The U.S.’s largest services of student loans Navient Corporation is getting into trouble as Washington State Attorney General Bob Ferguson is suing the company for deceptive and fraudulent practices. The Sentifi financial crowd is discussing the matter with great interest, considering many of them are from Washington. Join the conversation and follow the insights.
Navient Corp.: Allegedly deceives thousands of students
The company is being accused for trapping students in expensive loans that were very difficult for them to repay, along with using unfair and deceptive collection tactics. The company currently has more than $300 billion in student loan across the U.S. The lawsuit also pointed out the company got schools to cover a certain percentage of the loan to protect itself from borrower’s defaulting. In a statement on the lawsuit, the company has called it unfounded and politically motivated.
Premier Foods Plc.: Shares drop following a profit warning
As the weaker pound is pushing up the price of ingredients such as sugar, cocoa and palm oil, which proves troublesome, the company released a profit warning with the expectation that its profit would be 10 percent lower. The investors reacted negatively, wiping out 11 percent of the company’s market value. On the good news side of things, the company is about to start its three-year cost cutting plan to save £10 million by next year.
Netflix Inc.: Posts a record-breaking number of new subscribers
The past quarter proved to be one of the bests for the streaming company as it registered a record-breaking seven million new subscribers in the past quarter alone thanks to its global expansion drive, which also benefited its revenue and profit. The company ended 2016 with 94 million subscribers, with 5 million outside the U.S. added in the last three months. Its profit jumped 55 percent while revenues surged 36 percent. The company’s shares jumped more than 8 percent following the news.
CoLucid Pharmaceuticals: Acquired for $960 million
American global pharmaceutical company Eli Lilly and Co. is acquiring the compatriot migraine-medicine maker CoLucid in a deal worth $960 million. The merger will be subject to an anti-trust investigation. If cleared, it will be close by March. CoLucid shares jumped 32.52 percent on the news.
Jack Ma: Warns of a trade war
During his speech at the World Economic Forum in Davos, Switzerland, Alibaba CEO Jack Ma said a trade war between China and the U.S. was a very real possibility, and advised China to give President-elect Donald Trump some time to settle in before reacting to his policies. This warning came after China’s President Xi Jinping announced at the Forum that China will stay committed to free trade while saying Trump should not go down the patch of protectionism. “A trade war would be a disaster for the world,” said Ma. “It’s very easy to slip into a trade war.”
Liberty Media: Receives the last green light for its Formula One deal
The U.S. media company got the last, but not least, green light for the deal from the racing sport’s governing body Fédération Internationale de l’Automobile, which fulfilled the last closing condition for the takeover. Liberty Media now expected to close the deal by the end of the month.
SLM Corporation: Says it’s not involved in Navient lawsuit
Sallie Mae bank has released a statement regarding the Navient lawsuit that neither it or any of its current units is named in the lawsuit against Navient Corp. On a different note, the company reported $0.15 EPS for the quarter, beating the Wall Street’s consensus of $0.14. The company’s shares jumped slightly by 0.73 percent.
Bank of Canada: Holds the interest rate at 0.5 percent
Global economic uncertainty and continued slack in the Canadian economy continued to hold back Bank of Canada on economic forecasts, which led to the interest rate being held at 0.5 percent. The bank also shared its concern about the impact President-elect Donald Trump would have on the economy once he took office. Trump previously promised to cancel or renegotiate NAFTA, cut taxes and boost infrastructure spending. The bank’s governor Stephen Poloz predicted the Canadian GDP will jump 0.1 percentage point by 2018 due to the Trump effect.
Semperit AG: Signs an agreement with Sri Trang
Austria-based industrial rubber manufacturer Semperit signed an agreement on the demerger of the joint venture Siam Sempermed with Thailand-based rubber company Sri Trang. In details, Semperit takes over the joint Sempermed distribution company in the U.S. and the production companies of the industrial sector in China.
Citigroup: Asks for more patience from investors
CEO Michael Corbat asked investors to be more patient as the bank failed to meet its four-year-old performance targets despite higher profits in the fourth quarter. He proposed some adjustments to the goals as well as new times and conditions to reach said goals. The goals originally were set by Corbat himself when he took the helm of Citigroup along with his promise that the bank would meet thresholds for return on equity, operating efficiency and return on assets in 2015. Unfortunately, one of the three goals was reached by the bank in 2015, and none in 2016.
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Cover Image: Daryl Cagle/MSNBC