CLOs

The Wall Street Journal (10 April, Gladstone) reports that WW International, the health and wellness company known as WeightWatchers, is preparing to file for Chapter 11 bankruptcy in the coming months as part of a strategy to cede control of the business to its creditors. The company, which is still negotiating with a key group of lenders and bondholders, faces financial disruption from the rise of Ozempic and other weight-loss drugs. While WeightWatchers would prefer to restructure its balance sheet out of court, a chapter 11 process is more realistic because the company is publicly traded.

From "WeightWatchers Prepares for Bankruptcy"
Abstract News © 2025 SmithBucklin

Regulators in Beijing have unveiled a probe of DuPont, reports the Wall Street Journal (11 April, Areddy), alleging unspecified monopolistic behavior. Chinese authorities packaged news of their action with an announcement of new tariffs on US products and controls on exports to the United States. The probe is a reminder of how US companies with operations in China occupy a precarious position in a trade war. DuPont also faced trouble from Chinese authorities during the first Trump administration’s trade battle.

From "DuPont Is Again in China’s Firing Line"
Abstract News © 2025 SmithBucklin

US Labor Department data show that US consumer prices rose just 2.4 percent in March year over year, reports the Associated Press (10 April, Rugaber), down from 2.8 percent in February and the lowest inflation figure since September, Excluding the volatile food and energy categories, core prices rose 2.8 percent versus 3.1 percent in February, the smallest increase in nearly four years. The report shows inflation is mostly cooling for now. However, US tariffs on China and other countries are expected to push prices up.

From "US Inflation Fell Last Month as Gas Prices Dropped Sharply"
Abstract News © 2025 SmithBucklin

The euro surged to a more than three-year high against the US dollar during Friday’s Asian session, reports Euronews (11 April, Teng). Other G10 currencies also strengthened against the dollar, particularly traditional haven currencies such as the Swiss franc and the Japanese yen. By 4:40 a.m. CEST, the USD/CHF pair tumbled below 0.82—a level not seen since January 2015, when the Swiss National Bank abandoned its 1.20 peg to the euro. Meanwhile, the USD/JPY pair plunged to just above 143, its lowest level since September 2024. The US Dollar Index, which measures the currency against a basket of foreign currencies, also dropped below 100, its lowest reading since July 2023.

From "Euro Rises to Three-year High"
Abstract News © 2025 SmithBucklin

Prada struck a US$1.38 billion deal to buy smaller rival Versace from Capri Holdings on Thursday in a move that unites two of the biggest names in Italian fashion, reports Reuters (10 April, Anzolin). Prada is seeking to expand, having defied a slowdown in luxury demand, while Versace has been operating at a loss in the last few quarters. The deal, which comes amid uncertainty over the impact of US tariffs, is a long-term project for the Italian family-controlled group and is aimed mainly at expanding revenues rather than cost-savings, Prada Chief Executive Andrea Guerra told analysts in a conference call. It follows the announcement on March 13 that Donatella Versace was stepping down as the chief creative officer of the brand founded by her late brother Gianni in 1978. The price Prada has agreed to pay is a big discount to the roughly US$2.15 billion including debt that Capri, then known as Michael Kors, paid for Versace in 2018 when it was sold by the Versace family and Blackstone.

From "Prada Buys Versace to Create Italian Fashion Powerhouse"
Abstract News © 2025 SmithBucklin

OpenAI has countersued Elon Musk, reports CNN (10 April), accusing him of harassment and petitioning a federal judge to stop him from any "further unlawful and unfair action" against it. Musk and Sam Altman co-founded OpenAI in 2015, but Musk exited before the company became the success it is today. Musk has since created xAI and has tried to prevent the ChatGPT maker from transitioning to a for-profit model. For OpenAI to secure the entire US$40 billion of its current fundraising round, it must complete its transition by year's end.

