GLOBAL MARKETS RISE AFTER UKRAINE TENSIONS COOL Â |Â Global markets calmed on Tuesday after Russia appeared to back away from further action in Ukraine, with President Vladimir V. Putin calling an end to a military exercise he ordered last week. The crisis in Ukraine had caused turmoil in the global financial markets on Monday, hitting stocks and driving up energy prices. Analysts maintained that there was little risk of damage to Western economies, but the rising tension nevertheless unsettled investors, who were already concerned about emerging markets, David Jolly writes in The New York Times.
The Euro Stoxx 50 index of euro zone blue chips rose 1.2 percent and the London benchmark FTSE 100 rose 1.1 percent on Tuesday morning. Trading in Standard & Poor’s 500-stock index futures pointed to a positive opening of the trading session in New York. Asian markets were also stronger on Tuesday, with the Tokyo benchmark Nikkei 225 gaining 0.5 percent. The price of gold, which spiked on Monday along with oil and gas, also eased.
As a prime trading partner, it could be Germany that holds the key to any long-lasting entente between Russia and Ukraine, Landon Thomas Jr. writes in The New York Times. Lately, Germany, which imports more natural gas from Russia than any other European country, has taken the upper hand in the balance of power, offering insight into the role that Germany will play in any negotiations with the Russian president.
In Politico, MJ Lee and Ben White write: “Ukraine represents a very small slice of the global economy and its default, should it occur, would probably not cause more than a temporary ripple in bond and equity markets. The United States is also much less reliant on foreign oil than in the past. And the rise in oil prices impacting European economies should be limited given the current ample global supply.â€
TROUBLES MULTIPLY FOR CITI AFFILIATE Â |Â A headache is growing for Citigroup, which said on Friday that its Mexican unit Banamex had been defrauded of as much as $400 million. Now, a Citigroup affiliate based in Los Angeles, Banamex USA, has been served a subpoena by federal prosecutors in Massachusetts related to money-laundering compliance, Michael Corkery and Jessica Silver-Greenberg write in DealBook. Until recently, the affiliate was a large player in transferring money across the border between family members.
Mr. Corkery and Ms. Silver-Greenberg write: “People briefed on the matter say that the two issues â€" one involving fraud and the other involving money-laundering compliance â€" are unrelated. But together they show the perils of building a large banking business in and around a country that has wrestled with drug trafficking and corruption.â€
BATTLING A BANK TO COLLECT A JUDGMENT Â |Â For the last six years, Maury Rosenberg, a small-business owner from Philadelphia, has been battling U.S. Bancorp, which he says forced him and his business into involuntary bankruptcy. Indeed, Mr. Rosenberg has won a series of rulings in federal courts, but U.S. Bancorp will not surrender, instead arguing that Mr. Rosenberg, who said he was once worth $50 million from a real estate career, is just trying to evade his obligations, Andrew Ross Sorkin writes in the DealBook column.
Mr. Rosenberg compares his situation to that of homeowners who lost their houses through foreclosure. Like many of these homeowners, Mr. Rosenberg wanted to restructure payments to the bank during the financial crisis (his payments were related to leases on radiology machines). The bank refused to negotiate new payment arrangements, he said, instead filing an involuntary bankruptcy proceeding against him and his company. “When you compare it to the mortgage business, it’s exactly the same issue,†Mr. Rosenberg said. “The little guy that owns a mortgage and has been assigned to a million different people and nobody knows who the debt is really due to, can’t afford to go fight it.â€
ON THE AGENDA  | The Senate Banking Committee’s confirmation hearing for Stanley Fischer, formerly governor of the Bank of Israel, has been postponed because of weather. Jeffrey M. Lacker, president of the Federal Reserve Bank of Richmond, speaks in New York at 4:15 p.m. The White House releases President Obama’s 2015 budget plan. William I. Koch, the billionaire industrialist, is on Fox Business Network at 10:30 a.m. Ben Horowitz, co-founder of the Andreessen Horowitz venture capital firm, is on CNBC at 8 a.m. Secretary of State John Kerry is in Kiev to support the new Ukrainian government.
DEAL MAY BE NEAR FOR MEN’S WEARHOUSE AND JOS. A. BANK  | The monthslong takeover battle between Men’s Wearhouse and Jos. A. Bank Clothiers may soon be drawing to a close, Michael J. de la Merced writes in DealBook. Men’s Wearhouse said on Monday that it had reached a nondisclosure agreement with its rival, setting up talks that could lead to a merger of the men’s retailers in a deal valued at more than $1.8 billion. Men’s Wearhouse last offered to buy Jos. A. Bank for $63.50 a share, which Jos. A. Bank called too low. But Men’s Wearhouse indicated it would be open to raising the bid to $65 a share if certain conditions were met.
