NYT : Square Raises $150 Million at a $6 Billion Valuation

It takes money to make money, or so the saying goes. And Square, the e-commerce start-up, wants to make a lot more money.

The company recently closed a venture financing round of $150 million, according to a person briefed on the investment, who spoke on condition of anonymity because he was not authorized to speak publicly. The round values Square at $6 billion, the person said.

This latest round, which was led by a new investor, the Government of Singapore Investment Corporation, places Square in the company of Internet start-ups like Pinterest and Spotify, which also have valuations around $5 billion to $6 billion. Some previous investors, including Goldman Sachs and Rizvi Traverse Management, also participated in the round, according to this person.

Last month, a filing disclosed that Square had planned to raise at least $100 million in venture capital, though at that time the round had not closed.

A Square spokesman confirmed the company had closed a round of financing, though he did not comment on the valuation, amount raised or participating investors.

“We stand for independent businesses and will continue to invest aggressively to empower them with tools that help them grow,” the spokesman said.

The move comes amid a time of great tumult in the payments industry. Apple, the consumer technology giant, introduced its new commerce product, Apple Pay, along with its new smartphones, the iPhone 6 and 6 Plus. Ebay announced that it wouldspin off PayPal, the company’s big payments business. And in August, Amazon introduced its own version of a credit card reader, which has a low processing fee rate to lure new merchants.

These companies and their assorted products compete with Square in some form or another. And compared to Square, all of them have far more access to money to back their efforts.

Square, a six-year-old start-up, spent much of its early years giving away free credit card readers to small and medium-sized businesses, asking for 2.75 percent of each transaction using the reader. The small dongle, square in shape, became especially popular with merchants who had conducted mostly all-cash operations.

Recently, however, Square has tried to diversify its revenue streams beyond its core payments business. In May, the company introduced Square Capital, a cash advance program for small businesses. Square acquired and continues to run Caviar, a start-up that provides food delivery for restaurants that do not otherwise offer it. And Square offers an appointment booking service to small businesses for a monthly fee.

Still, Square’s road ahead is not easy. PayPal has increasingly stepped up its marketing efforts on PayPal Here, its own credit card reader, as well as PayPal Working Capital, the company’s cash advance program. And Amazon plans to keep its credit card processing fees lower than Square and other competitors for the long-term.

Square will introduce a new card reader that is compatible with E.M.V. microchip technology, a more secure form of processing credit cards that is set to become the standard. It also plans to accept Apple Pay payments, which could increase transaction volume if the new form of payment takes off.

NYT : Hackers’ Attack Cracked 10 Financial Firms in Major Assault

The huge cyberattack on JPMorgan Chase that touched more than 83 million households and businesses was one of the most serious computer intrusions into an American corporation. But it could have been much worse.

Questions over who the hackers are and the approach of their attack concern government and industry officials. Also troubling is that about nine other financial institutions — a number that has not been previously reported — were also infiltrated by the same group of overseas hackers, according to people briefed on the matter. The hackers are thought to be operating from Russia and appear to have at least loose connections with officials of the Russian government, the people briefed on the matter said.

It is unclear whether the other intrusions, at banks and brokerage firms, were as deep as the one that JPMorgan disclosed on Thursday. The identities of the other institutions could not be immediately learned.

The breadth of the attacks — and the lack of clarity about whether it was an effort to steal from accounts or to demonstrate that the hackers could penetrate even the best-protected American financial institutions — has left Washington intelligence officials and policy makers far more concerned than they have let on publicly. Some American officials speculate that the breach was intended to send a message to Wall Street and the United States about the vulnerability of the digital network of one of the world’s most important banking institutions.

“It could be in retaliation for the sanctions” placed on Russia, one senior official briefed on the intelligence said. “But it could be mixed motives — to steal if they can, or to sell whatever information they could glean.”

The JPMorgan hackers burrowed into the digital network of the bank and went down a path that gave them access to information about the names, addresses, phone numbers and email addresses of account holders. They never made it into where the more critical financial information and personal information are stored.

The bank’s security team, which first discovered the attack in late July, managed to block the hackers before they could compromise the most sensitive information about tens of millions of JPMorgan customers, said several security experts and others briefed on the matter. The attack was not completely halted until the middle of August and it was only in recent days that the bank began to tally its full extent.

