Frontrunning: July 22

• Debt talks begin critical phase (Reuters)
• Obama and Boehner Advance Toward Deal to Cut Deficit  (WSJ)
• Democrats Balk at Potential U.S. Debt-Limit Deal (Bloomberg)
• Debt Ceiling Uncertainty Puts States at Risk (NYT)
• Chinese manufacturing set to contract (FT)
• Questions on Holdings at the Fed (WSJ)
• China Banking Regulator Steps Up Risk Controls on Local Government Loans (Bloomberg)
• IEA calls halt to emergency oil release (FT)
• EU leaders agree €109bn Greek bail-out (FT)
• EU May Accept Greek Default as Crisis Fight Intensifies (Bloomberg)
• The Lesser Depression (Krugman)
• Barnier seeks to soothe UK over banks (FT)
• Pity the Policymakers (El-Erian)
• UK turns down ECB securities project (FT)

European economic update:

• Euro-Zone Industrial New Orders SA for May 3.6% mom higher than expected Consensus 0.8% mom Previous -0.1% mom (Revised from 0.7% mom)
• Euro-Zone Industrial New Orders NSA for May 15.5% yoy higher than expected Consensus 10.1% yoy Previous 10.3% yoy (Revised from 8.6% yoy)
• Germany IFO - Business Climate for July 112.9 lower than expectedConsensus 113.7 Previous 114.5
• Germany IFO - Current Assessment for July 121.4 lower than expectedConsensus 122.3 Previous 123.3
• Germany IFO - Expectations for July 105.0 in line with expectationsConsensus 105.0 Previous 106.2 (Revised from 106.3)
• France Own-Company Production Outlook for July 8 Previous 16 (Revised from 14)
• France Production Outlook Indicator for July 3 Previous 13
• France Business Confidence Indicator for July 105 lower than expectedConsensus 107 Previous 110 (Revised from 109)
• Italy Retail Sales s.a. for May -0.1% mom -0.6% yoy in line with expectationsConsensus -0.1% mom Previous 0.2% mom 2.2% yoy (Revised from 0.4% mom 2.5% yoy)

Global economic headlines courtesy of Egan-Jones

• Asian shares rise after Europe leaders strike deal on second Greece bailout.
• EU agrees on €109B Greek bail-out; Pvt bondholders called on to contribute further €37B.
• Apple in early stages of examining Hulu, that is being considered for sale by its owners.
• Beazley Plc had first-half loss of $14.1M, on claims from natural disasters.
• Bristol-Myers to buy Amira Pharma for $325M, potential milestone payments worth $150M.
• CAT's June net income rises from $707M to $1.0B.
• Chubb Q2 net 19% to $419M on high storm losses, but boosts 2011 profit guidance.
• Cytec beats by $0.03, posts Q2 EPS of $0.92. Revs rose 13.7% to $798M.
• Express Scripts buying Medco Health Solns Inc. for $29.1B.
• Fifth Third reports $328M in Q2 profits; results bolstered by improvements in credit.
• Genworth Fincl sees Q2 loss of $0.19-0.23/sh vs. cons +$0.24/sh amid worsening trends with its US mortgage insurance business and a weak housing market.
• Hewlett-Packard to buy back further $10B of stock to boost shares.
• Human Genome Sciences Q2 loss widens to $80.7M on lower revenue, higher costs.
• McDonald's June net income rises from $1.2B to $1.4B.
• Microsoft Q4 profit rises 29.9%, but Windows revs dips in 3rd straight quarterly decline.
• NCR Corp beats by $0.04, beats on revs; guides FY11 EPS, revs in-line.
• Nokia posts Q2 loss of €368M as sales dropped 7.3% to €9.28B.
• Olin's Q2 profit more than doubles to $42.1M, but shares slide on weak Q3 EPS outlook.
• PepsiCo Q2 net rises 18% helped by acquisitions, scaled back its 2011 EPS guidance largely on economic uncertainty in developed markets, higher commodity costs.
• Polycom Inc.'s Q2 net doubles to $29M as revs rose 24% to $366M.
• SanDisk Corp. beats est., Q2 net slips 3.7% to %$248.4M. Revs up 16% at $1.37B.
• Scholastic Corp. Q4 net falls 15% to $24.8M amid higher costs. Revs up 1% at $545.8M.
• Schlumberger Limited Q2 profit up $1.34B.
• Seagate declined $2.86 (17%) after Q1 profit.
• Wal-Mart to share data with Nielsen, may help manufacturers, other stores better understand shoppers
• Whirlpool posts Q2 loss of $161M due to settlement of a collection dispute. Revs up 4%.

Earnings Calendar: APD, CAT, DOV, GE, HON, MCD, NWBI, RAI, SLB, USG, VZ, XRX, YRCW.

Comments

[malikai]

Regarding the US debt ceiling circle-jerk: Who would have thought that you can make so much money watching a fucking soap opera? Never in my dreams.

[wsmith]

Front-running?

Who gives a shit?

We've got to change the way we think.

We need a revolution of ideas.

Fuck the corporate barons right in their asses.

They aren't our bosses.

Tune in, turn on, and drop out.

And fuck those scumbags.

But what the fuck do I know?

Anyway, so long.

