London Stock Exchange-Deutsche Boerse deal blocked by EU – BBC News

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EU regulators have blocked London Stock Exchange’s 21bn merger with German stock exchange Deutsche Boerse.

The European Commission said the deal would have created a “de facto monopoly” for certain financial services.

The merger would have combined Europe’s two largest stock exchange operators.

London Stock Exchange Group said it “regrets” the commission’s decision, as the deal would have created a “world-leading” financial markets firm.

The commission blocked the deal, which had already been thrown into doubt by Brexit, shortly before the UK started the formal process of leaving the European Union.

It is the third time that a merger between LSE and its German rival has failed to come to fruition.

They announced plans for a “merger of equals” about a year ago, following attempts by Deutsche Boerse to strike a deal with LSE in 2000 and 2004.

‘Coup de grace’

However, the merger was dogged by questions about where the joint firm would be based and how it would pool liquidity between the exchanges.

Those questions intensified after the UK voted to leave the European Union.

“Timing is everything,” said Neil Wilson, an analyst at ETX Capital.

“Brexit effectively killed this deal off nine months ago, so it’s fitting that EU competition commissioner Margrethe Vestager delivered the coup de grace just a couple of hours before the UK triggers Article 50.”

LSE warned last month that the deal was unlikely to receive EU approval over concerns that it would limit competition.

On Wednesday, the firm said: “This was an opportunity to create a world leading market infrastructure group anchored in Europe, which would have supported Europe’s 23 million SMEs [small and medium sized enterprises].”

The UK’s stock exchange operator has been a takeover target many times since 2000. Mr Wilson says the collapse of the Deutsche Boerse merger might encourage new bidders, possibly from the US.

But he says new national interest rules about takeovers of UK firms could make any deal even more difficult.

The LSE’s many suitors

Image copyright Getty Images
Image caption Deutsche Boerse has tried three times to strike a deal with LSE

2000 – Deutsche Boerse and LSE announce talks, but no deal agreed

2000 – Sweden’s OMX makes an 800m bid for LSE, but it is turned down

2004 – Deutsche Boerse returns with another bid for LSE, which is rejected

2005 – Australia’s Macquarie Bank makes a 1.6bn takeover bid, also turned down

2006 – US exchange Nasdaq takes almost a 30% stake in LSE, but sees its 2.7bn offer rejected

2011 – LSE agrees merger with the Canadian stock exchange, TMX, but it falls through

2017 – LSE and Deutsche Boerse merger – which would value the combined firm at 21bn – blocked by EU

The final blow to the deal came from EU regulators’ concerns about the combined firm’s control over the clearing of bonds and fixed-income products in Europe.

LSE, which also operates the Italian stock exchange and has other businesses in Europe, had offered to sell its France-based clearing house to deal with those concerns.


However, the commission decided that this remedy did not go far enough.

Margrethe Vestager, the EU commissioner in charge of competition policy, said: “The European economy depends on well-functioning financial markets.

“That is not just important for banks and other financial institutions. The whole economy benefits when businesses can raise money on competitive financial markets.”

The commission had ordered LSE to also sell its 60% stake in MTS, a fixed-income trading platform, but LSE said the move was “disproportionate”.

Investors responded positively to the deal’s collapse, with shares in LSE rising by more than 3% and in Deutsche Boerse by nearly 2%.

