Good morning. UBS Group is close to settling a claim brought by Mozambique against Credit Suisse, people familiar with the matter said, a move that would resolve one of the many legal headaches it inherited through the rushed rescue of its Swiss banking rival earlier this year.

Striking a deal with the southern African nation would help UBS disentangle itself from the so-called tuna-bonds scandal, a decadelong mess mixing high finance, corruption and risky frontier-market investing.

• Terms: The settlement, which could come as soon as Thursday, doesn’t require UBS to hand over any cash, the people said. UBS will forgive part of a loan Credit Suisse made to Mozambique in 2013, representing less than $100 million.
   
• Previous settlements: Credit Suisse already forgave $200 million due on the loan as part of a 2021 settlement with regulators in the U.S., U.K. and Switzerland. In that settlement, Credit Suisse paid authorities $475 million and a subsidiary pleaded guilty to wire-fraud conspiracy charges. Mozambique is to settle with other investors in the loan via a payment in the form of cash and a new loan, some of the people said.
   
• The conduct at issue: Credit Suisse arranged a series of debt deals for state-owned companies to buy equipment to guard Mozambique’s coastline and to buy tuna-fishing boats, but swaths of the proceeds were used to pay bribes to Mozambican officials and Credit Suisse bankers, according to prosecutors in earlier criminal cases over the matter. Much of the debt initially was kept secret from bondholders and public-sector lenders.
   
• Last chapter? Settling the case removes a key item from a long list of legal problems UBS assumed when it bought its smaller rival in March for around $3.8 billion in stock.

The WSJ Pro Sustainable Business Forum on Oct. 12 will include a discussion about risk and resilience in corporate sustainability programs with Maryam Golnaraghi, director of climate change and environment at The Geneva Association, and Torolf Hamm, head of physical catastrophe and climate risk management at Willis Towers Watson.

Other sessions will cover reporting to U.S. and European standards, the role of artificial intelligence and what corporate decarbonization measures are proving effective. Register here.

Tesla is accused of racial harassment at California factory.

Tesla is accused of subjecting Black employees at its California auto-assembly plant to racial harassment and a hostile work environment, according to a lawsuit filed Thursday by a federal agency responsible for enforcing antidiscrimination laws.

Not the first allegation. The move turns the spotlight back on Tesla’s Fremont, Calif., factory and the working environment within it, which in recent years has been the subject of allegations of racial harassment and discrimination among workers on the factory floor.

Clear Channel Outdoor to pay $26 million in China bribery probe settlement.

Clear Channel Outdoor Holdings agreed to pay more than $26 million to resolve a U.S. probe into bribes the company allegedly paid in China.

A majority-owned Chinese subsidiary of San Antonio-based Clear Channel allegedly bribed Chinese government officials directly and through third parties to win contracts that let it sell advertisements for display on bus shelters, street furniture and billboards, the Securities and Exchange Commission said Thursday.

• The Securities and Exchange Commission on Thursday sued former Commonwealth Edison CEO Anne Pramaggiore, alleging she committed fraud through her involvement in a political bribery scheme.|
   
• The Justice Department on Thursday accused a data provider for the meatpacking industry of gathering and sharing nonpublic information that allowed its clients, some of the biggest poultry and pork processors in the U.S., to raise the prices they charged restaurants, grocery stores and consumers.
   
• France’s competition authority raided Nvidia’s local offices this week on suspicion the company engaged in anticompetitive practices.
   
• Much of the Justice Department’s antitrust case against Google has unfolded behind closed doors, prompting the judge to defend himself against criticisms that he too readily deferred to requests by Google and interested parties such as Apple to seal the courtroom.
   
• The Public Company Accounting Oversight Board on Thursday approved a tightening of requirements around how audit firms obtain and verify outside evidence on their clients, the first major upgrade to such rules in decades.
   
• A New York appeals court ruled Thursday that Donald Trump’s trial on civil-fraud allegations will begin next week as scheduled.

Oil is near $100. Shale isn’t coming to the rescue.

U.S. oil prices soared Wednesday to their highest level in more than a year. Most frackers plan to stay on the sidelines.

Though some analysts say oil prices could soon hit $100 a barrel, U.S. shale companies aren’t rushing to drill more. That means that unlike in past years when frackers flooded the market with crude and alleviated pressure, oil prices might remain elevated until someone else adds production or demand ebbs.

Evergrande’s stalled turnaround plan casts doubt on corporate restructuring in China.

China Evergrande is at risk of being broken up or liquidated after regulators in Beijing blocked key parts of the embattled property giant’s proposed turnaround plan, a foreboding sign for other troubled real-estate companies in China trying to survive the country’s deepening housing crisis.

The renewed downturn in China’s property market is limiting options for real-estate firms there that may need to reorganize as they shoulder billions of dollars in debt. 

• China Evergrande Says Chairman Hui Ka Yan Is Suspected of Crimes

• House Speaker Kevin McCarthy has embraced border security as a possible way to break a congressional impasse over funding the government, saying it could be a key ingredient in any last-ditch push to avert a partial shutdown this weekend.
   
• Many U.S. companies are betting that moving manufacturing to Mexico will make their supply chains more resilient. Recent disruptions at the U.S.-Mexico border show bringing production closer to home poses its own risks.
   
• Beijing and Washington are paving the way for Chinese leader Xi Jinping to visit the U.S., moving ahead with high-level official exchanges and taking other steps to improve the tone of their turbulent relations.
   
• A senior executive at American risk advisory firm Kroll has been barred from leaving mainland China, the latest example of Chinese authorities imposing exit bans on the employees of foreign firms.
   
• Meet the Narwhal, Taiwan’s first domestically-produced submarine—a sleek new weapon that could alter China’s thinking about an invasion.
   
• Electric vehciles will hit Detroit harder than a UAW raise: While pay increases following the strike will take the shine off automakers’ margins, their electric vehicles are still making huge losses.

• The race to hire warehouse workers and package carriers for the holidays is slowing to a crawl.
   
• It’s photons over electrons in an effort to eke out better chip performance.
   
• Rite Aid is looking to close roughly 400 to 500 stores in its proposed bankruptcy, while a group of bondholders wants to liquidate more.
   
• U.K. pensions, fat and well-funded, increasingly don’t need private-equity investments.
   
• 🎧 Jack Hartung, CFO of Chipotle Mexican Grill, talks about inflation and other financial pressures on the fast-casual restaurant’s business strategy.

• With a government shutdown looming, House Republicans held their first hearing in an impeachment inquiry into President Biden, accusing him of lying about family members’ business dealings and condoning their trading on the Biden name.
   
• A judge ruled that higher minimum-pay rates could take effect for many food-delivery workers in New York City.
   
• United Airlines said it would ease travel for wheelchair users following a government investigation into a disability claim filed against the carrier.
   
• Baltimore police said a suspect in the death of 26-year-old tech entrepreneur Pava LaPere has been arrested.

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