US brokerage firm Charles Schwab acquires rival TD Ameritrade for $26-B

NEW YORK - The US brokerage firm Charles Schwab announced Monday it will acquire rival TD Ameritrade for around $26 billion.

Under the all-stock deal between these two huge discount brokerage houses, TD Ameritrade shareholders will receive 1.0837 shares of Charles Schwab for each share they own, the latter said in a statement.

The boards of both companies approved the terms of the deal unanimously. US regulators must still rule on it.

Charles Schwab said the price it is paying represents a 17 percent premium over the 30-day volume weighted average price exchange ratio as of November 20.

In the 1970s the two companies revolutionized the way small investors placed their money on Wall Street by taking on big established brokerages that set the rules for such transactions and often charged handsome fees for their services.

The deal comes amid stiff competition in the brokerage industry to lure small investors who are increasingly fond of financial products that are affordable and easy to use.

The companies could take between 18 and 36 months to merge. Once this is done the new company will have around 5 trillion dollars in client assets under its management.

source: news.abs-cbn.com

US markets not fully buying a Clinton win

NEW YORK - As the US presidential election moves into the home stretch, financial markets are not fully invested in polls that show a win for Hillary Clinton.

Even though polls show the Democratic candidate with a strong lead over Republican Donald Trump, analysts say investors are waiting until after November 8 to lay their money on the table.

"I don't think it's fully 100 percent Clinton is in," said JJ Kinahan, chief market strategist at TD Ameritrade, who sees a pullback in risk-oriented investments as a sign of investor caution.

"Usually people are looking to take on extra risk for reward," he said. "I think this is one case where people are paring back on their risk."

Wall Street is thought to generally favor Clinton over Trump for president, and equity markets have hovered at historically high levels since July, with the S&P 500 less than three percent below its all-time peak.

Clinton is considered the more market-friendly outcome, expected to maintain the policies of outgoing President Barack Obama, while the market views Trump as a great unknown, both because of his penchant for controversy and his lack of a record in public office.

Trump has attacked trade partners China and Mexico and accused Federal Reserve Chair Janet Yellen of being a political tool of the Democratic party. Investors are also unsettled by Trump's seeming embrace of Russian President Vladimir Putin, a sign he may take foreign policy in radical new directions.

Signs of nervousness have been seen in certain trades, analysts say, like the Mexican peso. Trump's pledge of immigration controls and trade restrictions with Mexico have raised worries over its economy.

The peso sank against the dollar as Trump's campaign added momentum, but then rebounded on Clinton's gains following the first presidential debate on September 26.

But it remains down about 9 percent since Trump secured his party's nomination in May.

On the other hand, another gauge of market sentiment has been the biotechnology sector, which is seen as vulnerable in a Clinton presidency given the Democrat's vow to address runaway drug prices. The Nasdaq biotechnology index has fallen about nine percent over the last month.

Some analysts say the markets have already assumed a Clinton victory.

"To me, the markets clearly want a Clinton win and they have priced that in," said Nathan Thooft, senior managing director at Manulife Asset Management.

"That's what they predict, and that's what they want. If that doesn't happen, I feel there's a great level of uncertainty and possible downside to the markets."

SOME 'COMPLACENCY' OVER TRUMP

Indeed, investors are aware that Trump has been consistently underestimated by the political, media and business establishment. Many are also loath to repeat the error of Britain's June referendum to leave the European Union, when polling supported the market bet on a "stay" vote, only to be thrown into turmoil when Brexit passed.

"There's a bit of complacency in the market." said Kathy Lien of BK Asset Management,

"I think the market's underestimating the possibility of things going wrong as a result of either a Trump victory or the possibility of internal strife in the nation as a result of Clinton winning," she said.

Briefing.com analyst Patrick O'Hare cited sluggish trading volume, as well as the flatness of the S&P 500, as a sign investors are in "seeing is believing mode" with respect to polls pointing to a Clinton triumph.

One sign of a pickup in caution is the VIX volatility index, also known as the "fear" index. The index has risen the last three days and jumped nearly 8 percent Thursday to 15.36. Still, that is far below the 25.76 level on the day after the Brexit shock.

A big jump in the VIX before November 8 would signal "that the market is fearing something odd," Kinahan said.

source: www.abs-cbnnews.com

NFL teams bow to pressure on domestic abuse cases

 Another National Football League player was arrested on domestic violence allegations hours after two teams succumbed to public pressure and suspended players enmeshed in similar cases on Wednesday.

The charges against Arizona Cardinals running back Jonathan Dwyer of aggravated assault in connection with two alleged incidents of domestic violence in late July come amid intensifying criticism from corporate sponsors and politicians toward America's top sports league.

Earlier on Wednesday, Minnesota Vikings star running back Adrian Peterson and Carolina Panthers defensive end Greg Hardy were both placed by their teams on the so-called "exempt list," meaning they must take a leave of absence while the cases against them are resolved.

In announcing their actions, officials of both the Vikings and the Panthers talked about the need "to get this right."