From "Open AI Countersues Musk"
Abstract News © 2025 SmithBucklin

Banco Santander is exploring the potential sale of its US$8 billion stake in its local unit in Poland, reports Bloomberg (11 April, Martewicz). Santander Bank Polska, the country’s third-largest bank with assets exceeding US$78 billion, could be an attractive target for rivals already operating in the country or for those planning to enter the EU’s sixth largest economy. Erste Group Bank, UniCredit, OTP Bank, and Credit Agricole have been floated among potential suitors, while large local lenders may also be interested. It would be the biggest banking deal in Poland in almost a decade. While banks in the country had previously been weighed down by a protracted legal limbo around risky foreign-currency mortgages, that issue has largely faded. The last two years have seen record earnings, with banking valuations more than doubling, driven by elevated central bank interest rates.

From "US$8 Billion Bank Deal Sets Polish M&A Market Abuzz"
Abstract News © 2025 SmithBucklin

Procter & Gamble was the unidentified target of an informal antitrust probe by European Union watchdogs, reports Bloomberg (10 April, Hughes-Morgon, Stolton). Regulators suspect the US firm may have illegally segmented product sales in the bloc to prevent products moving freely from one country to another at lower prices, according to insiders. The EU’s antitrust arm revealed the probe in March alongside an announcement of raids on companies in the soft-drinks industry, which targeted Coca-Cola brands. The move is the latest sign that the Brussels-based executive is ramping up its scrutiny of the operations of some of the world’s most powerful consumer brands. In May 2024, Mondelez International Inc. was fined €337.5 million after it was found to have illegally thwarted cross-border sales of its chocolate, cookies, and coffee.

From "P&G Targeted by EU Antitrust Watchdog Alongside Coca-Cola Raids"
Abstract News © 2025 SmithBucklin

US lawmakers are probing Ivy League schools’ tuition pricing, reports The Hill (10 April, Cochran). Republicans sent letters to eight Ivy League institutions over concerns of collusion to raise tuition prices. The letter was sent by House and Senate lawmakers to Brown University, Columbia University, Cornell University, Dartmouth College, Harvard University, Princeton University, University of Pennsylvania, and Yale University. The lawmakers expressed concern about alleged collusion and potential violations of antitrust laws to keep college prices up. “We are particularly concerned that Ivy League member institutions appear to collectively raise tuition prices while engaging in price discrimination by offering selective financial aid packages to maximize profit,” the letter reads. The lawmakers point to examples such as requiring students to stay on campus during their first year and get a meal plan; a lawsuit accusing the College Board of working with institutions to reduce financial aid availability for students; and the Council of Ivy League Presidents holding meetings about admission practices.

From "Lawmakers Probe Ivy League Schools for Alleged Tuition Collusion"
Abstract News © 2025 SmithBucklin

The UK Competition and Markets Authority (CMA) said on Thursday it might accept the measures offered by oilfield services firm SLB and smaller rival ChampionX to address antitrust concerns regarding the two companies' proposed US$8 billion merger, reports Reuters (10 April, Koilparambil). The CMA last month said SLB's deal for ChampionX could lead to substantial lessening of competition in the UK, unless the firms suggested remedial measures. SLB offered to divest its production chemical technology business, while ChampionX offered to divest its unit, US Synthetic Corp, the CMA said. The companies also offered to license and give access to certain technologies, such as quartz sensors and transducers, that CMA considered could hurt competition. The deal is also under antitrust review in Norway, while SLB is legally permitted to close the transaction in the United States.

From "UK Watchdog Says It May Accept Remedial Measures Offered by SLB, ChampionX"
Abstract News © 2025 SmithBucklin

Block will pay US$40 million to settle allegations from the New York State Department of Financial Services of failures to maintain effective anti-money-laundering programs, reports the Wall Street Journal (11 April, Hart). The agency said Thursday that its investigation into the parent company of Cash App and Square additionally found its lax practices allowed for largely anonymous and high-risk bitcoin transactions to proceed without proper scrutiny. Block’s rapid growth between 2019 and 2020 also contributed to what the department called a severe transaction alert backlog that went unaddressed for a significant period of time. The agency added that the company failed to meet other regulatory requirements, such as not monitoring transactions in a timely manner or completing proper due diligence.