And God bless all you Marxist cocksuckers.

http://geraldcelente.proboards.com

[HITMAN56]

...take the power back..."Its been observed throughout history that great men emerge during desperate times" Annon

[papaswamp]

Gold making another run at 1600 as people realize that nothing has really changed structurally.

[SheepDog-One]

Whole lot a jibber jabber, but bottom line everyones bankrupt.

[nmewn]

Ummm, Krooogmun...two thirds of the country are "right wing fanatics" according to a CNN poll...

http://poorrichardsnews.com/post/7900810544/cnn-poll-2-3-of-americans-support-the-gops-cut-cap

What a douche.

[krispkritter]

Ran into that article by accident this AM and read it for the shiggles. One thing about him is he's consistent; consistently an asshole, consistently wrong, etc. They should post his column on the 'funnies' page just so people don't get his spewing confused with real writing.

[I am a Man I am...]

the only explanation is that he is put where he is on purpose to persuade the public to let the elite legally steal from them

[monopoly]

• Bloomberg
• GE Geats Estimates as Finance Blunts Energy-Profit Drop
  

  Updated 1 hour ago

• GM. you know. I make spelling mistakes and as I get older my verbiage may not be perfect but if I ran a major news source I assure you the above would not have been posted for millions to see. Amazing.

Raise the freaking ceiling already and let us continue on with confetti center stage.

[monopoly]

Have you noticed on the chart how the 10 day keeps moving up to gold as it has been consolidating. Perfect set up, unless of course you believe in the 3 stooges.

[Careless Whisper]

The Careless Whisper Morning Report

NY City Discharges Raw Sewage Into Hudson River; Westchester County Issues Health Warning

http://www.lohud.com/article/20110722/NEWS02/107220341/Massive-sewage-sp...

Bladder Cancer Survivor Gets Second Incident With TSA

http://www.wlns.com/story/15126069/local-man-speaks-out-over-tsa-airport...

Larry Summers Calls Winkelvoss Twins "assholes"; Twins call Summers A Bunch Of Words No One Understands

http://latimesblogs.latimes.com/technology/2011/07/winklevosses-lash-out...

Prison Hospital Accused Of Medicating Accused Tuscon Shooter Against Court Order

http://www.latimes.com/news/local/la-me-loughner-medicated-20110722,0,41...

Canada To Extradite Chinese Fugitive

http://www.guardian.co.uk/world/2011/jul/22/canada-extradite-chinese-fug...

Detroit Buys MGM Grand Casino To Convert To Police HG: Renovations To Cost $47 Million

http://www.detnews.com/article/20110722/METRO01/107220377/1409/Mayor-Bin...

Vintage Wine Store Coming To GoldmanSachs Dining Complex

http://tribecacitizen.com/2011/07/20/seen-heard-goldman-sachs-wine-store/

Police: Suspect In Confrontation Shot Himself; No Gun Found

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/07/21/BAAU1KDJ6H.D...

Three Korean Students Win Prestigious Ferrari Design Competition

http://swns.com/a-ferrari-full-of-seoul-students-stunning-design-concept...

Watch: Chinese Animators Blatantly Copy Entire Japanese Cartoon

http://shanghaiist.com/2011/07/21/watch_chinese_blatantly_copy_an_ent.php

[monopoly]

double post. Sorry, still early for me.

[monopoly]

Still watching for GDX over 61 with volume. That is my tell, that the train is moving to the next station.

[monopoly]

Thank you Tyler, that is an excellent summary for us in the morning. Much appreciated.

[viator]

For the third time this month, consumer confidence has fallen to the lowest level of the past two years.

The Rasmussen Consumer Index, which measures the economic confidence of consumers on a daily basis, fell another point on Friday to 67.7. That’s the lowest level of confidence recorded since July 23, 2009.  It’s down 26 points from this year’s high-water mark of 93.3 and just 13 points above the lowest level of confidence recorded in the past ten years. Consumer confidence is down two points from a week ago, down nine points from a month ago and down eight points from three months ago. 

http://www.rasmussenreports.com/public_content/business/indexes/rasmusse...

[wsmith]

Let me tell you motherfuckers something.

I'm tired of looking at starving babies as we horde our gold and silver to out-smart the Bernank.

Fuck it all in the ass.

I'm going Christian.   Christ is the only guy who sheds light on reality.

He's the only person I respect.

Fuck the barons.  But fuck us, too.

And fuck money while we're at it.

Fuck it all.

And God bless Jesus Christ.

I'm tuning in, turning on, and dropping out.

Fuck gold.

Fuck silver.

And up our souls.

Anyway, so long for now.

And God bless all you Marxist cocksuckers.

http://geraldcelente.proboards.com

[Careless Whisper]

Oh I get it, if you own gold and silver you are anti-christ.  Nice try, now go back and tell your boss this idea was an epic FAIL.

[Version 7]

I'm tired of looking at starving babies as we horde our gold and silver to out-smart the Bernank.

You're right on this one. May Jesus Christ give you more balance though.

[KrugmansChauffeur]

"If Congress fails to raise the debt ceiling in time, the United States would default on its obligations, possibly plunging the country back into recession and sparking a crisis in financial markets worldwide."

Objective reporting.

[tom a taxpayer]

photo test