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CNN 10 – March 29, 2017

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March 29, 2017

President Trump signs a new executive order concerning the climate and jobs, and it reflects a very different approach than his predecessor. A settlement is reached concerning funding for water pipes in Flint, Michigan, but residents are still living with the effects of the city’s water crisis. Stories concerning a volatile U.S. stock market and a dynamic type of gel are also included in today’s show.
CARL AZUZ, CNN 10 ANCHOR: I’m Carl Azuz. Thank you for taking 10 for CNN 10.
We’re starting with the sweeping executive order by U.S. President Donald Trump. It reflects a very different governmental approach concerning the environment than the one by former President Barack Obama. He addressed what he characterized as a bipartisan challenge in 2013.
BARACK OBAMA, FORMER U.S. PRESIDENT: And this is my plan to meet it — a plan that cut carbon pollution, a plan to protect our country from the impacts of climate change and a plan to lead the world in a coordinated assault on a changing climate.
AZUZ: But the rules he put in place in order to do that are seen as a threat to the economy by President Trump. The order he signed yesterday did away with many of those rules.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: With today’s executive action, I am taking historic steps to lift the restrictions on American energy, to reverse government intrusion and to cancel job-killing regulations.
AZUZ: The White House says climate change is an issue that deserves attention, but that it can both protect the environment and provide more jobs. President Trump says his order will bring back jobs in the fossil fuel industry. But some environmental advocates say the new rules will endanger the environment and Americans health and that the order will harm clean energy jobs at the expense of allowing polluters to profit.
Some of the new rules like allowing leases for coal-mining on government land will take effect right away. Others open the door for more changes down the road.
At least $87 million have been set aside for the city of Flint, Michigan. It will go toward replacing Flint’s water pipes. The old ones are made of iron and lead and that contributed to a major problem that started in 2014 when to save money, the state of Michigan switched Flint’s water supply from Lake Huron to the Flint River. The river water was more corrosive and it wasn’t treated properly, so it ate into the old pipes and brought lead to the city’s residents, some of whom suffered health problems after this happened.
The water supply has since been switched back to Lake Huron and the $87 million settlement resolves just one of the civil lawsuits that have been filed against state and city officials. Some see it as a victory for the residents. Others say it’s not enough and they’re moving out, if they haven’t already.
DOMINIQUE ABSELL, HIGH SCHOOL SENIOR: Because I wanted to serve my country and —
SARA SIDNER, CNN CORRESPONDENT (voice-over): Dominique Absell is only 18, but his life-long dream for his future is dead.
ABSELL: That was my dream to get to the Army and now I can’t —
SIDNER: The city he loves is now a source of anxiety, partly because of the water crisis and what has happened to his body since.
ABSELL: I start like getting headaches and passing out, seizures.
SIDNER: His family says doctors can’t point exactly why he began blacking out, sometimes several times a week. It means medically he can’t qualify for the Army. He isn’t even allowed to drive. His blood tests show very low levels of lead, convincing his mother the contaminants in Flint’s water are to blame, but there’s no medical proof.
SIDNER (on camera): You said you don’t know if it’s the water. What do you think it is?
BEVERLY DAVIS, MOTHER: It has to be the water. He just stopped passing out because I just stopped cooking with the water.
SIDNER (voice-over): Absell is one of the children who will inherit the city of Flint, a city that is now a shell of its former self. RealtyTrac estimates one in 14 homes has been abandoned. For three consecutive years ending in 2013, Flint has had the most violent crimes per capita and about 40 percent of the residents live beneath the poverty line.
Then came the decision by government officials to save money by switching the water supply. It end up creating a major health hazard. The biggest potential harm — hitting Flint’s future generations, like 8-year-olds Julian (ph) and Nadia who play like children but speak in extremes about the water.
SIDNER (on camera): What’s wrong with the water?
NADIA BAYLOR, 8-YEAR-OLD: They have lead in it and they have poison in it because the pipes are dirty.
SIDNER: Do you know what lead does to people who drink lead?
SIDNER: At eight, they notice everything, like the number of times they’ve had to practice sheltering in place in case there’s a shooter, and the number of boarded up houses in their neighborhood. If it was up to them, their future won’t be in Flint.
