Sentifi Briefing-June 8: Sports Direct Admitted to ‘Breaking the Law’

June 8, 2016

By HV

The CEO of Sports Direct has come clean about the poor working conditions it is putting its workers through. Fortunately, honesty is a good virtue as it turns out admitting to the wrongdoings has helped the company in terms of shares and its ranking on Sentifi Top Attentions list. BG Group is occupying the second place on the list, but with a dimmer reason. Shell has to cut more jobs and sell more assets to offset the takeover of BG Group. And there are more stories that are worth finding out about on today’s Sentifi Briefing.

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1/ Sports Direct Intl: Scandal over poor working conditions heats up [6,839 messages in the last 24h]

The company’s CEO Mike Ashley admitted he “broke the law” before the Commons Business, Innovation and Skills Select Committee to answer to the accusations of poor working conditions. He was being candid about the matter, saying he could do a better job taking care of workers. The market appreciated his honesty and boosted the company’s shares by more than 5%.

2/ BG Group: Takes a toll on Shell [1,021 messages in the last 24h]

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Shell is saying goodbye to 2,200 jobs, $30 billion of assets and 10 countries to offset the takeover of BG Group.

The takeover of BG Group has proved to be costly for Shell as the company is looking to cut an additional 2,200 jobs, offload $30 billion of assets and withdraw operations in 10 countries. Facing criticism from analysts for paying too much for BG Group, Shell CEO Ben van Beurden defended the purchase and said it was worth more than what Shell paid for. The company forecast BG will help save from $3.5 billion to $4.5 billion over two years.

 

 

3/ Dodd-Frank: The GOP plans to dismantle Dodd-Frank [1,021 messages in the last 24h]

The GOP argues that by dismantling the Wall Street reform Dodd-Frank passed after the 2008 financial crisis, large banks will be able to avoid tough new regulations and allow them to use their own money to make risky bets. The plan is facing lots of criticism because Dodd-Frank was put in place to guarantee taxpayers will not be bailing out banks if they’re in trouble. Wall Street has been indifferent regarding the plan. Instead, it’s shown more interest in reviewing the existing rules.

4/ Societe Generale: Forced to compensate for rouge trader [738 messages in the last 24h]

©Christophe Petit Tesson/MAXPPP - 16/02/2012 ; PARIS LA DEFENSE ; FRANCE - Le siege de la Banque Francaise Societe Generale a La Defense. French bank Societe Generale headquarters in La Defense district near Paris on February 16, 2012.  (MaxPPP TagID: maxnewsworldtwo179593.jpg) [Photo via MaxPPP]
SocGen has to compensate the trader whom almost took it down. (Photo via MaxPPP)
A rogue trader named Jérôme Kerviel was accused of making market bets that almost caused France’s second-largest listed bank to collapse in 2008. He then was fired. But a new ruling from a French labor court has clarified that the bank wrongfully fired him, and it needs to offer him $511,000 in compensation. The civil part of the case will be handled by a lower appeals court where the bank can hopefully revert the verdict.

 

 

5/ Biogen: Shares go down on drug trial’s failure [603 messages in the last 24h]

The company had a disappointing day after one of its lucrative pipeline drugs failed a phase 2 clinical trial and it shares went down 12%, erasing $8 billion in its market value. The company will analyze the data before deciding on the next move.

6/ Reserve Bank of India: Keeps a close eye on inflation [555 messages in the last 24h]

The RBI is facing an upside risk to inflation as the consumer price inflation rose faster than expected in April, reaching 5.4% in April due to a rise in food prices. And then there are the risks from the firming up of global commodity prices and the issues on the supply side. The bank has a lot of its table to encourage growth while maintaining good monetary policies.

7/ Toyota Motor Corp: Harness solar power for North America campus [403 messages in the last 24h]

The Japanese automaker plans to invest $1 billion in a largest corporate office on-site solar system in Texas for its Plano office. The system will generate 25% of the needed power for the campus.

8/ F5 Networks: Shares soar on rumor of sale [375 messages in the last 24h]

The company is working with Goldman Sachs to explore a sale after having received several offers, which boosted its shares by as much as 13.5%. The company’s shares haven’t been doing well. Despite having been gaining more than 40% since February, the shares still trade where they were a year ago.

9/ Akamai: Settles a bribery case [372 messages in the last 24h]

The SEC has ruled that the content delivery network Akamai will have to pay a fine of $650,000 to the U.S. government because it secured service contracts through bribing Chinese officials. The fine could have been bigger if Akamai hadn’t self-reported the bribery to the SEC.

10/ Alexion Pharma: Shares fall more on drug trial failure [345 messages in the last 24h]

The drug company’s shares fell for a total of 11% following the failed trial of its drug Solaris. Its shares have fallen more than 27% this year. But the company is keeping its optimism intact as there were positive signs in the study that could help improve future trials.

Cover Image: Matthew Taylor/Rex Shutterstock

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