American officials say they have been working with JPMorgan since the intrusion was detected, chiefly through the Treasury, the Secret Service and intelligence agencies that seek to find the source of the attacks. But that is slow work and one official cautioned against leaping to conclusions about the identities or the motives of the attackers.

“We’ve been wrong before,” he said.

JPMorgan, the nation’s largest bank, has begun contacting customers and making clear that no money was taken from any accounts. There has been no evidence of any fraudulent use of customer information. Most of the household accounts belong to United States residents. The hackers ended up with the addresses, email addresses and phone numbers of everyone who logged into JPMorgan’s websites and mobile applications in the recent past.

Still, the recent attacks on the financial firms raise the possibility that the banks may not be up to the job of defending themselves. The attacks will also stoke questions about regulations governing when companies must inform regulators and their customers about a breach.

“It was a huge surprise that they were able to compromise a huge bank like JPMorgan,” said Al Pascual, a security analyst with Javelin Strategy and Research. “It scared the pants off many people.”

Several financial regulators have warned that a coordinated attack on the banking system could set off another financial crisis.

On Friday, George Jepsen, the Connecticut attorney general, opened an investigation into the breach at JPMorgan, while Benjamin M. Lawsky, New York’s top financial regulator, began calling bank officials to warn them to take the threat more seriously.

“There needs to be far more urgency,” Mr. Lawsky said in an interview.

JPMorgan has also been working with law enforcement, including the F.B.I., since shortly after detecting the intrusion, which affected about 90 of the bank’s computer servers. The bank said it believed that its systems were now secure and that the threat of the hackers’ returning was over.

“To date, we have not seen any unusual fraud activity related to this incident,” said Kristin Lemkau, a bank spokeswoman. “We have identified and closed the known access paths. We have no evidence that the attackers are still in our system. We have apologized to our customers.”

But much remains unanswered about the intrusion, including just who the hackers are, which other financial institutions were hit and why the hackers went down a path inside JPMorgan’s computer system that contained troves of customer information, but not financial data.

The intrusion also highlights a possible gap in United States regulations. Banks are not required to report data breaches and online intrusions unless the incident is deemed to have resulted in a financial loss to customers. Breach notification laws differ by state, but most laws require only that companies disclose a breach if customer names were stolen in conjunction with other information like a credit card, Social Security number or driver’s license number.

In some states, companies can wait up to a month to inform customers of a breach. Other state laws are more vague.

In California, for example, banks, companies and large organizations must inform the state attorney general’s office and consumers about a breach without unreasonable delay — a rule that some companies interpret liberally, officials say. This year, Kamala Harris, the California attorney general, sued the Kaiser Foundation Health Plan, saying that it took more than a year for the foundation to disclose to some employees that their personal information may have been compromised.

For years, there have been attempts in Congress to force companies to inform customers more quickly when their information has been compromised, but recent bills have failed to muster enough support. One bill, sponsored by Senator Edward J. Markey, Democrat of Massachusetts, would create a clearinghouse where companies could exchange information about attacks.

United States bank executives say privately that they already share intelligence informally about attacks, which are occurring frequently on their systems.

This summer, Treasury Secretary Jacob J. Lew called on Congress to pass legislation that he said would bolster the information sharing process.

“As it stands, our laws do not do enough to foster information sharing and defend the public from digital threats,” Mr. Lew said.

That the hackers were apparently able to move around JPMorgan’s computer system undetected for several weeks is perhaps the most troubling aspect of the recent breach, officials at other large banks say.

The hackers were able to attain high administrative privileges within JPMorgan’s network, rooting more than 90 servers and rummaging through customer databases with detailed information for 76 million households and seven million small-business online accounts.

As they looked around, according to one person with knowledge of the breach, the hackers gleaned some critical details of customers’ accounts. With these, the hackers were able to determine whether the accounts fell within the private bank or in other business categories like mortgages.

Some people briefed on the results of the attack contend that it was only a matter of time before attackers could have gained access to customer funds and critical personal data.

Weeks into the attack, in mid-July, unusual behavior on the bank’s network was spotted, and the attackers were stopped before they had a chance to pull any customer data back to their servers abroad.