And what about you? Why would you leave Flint?
BAYLOR: Because this water is poisonous and if I drink it, I go die. And I don’t want to die. Nobody want to die.
SIDNER (voice-over): From eight to 18, many of Flint’s children and their families worry the town is dying. The burly, soft hearted young man beside himself because he truly believes he has no future at all.
AZUZ: Yesterday, the Dow Jones Industrial Average, an index of 30 significant U.S. stocks rose 151 points and broke an eight-day losing streak. It’s been six years since it had one of those. The market did not lose a lot of value. It dropped a little relatively speaking each day.
But when a Republican plan to replace Obamacare fell through last week, investors got worried that President Trump could have a hard time getting his economic plans through Congress.
CHRISTINE ROMANS, CNN CORRESPONDENT: You have to have perspective when you look at stock prices. So, these eight days of losses have been the longest since 2011, but look at how far the market has come since the election. You’ve seen about 2,300 points on the Dow Jones Industrial Average since Election Day. The NASDAQ has done very, very well. The S&P 500 up about 9 percent.
So, all of this, again, the only story in the markets is Washington, Trump’s legislative agenda, a pro-growth legislative agenda, many on Wall Street are hoping for, and if that doesn’t look like it’s going to start rolling out quickly, then I think you have a stall here in the markets. That’s what we’ve seen over the last week or so.
AZUZ (voice-over): Ten-second trivia:
A fluid that changes its behavior when it’s stressed is described as what?
Laminar, Newtonian, Non-Newtonian or Transonic.
If a fluid is Non-Newtonian, it behaves differently under stress than it does under normal circumstances.
AZUZ: Two examples of Non-Newtonian fluids, according to Science Learning Hub, include cream, when you whip it, it gets thicker, and tomato sauce, when you shake or stir it, it gets runnier.
There’s a gel called D3O that also behaves in a Non-Newtonian way. Handle it slowly and it stretches out like taffy but hit it with a hammers and it seems to harden and absorb shock. It’s been around since 1999. Sprinter Usain Bolt has worn it in his shoes and its developers hope it can be used to protect military troops and football players.
SUBTITLE: The average impact speed of football player is 25mph. Forty percent of NFL player suffers from brain injuries like concussions.
But this orange good could change that.
FELICITY BOYCE, MATERIAL DEVELOPER: It’s quite widely known as the goo.
BOYCE: Messy, sticky.
ANTOLINI: It behaves in a different way.
BOYCE: So, this is a non-Newtonian material. So, that means that when you knead it slowly, it’s very fluid and can flow very slowly, like a liquid. But when a stress is applied to it, so something like an impact, the material instantly more viscous. So, yes, it’s more like a solid.
Obviously, you could just use this inside of protection by (INAUDIBLE). That’s the clever part, is incorporating this into something that can be used as a product.
SUBTITLE: D30 develops new protective material for athletes and the military. They can mould the goo into almost any shape.
ANTOLINI: In sports, one example is helmet for American football, as to try to reduce the risk of concussions.
We have developed this particular material. It’s extremely softer. It has to be very comfortable when the athletes that put the helmet on. It has to work very well in decelerating the back when bump against each other.
SUBTITLE: D30 claims it can reduce blunt impact force by 53 percent compared to materials like foam.
ANTOLINI: We can definitely contribute toward protecting people, so they experience less injuries.
BOYCE: It’s good to think that we could be doing our part to help.
AZUZ: To two truths about cats. One, most of them can swim if they’re feline like it. Two, most don’t like water.
And again, Ferrill (ph) isn’t your typical cat. This unusual animal apparently loves the water so much his family takes him to the beach. And it’s not just the way he seems to enjoy. Ferrill is at home on the sand, in the sun, he even seems willing to help when his companions come out of the water and get to work on construction.
See? He likes building sand cat-stles. I bet he’d like to go catboarding, maybe catoboarding (ph), play catoball (ph). You can take him fishing. For a cat who loves the beach, there are endless forms of ameowsment.
I’m Carl Azuz for CNN 10.
CNN 10 serves a growing audience interested in compact on-demand news broadcasts ideal for explanation seekers on the go or in the classroom. The show’s priority is to identify stories of international significance and then clearly describe why they’re making news, who is affected, and how the events fit into a complex, international society.
Thank you for using CNN 10

