The (early) Lunch Wrap | FT Alphaville

The (early) Lunch Wrap

Good morning New York,


The UK government confirmed a deal with EDF to build Europe’s first new nuclear plant since the Fukushima disaster — guaranteeing an electricity price roughly double the current price of power. When completed in 2023, the £16bn ($25.9bn) Hinckley Point C station will provide 7 per cent of the UK’s electricity (Financial Times).

EDF will hold a 45 to 50 per cent stake in the venture, with a 10 per cent stake going to Areva and Chinese power companies taking another 30 per cent to 40 per cent (WSJ).’Under the agreement a “strike price” of £92.50 per MwH will be paid for energy from Hinkley for at least 30 years. That is around double the current market price for wholesale energy. The strike price will rise in line with inflation…’ (FT Westminster Blog)

JPMorgan’s record $13bn settlement reaction… ‘Billionaire Home Depot Inc. founder Ken Langone said he sees the accord as a buying opportunity’ (Bloomberg).

The Department of Justice has so far resisted attempts by the bank to settle a criminal investigation without admitting wrongdoing, even as JPMorgan reached a deal on billions of dollars of civil claims relating to the sale of mortgage-backed securities (Wall Street Journal).

Dimon suspected that ending the criminal probe was a long shot and the bank was not interested in holding up all the other settlements to wait for that’ (Reuters).

‘A Humbled Dimon’: ‘When top bankers assembled at the White House in early October, JPMorgan & Chase Co’s James Dimon found his assigned seat in the corner, far from his usual perch across from President Barack Obama. Mr. Dimon, who in previous gatherings had been quick to share his opinions with the president, was reserved and said little during the meeting, according to people who attended…’ (Wall Street Journal)

Bank of America faces $6bn in penalties sought by the FHFA, even as the agency is set to extract $4bn from JPMorgan. The FHFA’s portion of the JPMorgan settlement may end up being the single largest amount paid by the bank, with the remaining $9bn — $5bn in cash and $4bn in consumer debt forgiveness — yet to be divvied up among regulators (Financial Times).

Apple will unveil a thinner iPad and high-definition iPad Mini this week in an attempt to wrest back control of the maturing tablet market. Its share of the market fell to 32 per cent in the second quarter, from 60 per cent a year earlier (Bloomberg).

Oil traders are sizing up the scale of an Iranian return to the market if the country reaches a deal on sanctions in nuclear negotiations. An “Iraqi” model of a slow comeback in production models, and a “Libyan” model of a fast return are the two scenarios most under discussion. Most analysts believe Iran’s production capacity could be swiftly restored, unlike Iraq’s damaged oilfields after the Gulf wars. A rapid return could push Brent crude below $100 a barrel (Financial Times).

Chinese official media have accused Starbucks of charging higher prices in the country than elsewhere. Apple recently came under similar fire amid a regulatory probe into pricing (Reuters).