Quartz Daily Brief—Wells Fargo’s streak, Argentina’s ask, Big Tobacco’s merger, New York’s weed fail
Good morning, Quartz readers!
What to watch for today
Investors try to regain their footing. Spooked yesterday by teetering Portuguese financial groups, markets are experiencing a tentative rally. Is Banco Espirito Santo—which detailed its exposure to its opaque shareholding company—an isolated case or the beginning of a new round of “contagion” to sweep through the euro zone?
The EU ups the ante in Ukraine. Expanded EU sanctions aimed at pro-Russian separatists will go into effect by midday if no member of the 28-country bloc objects. Meanwhile, militants say they will evacuate “tens of thousands” of Donestsk residents (paywall) to Russia as Ukrainian forces encircle the restive city.
Wells Fargo struggles to keep its earnings streak alive. The US banking giant is expected to break its string of 17 consecutive quarters of rising profit when it reports its latest results. Like its peers, the bank is struggling with costs from government investigations and declines in mortgage lending and securities trading.
Argentina begs China and Russia for cash. Argentine president Cristina Fernandez will court Chinese and Russian leaders at the upcoming BRICS summit of emerging market economies to help the country avoid default on a bond bill due by month’s end.
While you were sleeping
A Big Tobacco tie-up. Reynolds American and Lorillard, the second- and third-biggest US tobacco companies, are close to announcing a long-discussed $56 billion merger (paywall). Britain’s Imperial Tobacco is in talks to buy certain brands and assets from the combined company, perhaps including Kool and Salem, to satisfy anti-trust requirements.
Obama vowed to facilitate an Israel-Hamas ceasefire. The US president told Israeli prime minister Benjamin Netanyahu that he would help negotiate a return to a 2012 peace deal, as Israel readies 20,000 soldiers for a ground invasion of the Gaza strip. Two rockets from Lebanon were also fired into Israel.
John Kerry arrived in Afghanistan. The US secretary of state is in Kabul to meet presidential candidates Ashraf Ghani Ahmadzai, who won the initial vote count, and Abdullah Abdullah, who claims the results were tainted by fraud. Kerry will threaten to cut off aid if either man resorts to violence or “extra-constitutional” actions.
Infosys reported mega profits. The Indian outsourcing and IT giant reported a 21.6% increase in first-quarter net profit, and reiterated its revenue growth forecast of 7-9% for the year to March 2015. New CEO Vishal Sikka still has to stem a massive employee exodus as he expands into higher-margin businesses.
Regulators probed Bank of China… China’s central bank is investigating whether the state-owned Bank of China offered a money laundering service that helped ultra-wealthy citizens move their cash overseas, after an investigative report by state-owned broadcaster CCTV.
…And Chinese state-owned media blasted the iPhone. CCTV is having a busy week—it also said Apple’s location-tracking feature was a “national security concern“ (paywall), the latest in a string of Chinese moves against US technology companies.
Child labor issues dogged Samsung. Children aged 14 and 15 are working in factories that make components for Samsung devices (paywall), despite the company’s efforts to only hire staff who are at least 18. Some of the children used fake documents to pick up summer jobs during school holidays.
Quartz obsession interlude
Jenni Avins dons 30 pairs of women’s white jeans, in search of the perfect one. ”Just think of the women who’ve famously worn—and wear—white jeans. Stateside, Jackie Kennedy played with little John Jr. on the beach in hers; Ali MacGraw wore them boating in the iconic 1970 film Love Story; American Vogue fashion director Tonne Goodman wears them daily—a chic, fuss-free foil to the high fashion pomp that surrounds her. French Vogue editor-in-chief Emmanuelle Alt is similarly devoted, lending her insouciant sex appeal to the pants with sleek heels and tousled hair. See also: St. Tropez whites, suntanned feet in driving loafers, Breton striped shirts, fashion photographers, and Ines de la Fressange. You get the idea.” Read more here.
Matters of debate
Israel is doing an exemplary job sparing Palestinian lives. The IDF is warning Gaza citizens before air strikes in specific locations.
Forget the underdog, support Germany. They do football better than anyone else, and why wouldn’t you celebrate that?
Take it easy, Carlos Slim. Yes, the telecom mogul volunteered to break up America Movil, but that doesn’t mean the move will benefit Mexico.
Terrible job on that medical marijuana law, New York. The state’s law bans patients from actually smoking the drug, for starters.
Surprising discoveries
A scientific journal retracted 60 articles. The awesomely-named Journal of Vibration and Control discovered an illicit “peer-review ring.”
Japanese news is full of fake people. Man-on-the-street interviews are done with actors “because the public is shy.”
Aerosmith made more money from Guitar Hero than from any of their albums. The money is always in the merchandise.
Snacking properly can prevent jetlag. Controlling insulin levels can induce or fend off sleepiness.
Mike Tyson and Luis Suarez feel each others’ pain. The former boxing champ with a biting problem is defending the Uruguay striker.
Our best wishes for a productive day. Please send any news, comments, peer-review scandals, and Guitar Hero high scores to [email protected]. You can follow us on Twitter here for updates throughout the day.