Frontrunning: July 1

Tyler Durden's picture
  • Strauss-Kahn Case Seen as in Jeopardy (NYT)... yes, the soap opera is back.... although don't expect Lagarde to hand the keys back to DSK - after all the mission has been accomplished. Though president DSK would be a shoo in if cleared of all charges.
  • China Salutes 90 Years of Communism (WSJ)... US salutes nearly 100 year of Federal Reserve central planning
  • Obama Pushes for a Deficit Deal by July 22 (FT)
  • China manufacturing at lowest in 2 years (FT)
  • German Banks Agree to Greek Aid Deal (WSJ)
  • Ex-Goldman director Gupta SEC Case Postponed Indefinitely (Fin Alternatives)
  • Greek, Italian Bonds Lead Peripheral Rebound as Default Concern Ebbs (Bloomberg)
  • Republicans boycott trade vote (FT)
  • Obama Pushes for a Deficit Deal by July 22 (FT)
  • US set to step up Syria sanctions (FT)
  • In Washington, Rifts Over Libya Exposed (WSJ)
  • India Manufacturing Expands at Slowest Pace in Nine Months After Rate Rise (Bloomberg)
  • Concern as Turkish growth hits 11% (FT)
  • UBS names ex central banker Weber as future chairman (Reuters)

European economic highlights:

  • Sweden PMI Manufacturing  June 52.9 – Lower than expected.Consensus 55.5. Previous 56.1.
  • Hungary PMI Manufacturing  June 54.4.Previous  52.4.
  • Norway PMI Manufacturing  June 56.1 – Lower than expected.Consensus 57.0. Previous 56.8.
  • Norway Unemployment Rate  June 2.5% - As expected.Consensus 2.5%. Previous 2.5%.
  • Poland PMI Manufacturing  June 51.2.Previous 52.6.
  • Turkey PMI Manufacturing  June 52.3.Previous 50.6.
  • Czech Republic PMI Manufacturing  June 55.1.Previous 55.9.
  • Switzerland PMI Manufacturing  June 53.4 – Lower than expected.Consensus 57.8. Previous 59.2.
  • Euroland PMI Manufacturing  June 52.0 – As expected.Consensus  52.0. Previous 52.0.
  • Euroland Unemployment Rate May 9.9% - As expected.Consensus 9.9%. Previous 9.9%.
  • Italy PMI Manufacturing 49.9 – Lower than expected.Consensus 50.6. Previous 52.8.
  • Italy Unemployment Rate  May 8.2% - Lower than expected.  Consensus 8.3%. Previous 8.1%.
  • UK PMI Manufacturing 51.3 – Lower than expected.Consensus 52.3. Previous 52.1.    

Global headline summary from Egan-Jones

  • Chinese manf index was 50.9 in June compared with a previously reported 52 in May.
  • Geithner said to consider leaving Treasury after budget deal.
  • ISM’s business barometer unexpectedly rose to 61.1 in June from 56.6 a month earlier.
  • Japan’s Tankan index of sentiment fell to minus 9 in June from 6 in March.
  • Ansys Inc. to acquire simulation-software provider Apache Design Solns for $310M.
  • Apollo Group Inc. sees 2012 revenue of as much as $4.25B (cons $4.13B).
  • AXA SA's PE arm to buy a $740M PE portfolio from UK's Barclays PLC.
  • AZZ Inc. beats by $0.12, beats on revs; guides FY12 EPS, revs above consensus.
  • Borders Group has agreed to sell itself to private investment firm Najafi Cos. for $215M.
  • Constellation Brands' Q1 net jumps 52% to $74.5M on cost-reductions. Revs fell 19% to $635.3M, due to divestiture of its Australian and UK wine business.
  • Darden Restaurants reports in-line; 34% increase in dividend to $0.43.
  • Dendreon's prostate cancer medicine Provenge to be covered by Medicare program.
  • Eaton to acquire German filtration systems provider E. Begerow GmbH. Terms undisclosed.
  • First Solar Inc. won $4.5B in conditional loan guarantees from US Energy Dept for three projects it’s developing in California.
  • HP being urged by PE firms to break up and sell some units to them.
  • HSBC to cut 700 jobs from retail operations in UK.
  • KB Home says it has no plans to issue equity; f'casts cash balance of more than $500M after paying off bond, settlement.
  • Lilly sees 2011-2014 revenue at least $20B; at least 10 drugs in Phase III by end 2011.
  • McCormick & Co.'s Q2 net rises 11% to $73.6M, helped by price increases. Lowers full-year EPS view to $2.74-2.79 (prev $2.80-2.85).
  • NetApp Inc. f'casts 2012 EPS of $2.46-2.62, compared with cons estimates of $2.48.
  • New York Fed halts sales of AIG mortgage-backed bonds on market conditions.
  • Nortel to sell patents for $4.5B.
  • Rite Aid June same-store sales rise 1.8%, on improvement in both front end and pharmacy.
  • SABMiller PLC said it will enter the high growth market of specialty beers.
  • Smith & Wesson reports Q4 EPS of $0.02; revs rose 7.7% to $111.8M.
  • Solorz-Zak buys Polkomtel, telecom co., for $5.5B, in record Polish deal.
  • Transocean adopts no-apology strategy in pushing blame on BP for oil spill.

