T-Mobile-Sprint merger approved by federal judge - GSMArena.com news - GSMArena.com

The deal between T-Mobile and Sprint was stopped in its tracks after an appeal by a group of states, led by California and New York senators.

Reuters reports that a federal judge approved the deal, rejecting the claim that the proposed action would violate antitrust laws and raise prices.

During the trial in December, the carriers said that a joint venture would help the companies challenge Verizon and AT&T, becoming the third-largest carrier with competitive prices and internet speeds. Joining forces would mean T-Mobile’s low-band spectrum and Sprint’s mid-band spectrum will allow for a faster roll-out of 5G network.

The opposition claimed the deal will actually reduce competition and will lead to job losses. US Senator Richard Blumental said the merger will create “another telecommunications behemoth in an already dangerously consolidated market”.

However, the final decision was made by US District Court Judge Victor Marrero, clearing the way for the $26 billion merger. He claimed there wasn’t enough evidence of the deal leading to higher prices and lower-quality wireless services, but both Cali and NY senators promised to appeal and “fight”. A final decision on the deal is expected in July 2020.

Source

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiW2h0dHBzOi8vd3d3LmdzbWFyZW5hLmNvbS90bW9iaWxlc3ByaW50X21lcmdlcl9nZXRzX2FwcHJvdmVkX2J5X2ZlZGVyYWxfanVkZ2UtbmV3cy00MTQ5Ni5waHDSAVhodHRwczovL20uZ3NtYXJlbmEuY29tL3Rtb2JpbGVzcHJpbnRfbWVyZ2VyX2dldHNfYXBwcm92ZWRfYnlfZmVkZXJhbF9qdWRnZS1hbXAtNDE0OTYucGhw?oc=5

2020-02-12 09:54:02Z
52780602018683

Coronavirus latest: Death toll in China hits 1113 with confirmed infections exceeding 44000 - Financial Times

Could this signal the end to history's longest stock rally?

As stock markets breathlessly claim record after record and some global indexes head for their biggest monthly rise in a year, a note of warning seeps out. Could this be the death knell, the final gasp, of the longest stock rally in history?

As Rabobank analysts caution: "The speed of market’s recovery from the sell-off caused by the outbreak of the coronavirus implies that we could be in the last stage of already the longest stock rally in the history of financial markets."

Europe's Stoxx 600, at an all-time high, picked up 0.4 per cent in Wednesday trading, collecting its seventh rise in eight sessions. The composite of Europe's biggest companies is on track for its biggest percentage monthly rise since January last year.

The CSI 300 barometer of stocks traded in Shanghai and Shenzhen, still five per cent off its January highs, has nonetheless recovered sharply this month, as has Hong Kong's Hang Seng index. The S&P 500 rose to a record for a second day on Tuesday and, according to its futures, is poised to add another 0.3 per cent when Wall Street opens.

This is the phase, says Piotr Matys, senior emerging markets foreign exchange strategist at the Dutch bank, when "negative news tends to be very quickly discounted”.

Hardly any bears remain, he says. "And those very few are often regarded as 'sore losers' who missed a great opportunity to make a fortune by going long. The fear of missing out is strong as reflected in very short-lived corrections followed by strong rebounds that produce new record highs."

He claims that, while it is tricky to time the next global financial crisis correctly, one is "long overdue".

"It has been postponed by a strong commitment from major central banks to keep bailing out the markets whenever there is even a relatively small correction.

That said, interest rates have barely increased since the last crisis, leaving central banks with far less room for manoeuvre at the time when even central bankers are increasingly concerned about the side effects of unconventional monetary policy tools.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiP2h0dHBzOi8vd3d3LmZ0LmNvbS9jb250ZW50LzI3OGU4MWY4LWM3NGUtMzIwNi1hYzJmLWYyN2UxMjQ1ZmYwYtIBP2h0dHBzOi8vYW1wLmZ0LmNvbS9jb250ZW50LzI3OGU4MWY4LWM3NGUtMzIwNi1hYzJmLWYyN2UxMjQ1ZmYwYg?oc=5

2020-02-12 09:20:00Z
52780604807647

SoftBank Takes Another Multibillion-Dollar Hit From Bad Bets - The New York Times

SoftBank Group has taken another multibillion-dollar hit from its ambitious but costly bets on once high-flying companies like Uber and WeWork, putting growing pressure on the Japanese conglomerate to get its financial house in order.

The company, which has used its $100 billion Vision Fund to dominate the world of technology investment, has become a target for hedge fund giant Elliott Management, which has been urging changes at the Japanese firm, including governance overhauls and stock buybacks.

On Wednesday, SoftBank may have given Elliott another reason to complain. It said the Vision Fund and other investments cost its bottom line 225.1 billion yen, or about $2 billion, in the final three months of last year.

Overall, SoftBank reported a profit of about $501 million for the quarter, well short of what investors had expected. Its profit was less than one-tenth of what it had posted one year earlier. Its operating profit fell 99 percent.