The two teams' decisions suggest a new tack by owners toward the domestic violence scandal engulfing the 32-team NFL and its commissioner, Roger Goodell.

A flurry of cases, most notably those of Peterson and Ray Rice, the former Baltimore Ravens star who has also been suspended indefinitely by the NFL, has raised questions about the league's integrity and Goodell's leadership.

On Wednesday the level of criticism ratcheted up with the U.S. House of Representatives Democratic leader, Nancy Pelosi, speaking up, and moves by two big corporate sponsors - TD Ameritrade and Nike.

Zygi Wilf, who co-owns the Vikings with his brother, Mark, said that they had "made a mistake and we needed to get this right," after they had reactivated Peterson on Monday following his indictment last week on charges of beating his four-year-old son with a branch.

For the Panthers, general manager Dave Gettleman said the team was disappointed in Hardy's behavior. "We have to get this right. He has to get this right," Gettleman said.

Hardy, who was convicted in July of domestic violence, has appealed the verdict. He has a trial date in November.

Regarding Dwyer, the Phoenix Police Department said the incidents involved a 27-year-old woman and an 18-month-old child, but gave few details. In an email, Sergeant Trent Crump said Dwyer "admitted to the incidents, however, denied any physical assaults."

Crump said the 25-year-old player was booked into Maricopa County Jail on one count of aggravated assault causing a fracture, one count of aggravated assault involving a minor, two counts of criminal damage, one count of preventing the use of a phone in an emergency, and assault.

"Given the serious nature of the allegations we have taken the immediate step to deactivate Jonathan from all team activities," the Cardinals said in a statement.

The Cardinals said they became aware of the allegations on Wednesday afternoon when they were notified by Phoenix police and they said they are cooperating fully.

Crump said the two incidents were reported to police by neighbors who said they heard fights, and that soon afterward the woman fled the state with her and Dwyer's child, citing safety concerns for herself.

The victim reported her injuries to police on Sept. 11 and said she also received text messages from the player in which he threatened to kill himself, Crump said.

The moves came a day after the NFL was chastised by one of its top sponsors, brewer Anheuser-Busch. But no sponsor has gone so far as to cut its multimillion-dollar ties with the NFL.

Brokerage firm TD Ameritrade, which began a three-year affiliation with the NFL this month, on Wednesday said "it was very much considering its future" as a sponsor.

"We want to see (the NFL) learn from its mistakes and work quickly to improve a culture that values inclusion, safety and respect for its employees, their families and others," TD Ameritrade spokeswoman Kim Hillyer said in an email.

Nike, known for its steadfast support for its athletes even in troubled times, said it had suspended its contract with Peterson, one of the league's most marketable players.

Target Corp on Wednesday said it was removing Peterson merchandise from its retail stores and website in light of team's most recent actions and customer feedback, spokeswoman Molly Snyder said.

POLITICIANS JOIN FRAY

The 29-year-old Peterson, the Vikings' best player, has been accused of reckless or negligent injury to a child stemming from a whipping incident that allegedly left bruises and wounds on his son.

The NFL called his suspension "a good decision."

Goodell has the sole authority to place a player on the exempt list under what the league policy calls "unusual circumstances."

The Vikings will continue to pay the running back his full $11.75 million salary for this season. Team general manager Rick Spielman declined to say whether Peterson would play again this season. If Peterson's case goes to trial it would likely begin in 2015.

Mark Wilf said the franchise did not suspend Peterson in a bow to pressure from team sponsors. Minnesota-based hotel chain Radisson suspended a sponsorship deal with the Vikings on Monday.

The team also came under withering criticism from Minnesota Governor Mark Dayton, who said on Tuesday that Peterson was a "public embarrassment" to the team and state and should be suspended.

Goodell and the league are struggling to make amends for his initial lenient punishment of Rice, who punched his then-fiancee, now his wife, in February, knocking her unconscious.

Although Goodell has announced stricter penalties for domestic violence offenders, that has done little to stem the tidal wave of public criticism following the release of surveillance video last week that showed Rice's punch, which the league said it had never seen.

On Wednesday in Washington, top U.S. House Democrat Pelosi said Congress could get involved because the league, which takes in $9 billion in annual revenue, has an anti-trust exemption.

"I think Congress always has a role, but again if you're talking about anti-trust privileges and the rest of that, that certainly is a big issue and it cannot be done except by the Congress," Pelosi said at her weekly news conference in the Capitol, after being peppered with NFL questions.

Goodell has since apologized for the handling of the Rice case. The Pro Bowl running back on Tuesday appealed his indefinite suspension, which came after the video's publication.

With Rice, Peterson and Hardy all suspended, one player accused of domestic violence still remains eligible, San Francisco 49ers' Ray McDonald.

Pelosi, an avid 49ers fan, said McDonald should not have taken the field last week.

(Additional reporting by Steve Ginsburg, Ramkumar Iyer, Jed Horowitz, Richard Cowan and Sam Adams; Editing by Leslie Adler, Eric Walsh, Eric M. Johnson and Matt Driskill)

source: www.abs-cbnnews.com