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Last Call: Introducing The NEW New York State

This shows the logo outside the Standard Chartered bank in the Central district of Hong Kong, 22 September 2003.
Richard A. Brooks | AFP | Getty Images
This shows the logo outside the Standard Chartered bank in the Central district of Hong Kong, 22 September 2003.

Question: "You f***ing Americans. Who are you to tell us that we’re not going to deal with Iranians?"

Answer: “We built the first railway and the first trade route to the West. We built the tallest skyscrapers, the greatest empires. We pushed the country forward. Then, some said, we lost our edge. We couldn’t match the pace of the new business world. Well today, there’s a NEW New York State.”

— Below, the new New York state accuses Standard Charter of doing business with Iranians.

Market Musings With CNBC Market Guru Robert Hum

  • Dow +21.34 (+0.16%) at 13117.51, S&P +3.24 (+0.23%) at 1394.23, Nasdaq +22.01 (+0.74%) at 2989.91
  • Stocks barely hang on: major averages lose steam in final minutes, but close with small gains
  • Dow breaks 9-week Monday losing streak, has first Monday gain since May 21
  • Dow, S&P 500, Nasdaq all close at 3-month highs
  • Euro crosses $1.24 for first time in a month

The Word on the Street Tonight

Apple Drops YouTube App From New Mobile Software/Reuters: “Apple's new version of its iPhone and iPad software will not include a prepackaged app for Google's popular video website YouTube, Apple said Monday. The move marked the latest sign of the growing rivalry between the two technology companies, close on the heels of Apple's decision to dump Google's mapping software from its devices.”

Caribou Blames Green Mountain for Lowered Guidance/CNBC – Herb Greenberg: “Rarely do you see one company blaming another for an earnings miss or lower guidance, but that’s exactly what Caribou Coffee did today — blaming partner Green Mountain Coffee Roasters for its woes.”

NY State: Standard Chartered Hid $250 Billion in Iran Deals/Reuters with CNBC.com: “A rogue Standard Chartered banking unit violated U.S. anti-money-laundering laws by scheming with Iran to hide more than $250 billion of transactions, and may lose its license to operate in New York State, a state banking regulator said on Monday.”

Wheel Lands On Standard Chartered/WSJ – Thorold Barker & Simon Nixon: “British banks just can't seem to stay out of trouble with U.S. regulators. Barclays paid a huge fine for its role in manipulating Libor. HSBC then came unstuck on money-laundering charges. Now it is Standard Chartered's turn. New York's Department of Financial Services on Monday accused the emerging markets-focused bank of running a "rogue institution" that worked with the Iranian government to hide over $250 billion of secret transactions—while raising the threat of Standard Chartered losing its license to operate in the state of New York. The strongly-worded accusation then went into detail about how the bank allegedly worked to get around U.S. Office of Foreign Assets Control requirements on foreign sanctions. The charges are a huge embarrassment for Standard Chartered, which largely stayed above the fray of the financial crisis and whose CEO, Peter Sands, has been vocal with his views on the future of regulation.”

Gibson Guitar to Pay Fine Over Wood Imports/WSJ – Kris Maher: “Gibson Guitar Corp. agreed to pay a $300,000 fine to resolve a federal criminal investigation into allegations that it illegally imported wood from Madagascar and India, in a case that has fanned debate about whether the strict enforcement of a century-old conservation law poses a threat to jobs. The case grabbed national attention nearly a year ago after agents from the U.S. Fish & Wildlife Service raided Gibson, seizing raw materials and nearly 100 guitars and shutting down production at the Nashville, Tenn.-based company, whose guitars are used by musicians including B.B. King and AC/DC's Angus Young.”

Best Buy's Biggest Fan/WSJ – Miriam Gottfried: “Is Best Buy a steal? Its founder and former chairman seems to think so. Richard Schulze submitted a proposal Monday to the electronics retailer's board to take it private for $24 to $26 a share, a 36% to 47% premium to Friday's closing price. Mr. Schulze is well-positioned, with a 20.1% stake and deep knowledge of the company. He says he has spoken with several interested private-equity firms and that Credit Suisse is "highly confident" it can arrange debt financing.”