In November, SoftBank said it had lost $4.6 billion on its investment in WeWork, the office space tech company whose initial public offering imploded spectacularly last fall after the revelation of serious governance issues, including allegations of self-dealing by the company’s chief executive.

The results came one day after a judge in the United States approved a merger between Sprint, which SoftBank controls, and T-Mobile, another American wireless carrier.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiQWh0dHBzOi8vd3d3Lm55dGltZXMuY29tLzIwMjAvMDIvMTIvYnVzaW5lc3Mvc29mdGJhbmstcmVzdWx0cy5odG1s0gFFaHR0cHM6Ly93d3cubnl0aW1lcy5jb20vMjAyMC8wMi8xMi9idXNpbmVzcy9zb2Z0YmFuay1yZXN1bHRzLmFtcC5odG1s?oc=5

2020-02-12 08:12:00Z
52780604688498

SoftBank shares jump 13% after Sprint merger approval - MarketWatch

Shares of SoftBank Group Corp. 9984, +11.89% soared more than 13% in early trading Wednesday in Tokyo, as the Japanese conglomerate benefited from a U.S. judge's approval of the merger between Sprint Corp. S, +77.50% and T-Mobile US Inc TMUS, +11.78%. SoftBank is a major stakeholder in Sprint, which saw its shares skyrocket 78% during Tuesday trading in New York. Wednesday's gains marked SoftBank's biggest intraday jump in more than a year. The Sprint approval was welcome news for SoftBank, which has seen some of its major investments stumble of late, including the canceled IPO of WeWork and Tuesday's shutdown of retail startup Brandless. SoftBank shares are up 23% year to date, compared to the Nikkei index's 0.6% gain.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiYWh0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9zdG9yeS9zb2Z0YmFuay1zaGFyZXMtanVtcC0xMy1hZnRlci1zcHJpbnQtbWVyZ2VyLWFwcHJvdmFsLTIwMjAtMDItMTHSAU9odHRwczovL3d3dy5tYXJrZXR3YXRjaC5jb20vYW1wL3N0b3J5L2d1aWQvN0VFMjg1RTQtMjgwNC00QjY2LUE3MjgtMTVBNzU0Njg5RUUw?oc=5

2020-02-12 03:49:00Z
52780602018683

Live: Fed Chair Powell testifies before the House Financial Services committee - Fox Business

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiK2h0dHBzOi8vd3d3LnlvdXR1YmUuY29tL3dhdGNoP3Y9QTg5dnl6MWJLa3PSAQA?oc=5

2020-02-11 15:00:34Z
52780603554697

Sprint's stock soars more than 70% after judge approves T-Mobile merger - CNN

A federal judge ruled Tuesday in favor of the marriage allowing the two telecom giants to combine. US District Court Judge Victor Marrero said in his ruling that he didn't envision the companies "would pursue anticompetitive behavior" and rejected the lawsuit brought on by a dozen US states.

The judge said that Sprint on its own couldn't "continue operating as a strong nationwide competitor." Sprint is currently in fourth place, but the company claimed its path to deploying a nationwide 5G network without T-Mobile was uncertain.

States' attorneys general argued that approving the merger would make wireless service and prices worse for Americans. But Judge Marrero said he was ultimately unpersuaded by the states' economic theories and analytical modeling, writing that the two sides' claims ultimately came down to competing crystal balls. He said he was relying substantially on his own "skills and frontline experience" to reach a decision.

"How the future manifests itself and brings to pass what it holds is a multifaceted phenomenon that is not necessarily guided by theoretical forces or mathematical models," he wrote.

Sprint's stock shot up a stunning 70% at the open. T-Mobile shares also spiked 12% early trading Tuesday.

T-Mobile CEO John Legere called the ruling a "huge victory" and said in a statement that the new company, which will retain the T-Mobile name, is "great for consumers and great for competition."

The companies touted the merger's benefits, claiming lower prices, expanded 5G and new jobs. They said the combination will ultimately employ 11,000 more full-time people than the standalone companies would have over the next four years. They said an additional 12,000 jobs will be created to staff 600 new stores and five new "customer experience centers."

The merger could be finalized in early April. A new website has been started to promote the combined companies at NewTMobile.com.

To alleviate antitrust concerns, Sprint and T-Mobile have proposed a deal with Dish Network (DISH), which would buy some wireless assets from the companies to create a new nationwide carrier. The companies hoped that would remedy the merger's effects on the market. They also promised that prices wouldn't rise and accelerate the rollout of new, ultra-fast 5G mobile network.

Two key attorneys general weren't pleased with the ruling.

Letitia James, the AG from New York, said in statement the reduced competition is "bad for consumers, bad for workers, and bad for innovation." She added the state will will examine a possible appeal.

California's AG Xavier Becerra said he is "prepared to fight as long as necessary to protect innovation and competitive costs."

