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Streetwise newsletter: Home Capital regains footing; higher interest rates won’t stem deal flow

People walk during rush hour Bay Street in the financial district in Toronto, Wednesday June 28, 2017.

Mark Blinch/Globe and Mail

Deposits are steadily returning to Home Capital Group Inc. as the troubled mortgage lender recovers from a crisis of confidence. Story (James Bradshaw)



The era of ultralow borrowing costs may be coming to an end in Canada but observers say the new zeitgeist is unlikely to have much of a dampening affect on the country's lively mergers and acquisitions (M&A) market. Story (Niall McGee and Christina Pellegrini)

This is the daily Streetwise newsletter with headlines chosen by Globe financial services editor Rita Trichur. If you're reading this on the Web or someone forwarded this e-mail newsletter to you, you can sign up for the Streetwise newsletter and all Globe newsletters here.

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Veteran portfolio manager Lawrence Ullman is bucking the trend of wealth-management industry consolidation, opening a new firm with an eye on preparing clients for an eventual downturn in equity markets. Story (Jacqueline Nelson)



Two of the best-known pioneers in private equity, Henry R. Kravis and George R. Roberts, are joining their industry peers and naming potential successors. Story



Blue Apron Holdings Inc. dropped as much as 12 per cent after Amazon.com Inc. filed a trademark application for prepared food kits, the latest sign that investors are concerned about newly public Blue Apron's prospects. Shares of the meal-kit delivery company sank as low as $6.51 (U.S.) , a 35 per cent drop since its initial public offering. Story



BlackRock Inc, the world's biggest asset manager, reported a massive influx of cash into its low-cost funds but nonetheless fell short of Wall Street's forecasts as price cuts and lower performance fees dented revenue. Story



Italian bank UniCredit has signed a final agreement with U.S. funds Fortress and Pimco on the sale of bad loans worth €17.7-billion ($20-billion) in Italy's biggest such deal so far. Story



Europe's top banking regulator, the European Central Bank (ECB), is considering carrying out a review of Deutsche Bank's two largest shareholders, a regulatory source said on Monday. Story



DAILY DEALS

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Dominion Diamond Corp., the world's third-largest producer of rough diamonds by value, announced Monday that it would be acquired by The Washington Cos. for $1.2-billion (U.S.), four months after a previous unsolicited $1.1-billion offer from the privately held American company prompted Dominion to put itself up for sale. Story (Josh O'Kane)



Sandvine Corp. has switched allegiance to a new takeover offer worth $562-million, about 16.5 per cent more than its original suitor was going to pay before a rival came forward late last month. Story



Valeant Pharmaceuticals International Inc, said on Monday it would sell its Obagi Medical Products business for $190-million in cash, as part of the Canadian drugmaker's efforts to cut down its debt. Story



Arm & Hammer toothpaste maker Church & Dwight Co Inc said on Monday it would buy Water Pik Inc, which makes oral hygiene products and shower heads, for about $1 billion in cash. Story



WHAT WE'RE READING

Without a vibrant IPO market, Canada's tech ecosystem risks being a branch plant community Story (Cantech)

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Wellington Financial opens New York office; hires Robin Gill as partner Story (Press release)



MSCI Inc has proposed leaving shares of Snap Inc. and other companies including Eaton Vance Corp. out of stock indexes because they lack voting rights, a sign of the rising skepticism facing corporate structures that boost the power of insiders. Story (Reuters)



SoftBank and Chinese ridehailing company Didi Chuxing are poised to lead a $2 billion (U.S.) round in the coming weeks for Southeast Asian Uber competitor Grab, according to The Wall Street Journal. The funding would be the second largest round of the year for a VC-backed startup, per the PitchBook Platform. Several of the top ridehailing companies have pulled in about $10 billion combined already this year. Story (Pitchbook)



IN CASE YOU MISSED IT

So what's wrong with a Chinese buyer acquiring Grouse Mountain? It's not obvious anything is amiss. Story (Barrie McKenna)



Manulife Financial Corp.'s acquisition of John Hancock in 2004 hasn't done anything for the insurer's share price over the past decade. Will a breakup help? Investors are hopeful. Story (David Berman)

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