From "Block to Pay US$40 Million to Settle Probe into Anti-money-laundering Efforts"
Abstract News © 2025 SmithBucklin

China-founded online fast-fashion retailer Shein has secured approval from the UK Financial Conduct Authority (FCA) for its planned initial public offering (IPO) in London, reports Reuters (11 April, Zhu, Reid). Shein, which was valued at US$66 billion in its last fundraising round in 2023, will also need to secure approvals from Chinese regulators, notably the China Securities Regulatory Commission (CSRC), for the London float, according to sources. The company in recent weeks informed the CSRC of the FCA's approval but has yet to receive a green light from the regulator. Shein, whose clothes are produced at thousands of factories mostly in China, last year sought Beijing's approval to go public in London, despite the company having moved its headquarters from Nanjing, China, to Singapore in 2022. Shein's filing with the CSRC makes it subject to Beijing's new listing rules for Chinese firms going public offshore, sources have said. Shein does not own or operate any manufacturing facilities, and instead sources its products from around 5,800 third-party contract manufacturers mainly in China, subjecting it to the CSRC's listing rules, a separate source has said. Under the CSRC's rules, a host of authorities such as the National Development and Reform Commission, which supervises foreign holdings in local firms, the cybersecurity regulator and others may get involved in approving offshore IPO applications.

From "Shein Gains UK Approval for London IPO, Awaits China Nod"
Abstract News © 2025 SmithBucklin

The UK government is considering nationalization of British Steel, reports BBC News (9 April, Mason, Miller), as fears grow among ministers that only days remain to secure raw materials for the company's blast furnaces in Scunthorpe. Chancellor Rachel Reeves has sought to reassure workers at the Lincolnshire plant that the government would consider nationalization if necessary. Reeves spoke to trade unions over the weekend to explain the government's outlook on the steelworks' future. It is understood she told them she was acutely aware of the steel industry's strategic importance to the UK. US President Donald Trump has levied a 25 percent tariff on US imports of steel. British Steel has said its two blast furnaces in Scunthorpe are "no longer financially sustainable" and there are fears that without government support 2,700 jobs could be lost. The firm has been owned by the Chinese company Jingye since 2020. Jingye says it has invested more than £1.2 billion into British Steel to maintain operations and claims it suffered financial losses of around £700,000 a day.

From "Government Considers Nationalizing British Steel"
Abstract News © 2025 SmithBucklin

EU member states on Wednesday approved 25 percent tariffs on a wide range of US products, including almonds, orange juice, poultry, soybeans, steel and aluminum, tobacco, and yachts, reports Euronews (9 April, Corlin). These are Europe's first retaliatory measures in a nascent trade war waged by US President Donald Trump against his trading partners across the globe. The list of products was the subject of intense lobbying by member states wary of US countermeasures hitting their industries. France, Ireland, and Italy, for example, secured the removal of Bourbon whiskey from the list of targeted products, after Trump threatened that its inclusion would trigger counter-imposition of a 200 percent tariff on European alcohol. The volume of US imports affected by EU tariffs will be slightly less than the exports hit by US customs duties. About €22 billion per year of US products should be hit by the EU, while US tariffs that came into force on March 12 on EU exports of aluminum and steel are worth €26 billion each year. The European Commission is working on a second package of retaliation that will be presented early next week, it said Tuesday.

From "EU Member States Agree to First Wave of Retaliatory Tariffs"
Abstract News © 2025 SmithBucklin

China's Commerce Ministry imposed restrictions on 18 US firms on Wednesday, reports Reuters (9 April Baptista). Beijing added 12 US companies to a control list that prohibits exports of dual-use items and another six to its "unreliable entities" list, which allows Beijing to take punitive actions against foreign entities, according to ministry statements. China also announced it would raise its levies on US goods by 50 percent, adding to the 34 percent increase previously announced and due to be implemented on Thursday, to bring the total additional duties on US imports to 84 percent. The most recent round of trade restrictions, also effective Thursday, are mainly targeted at US firms that supply the Pentagon and federal government agencies, adding to the 60 or so US companies Beijing has already punished over Trump's tariffs on China, the first of which took effect in February. In the case of the unreliable entities list, Beijing said the six US firms were added over arms sales or military cooperation with Taiwan and would be banned from China-related import and export activities, as well as investing in the country.