The combination forms a third national wireless behemoth about the size of Verizon (VZ) and AT&T (T). (AT&T owns CNN's parent company, WarnerMedia.)

The merger saga between T-Mobile and Sprint has been ongoing since April 2018 when the current deal was proposed. Federal regulators, including the US Department of Justice and the Federal Communications Commission, already approved the merger last year. The states were the final hurdle, and Sprint (S) and T-Mobile (TMUS) battled for the merger's approval in a Manhattan federal court in December.

FCC chairman Ajit Pai said he was "pleased" with the decision. citing the companies' promise to expand 5G.

"This transaction represents a unique opportunity to speed up the deployment of 5G throughout the United States, put critical mid-band spectrum to more productive use, and bring much faster mobile broadband to rural American," Pai said in a statement. "This is a big win for American consumers."

-- CNN's Brian Fung contributed to this report

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiUmh0dHBzOi8vd3d3LmNubi5jb20vMjAyMC8wMi8xMS9pbnZlc3Rpbmcvc3ByaW50LXRtb2JpbGUtbWVyZ2VyLWRlY2lzaW9uL2luZGV4Lmh0bWzSAVZodHRwczovL2FtcC5jbm4uY29tL2Nubi8yMDIwLzAyLzExL2ludmVzdGluZy9zcHJpbnQtdG1vYmlsZS1tZXJnZXItZGVjaXNpb24vaW5kZXguaHRtbA?oc=5

2020-02-11 14:40:00Z
52780602018683

Fed chairman: Coronavirus could hurt the global economy - CNN

"We are closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy," Powell said in his prepared testimony before the House Financial Services Committee, where he is set to deliver his semiannual report to Congress. He will testify again before the Senate Banking Committee at 10:00 am ET on Wednesday.

The outbreak of the coronavirus, which has now killed more than 1,000 people, has added uncertainty to the global outlook -- and the US economy -- as companies have shuttered plants and shifted supply chains to contain spread of the infectious disease.

In late January, Powell described the outbreak as a "very serious issue," but at the time, he noted the virus was still in its early stages and it remained uncertain how far it would spread and what the macroeconomic effects would be.

Holding rates steady

Powell spent last year guiding the Fed to help buffer the US economy from turbulent trade tensions between the United States and China. The trade war led to weakness in the manufacturing sector, hurt business investment and slowed global growth.

The Fed slashed interest rates three times last year -- in July, September and October -- to a range of between 1.25% and 1.5%. Since then, Powell has signaled the central bank plans to take a wait-and-see approach for this year, a stance he once again reinforced in his testimony to lawmakers.

"The current stance of monetary policy will likely remain appropriate," said Powell. Adding, "If developments emerge that cause a material reassessment of our outlook, we would respond accordingly."

In his testimony, Powell sought to thread the needle of sending a reassuring message that the US economy is still in "a good place," but that policymakers would act as needed to continue the longest-running expansion on record, now in its 11th year.

Low unemployment, but a ballooning deficit

The Fed chairman has routinely pointed to the country's record low unemployment rate as a benefit to low-and middle-income families, who have been among the last to reap rewards from the economic expansion. He pointed to higher wages for those communities, particularly those with lower-paying jobs.

Even so, Powell cautioned that the country continues to face challenges, including drawing in more workers into the labor force, boosting productivity and reconciling with a ballooning federal deficit.

The renewed warning by Powell to Congress to get the nation's fiscal house in order comes weeks after the nonpartisan Congressional Budget Office released its latest report, projecting that the deficit would widen over the coming decade, reaching a total of $1.7 trillion in 2030.

"Putting the federal budget on a sustainable path when the economy is strong would help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy during a downturn," said Powell. "A more sustainable federal budget could also support the economy's growth over the long term."

With interest rates at historic lows, the Fed's ammunition to rescue the economy is diminished, requiring fiscal policies by Congress to help offset any economic weakness.

Powell's testimony comes a day after the White House released President Donald Trump's fiscal 2021 budget blueprint, which calls for deep cuts in safety net programs and projects a balanced budget by 2035 assuming the economy returns 3% economic growth annually.

That's significantly higher than what most economists and the Federal Reserve forecast.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiWWh0dHBzOi8vd3d3LmNubi5jb20vMjAyMC8wMi8xMS9lY29ub215L2ZlZGVyYWwtcmVzZXJ2ZS1jaGFpcm1hbi1wb3dlbGwtZWNvbm9teS9pbmRleC5odG1s0gFdaHR0cHM6Ly9hbXAuY25uLmNvbS9jbm4vMjAyMC8wMi8xMS9lY29ub215L2ZlZGVyYWwtcmVzZXJ2ZS1jaGFpcm1hbi1wb3dlbGwtZWNvbm9teS9pbmRleC5odG1s?oc=5

2020-02-11 13:41:00Z
52780603554697