Best Buy founder Schulze’s herculean task/Marketwatch: “The founder and former chairman of Best Buy Co., Richard Schulze, proposed taking the electronics retailer private on Monday with a bid of up to $8.84 billion, but it looks like he’s facing an uphill battle. For starters, investors questioned whether he would be able to secure the financing needed, after he said he was in talks with interested parties and planned to finance the proposed bid through a combination of investments from private equity and reinvestment of about $1 billion of his own equity, as well as through debt financing.”

See Dick Get No Respect: Why Best Buy's Founder Is Fighting For His Company/Forbes – Laura Heller: “See Dick Schulze. See Dick Make An Offer. See Dick Try To Save His Business. See Dick Get No Respect. The bid by Best Buy founder and former Chairman and CEO Richard Schulze’s to buy back the company he built is the stuff of legend. For all the trouble Best Buy is in, one might think Schulze’s interest would be better received. Instead, the S&P cut Best Buy’s ratings to junk.”

Chesapeake Energy Earnings Are Light but Revenue Beats/Cnbc.com with Reuters: “Chesapeake Energy posted a jump in second-quarter profit on Monday after it sold its midstream subsidiary and said it expects to sell another $7 billion in assets during the current quarter. After the earnings announcement, the company's shares rose in trading after the closing bell.”

Amazon’s Latest Delivery Stop: The Corner Store/WSJ – Greg Bensinger: “Amazon.com Inc. wants to make sure no package goes undelivered. That’s why for about the past year, the Seattle Web retailer has been installing large storage bins in 7-Elevens, grocery and drug stores, even covered parking lots where customers can have their items sent for a later pickup. The bins, known as Amazon Lockers, are an alternative for consumers who don’t want merchandise sent to their home while they are at work or out of town. Using a code Amazon sends, a customer can open one of the locker doors and walk out with their item. The program is expanding. Just in the past few weeks, Amazon has installed its first lockers in stores in the San Francisco Bay area, adding to those already in and around Washington, D.C., Seattle, New York and the U.K.”

Twitter Rumor Sparked Oil-Price Spike/WSJ – Nicole Freidman: “Crude-oil futures bounced up over $1 at one point Monday after a false Twitter rumor exposed the oil market's knee-jerk fear of Mideast turmoil. A Twitter account claiming to represent Vladimir Kolokoltsev, the Russian interior minister, tweeted at 9:59 a.m. New York time that Syrian President Bashar al-Assad had been killed or injured, followed by two tweets claiming to confirm the death. Between 10:15 a.m. and 10:45 a.m., futures for light, sweet crude rose from $90.82 to $91.99 a barrel on the New York Mercantile Exchange.”

Economic Data

1000am et Jun JOLTS

1300pm et 3-yr Note Auction

1500pm et Jun Consumer credit

Earnings

Before the Bell:

Cablevision, Charter Comm., Church & Dwight, CVS Caremark, Molson Coors, PG&E , Sirius XM Radio

After the Bell:

Disney, Express Scripts, Priceline.com, Sotheby's, Live Nation, Zillow

Key Guests

Daniele Antonucci, Morgan Stanley, European Economist (4:30am)

Peter Lenardos, RBC, Director of Pan-European Financials (5am)

Ken Kamen, Mercadien Asset Management, President (5:45am)

Paul Walsh, Weather Channel, VP (6:15am)

James Rohr, PNC Financial Services, Chairman & CEO (7am)

Donald Trump, Trump Organization, Chairman & President (7:30am)

Jimmy Dunne, Sandler O'Neil, Sr. Managing Principal (8am)

Eric Rosengren, Boston Fed President (830a)

Jerome Griffith, Tumi, CEO (10:30am)

Simon Baker, Baker Avenue Asset Management, CEO (12pm)

Dean Zayed, Brookstone Capital Management, Co-founder & CEO (2pm)

Jed Kolco, Trulia Inc, Chief Economist (2:20pm)

Bob Iger, The Walt Disney Company, President & CEO (3pm)

Larry Kantor, Barclays, Managing Director and Head of Research (4pm)

Chad Morganlander, Stifel Nicolaus, Portfolio Manager (4:50pm)

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