The beleaguered Japanese industrial giant said Monday that it would hold a nonbinding shareholder vote next month on its proposal to split the company into two. Toshiba said the plan, announced last week, would be faster and more efficient than its earlier proposal of a three-way split. Under the original plan, Toshiba would have been split into a device company, an infrastructure unit and a company holding its stake in flash-memory company Kioxia. The new plan would just spin off its device business into a separate company.
Elon Musk Gave $5.7 Billion of Tesla Shares to Charity Last Year
Elon Musk donated roughly $5.7 billion worth of Tesla Inc. shares to charity last year, according to a securities filing Monday, making him by at least one measure one of last year's top philanthropic donors.
The filing doesn't name recipients for the 5,044,000 Tesla shares that Mr. Musk reported donating over the course of more than a week in November. Mr. Musk, Tesla's chief executive and the world's wealthiest person, didn't respond to a request for comment.
Intel Nears Roughly $6 Billion Deal to Buy Tower Semiconductor
Intel Corp. is close to a deal to buy Israeli chip company Tower Semiconductor Ltd. for nearly $6 billion, according to people familiar with the matter, bolstering a plan to make more chips for other companies.
A deal could be unveiled as soon as this week, assuming the talks don't fall apart, the people said.
Talc Users Suing J&J Decry 'Abusive' Bankruptcy as Trial Opens
Johnson & Johnson moved a deluge of costly lawsuits over talc-based products to chapter 11 to gain an unfair edge in litigation, lawyers for cancer victims said as a bankruptcy trial opened Monday on the company's legal strategy.
Personal-injury lawyers accused J&J of improperly seeking to access chapter 11 without filing for bankruptcy itself, instead pushing the company's talc-related liabilities into a new subsidiary that swiftly filed for court protection. The bankruptcy filing was designed to resolve talc cases before J&J splits off its consumer-health business, which wasn't financially distressed, injury lawyers said.
Citigroup's Jane Fraser Gets $22.5 Million for First Year as CEO
Citigroup Inc. paid new Chief Executive Jane Fraser $22.5 million for her first year on the job.
Ms. Fraser, who became chief executive on March 1, 2021, was given a salary of $1.33 million and a cash bonus of $6.35 million. The bulk of her compensation-$14.82 million-is in restricted stock tied to performance metrics.
Economists Expect Pickup in Producer Prices for January
Prices that suppliers charged businesses and other customers are expected to have accelerated in January, pushed up by pandemic-related disruptions and continued strength in consumer demand.
Pension Funds Chase Returns in Private-Market Debt
Retirement funds are clamoring to invest in private-market loans, hungry for an asset that can beat public markets while at the same time throwing off cash to help pay benefits.
Two of the nation's three biggest pension funds-those serving public workers in New York and California-have added private-credit allocation targets in the past two years. Across the U.S., state and local retirement funds with private-credit portfolios are expanding them faster than any other alternative investment, from an average allocation of 3% to an average target of 5.7%, according to analytics company Preqin.
Turkish Economy Could Get Caught in Russia-Ukraine Crossfire
Eurozone Economic Growth Slowed in 4Q Amid Rising Coronavirus Cases, Confirming First Estimate
The eurozone economy grew at a slower pace in the fourth quarter than in the previous period due to rising coronavirus cases and the re-imposition of restrictions across the continent taking their toll on the services sector.
Across the 19 countries that use the euro as their currency, gross domestic product grew 0.3% on quarter in the last three months of the year, the European Union's statistics agency Eurostat said Tuesday, confirming the first estimate released on Jan. 31. This figure is in line with the forecast of economists polled by The Wall Street Journal.
Regulators Probe Block Trading at Morgan Stanley, Goldman, Other Wall Street Firms
Federal investigators are probing the business of block trading on Wall Street, examining whether bankers might have improperly tipped hedge-fund clients in advance of large share sales, according to people familiar with the situation.
The Securities and Exchange Commission sent subpoenas to firms including Morgan Stanley and Goldman Sachs Group Inc. as well as several hedge funds, asking for trading records and information about the investors' communications with bankers, some of the people said. The Justice Department also is investigating the matter, some of the people said.
Japan's Economy Recovered in Fourth Quarter
TOKYO-Japan's economy returned to growth in the October-December quarter thanks to higher consumer spending, but a resurgence in Covid-19 infections is likely to hold back the recovery in the current quarter.