Economic Calendar: Data on Michigan Sentiment, Construction Spending, Auto Sales to be released.
Earnings Calendar: HIHO, LPHI, PWX, RADA, SLP.

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Dental Floss Tycoon's picture


Strauss-Kahn Case Seen as in Jeopardy

Of course it is in jeopardy.  Justice is not for Guinean housekeepers who might be involved involved in petty criminal activities.  It's for the good people involved in major criminal activities. 

slaughterer's picture

DSK? there is an office waiting for him at Goldman Sachs.  After all, he lives in the neighborhood now. 

FeralSerf's picture

"...  new report prepared for Prime Minister Putin by the Federal Security Service (FSB) says that former International Monetary Fund (IMF) Chief Dominique Strauss-Kahn was charged and jailed in the US for sex crimes on May 14th after his discovery that all of the gold held in the United States Bullion Depository located at Fort Knox was ‘missing and/or unaccounted’ for.

According to this FSB secret report, Strauss-Kahn had become “increasingly concerned” earlier this month after the United States began “stalling” its pledged delivery to the IMF of 191.3 tons of gold agreed to under the Second Amendment of the Articles of Agreement signed by the Executive Board in April 1978 that were to be sold to fund what are called Special Drawing Rights (SDRs) as an alternative to what are called reserve currencies.

This FSB report further states that upon Strauss-Kahn raising his concerns with American government officials close to President Obama he was ‘contacted’ by ‘rogue elements’ within the Central Intelligence Agency (CIA) who provided him ‘firm evidence’ that all of the gold reported to be held by the US ‘was gone’.

Upon Strauss-Kahn receiving the CIA evidence, this report continues, he made immediate arrangements to leave the US for Paris, but when contacted by agents working for France’s General Directorate for External Security (DGSE) that American authorities were seeking his capture he fled to New York City’s JFK airport following these agents directive not to take his cell-phone because US police could track his exact location.

Once Strauss-Kahn was safely boarded on an Air France flight to Paris, however, this FSB report says he made a ‘fatal mistake’ by calling the hotel from a phone on the plane and asking them to forwarded the cell-phone he had been told to leave behind to his French residence, after which US agents were able to track and apprehend him.

Within the past fortnight, this report continues, Strauss-Kahn reached out to his close friend and top Egyptian banker Mahmoud Abdel Salam Omar to retrieve from the US the evidence given to him by the CIA. Omar, however, and exactly like Strauss-Kahn before him, was charged yesterday by the US with a sex crime against a luxury hotel maid, a charge the FSB labels as ‘beyond belief’ due to Omar being 74-years-old and a devout Muslim.

In an astounding move puzzling many in Moscow, Putin after reading this secret FSB report today ordered posted to the Kremlin’s official website a defense of Strauss-Khan becoming the first world leader to state that the former IMF chief was a victim of a US conspiracy. Putin further stated, “It’s hard for me to evaluate the hidden political motives but I cannot believe that it looks the way it was initially introduced. It doesn’t sit right in my head.”

Dental Floss Tycoon's picture


What a great conspiracy theory.  My favorite so far.  

Might even be true!

Zedge Hero's picture

This weeks newscast on the Greek protest and the end of QE2.

Sean7k's picture

Now that Lagarde is elected, the case against DSK is falling apart. Why won't the news media put two and two together? 

Yes, that was rhetorical...

AnAnonymous's picture

That's troublesome:

-conspiracy theory that this guy was set up so he is forced to resigned


-conspiracy theory that this guy bought his way out of a rape by resigning from his position.


It is a US driven world and a key rule is the following:

AnAnonymous's picture

That DSK story was seminal in some sort, exposing the freedom of speek US kind.


That man comes from a world where women are free to talk against their rapists.

The negro woman comes from a world where women are prevented from talking about their rape.

And it is very interesting. Because as it was postulated by this site, this DSK man had other events before being compromized by that negro woman. Events performed on women who are free to talk against their rapists.


At this point, the nature of freedom brought by the US appears, and freedom for whom.


In both worlds, rape happen. But in that negro woman world, the rapists have to coerce the victims into silence, they have to pressure women. And a victim crossing the line of the prohibition can receive support from her communauty as it is happening right now.

