Frontrunning: May 24

Tyler Durden's picture
  • French government says China backs Lagarde for IMF (Reuters)
  • ...but, China has actually not backed Lagarde (WSJ)
  • “You Americans Are Funny” — You Start an IMF (Forbes)
  • Norquist Emerges as Barrier to U.S. Debt Deal (Bloomberg)
  • Scarcity, Usefulness, and Getting an Edge (Hussman)
  • Bullard Says Fed May Keep Rates, Balance-Sheet Steady to Assess Economy (Bloomberg)
  • For Global Steel Industry, China Poses Guessing Game (WSJ)
  • Goldman Finding Third Time a Charm in Russia (Bloomberg)
  • Greece Will Accelerate State Asset Sales to Stem Debt Crisis as Bonds Drop (Bloomberg)
  • It can go wrong? It will go wrong (WaPo)
  • Italy prepares new deficit-cutting package (FT)
  • Yemen Deaths Follow Collapse of Plan to Oust Saleh (Bloomberg)
  • NATO Intensifies Attacks on Qaddafi Loyalists (Bloomberg)
  • Mexico pushes Carstens for IMF; Brazil reacts coolly (Reuters)
  • Low Treasury Yields Don't Necessarily Signal Inflation Calm (RCM)
  • Bank of England: Bank under fire again – from its own veterans (Independent)
  • Europe on alert over ash cloud (FT)
  • Moody’s Lists 14 U.K. Banks for Downgrade Review (Bloomberg)
  • U.K. Press Gag Orders Spark Political Battle (Bloomberg)

European economic data:

  • Germany GDP nsa (YoY) for Q1 5.2% as expected Consensus 5.2% Previous 5.2%
  • Germany GDP s.a. for Q1 1.5% q/q 4.9% y/y as expectedConsensus 1.5% q/q 4.9% y/y Previous 1.5% q/q 4.9% y/y
  • Germany IFO - Business Climate for May 114.2 Higher than expected GS forecast 113.8 Consensus 113.7 Previous 114.2
  • Germany IFO - Current Assessment for May 121.4 Higher than expectedConsensus 120.7 Previous 121
  • Germany IFO - Expectations for May 107.4 Higher than expectedConsensus 107 Previous 107.7
  • France Own-Company Production Outlook for May 11 Lower than expectedConsensus 19 Previous 13 (revised from 19)
  • France Production Outlook Indicator for May 15Previous 20
  • France Business Confidence Indicator for May 107 Lower than expected GS forecast 108 Consensus 109 Previous 109 (Revised from 110)
  • Norway GDP s.a. for Q1 -0.4% q/q Lower than expected GS forecast 1.0% q/q Consensus 0.5% q/q Previous 2.3% q/q (revised from 2.4% q/q)
  • Norway GDP Mainland Norway s.a for Q1 0.6% Lower than expectedConsensus 0.8% q/q Previous 0.3% q/q
  • UK Public Finances (PSNCR) for April 3.3B Slightly higher than expected Consensus 2.5B Previous 24.8B
  • UK PSNB ex Interventions for April 10B Higher than expected GS forecast -8.0B Consensus 6.5B Previous 17.9B (revised from 18.6B)
  • UK Public Sector Net Borrowing for April 7.7B Higher than expected GS forecast 4.0B Consensus 4.4B Previous 15.6B (revised from 16.4B)

Daily global highlights courtesy of Egan-Jones

  • Big US banks making progress in terms of quality and amount of capital: Fed's Rosengren.
  • Euro weakens for third day, Asian exporter stocks fall amid debt concerns.
  • Greece will accelerate state asset sales to stem debt crisis as bonds drop.
  • St. Louis Fed chief says central bank is likely to keep policy rates on hold after QE2.
  • UK financial institutions placed on review for cut by Moody’s.
  • AIG, Treasury to price share sale Tuesday. The big offering is “fully subscribed.”
  • AK Steel announces $50-60 per ton of price increase for carbon steel products.
  • Campbell Soup Q3 net rises 11% to $187M on flat revs (at $1.81B).
  • Charming Shoppes Inc. is looking into selling its Fashion Bug chain.
  • China's April oil demand up 8.3%: Platts.
  • Chow Tai Fook said to hire banks for $4B jewelry IPO in Hong Kong.
  • Chrysler to repay $7.5B in govt loans on Tuesday; to save $300M in interest payments.
  • DoJ is trying to halt H&R Block's plans to acquire the creator of TaxACT software.
  • EBay CEO still seeks acquisitions; could use some of the $2.4B it will receive from the sale of its remaining 30% stake in Skype.
  • GT Solar Intlsees 2012 EPS at $1.55 a share, more than cons estimate of $1.48/sh.
  • Hanover Insurance estimates April storm losses at $70-85M.
  • J&J AIDS pill approval heralds $9B in new sales from drug pipeline.
  • J&J to buy Russian OTC products of J B Chemicals, will pay $260M.
  • Kodiak Oil & Gas buying leases, properties in Williston Basin for $85.5M.
  • Motorola commences cash tender offer to buy up to $400M of certain outstanding debt.
  • Nestle said its Health Science unit bought US-based Prometheus Lab. Sum undisclosed.
  • Owens-Illinois lines up $2B in credit; aims to refinance older debt.
  • Russia’s Yandex offered at double Google’s value to earnings in US IPO.
  • Sony expects a $3.2B net loss for 2011, blaming a $4.4B write-off on a certain portion of deferred tax assets in Japan.
  • Tenneco Inc. said it will buy back as many as 400,000 shares.
  • TNK-BP says Board approves $2.13B quarterly dividend.
  • Verigy misses by $0.07, posts Q2 loss of $0.06/sh. Revs fell 6.7% to $112M.