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CNN 10 – January 26, 2017

January 26, 2017

Israeli settlements in the West Bank, major changes to U.S. immigration policy, and a new high note for the Dow Jones Industrial Average: These are our main stories today on CNN 10. We’ll test your stock market knowledge, and we’ll explain how you can name a roach in the name of love.
CARL AZUZ, CNN 10 ANCHOR: Global news for a global audience. This is CNN 10.
Welcome, everyone. I’m Carl Azuz.
The Middle Eastern nation of Israel is planning to expand its settlements, its housing areas in the West Bank. We start today by explaining why that’s significant.
The West Bank is a disputed area of land in the ongoing conflict between Israelis and Palestinians. It used to be controlled by the nation of Jordan. But during a brief war, in 1967, Israel captured the land and claimed it as its own. Today, Israel says part of the land is historically theirs, part is politically theirs. It uses some of the land to provide security and it says it needs the space to give more housing to its people.
The Palestinians in the region say the land is theirs and that it was stolen. They’re hoping to have the West Bank as part of a future country of their own. And Palestinian officials say Israel’s decision to build new settlements there would threaten the region’s security and put an obstacle in front of any efforts to achieve peace between Palestinians and Israelis.
Timing may factor in the Israel’s decision. The U.S. has historically been an Israeli ally. But the Obama administration was strongly opposed to Israel’s construction of new settlements. Now, with the Trump administration in power, international experts expect that the U.S. will more supportive of Israel’s settlements.
Up next, major changes in the U.S. government’s immigration policy.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I just signed two executive orders that will save thousands of lives, millions of jobs, and billions and billions of dollars.
AZUZ: One of them that President Trump announced yesterday has to do with sanctuary cities. These are cities that shelter people who are in the U.S. illegally. For example, police forces in these cities might not help U.S. government officials find and deport undocumented immigrants, unless they’ve committed certain crimes. President Trump wants to punish these cities for not cooperating with the federal government and he’d do that by taking away certain funds they get from the government.
“The Wall Street Journal” reports that the president’s ability to this is limited without congressional approval, but that he could slow down the process of giving these cities certain grants.
Critics of the executive actions say President Trump doesn’t have the constitutional authority to carry it out and that pressuring cities to deport illegal immigrants could tear families apart.
The other actions the president announced yesterday: add thousands of U.S. border patrol agents and thousands of other government officials to deport undocumented immigrants. This would require congressional approval to pay for.
And something the president repeatedly promised to do while campaigning — build a physical border wall between the U.S. and Mexico. President Trump says this will help the U.S. get back control of its borders and that the wall would help Mexico as well by discouraging illegal immigration from countries south of Mexico.
Mr. Trump plans to use U.S. government funds to pay for the construction and then get Mexico to pay America back. That’s something Mexican leaders have said they won’t do and critics say the wall would be a monumental waste of U.S. taxpayer money.
JASON CARROLL, CNN CORRESPONDENT: What would it take to build a wall on the border between the United States and Mexico?
You’re talking about an area 1,954 miles, stretching across California, Arizona, New Mexico and right here in Texas — just about 100 yards away from Mexico.
We spoke to civil engineers, architects and academics. They all say the wall can be built. It can be done. The question is, how?
The first thing one has to do is, before you go up, you have to go down and build a foundation. This will help provide support for the wall. In order to prevent people from tunneling under it, it should be at least five feet deep.
The second thing one must consider is what do you use to build the wall? What materials do you go after? Well, how about cinderblock?
The upside is it’s strong; it’s secure; it’s readily available. The downside is, it’s labor intensive to have to stack every single brick in order to build the wall. So, our experts say that option doesn’t work.
There is another option. Using poured concrete on site. That’s what they did when they built the Hoover Dam. The downside to that is when you poor concrete in warmer climates like along many of these border states, experts say what you could end up with is a weaker wall, because the concrete might not dry correctly, meaning a wall that could end up crumbling.