In the US free world, wom en censor themselves. They chose not to talk while they could. Because they felt lonely, because they knew they would go through character assassination, because they knew it would be useless.


Wonderful world for a rapist. Because it brings peace of mind. In that negro world, a rapist is prevented from denying his rape. If he does, he will forget about pressuring a woman into silence.

In the US world order, the rapist is reinforced in his way by the acts of the women. A rapist rapes a woman. The woman is free to talk. As she does not talk, then it is an evidence he did not rape that women. Else she would have talked.

This is the kind of freedom the US has brought to the world: freedom from the criminals. Criminal minds in the US world order have managed to render their victims so helpless that criminals no longer face the burden of trying to avoid social condemnation.

Until they cross path with a backward society member, where freedom of speech has still some power.

Sean7k's picture

The woman was a tool. This is not about rape (we are all raped daily), this is about disciplining Elites that go astray. DSK has evidently made amends and will be rewarded with the French presidency. 

Please try to keep up. You are looking for justice as an ideal- it does not exist.


AnAnonymous's picture

Hard to keep up. This guy might or might have been set up. Stories surfacing showed he had antecedents. Looks more like a guy who got into a corner and traded his way out of the corner than a set up guy.

Sean7k's picture

It is indeed, but all Elites are exposed by their bad behavior to elicit the result wanted- see Clinton/Lewinski, Margaret Thatcher, etc. Once they realize who is really in charge, they toe the line and are rehabilitated or removed from the Earth.

imapopulistnow's picture

Or did DSK get lacrossed?

falak pema's picture

He may still end up a 'ze boss' in Franc with his lacross as crucifix of honor...

Broomer's picture

All you need to know about it, from the NYT article:

According to the two officials, the woman had a phone conversation with an incarcerated man within a day of her encounter with Mr. Strauss-Kahn in which she discussed the possible benefits of pursuing the charges against him. The conversation was recorded.

Within a day of her encounter... why didn't we know about this earlier? </rhetorical question>

Dental Floss Tycoon's picture



Would not discussions regarding "benefits" whether positive or negative be normal for someone in her situation?

But that aside I believe as many others that some person or persons decided to take him out so they chose this as a more polite form of two to the head. 

Strauss-Kahn was probably getting too uppity.  Having been censured he can now be rehabilitated.



THE DORK OF CORK's picture

Perhaps there is a real division between the US treasuary & the BIS

Maybe these organisations are not happy campers.

Interesting pro BIS series from Eric de Carbonnel - maybe this could explain the DSK Drama - maybe there are no good guys , just bad & ugly.

Comes in 4 parts.......


tip e. canoe's picture

dork, been thinking along similar lines ever since i watched those videos.

THE DORK OF CORK's picture


Yes well I kind of veer towards new Dealism but this gives me a moment of pause - certainly the ditching of the Hybrid Gold standard has been a epic disaster.

Ultimate power corrupts I guess.

The FED asked to become a member of the BIS in the 50s but the treasury politely refused asking only cordial relations be kept.

I think the BIS decided to take the Dollar out during the Clinton Administration when the FED joined the Board of the BIS - but who really knows.

Dental Floss Tycoon's picture


Thanks for the link to the videos Dork.  

Not very enlightning though, just more information to confuse me.

And just when I had decided it was all the bankers fault.


youngman's picture

The accuser supposedly has seveal bank accounts with $100, is that possible...I thought she was on welfare....

MachoMan's picture

because the profiteers of moral hazard come in all sizes and shapes...

Dreadker's picture

All smoke and mirrors people... all smoke and mirrors...

famousamos's picture

If DSK was in fact set up, and this was to get him removed as IMF chief, what are the leading theories as to why they wanted him out?

Agent P's picture

I believe the answer is PIIGy haircuts.

Gully Foyle's picture


"what are the leading theories as to why they wanted him out?"

Hey now Little fella that's a good question. Putin was rumored to claim it was over missing Gold at Fort Knox. Others was to knock him out of the French presidency running.

The reality is something complex that involves aspects of both and other currents we will never guess at.


swissinv's picture

time to bring the maid to prison for drug dealing and money laundering... that's the price when playing the game with the big boyz!

buzzsaw99's picture

deport her nasty ass permanently

snowball777's picture

Ex-Goldman director Gupta SEC Case Postponed Indefinitely

Sounds like somebody turned state's evidence.

buzzsaw99's picture

because the squid fears the sec soo much? ha!

snowball777's picture

Not to roll on the squidz....on Raj the Rat and his big ship of foolios.

Careless Whisper's picture

trial balloon of the day:

Candidate for Treasury Secretary...

...and Commodity Futures Trading Commission head Gary Gensler are others mentioned as possible nominees.



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