Money Minute: Adidas May Score Big Soccer Endorsement
Adidas is likely to score soccer's biggest endorsement ever.
Germany not only kicked Brazil's butt at the World Cup on Tuesday, but Germany's Adidas looks poised to beat Nike (NKE) in scoring Manchester United's endorsement. The German sporting giant has offered ManU 60 million British pounds a year, which is equivalent to more than $100 million, for 10 years. Nike, who currently sponsors the team, has the right to top the deal when its contract expires after next season but the American brand reportedly doesn't want to bid that high and is walking away. If Adidas and Manchester United go through the deal, it would be soccer's biggest ever.
Car-sharing service Uber has reached a deal with New York State Attorney General Eric Schneiderman on the issue of price surging. The controversial service which charges customers more when demand is highest was accused of price gouging during Hurricane Sandy when it charged customers up to three times the regular fare. To comply with New York state's price-gouging law passed in 1978, Uber will have a cap on how much extra it can charge customers for its service in times of emergency. Uber says the agreement is part of its nationwide plan to institute price caps in cities during periods of emergency.
Here on Wall Street on Tuesday, investors slammed on the brakes, as the Dow Jones industrial average (^DJI) lost 117 points,the Nasdaq composite (^IXIC) dropped 34 points and Standard & Poor's 500 index (^GPSC) fell 7 points.
Manhattan U.S. Attorney Preet Bharara is one tough prosecutor. Under his direction his office has achieved 85 insider-trading convictions. But he just lost his first case. Hedge fund manager Rengan Rajaratnam, who initially faced six counts of fraud, was found not guilty by a jury. He is the brother of Raj Rajaratnam, who is currently in jail serving an 11-year sentence for insider trading. Rengan was accused of working with his brother and making trades on illicit information but the jury found the evidence was lacking. Bharara's office said the loss won't slow them down.
Finally, it appears that the Justice Department has caved in when it comes to how much of a settlement it will receive from Citigroup (C) for selling toxic mortgages that were intentionally opaque before the financial crisis. Initially the two sides were at loggerheads over the price of the settlement. Citigroup was offering $4 billion but the Justice Department wanted more in the range of $10 billion and was threatening a federal lawsuit if it didn't get close to that amount. What a difference a few weeks makes. The Wall Street Journal reports that the Justice Department is willing to settle for more than $4 billion, less than half of the amount it sought.
-Produced by Karina Huber.