But they did make off with one file which has unnerved executives. That file contained a list of every application and program deployed on standard JPMorgan computers that hackers can crosscheck with known, or new, vulnerabilities in each system in a search for a backdoor entry.

Swapping out those programs is costly and time-consuming, people say, because the bank would have to renegotiate licensing deals with technology suppliers and swap out programs and applications for hundreds of thousands of bank employees.

As one former employee explained: “It’s as if they stole the schematics to the Capitol — they can’t just switch out every single door and window pane overnight.”

The attack came after a recent turnover within JPMorgan’s information security group.

A number of staff members followed Frank Bisignano, JPMorgan’s former co-chief operating officer, to First Data last year. This year, First Data agreed to pay JPMorgan over accusations that by wooing other executives to the payment processor, Mr. Bisignano had violated the terms of his former employment contract.

By then, First Data had already hired JPMorgan’s chief information officer, Guy Chiarello; its cybersecurity czar, Anthony Belfiore; its head of compliance, Cindy Armine; and Tom Higgins, JPMorgan’s head of operation control.

Anish Bhimani, the bank’s chief information risk officer, remained. Mr. Bhimani, who is well respected in the cybersecurity industry, is a co-author of a 1996 book on cybersecurity, “Internet Security for Business.”

Ms. Lemkau said the bank was pleased with its current cybersecurity personnel. “This is the highest-quality team we have ever had,” she said.

Last December, JPMorgan hired Dana Deasy as chief information officer from BP. Greg Rattray, a former Air Force lieutenant colonel who specialized in cyberdefense was named the head of information security in June.

Challenges quickly followed. That same month, hackers found a way into the bank’s systems.

>>> What to look at today - 6th of October 2014

US Market Closed Higher on Friday. In a surprise outcome, the pro-business Brazil candidate Neves stormed ahead
of environmentalist Silva and will challenge incumbent Rousseff in a runoff on Oct 26th. In today's first round, Rousseff received just over 40% of the vote, followed by Neves at 35% and Silva at about 20%. Most recent polls have suggested that Rousseff is still a favorite to win in the next round...World Bank lowered its China GDP target to 7.4% from 7.6% prior and 2015 GDP to to 7.2% from 7.5% prior. WB also cut its outlook for emerging East Asia 2015 GDP to 6.9% from 7.1% prior, but added "the pace of growth in the region, excluding China, will pick up next year, as the gradual recovery in high-income economies boosts demand for exports from the region." WB economist said "East Asia Pacific will continue to have the potential to grow at a higher rate and faster than other developing regions- if policy makers implement an ambitious domestic reform agenda."...Hong Kong chief exec Leung reiterated the administration will "take all necessary actions to restore social order"...In Japan, the approach of Typhoon Phanfone has resulted in temporary production suspension among the main automakers. Thousands of travelers are also stranded with hundreds of flights cancelled by JAL and ANA. Separately, Japanese press speculated the govt may delay the release of GPIF portfolio allocation plans to Nov or later from initially planned October move...In Europe, a financial press report stated the EU is preparing to reject France 2015 budget, which may place it in 'serious noncompliance' with the new EU rules. Separately in Germany, local press speculated IMF may cut German 2014 GDP forecast to 1.5% from 1.9%, while Bundesbank's Weidmann panned ECB buying loans of "weaker quality" potentially resulting in "credit risks assumed by private banks being passed on to the central bank and thus the taxpayer, without adequate compensation."...Nikkei +1.50% Hang Seng +0.58%...Shanghai +0.26%

Eur$ 1.2520 S&P +0.28% EuroStoxx +0.90% FTSE +0.23% DAX +1.23% (was closed on Friday) SMI +0.53%

Macro
- Fed Will Probably Raise Rates in 3Q, Goldman’s Hatzius Says
- Norway Wealth Fund Should Be Able to Invest More in Stocks: DN
- Swiss Give France UBS Client Info in Tax Case: SonntagsZeitung
- EU said to be preparing to reject France 2015 budget - financial press 

