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The Morning Risk Report: New Hurdles for Western Firms Still Operating in Iran |
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A Coca-Cola refrigerator stands behind the counter of a fast-food provider in a Tehran food court. PHOT KAVEH KAZEMI/GETTY IMAGES
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Good day. Western firms doing business in Iran—thanks to food, medical and other humanitiarian exemptions to U.S. sanctions on the country—are facing new hurdles as fresh sanctions cut off finance channels.
Companies faced similar hurdles when U.S. sanctions tightened before the 2015 nuclear deal. Those sanctions snapped back into place Monday following President Trump’s exit from the nuclear agreement. U.S. officials say they still don’t intend to restrict trade in food or medicine.
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Products made by PepsiCo Inc. and Coca-Cola Co. are available everywhere across Iran, a country with a population of 82 million. Iranian hospitals use equipment made by General Eletric Co. and Iranians can use medicines from Pfizer Inc. and AstraZeneca PLC to treat illnesses.
Many firms had found ways prior to the nuclear agreement to transact with Iran indirectly, either through middlemen or a now-closed loophole. It isn’t clear how those companies will adapt this time around, given the wide scope of the new measures.
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Tesla Names Telstra Executive to Replace Elon Musk as Chairman |
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Tesla Inc.named Robyn Denholm as its new chairman, replacing Chief Executive Elon Musk as the head of the board with a relative outsider. Ms. Denholm, the chief financial officer of Australian telecommunications company Telstra Corp., has served on Tesla’s board since 2014.
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UBS Will Fight Expected U.S. Lawsuit Over Mortgage
Securities |
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UBS Group AG will fight an expected civil complaint from the U.S. Department of Justice over its issuance, underwriting and sale of residential mortgage-backed securities before the financial crisis, the Swiss banking giant said.
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Jeff Sessions’ Successor Had Advised Company Accused of
Scam |
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Matthew Whitaker, appointed acting attorney general on Wednesday after Jeff Sessions resigned, was a paid advisory-board member of an invention-promotion company shut down by federal regulators last year as an alleged scam.
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Democratic House Will Target Wall Street but Can’t Stop
Deregulation |
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The midterm election won’t derail the Trump administration’s push to ease rules for banks, but Democratic House leaders are exected to use their new power to target Wall Street firms.
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Regulators Take Aim at Wells Fargo Technology Oversight
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Wells Fargo & Co.’s regulatory woes extended to another part of its business: its technology operations. A banking regulator sent the lender a warning that often precedes enforcement action.
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BlackRock Offices Raided in German Tax Probe |
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German prosecutors searched the Munich offices of BlackRock Inc., drawing the world’s largest asset managiner into a criminal tax-fraud probe that has embroiled several other financial firms.
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ECB Nominates Italian Economist as Region’s Top Banking
Supervisor |
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The European Central Bank said it had nominated Italian economist Andrea Enria as the region’s top banking supervisor amid renewed investor scrutiny of Italian lenders.
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Russia Is Surprise Beneficiary of Iranian Oil Ban |
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The latest round of U.S. sanctions against Iran is benefiting Russia, which is offering to buy Tehran’s stranded crude oil in exchange for Russian machinery and food. Russian companies are selling oil to Europe and Asia, filling the void left by Iran’s drop in exports.
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Sinclair Settles with U.S. Over Sharing Ad-Sales Information
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Sinclair Broadcast Group Inc. agreed to settle with the U.S. Justice Department over the sharing of information between television-station owners that raised antitrust concerns.
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Virtu Financial to Buy Brokerage ITG, as ITG Settles Dark-Pool
Probe |
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Virtu Financial Inc. is buying brokerage Investment Technology Group Inc. for nearly $1 billion. On Wednesday, ITG settled an enforcement case with the Securities and Exchange Commission over fraud allegations.
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Nasdaq to Delist MiMedx Amid Financial Probe |
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MiMedx Group Inc. said the Nasdaq Stock Market will delist its shares and suspend trading in the stock. The company said in June an internal probe had found it needed to restate several years of reported financial results.
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HHS to Let Some Employers Opt Out of Birth-Control Mandate
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The Trump administration will allow religious groups, nonprofits, small businesses and other employers to opt out of a mandate to provide birth-control coverage for their employees.
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No Charges Brought in Sexting Scandal |
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Illinois prosecutors declined to bring charges against a woman accused by the former head of Latham & Watkins LLP of cyber harassment.
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Saudi Money Keeps Flowing to Silicon Valley Startups Amid Backlash |
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Silicon Valley startups continue to negotiate deals with Saudi Arabia and take its capital through Softbank Group Corp. amid the controversy over the killing of a journalist.
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Former Intel CEO Krzanich to Lead CDK Global |
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Former Intel Corp. chief Brian Krzanich found a new job in the technology sector, joining the board and becoming president and CEO of CDK Global Inc. Mr. Krzanich left Intel after the company determined he violated company policy with a consensual relationship with an employee.
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SASB Launches Sustainability Accounting Standards |
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Why Children’s Fondness for YouTube Puts the Company at Risk |
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A survey finding that YouTube is hugely popular among families with young children, posing a problem for the video website. Children’s advocacy groups are concerned it's profiting off advertisements targeting kids, and parents say their children have seen disturbing content.
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BMW Gets Caught in Perfect Storm of Politics and
Economics |
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BMW AG’s automotive earnings plunged in the third quarter as the car maker became the most recent victim of a confluence of economics and politics that is buffeting the global auto industry.
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Indonesia Crash Probe Zeros In on Faulty Flight-Control
Gear |
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Indonesian investigators on Wednesday said a malfunctioning flight-control system fed widely divergent readings to the pilot and co-pilot during the second-to-last flight of the Lion Air jet that plummeted into the sea last week.
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Toshiba to Get Out of U.K. Nuclear, U.S. Gas Businesses |
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Toshiba Corp. said Thursday it would liquidate its U.K. nuclear business and sell its U.S. natural-gas business, taking a combined loss of nearly $1 billion.
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Vice Media to Shrink Workforce by as Much as 15% as Growth
Stalls |
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Vice Media plans to shrink its workforce by as much as 15% through attrition and cut its selection of digital sites by at least half, according to people familiar with the matter, as growth stalls at the onetime new-media darling.
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Google Plans Large New York City Expansion |
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Google is gearing up for an expansion of its New York City real estate that could add space for more than 12,000 new workers, an amount nearly double the search giant’s current staffing in the city, people familiar with the matter said.
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Ford Buys Electric-Scooter Startup, Looking to Diversify |
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Ford Motor Co. is getting into the fast-growing electric-scooter business by acquiring San Francisco-based startup Spin, as more car makers push into services aimed at urban dwellers who may not want to own a car.
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Tyson Foods CEO Looks to Make International
Acquisitions |
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Tyson Foods Inc. is looking to expand internationally to help stabilize its business and reduce its exposure to U.S. agricultural swings, Noel White, its chief executive, said in his first interview in that new role.
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Follow us on Twitter at @WSJRisk.
Send comments to the Risk & Compliance editor, Jack Hagel, at jack.hagel@wsj.com.
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