Economic Calendar: Data on New Home Sales to be released today.
Earnings Calendar: AMAT, AZO, DY, HEI, MDT, PSS, PSUN, SAFM, TIVO, TTWO.

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A Man without Qualities's picture

TEPCO confirms meltdown in two further reactors.

"It is unlikely that the meltdowns will worsen the crisis because the melted fuel is covered in water," said a Tepco spokesman, Takeo Iwamoto.

The problem with this statement is the fact there appear to be holes in the bottom of the reactor pressure vessels...

Sudden Debt's picture

This is old news.

Bioluminescence are already the new fashion this year, just as mutations will be next year.



A Man without Qualities's picture

What's new is that they have finally admitted it.  The picture in the article is pretty astonishing....

Alex Kintner's picture

What, TEPCO lied?! No never! Not buying it.

And to put another lie to rest, the Japanese are not killing whales for sushi. They are researching whales to save them. Ok, admittedly they have to kill about a 1000+ whales a year to do their studies. But seriously, you can only get 20 tons of tissue samples from a single whale. They have to kill thousands.

Urban Roman's picture
  1. Apparently two of the units suffered earthquake damage which would have caused the meltdowns, fires, and explosions witnessed so far -- before the tsunami knocked out emergency cooling
  2. The melted fuel is not covered in water. Water does not exest at those temperatures.
  3. They don't know exactly where the fuel is; it has almost certainly penetrated the bottom of the containment vessel
  4. There have been sputtering returns to criticality, as shown by the presence of short-lived fission products in the spew
  5. On a long enough time line, this sort of accident is inevitable in any GE Mark-1 BWR.

Sudden Debt's picture

Looks like a good day AGAIN.

But that doesn't mean markets go down.



Alex Kintner's picture

What?! No link to a story about finding DSK's DNA on the maid's clothes?

Hey, he was obviously framed! The maid milked his jizz while he slept, then smeared it on her panties to fake a rape. It's sooo clear he was framed. :-)

taraxias's picture

No one said he didn't do it, or that he is innocent in this. Some inquiring minds though are asking the questions, what were the circumstances surrounding this "event", why now, and why was it treated the way he was?

I did say "inquiring minds" so by definition that excludes you Alex.

Alex Kintner's picture

Whoa, that was mean. You really hurt my feelings.

Ok, if someone wanted to 'get DSK out of the way', why wouldn't they just send a hit-woman dressed as a maid with a 44 caliber. No instead, they bribe an existing maid to lure DSK into raping her. So lucky they found a maid willing to take one (up the arse) for the team.

taraxias's picture

You're too sensitive.

At least you asked "why", that's an improvement.

Amazing how "lucky" someone can get if they are willing to stuff someone else's pockets with money.

Just saying....

Dolemite's picture

Has crude oil just completed a dead cat bounce?

bullchit's picture

"Bullard Says Fed May Keep Rates, Balance-Sheet Steady to Assess Economy"

Read.....Frozen in the headlights.


Dick Darlington's picture

And here is Spiegel telling a fine little story abt the europonzi. Enjoy!,1518,764299,00.html

overmedicatedundersexed's picture

often wonder if Guru Buffett has had multiple rapes in his resume, much like DSK, those elites in Finance and Industry really are that amoral and sociopathic..only the ones marked for destruction get the light of day(sorry Spitzer you putz)..DSK you attacked the FRN and now you are outed..all the public leaders have been selected for one major characteristic..they all have skeletons and character faults that make them easily controllable..brilliant of the elites don't you agree.

Miles Kendig's picture

China supporting Lagarde is no surprise.  The surprise would be IF the US can muster the vision & diplomacy, economic and otherwise, and place a Brazilian in the #2 spot as a h/t + to emerging economies (with the natural follow on conditions within the IMF as it is essentially split into two).

Highlights at 11