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Frontrunning: November 5

Tyler Durden's picture




 
  • Obama and Romney Deadlocked, Polls Show (WSJ)
  • NYC Commuter Week Faces Uncharted Ground as Storm Brews (Bloomberg)
  • New York region struggles to move on a week after Sandy (Reuters)
  • Europe's Bank Reviews Collateral (WSJ)
  • Less circuses to pay for the bread? Time Warner Cable misses on falling demand (Reuters)
  • Spanish unemployment total jumps by 128,242 as recession continues to take its toll on economy (Independent)
  • Goldman Sachs Partner List Drops 31 Since February, Filing Shows (Bloomberg)
  • China's mission impossible - a date for Hu's military handover (Reuters)
  • German-Iranian trade booming (Jerusalem Post)
  • Russia supplying arms to Syria under old contracts: Lavrov (Reuters)
  • Russia endorses Egyptian-led regional group on Syria (Reuters)
  • Election Winner Must Win Over Wall Street (Bloomberg)
  • On Google, a Political Mystery That's All Numbers (WSJ)
  • HSBC fears U.S. money laundering fines to top $1.5 billion (RTRS)
  • Richard Koo: explain to Americans why $22 trillion in debt in 4 years is good for them.. or something (FT)

 

Overnight Media Digest

WSJ

* U.S. President Barack Obama and Mitt Romney crisscrossed the country Sunday to energize supporters in key states, as new polls forecast a down-to-the-wire election and both sides claimed they had the momentum to win.

* Wall Street pay will bounce in 2012 from last year's sharply reduced levels, but bonuses will be lower and have more strings attached than before the financial crisis, the latest tally of finance-industry compensation shows.

* The European Central Bank is looking into whether it is treating Spanish government Treasury bills too generously when commercial banks present them as collateral for loans, potentially reviving concerns over the safety of the central bank's 3 trillion euros ($3.85 trillion)balance sheet.

* Mutual funds run by three of the banks that helped Facebook Inc go public were quick to flock to the stock during the high-profile initial public offering in May, but new data show they were also among the first out the door when the social-network giant's stock began tanking soon after.

* Billionaire Beanie Baby mogul Ty Warner has notified Four Seasons Hotels and Resorts that an unidentified buyer has offered him $900 million for the Four Seasons Hotel New York, according to people briefed on the matter.

 

FT

POST-SANDY REBUILDING BOOST FOR ECONOMY

The storm that ravaged the north-east coast of the United States last week will hit economic growth in the final quarter of 2012 but will boost it in the first half of 2013, company executives and economists say.

HMRC TO FACE MPS OVER MULTINATIONALS' TAX

When Britain's top Revenue officials appear before MPs on Monday to discuss their latest accounts, they are likely to come under renewed pressure over the tax affairs of some of the highest profile multinationals operating in Britain.

BOFA MOVES CLOSER TO PAYOUT

Bank of America has moved closer to returning capital to shareholders after last week unexpectedly reaching new international capital standards.

KCELL SET TO PURSUE LISTING IN LONDON

Kcell, the largest mobile operator in Kazakhstan, plans to list about a quarter of its equity for up to 500 million pounds. Preparations have been concluded, according to sources familiar with the process.

COMET CREDITORS INCLUDE OWNER

OpCapita, the private investment firm that acquired Comet for 2 pounds less than a year ago, will be among the first in line for an estimated 60 million pounds that could be recovered from the electricals retailer that collapsed into administration last week.

BUYERS STAY AWAY FROM CANTON FAIR

Weak global demand for Chinese exports was on display at China's largest industrial bazaar where suppliers of everything from electronics to Christmas decorations said both the number of buyers and orders were 10 per cent lower than the previous fair in the spring.

OFFSHORE WIND TURBINE ORDERS GRIND TO HALT

Orders for offshore wind turbines have come to an abrupt halt in the UK, in what some industry figures say is the first clear sign of a long-feared slowdown in renewable energy investment.

STUDENT HOUSING IS TOP PROPERTY ASSET

Student housing has emerged as the best-performing asset in the US and UK property markets, according to figures published on Monday that show the sector generating double-digit returns on the back of strong rental growth.

LONDON HOTELS FACE POST-GAMES HANGOVER

London's hotel occupancy is projected to drop by nearly four percentage points to 77 per cent in 2013, the lowest occupancy rate since 2005, according to research by PwC, as business travel weakens.

 

NYT

* U.S. President Barack Obama and Mitt Romney hunted for last-minute support on Sunday in a frenetic sprint across battleground states, even as their parties faced off in the first of what could be a growing number of legal disputes over presidential ballots and how they are counted.

* Year-end incentives at big Wall Street banks will be flat to up to 10 percent higher when compared with last year, a survey is forecasting, but the increase is from one of the worst years for bank pay in recent memory.

* In addition to shutting down shipping terminals and submerging warehouses, superstorm Sandy tangled up deliveries, just as retailers normally receive final shipments for the holiday shopping season.

* New legislation pressed by Pandora Media Inc and other Internet radio services to reduce their royalty rates has touched a nerve in the music industry.

 

Canada

THE GLOBE AND MAIL

* A federal burial fund meant to give impoverished veterans a final dignified salute has rejected over two-thirds of the applications it has received since 2006.

* A beef processing plant in Alberta that was temporarily closed after its products were recalled because of E.coli contamination has been cautioned for failing to fully meet food safety standards again.

Reports in the business section:

* Bombardier Inc faces fairly low expectations when it reports third-quarter earnings on Wednesday. That could play to the company's advantage, particularly if it has any surprisingly good news to deliver.

* Global trade flows have been under growing pressure since the summer when Europe slipped back into recession, China downshifted and the United States continued to falter.