From "China Slaps Restrictions on 18 US Firms"
Abstract News © 2025 SmithBucklin

South Africa’s rand fell to its weakest on record against the US dollar on Wednesday, reports Bloomberg (9 April, Hlakudi), surpassing a level it last hit in June 2023 as investors reacted to the global trade war and fragile local politics. The currency reached 19.9328 per dollar in Johannesburg. The rand is among the most liquid currencies in developing markets and is often used as a proxy for risk sentiment.

From "South Africa’s Rand Drops to Record Low Against Dollar"
Abstract News © 2025 SmithBucklin

Volkswagen Group's sales of battery-electric vehicles (EVs) more than doubled in Europe in the first quarter but fell by over a third in China, reports Reuters (9 April, Waldersee, Orusov). Orders for Volkswagen vehicles, both electric and combustion engine, rose 29 percent in Western Europe compared to last year. Battery-EV sales on the continent have risen substantially so far this year even as total car sales have fallen, data from the European Automobile Manufacturers' Association has shown, as new EU emissions targets and the launch of new models drive demand after years of slow growth. US sales rose 6.2 percent, in a possible sign of customers front-loading purchases ahead of the implementation of 25 percent tariffs on car imports. Around two-thirds of the VW brand's sales are cars made in Mexico, and all the group's Porsche, Audi, and Lamborghini vehicles are imported from Europe, leaving it highly exposed to the unfolding trade war.

From "Volkswagen's EV Sales Rise in Europe, Plunge in China"
Abstract News © 2025 SmithBucklin

Prada’s talks to acquire Versace from fashion conglomerate Capri Holdings are at risk of collapse, reports the Wall Street Journal (9 April, Dummett, Thomas). Prada has a tentative deal to acquire Versace from Capri for roughly US$1.4 billion, but Prada’s namesake family still has to sign off on the agreement, the people added. In 2023, Capri had agreed to sell itself to Coach owner Tapestry for US$8.5 billion. That deal died the next year, however, after the US Federal Trade Commission said the tie-up would hurt competition in the market for affordable luxury handbags. The scuttled Tapestry deal along with Versace’s poor performance had heaped pressure on Capri to sell the struggling business. Capri and other purveyors of luxury brands are grappling with weak demand as shoppers rein in spending on pricey products.

From "Prada Deal for Versace at Risk of Collapsing"
Abstract News © 2025 SmithBucklin

Google will change how it offers its Maps and Automotive Services features to car manufacturers in Europe to appease German regulators, reports the Wall Street Journal (9 April, Hancock). The company said it would license the services contained in its Google Automotive Services business as separate stand-alone versions to let car makers with in-vehicle infotainment platforms curate services from rival providers instead of choosing a package from Google, according to the Bundeskartellamt regulator. The regulator added that Google offered to remove contractual terms that incentivizes customers to use its services over competing products such as ensuring that Google’s products are set as default on those platforms. Additionally, Google said it would remove provisions that prevent people using both Google’s map services and services from competing providers. The company is settling two cases with the German regulator that were opened under the country’s own digital antitrust rules that came into effect in 2021. That law classes companies such as Google as entities of significance due to their dominance in certain parts of the digital economy and obliges them to change how they operate to level the playing field online.

From "Google Offers to Tweak Automotive Services, Maps Contracts to Appease German Regulator"
Abstract News © 2025 SmithBucklin

Ancora said on Wednesday it is withdrawing its nominations for director candidates on the board of US Steel, reports Reuters (9 April, Jaiswal), after US President Trump ordered a fresh review of Japan's Nippon Steel's (5401) bid for the domestic steelmaker. This comes a day after US Steel said Ancora Holdings, which owns less than one percent stake in the company, claims to be in support of the transaction following its previous attempts to undermine the planned merger. The investor has said it had no intention of standing in the way of the Nippon deal. Ancora said on Wednesday it was suspending its campaign at US Steel, as it suspects the companies had taken steps to mitigate national security concerns. Trump on Monday directed the Committee on Foreign Investment in the United States, which scrutinizes foreign investments for national security risks, to review Nippon's bid for US Steel to help determine if "further action" was appropriate, raising hopes of the deal going through.

From "Activist Ancora Drops US Steel Campaign"
Abstract News © 2025 SmithBucklin