Â
Philadelphia to Sell Its Gas Works Utility for $1.9 Billion  | Philadelphia agreed on Monday to sell its natural gas utility to UIL Holdings, a publicly traded power company, for about $1.9 billion, in a deal that would put the country’s biggest city-owned gas works in private hands. DealBook »
Carlyle Agrees to Buy Tyco’s South Korean Security Business  | The $1.9 billion deal to acquire the Tyco Fire and Security Services Korea Company and its subsidiaries, including ADT Korea, is the largest private equity buyout deal in South Korea since 2008, the Carlyle Group said. DealBook »
Facebook Said to Be in Talks to Buy Drone Maker  | Facebook is said to be in acquisition discussions with Titan Aerospace, which makes solar powered drones that can fly for five years without needing to land, TechCrunch reports, citing an unidentified person familiar with the situation. TECHCRUNCH
Unilever Prepares for $2 Billion Sale of Ragu  | Unilever has hired Morgan Stanley to help with a potential $2 billion sale of Ragu, its pasta sauce brand, The Wall Street Journal reports, citing unidentified people familiar with the situation. Unilever is in the process of paring down its food brands. WALL STREET JOURNAL
Citigroup Expects Drop in Trading Revenue  | John C. Gerspach, the chief financial officer of Citigroup, said at a conference on Monday that he expected the bank’s trading revenue for the first quarter to decline by a percentage in the “high mid teens†compared with a year ago, Bloomberg News reports. BLOOMBERG NEWS
Cantor Acquires Hedge Fund Fintan  | The investment bank Cantor Fitzgerald said on Monday that it had acquired the hedge fund Fintan Partners to bolster its money management business, Bloomberg News writes. The deal will bring Cantor’s assets under management and advisory to about $3 billion. BLOOMBERG NEWS
Detroit Agrees to Pay $77 Million to End Swaps  | Detroit agreed to pay $77.6 million to UBS and Bank of America to end interest rate swaps that have cost taxpayers more than $200 million since 2009, Bloomberg News writes. BLOOMBERG NEWS
A Discussion with K.K.R. on Private Equity in Europe  | Johannes P. Huth, the head of Europe, the Middle East and Africa at the private equity firm Kohlberg Kravis Roberts, considers the current outlook for private equity in Europe in an interview with Privcap. PRIVCAP
Buffett and Icahn: Birds of a Feather?  | The styles of Warren E. Buffett and Carl C. Icahn could not be more different. But Jeffrey Goldfarb of Reuters Breakingviews notes that both men beat the market by betting on America, playing hardball and trading on personal brands. DealBook »
Red Lobster Spinoff On Track  | Darden Restaurants on Monday said the sales process for its Red Lobster restaurant chain was “well underway,†despite the hedge fund Starboard Value’s efforts to pause the spinoff, The Wall Street Journal writes. Darden also said that it had considered a spinoff of its real estate holdings, but decided against the move because it would not create meaningful shareholder value and would separate Darden from a strategic asset. WALL STREET JOURNAL
Danish Outsourcing Firm Aims to Raise $1.4 Billion in Float  | The Danish outsourcing firm ISS said on Monday that it was hoping to raise about $1.4 billion through its initial public offering, planned for March 17, Reuters reports. REUTERS
Opower Plans $100 Million I.P.O. Â |Â Opower, which provides software to utilities to help homeowners reduce their energy use, said on Monday that it would raise $100 million in its initial public offering, making its plans public after filing confidentially for an I.P.O. last month, Reuters writes. REUTERS
Turmoil in Ukraine Casts Doubt on Metro’s Russia I.P.O.  | The future of the German retailer Metro’s 1.75 billion euro partial listing is now uncertain as the value of the ruble continues to fall and markets remain volatile, The Financial Times writes. FINANCIAL TIMES
Brit Insurance Plans I.P.O. Â |Â Brit Insurance, which is owned by the private equity firms Apollo Global Management and CVC Capital Partners, is planning an initial public offering in London next month, Bloomberg News reports. A minimum of 25 percent of the company will be sold to investors, with Apollo and CVC remaining the largest shareholders. BLOOMBERG NEWS
Messaging App Wickr Closes $9 Million Funding Round  | Wickr, a mobile messaging application that allows its messages to self-destruct, has secured $9 million in Series A funding from the venture capital firms Alsop Louie Partners, Juniper Networks and the Knight Foundation, ReCode reports. RECODE
Start-Up Zumper Raises $6.5 Million  | Zumper, an apartment rental search and tools website, announced on Monday that it had raised $6.5 million in a funding round led by the venture capital firms Kleiner Perkins Caufield & Byers, NEA and Dawn Capital, ReCode writes. RECODE
Speek Collects $5.1 Million  | The conference calling start-up Speek announced on Monday that it had raised $5.1 million in Series A funding, including $2.7 million in previously raised convertible notes, TechCrunch writes. One of the investors is the actor Edward Norton. TECHCRUNCH
No Gender Gap in Tech Salaries  | New research shows that there is no statistically significant difference in earnings between male and female engineers who have the same credentials and have made the same career choices, Quartz writes. QUARTZ
Bitcoin Loss Highlights Elusive Paths of Regulation  | The collapse of Mt. Gox and the loss of $450 million in Bitcoins is pushing governments to enhance regulation of virtual currencies, Peter J. Henning writes in the White Collar Watch column. DEALBOOK
Tax Reform’s Hard-to-Find Payoff  | Much ballyhooed tax reform legislation generally makes little difference to the economy, and the most recent proposal is unlikely to change that, an economist writes in the Economix blog. NEW YORK TIMES ECONOMIX
Why Puerto Rico’s Bonds Are Moving to New York  | If Puerto Rico, whose debt is already rated junk, wants to borrow new money, it will have to make concessions to lenders and change the governing law of the bonds from Puerto Rico to New York, Felix Salmon writes in Reuters. REUTERS