Keep an eye on :
- AF FP : Air France May Revise Strike Cost to as Much as EU400M: Reuters
- AIR FP : EADS Insider Trading Trial Postponed for Three Months: Les Echos
- AREVA FP :Said to be likely to decide to scale back investments in order to avoid a credit rating downgrade
- ATC NA : Altice could acquire PT Portugal as part of Oi-TIM merger
- CU FP : Club Med Board Seen Backing Fosun Bid for Co.: Les Echos
- EDF FP : France Energy Min: To consider the cost of maintaining older reactors in decision related to investment in new nuclear power
- EDL FP : €420mil cap increase, to convert €600m bonds into Equities
- G IM : Generali Could Appoint Trichet to Replace Scaroni: Corriere
- GET FP : Antin, Ardian May Bid for Eurostar Stake, Sunday Times Reports
- NOVN VX : Novartis would consider share-swap for 33.3% Roche stake 
- NOVN VX : Novartis, Bristol-Myers Squibb’s in NSCLC Treatments Pact
- PAL AV : Palfinger 2014 Ebit Will Fall as New Orders `Nosedive'
- PCI LN : Dragon Oil Proposes 230p/Shr Cash Offer for Petroceltic
- PHIA NA : Philips Wants Service Suppliers to Cut Bills: Eindhovens Dagblad
- ROG VX : Roche to Spend CHF1b on Herzog & de Meuron Basel Offices: SZ
- ROG VX : Genentech sales staff banned from visiting 1.9k hospitals in the US
- SAB LN : Asahi Pressured to Make Acquisitions For Overseas Growth: FT
- SIE GY : Exec: expects profitability at its gas-turbine operations to shrink
- TTK GY : Haniel Supporting Takkt Growth Plans, CFO Tells Boersen-Zeitung
- TSCO LN : Tesco Pledges to Sell Aircraft Fleet as It Gets New $50m Jet: FT

>>> Brokers Upgrades & Downgrades - 6th of October 2014

>>> Up
*AIR FRANCE CUT TO NEUTRAL VS BUY AT CITI
*DSM RAISED TO HOLD VS SELL AT LIBERUM
*ERSTE BANK RAISED TO BUY VS NEUTRAL AT GOLDMAN
*MBANK RAISED TO NEUTRAL VS SELL AT GOLDMAN

>>> Down
*BAE SYSTEMS CUT TO HOLD VS BUY AT SOCGEN
*DELHAIZE CUT TO HOLD VS BUY AT DEUTSCHE BANK
*DUNELM CUT TO NEUTRAL VS BUY AT CITI
*NOVO NORDISK CUT TO HOLD VS BUY AT DNB

>>> PT Chanegs


>>> Initiation
*BANK OF IRELAND RATED NEW NEUTRAL AT JPMORGAN, PT EU0.30
*SSP RATED NEW ADD AT NUMIS, PT 300P

>>> Call
>>Sector
*EUROPE HEALTHCARE EQUIPMENT SECTOR RAISED TO OVERWEIGHT AT UBS
*EUROPE METALS & MINING SECTOR CUT TO NEUTRAL AT UBS
*ENERGY SECTOR RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN
*PHARMA SECTOR CUT TO UNDERWEIGHT AT JPMORGAN

(BFW) Fed Will Probably Raise Rates in 3Q, Goldman’s Hatzius Says


BFW 10/06 02:30 *FED WILL PROBABLY RAISE RATES IN 3Q, GOLDMAN’S HATZIUS SAYS
BN 10/06 02:30 *FED WILL KEEP 'CONSIDERABLE TIME' IN OCT STATEMENT: HATZIUS
BN 10/06 02:30 *FED WILL PROBABLY RAISE RATES IN 3Q, GOLDMAN'S HATZIUS SAYS

Fed Will Probably Raise Rates in 3Q, Goldman’s Hatzius Says
2014-10-06 02:57:14.221 GMT


By Wes Goodman
Oct. 6 (Bloomberg) -- The Fed will hold rates because labor
market slack is large, wage growth is accelerating slowly and
price inflation continues to undershoot the central bank’s
forecast, Goldman Sachs Chief Economist Jan Hatzius says in
report dated yday.
* If the Fed raises rates too late and inflation moves
modestly
above the 2% target, little is lost. But if the committee hikes
too early and has to reverse course, the consequences are
potentially more serious: Hatzius
* Growth risks strengthen the case for patience. Goldman
recently cut 2015 forecasts for China, Germany and Italy and
noted weakness in Japan, report says