Tentative signs suggest the worst may be over as several key economies prepare to release trade figures for September this week.

NATIONAL POST

* Prime Minister Stephen Harper's unusually long six day trip to India will be heavily focused on encouraging trade and investment, but will also touch on the personal ties between the two countries - the one million strong Indian diaspora in Canada.

* The race for Ontario's top job has officially begun, with Toronto Centre MPP Glen Murray becoming the first to announce his candidacy for the leader of the Liberal Party and the premiership of the province.

FINANCIAL POST

* With a divisive and still-too-close-to-call U.S. election only days away, a group of 20 finance ministers and central bankers who gathered Sunday in Mexico City are urging political action to avoid the looming "fiscal cliff" of government spending cuts and tax hikes set to take effect next year in the United States.

 

China

SHANGHAI DAILY

-- Beijing and parts of Northern China have seen record amounts of precipitation on Sunday, causing blizzards that have blanketed the areas in heavy snow. Soldiers have been dispatched to send food and water to stranded motorists and to dig out vehicles buried under the snow.

CHINA SECURITIES JOURNAL

-- China's money markets will see ample liquidity until early next year, recovering from a shortfall in the third quarter of this year.

-- Despite a rally in the domestic stock market last week, a sustained upward trend needs turnover being expanded as investor sentiment remains weak after the main Shanghai Composite Index performed poorly this year.

SHANGHAI SECURITIES NEWS

-- China Pacific Insurance (Group) Co Ltd , one of the country's top insurers, said the China Securities Regulatory Commission had approved its plan to raise HK$10.4 billion ($1.3 billion) through a Hong Kong H-share private placement.

CHINA DAILY

-- Taiyuan and Shuozhou, two major coal-mining cities in the coal-rich Shanxi province, will shift to a greener economic development model, including development of more clean energy industries that will help manage pollution.

PEOPLE'S DAILY

-- A commentary says the ruling Communist Party will resolutely crack down on corruption among some officials.

 

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Mon, 11/05/2012 - 08:45 | 2948165 Josephine29
Josephine29's picture

Whilst there is plenty of bad news about there was also some better news from the Irish economy. Take a look at the latest data.

Her Service Sector

If we look at the latest Purchasing Manager Index we get the theme for it from this.

Strongest rise in activity since October 2007 as new business increases sharply

Irish readers can permit themselves a smile at this point as this is the best Euro area headline I can recall in 2012. If we look deeper into the detail we see that the index rose to 56.1 in October from 53.9 in September on a scale where numbers above 50 demonstrate expansion. We see also this.

A sharp rise in new export orders was also recorded, extending the current period of expansion to 15 months. Moreover, the latest increase was the fastest since June 2010.

http://notayesmanseconomics.wordpress.com/

So at least somewhere had some decent news in what is looking a more and more difficult environment.

 

 

Mon, 11/05/2012 - 08:59 | 2948175 Catullus
Catullus's picture

Election Winner Must Win Over Wall Street (Bloomberg)

Regardless of whether Mitt Romney or Barack Obama wins the presidential election Tuesday night, one of the first orders of business will be to repair the deep rift between Washington and Wall Street.

Plenty of Americans may feel that the antagonism between the two is useful -- and lord knows there have been times in recent history when the relationship between the power centers in Washington and New York City has been unbearably cozy. Yet the truth is that America functions best when Wall Street and Washington have a symbiotic -- rather than adversarial -- relationship.

First, don’t pretend the problem doesn’t exist. Yes, it is true that during the past four years Wall Street has benefited enormously under President Barack Obama -- from the trillions of dollars used to bail out failed firms to the doubling of the Standard & Poor’s 500 Index (SPX) since its 2009 nadir to the failure to put in place meaningful regulatory reform to the Federal Reserve’s decision to keep interest rates low. Yet Wall Street doesn’t see it that way, and the antipathy is palpable.

Ignore everything over the past 25 years, the antipathy is palpable. 

William Cohan, YOU ARE EMBARASSINGLY FULL OF SHIT. You've been an insider all your life and you're writing a propoganda piece for the elite.  You're a journalist/whore. Typical Columbia graduate.

 

Mon, 11/05/2012 - 09:16 | 2948204 Catullus
Catullus's picture

It gets even better....

To put things on a new footing, I suggest a weekend retreat in early December to Camp David (if Obama wins), or to Bretton Woods, New Hampshire (if Romney wins), involving both sides’ financial and policy gurus. I know it would be a painful and awkward gathering, especially if Obama is re-elected. Even a President Romney would have to figure out how to salve feelings bruised by the endless battles over how the new regulation of Wall Street will work.

What would they discuss at such a retreat? The other two items on my agenda.

One of which is that, while federal agencies need to quickly wrap up writing the rules called for under Dodd-Frank, the government should actually let Wall Street banks take more risk with their capital than Dodd-Frank law implies they should. In return, however, Washington should finally hold Wall Street fully accountable for its actions.

So, to solve this (non) problem of a palpable antipathy, Wall Street elites and senior administration officials should have a meeting behind closed doors at an expensive retreat venue to discuss how they're going to circumvent the laws on the books.  At which the bankers will agree to take on more risk in return for getting rid of the basic structure of a corporate, namely limited liability. 

Are you out of your fucking mind? THIS IS WHAT A COLUMBIA EDUCATION PRODUCES!!!  This is Vanity Fair and the Washington Post.  Holy shit balls, these people are clueless.

Mon, 11/05/2012 - 09:00 | 2948177 reload
reload's picture

If O & R are as deadlocked as the polls indicate, why are the bookies still so heavily backing O for the win?

Mon, 11/05/2012 - 09:38 | 2948268 disabledvet
disabledvet's picture

Because if Romney wins there won't be bookies...and all the fun stuff that comes with them.

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