut said Tuesday that the department’s inquiry appears to be too
narrowly focused on advertising even though the company is a monopoly in Internet
search, “where the opportunities for anticompetitive conduct are substantial.”
— BLOOMBERG NEWSCRUISELINES
ROYAL CARIBBEAN
MAY BE CUT TO JUNK
BOND STATUS
Royal Caribbean Cruises
Ltd. may be cut to junk by
S&P Global Ratings as fears
intensify that the
coronavirus will continue to
dramatically reduce travel.
S&P placed Royal
Caribbean’s BBB- on watch
negative as the spreading
virus batters the tourism
industry, affecting
everything from airlines to casinos. As multiplecruise ships have been quarantined globally
in an effort to contain the virus, investors have sold bonds or bought protection against
default tied to debt of Royal Caribbean, as well as those of rivals Viking Cruises Ltd. and
Carnival Corp. — BLOOMBERG NEWSHAIRCARE
BIDDERS LINE UP
TO BUY COTY HAIR
AND NAIL PRODUCTS
BUSINESS
Henkel, the German shampoo maker, and buyout firm KKR & Co. are among a small group
of suitors proceeding to the second round of bidding for Coty Inc.’s professional hair and
nail products business, people familiar with the matter said. Advent International and a
separate consortium of Cinven and the Abu Dhabi Investment Authority weren’t chosen to
advance to the next round after they submitted initial offers last week, the people said.
Private equity firms Bain Capital and Clayton Dubilier & Rice dropped out of the race,
according to the people, who asked not to be identified as the information is private. Some
suitors have made bids for just the Good Hair Day business or Coty’s Brazilian operations,
the people said. The entire unit, which owns brands including Wella and Clairol, could
fetch $7 billion to $8 billion, Bloomberg News has reported. — BLOOMBERG NEWSSHORT-TERMRENTALS
AIRBNB LAUNCHES
COMPETITION FOR
‘MOST
UNCONVENTIONAL’
LIVING SPACE ON THE
PLANET
Interested in building a fantasy home that looks like a boot? Or a UFO? Or some other
unusual design? Airbnb is setting aside $1 million and enlisting the help of Billy Porter to
make it a reality. The company is launching a competition to create the “most
unconventional and unusual liveable spaces on the
planet,” it said in a statement Tuesday. Airbnb has
made headlines in the past with quirky vacation
rentals like one shaped like a baked potato in
Idaho, and a mansion in Malibu designed to
resemble the one Barbie made famous. Now, it’s
inviting people to create memorable designs of
their own by applying for the program and writing
an essay about their wild idea. The Emmy winner
Porter and the architectural firm MVRDV will be
part of a panel that picks 10 winners, But the
winning designs won’t be judged just on style: They also have to demonstrate “feasibility,
sustainability and social good,” according to Airbnb. — ASSOCIATED PRESSENERGY
PG&E SETTLES WITH
DISASTER-RELIEF
AGENCIES
Pacific Gas & Electric told a bankruptcy judge Tuesday that it has settled a dispute with
disaster-relief agencies that threatened to siphon money away from a $13.5 billion fund
earmarked for victims of catastrophic wildfires in California caused by the nation’s largest
utility. The breakthrough disclosed by a PG&E lawyer during a court hearing in San
Francisco could remove a major stumbling block as the company scrambles to meet a June
30 deadline to emerge from bankruptcy proceedingsthat began early last year. The truce is
designed to ensure people who lost familymembers and homes during a series of fires
ignited by PG&E equipment during 2017 and 2018 get paid before two different taxpayer-
backed agencies. It’s still unclear whether the deal worked out between the Federal
Emergency Management Agency, California’s Office of Emergency Services, and lawyers for
wildfire victims will satisfy everyone involved. PG&E attorney Stephen Karotkin said some
final details were still being worked out with the help of a federal mediator.
— ASSOCIATED PRESSThursdayNETWORKING
Mix and mingle
Meet other marketing professionals at
this networking event from the American
Marketing Association. Thursday, 6 to 8
p.m., Back Bay Social Club, 867 Boylston
St., Boston. Free for members, $10 for
nonmembers. Register online or go to the
business agenda on bostonglobe.com.WORKSHOP
Online business
Learn how to manage your business’s
presence online at this event from Vision
Advertising. Thursday, 3 to 5 p.m., Vision
Advertising, 182 Turnpike Road, Suite
250, Westborough. Free. Register online
or go to the business agenda on
bostonglobe.com.CLASS
Meeting 101
Learn the keys to leading a successful and
engaging meeting at this workshop from
Staples Spotlight. Thursday, noon to 1
p.m., Staples Connect Needham, 163
Highland Ave., Needham. Free. Register
online or go to the business agenda on
bostonglobe.com.WORKSHOP
Make it happen
Learn how to take your product from
concept to market at this event hosted by
Startup Grind Boston. Thursday, 6 to 8
p.m., Idea Space, 867 Boylston St., 5th
floor, Boston. $10. Register online or go
to the business agenda on
bostonglobe.com.Eventsofnote?E-mailusat
[email protected]