Link to Company News:{GS US <Equity> CN <GO>}

For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}

To contact the reporter on this story:
Wes Goodman in Singapore at +65-6212-1568 or
wgoodman@bloomberg.net

To contact the editor responsible for this story:
Pavel Alpeyev at +81-3-3201-2137 or
palpeyev@bloomberg.net

>>> Novartis would consider share-swap for 33.3% Roche stake

Novartis would consider share-swap for 33.3% Roche stake 

Novartis, the Swiss pharma giant, would consider a share swap for its stake in Swiss rival Roche, Aargauer Zeitung reported.

In a wide-ranging interview Novartis CEO Joe Jimenez the Swiss daily a share swap would be an option for the 33.3% stake. Jimenez said the has no plans to sell the stake as he considers it to have a great value that its current share price. Jimenez said he does not need the capital from a sale and is under no pressure to sell. Jimenez described the stake as a financial investment with a strategic component, and explained that the stake gives him the power of veto in addition to its financial value.

Aargauer Zeitung

>>> UK government’s Eurostar stake may attract bids from Ardian and Antin Infras

UK government’s Eurostar stake may attract bids from Ardian and Antin Infrastructure Partners

The 40% stake in Eurostar being sold by the UK government could attract bids from Ardian and Antin Infrastructure Partners, The Sunday Times reported.

The unsourced report said the two France-based, infrastructure investors are currently considering making offers for the stake in the Channel Tunnel rail operator.

The government has engaged UBS to find a buyer for the stake, which is believed to be worth in the region of GBP 300m (USD 479m), the report said. It noted that the remainder of the Anglo-French business is largely owned by the French national train group SNCF, with 5% controlled by the Belgium-based SNCB.

Although SNCF is thought to have pre-emption rights over the stake it is not believed to want to increase its existing holding, the report said.


Source Sunday Times

>>> Altice could acquire PT Portugal as part of Oi-TIM merger

Altice could acquire PT Portugal as part of Oi-TIM merger 

Altice could acquire PT Portugal, the Portuguese businesses of the former Portugal Telecom, if Brazilian telco Oi proceeds with a merger with TIM, reported Diario de Noticias. The Lusophone daily cited sources close to the situation as saying Altice could move to acquire PT Portugal to facilitate Oi's tie-up with TIM.

Following its merger with Portugal Telecom, Oi has already disposed of former PT assets like the 25% stake in Angolan telco Unitel, the report added.


Source Diario de Noticias

>>> Asian Update

Asian Market Update: World Bank cuts China GDP target; Rousseff to face Neves in runoff; Occupy Central regroups

***Economic Data*** - (AU) AUSTRALIA SEPT ANZ JOB ADS M/M: 0.9% (4th consecutive increase) V 1.6% PRIOR - (AU) AUSTRALIA SEPT TD SECURITIES INFLATION M/M: 0.1% V 0.0% PRIOR; Y/Y: 2.2% V 2.4% PRIOR - (NZ) NEW ZEALAND SEPT QV HOUSE PRICES Y/Y: 6.4% V 6.9% PRIOR (smallest increase since Feb 2013) - (NZ) NEW ZEALAND Q2 WESTPAC EMPLOYMENT CONFIDENCE INDEX: 111.5 V 109.9 PRIOR (MULTI-YEAR HIGH) - (KR) SOUTH KOREA Q3 FOREIGN DIRECT INVESTMENT (FDI) Y/Y: 37.9% V 14.5% PRIOR - (KR) South Korea Aug Foreign Reserves: $364.4B v $367.5B prior (2nd m/m decline)

***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 +1.5%, S&P/ASX -0.4%, Kospi -0.1%, Shanghai Composite closed, Hang Seng +0.1%, Dec S&P500 +1.1% at 1,959

***Commodities/Fixed Income*** - Dec gold flat at $1,189/oz, Nov crude oil flat at $89.75/brl, Dec copper +0.3% at $3.01/lb - (KR) South Korea sells 5-yr govt Bonds; avg yield 2.26%; bid-to-cover: 4.129x

***Market Focal Points/Key Themes/FX*** - In a surprise outcome, the pro-business Brazil candidate Neves stormed ahead of environmentalist Silva and will challenge incumbent Rousseff in a runoff on Oct 26th. In today's first round, Rousseff received just over 40% of the vote, followed by Neves at 35% and Silva at about 20%. Most recent polls have suggested that Rousseff is still a favorite to win in the next round.