In the final quarter of 2021, the world's third-largest economy after the U.S. and China grew 1.3% from the previous quarter. That was equal to 5.4% on an annualized basis, showing what would happen if the quarter's growth continued for a full year.
Russia Says Some Troops Pulling Back From Ukraine Border but Exercises Continue
Russia's Defense Ministry said it had pulled back some troops from near Ukraine while noting that large-scale military maneuvers were continuing and Western officials warned that combat units were moving into forward positions.
The announced pullback of around 10,000 troops, out of a force estimated to have numbered about 130,000, came amid a new round of shuttle diplomacy aimed at defusing the crisis. Moscow has warned of unspecified consequences if the U.S. and its allies reject its security demands.
Jonathan Toebbe Pleads Guilty to Conspiring to Divulge Nuclear-Sub Secrets
A U.S. Navy engineer pleaded guilty Monday to charges that he tried to sell highly sensitive nuclear-submarine secrets to a foreign government, in an agreement that could send him to prison for more than 12 years.
Jonathan Toebbe, 43 years old, pleaded guilty in federal court in Martinsburg, W.Va., to a single count of conspiracy to communicate restricted data. The charge carries the possibility of life in prison, but lawyers on both sides agreed to a sentencing range of between 12 and 17 years.
Ilya Lichtenstein Ordered Detained Until Crypto Trial; Heather Morgan Released
WASHINGTON-A federal judge ordered the pretrial detention of one member of the young Manhattan couple arrested last week on charges of conspiring to launder billions of dollars in stolen bitcoin, saying the steep penalties the two potentially face and the husband's alleged familiarity with fake personas meant he could try to flee if released.
At a Monday hearing in federal court here, Chief Judge Beryl Howell reversed in part a decision by another judge in New York last week to grant bond for the couple, Ilya Lichtenstein and Heather Morgan, with restrictions including their parents' homes being posted as security.
GOP Senator Cites Drug-Pipe Questions in Holding Up Stopgap Spending Bill
WASHINGTON-Sen. Marsha Blackburn (R., Tenn.) said that she will hold up a bill to keep the government funded until the Biden administration responds to her questions about whether a program intended to help people with substance-abuse disorders could be used for pipes to smoke illicit substances.
Her position injects uncertainty into the government's ability to avoid a partial shutdown later this week. While a single senator can't stop legislation, he or she can slow down the process by declining to consent to cutting out procedural hurdles.
Write to sarka.halas@wsj.com
TODAY IN CANADA
Earnings:
Capstone Mining Corp. (CS.T) 4Q
FirstSvc Corp (FSV.T) 4Q
Restaurant Brands Intl Inc (QSR.T) 4Q
TC Energy 4Q
West Fraser Timber Co. (WFG.T) 4Q
Economic Indicators (ET):
0815 Jan Housing Starts
Stocks to Watch:
Emera 4Q Profit Rises; Up to 8% Growth Expected from Investment Plan
Emera Inc. on Monday reported a rise in fourth-quarter profit and said it expects growth of up to 8% through 2024 as a result of a new investment plan.
The Halifax, Nova Scotia-based energy holding company said earnings per share were 1.24 Canadian dollars, the equivalent of 97 U.S. cents, up from C$1.09 in the comparable quarter a year ago.
Reported net income was C$324 million, compared with C$273 million a year ago.
Adjusted earnings were C$0.64 a share, down from C$0.75 a share.
Looking ahead, the company said it has a capital plan to invest $8.4 billion over the period spanning the years 2022 to 2024, adding that there is also an additional $1 billion of potential capital investments over the same period.
As a result, Emera said that it forecasts a rate base growth of 7% to 8% through 2024.
The plan will be funded primarily through internally generated cash flows and new raised debt.
Other News:
Trudeau Invokes Special Powers to Quell Protests
In a highly unusual move, the Canadian government on Monday invoked a series of emergency powers that include limits on public gatherings in a bid to end disruptive demonstrations in the capital city and along the Canada-U.S. border.
The measures, announced by Prime Minister Justin Trudeau, represent one of the most striking responses by a Western government against protests by those opposing Covid-19 vaccine mandates and social restrictions in response to the pandemic, and immediately drew fire from some Canadian leaders and civil-liberties groups.
(MORE TO FOLLOW) Dow Jones Newswires
02-15-22 0612ET