So what could be the answer here?
The experts that we spoke to say the way to go is pre-casted cement wall panels. Those panels will be lined side by side, sort of like what you might see on a highway. Each panel would be about 20 feet high. Again, five feet below ground. About ten feet wide and eight inches thick.
Again, that wall would be stretching some 2,000 miles, and our expert says it would require 339 million cubic feet of concrete. And that’s just for the panels. You’re also going to need reinforced steel. At least 5 billion pounds.
So what about the estimated cost?
Because it hasn’t been done before, let’s use those highway panels as an example. They cost about $40 a square foot. That would end up costing about $10.5 billion. Sounds like a lot of money, is a lot of money.
But again, remember, Donald Trump says the U.S. government wouldn’t end up footing the bill on this one. It would be Mexico.
And what about the timing on all of this? How long would it take to build? According to our expert, if you’re ambitious, you could get it done within a presidential term, four years.
Jason Carroll, CNN, McAllen, Texas.
AZUZ (voice-over): Ten-second trivia:
What do Apple, Home Depot, McDonald’s and Walt Disney have in common? Are they all based in California, part of the Dow Jones Industrial Average, part of the NASDAQ, or none of these?
All four of these companies are included in the Dow, an average of 30 major U.S. stocks.
AZUZ: The Dow is one indicator of the health of the U.S. economy. It’s not the only one. But a rising stock market is usually seen as a good economic sign. And yesterday, the Dow hit a high note: 20,000, for the first time ever.
This number shows that the value of stocks in the average increased. The fact that it’s climbed this high shows that stock market investors are optimistic about the direction the economy is going in.
Experts credit the work of two U.S. leaders for the climb.
One, President Trump. Analysts believe his plans to cut taxes, increased spending on roads and bridges and reduced regulations on business could help increase corporate profits and help the American economy growth faster.
Two, former President Obama. Analysts believe the economy he left behind, which saw years of job growth and a decreasing unemployment rate also contributed to the Dow’s rise, since the great recession brought it down in early 2009. The recovery from that was considered to be slow. But the economy’s health has noticeably improved.
REPORTER: It was mid-November 1972. This hit was number one on the Billboard charts. Richard Nixon had just won reelection and on Wall Street, traders marked Dow 1,000, with IBM, the growth stock of the day, leading the charge. It was the first truly mega Wall Street milestone.
It took the Dow 27 years to hit 10,000, in March 1999.
REPORTER: Cher’s hit “Believe” was topping the charts. Stocks were truly a force of nature back then. And at the end NYSE, traders went nuts.
STEPHEN GUILFOYLE, PRESIDENT, SARGE986: That was kind of a big deal. At that time, there were still a lot of people down here. We probably still have between us and the Amex, maybe 7,500 people. So, at that time, yes, it was confetti in the air, with everybody wearing baseball caps.
REPORTER: A little event called the global financial crisis leveled stocks in 2008, sending the Dow plunging below 7,000. But those with the stomach for rest were rewarded when stocks roared back.
President Trump’s victory in November sparked a powerful rally, bringing the Dow less than a point away from 20,000. Stocks turned choppy. The milestone remained elusive.
Some may play down these benchmarks, but soaring stocks can boost consumer confidence, and for traders on the New York Stock Exchange, big round numbers remain magical.
AZUZ: Nothing says “I love you” like naming a roach. At New York City’s Bronx Zoo, love is in the air as Valentine’s Day nears. What they’re allowing people to do is to name a Madagascar hissing cockroach after a loved one, or as they put it, a not-so loved one.
Since the annual event started in 2011, more than 11,000 roaches had been named. For 10 bucks, you get a certificate. For 50, you can get that, some chocolates and a flash roach doll. Of course, the lucky lady or gentleman might hate that approach. They might respond with reproach, or they might broach the subject of a breakup.
On the other leg, if they have their antennae out for something unusual, and this doesn’t make them hiss-terical or encroach on any other plans, maybe they’ll find it truly roachmantic.
I’m Carl Azuz.
CNN 10 serves a growing audience interested in compact on-demand news broadcasts ideal for explanation seekers on the go or in the classroom. The show’s priority is to identify stories of international significance and then clearly describe why they’re making news, who is affected, and how the events fit into a complex, international society.
Thank you for using CNN 10

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