- World Bank lowered its China GDP target to 7.4% from 7.6% prior and 2015 GDP to to 7.2% from 7.5% prior. WB also cut its outlook for emerging East Asia 2015 GDP to 6.9% from 7.1% prior, but added "the pace of growth in the region, excluding China, will pick up next year, as the gradual recovery in high-income economies boosts demand for exports from the region." WB economist said "East Asia Pacific will continue to have the potential to grow at a higher rate and faster than other developing regions- if policy makers implement an ambitious domestic reform agenda."

- Hong Kong chief exec Leung reiterated the administration will "take all necessary actions to restore social order". Subsequent report indicated protester ranks around the financial hub of Mong Kok have thinned to regroup near the primary protest site across the harbor, however Occupy Central leaders maintain the resistance must continue as they layed the groundwork for talks with govt officials.

- In Japan, the approach of Typhoon Phanfone has resulted in temporary production suspension among the main automakers. Thousands of travelers are also stranded with hundreds of flights cancelled by JAL and ANA. Separately, Japanese press speculated the govt may delay the release of GPIF portfolio allocation plans to Nov or later from initially planned October move. Econ Min Amari also noted he is concerned about the strength of recovery in Japan, adding PM Abe is "completely neutral" on whether to raise the national sales tax. BOJ is set to announce a policy decision in tomorrow's session and may lay the groundwork to a downgrade of CPI/GDP forecasts for late-October review.

- RBA will also unveil its latest decision on policy, with some speculating new language endorsing further AUD weakness to help promote rebalancing of the economy. ANZ job ads rose for the 4th straight month, as ANZ chief economist said "leading indicators of labour demand such as business conditions, profitability and capacity utilisation point to further trend improvement."

- In Europe, a financial press report stated the EU is preparing to reject France 2015 budget, which may place it in 'serious noncompliance' with the new EU rules. Separately in Germany, local press speculated IMF may cut German 2014 GDP forecast to 1.5% from 1.9%, while Bundesbank's Weidmann panned ECB buying loans of "weaker quality" potentially resulting in "credit risks assumed by private banks being passed on to the central bank and thus the taxpayer, without adequate compensation."

***Equities*** US markets: - HPQ: Said to be planning to break into two entities, splitting PC and printer operations from hardware - financial press - CFN: Becton Dickinson said to acquire company for $12.2B or $58/shr (about 25% premium) in cash and stock; BD affirms FY15 EPS guidance

Notable movers by sector: - Customer discretionary: Tian Ge Interactive Holdings 1980.HK +3.5% (to offer healthcare information services in Hong Kong); Aeon Delight 9787.JP +6.1% (H1 results); Bic Camera 3048.JP +3.0% (raises FY14 guidance) - Industrials: Austal ASB.AU +2.0% (awarded contract); Hyundai Motor 005380.KR +3.1% (China sales)

WSJ : Becton Dickinson to Buy CareFusion for $12 Billion

Becton Dickinson to Buy CareFusion for $12 Billion

Merger Is Intended to Provide a Broader Range of Products for Hospital Systems

Becton, Dickinson BDX +1.51% & Co. agreed to buy CareFusion Corp. CFN +1.83% Sunday for $12 billion in a combination designed to provide a full range of products for hospital systems, according to people familiar with the matter.

Becton Dickinson and CareFusion make products including catheters, tubes and pumps that hospitals use to deliver medicines to patients.

By combining, Becton Dickinson, of Franklin Lakes, N.J., and CareFusion, of San Diego, aim to provide a more complete range of products to fast-changing hospitals, one of the people said.

Hospitals are joining forces amid health-care industry changes resulting from the 2010 Affordable Care Act and amid pricing pressures.

Hospitals are looking for ways to cut costs and improve care as health insurers try to control spending.