Frontrunning: August 1
- Bundesbank’s Weidmann Says ECB Shouldn’t Overstep Mandate (Bloomberg)
- Hollande and Monti Vow to Protect Euro (FT) - be begging Germany to death
- Monti Calls French, Finns to Action as Italy Yields Rises (Bloomberg)
- not working though: Banking license for bailout fund is wrong: German Economy Minister (Reuters)
- Switzerland is ‘New China’ in Currencies (FT)
- Regulator Says no to Obama Mortgage Write-Down Plan (Reuters) - tough: there will be socialism
- Gauging the Triggers to Fed Action (WSJ)
- When domestic monetization is not enough: Azumi Spurns Calls for Bank of Japan to Buy Foreign Bonds to Curb Yen (NYT)
- Indonesia’s July Inflation Accelerates on Higher Food Prices (Bloomberg) - remember: the Deep Fried black swan
- China Manufacturing Teeters Close to Contraction (Bloomberg)
- Spain Introduces Regional Debt Ceilings to Achieve Budget Goals (Bloomberg) - yes, they said "budget goals"
- China’s Home Price Gain Signals ‘Turning Point,’ SouFun Says (Bloomberg) - just send the NAR in there.
- Singh Answers Sought as Worst Power Crisis May Hurt Growth (Bloomberg)
- Geithner Urges U.S. Congress, Europe to Spur Growth (Bloomberg) - and nobody cares
Overnight Media Digest:
* The fallout over Facebook Inc's initial public offering escalated as UBS AG went on the attack against Nasdaq OMX Group Inc, blaming the stock-exchange operator for trading flubs that erased a sizable chunk of its second-quarter profit.
* Google Inc said it will delay the launch of its Nexus Q music- and video-streaming device that it manufactured in the U.S. to "work on making it even better."
* Cellphone tower operator Crown Castle International Corp has emerged as the lead bidder for the towers being sold by T-Mobile USA, and a deal for more than $2 billion could be struck soon, people familiar with the matter said.
* Deutsche Bank AG, seeking to dispel concerns that it is undercapitalized following a dismal second quarter, raised its core capital target and announced a wave of layoffs and other cost-cutting measures at its flagging investment-banking arm.
* Microsoft Corp said it is converting Hotmail, which competes with Google Inc's Gmail and email services from Apple Inc and Yahoo Inc, into a revamped Web-based email service called Outlook.com.
* A bankruptcy trustee, Louis J. Freeh, sifting through the remains of MF Global Holdings Ltd expressed confidence that the failed securities firm's U.S. customers will get all their money back.
* A Citigroup Inc former director, Brian Stoker, was cleared of wrongdoing over his role in selling a $1 billion mortgage-bond deal by a federal jury in Manhattan, in a setback to the government's efforts to hold individuals accountable for Wall Street's conduct in the financial crisis.
* BP Plc posted a sharp fall in second-quarter earnings as it wrote down the value of several key assets in the U.S. by $5 billion. Excluding the one-time costs, analysts said the oil company's performance was still weak as it continues to suffer the long-term effects of the Deepwater Horizon spill.
* Republican and Democratic leaders said that they have agreed to extend current government funding levels through the first six months of the fiscal year that begins Oct. 1, avoiding the prospect of a pitched budget battle shortly before the election.
* PokerStars agreed to pay $731 million to end a Justice Department lawsuit alleging bank fraud, money laundering and violations of gambling regulations against it and another poker website, Full Tilt Poker.
* India suffered the world's biggest-ever power outage Tuesday as transmission networks serving areas inhabited by 680 million collapsed, putting the nation's ramshackle infrastructure on stark display
EUROPEAN LENDERS TAKE LIBOR SCANDAL HIT
Europe's economy took their toll on two of the region's leading investment banks, Deutsche Bank and UBS , which both revealed sharp profit falls.
SWITZERLAND IS 'NEW CHINA' IN CURRENCIES
There is a "new China" active in the currency markets, according to analysts, as Switzerland's battle to weaken the franc inflates.
CHINESE SWIMMER AT CENTRE OF DOPING STORM
A teenage Chinese swimmer was on Monday at the centre of the Olympic Games' first controversy over allegations of doping.
BP CHIEF ON DEFENSIVE AS EARNINGS PLUNGE
BP's chief executive was forced to deny the group had lost its way after unveiling disappointing second-quarter earnings.
HOTEL PROBE LOOKS AT ROOM FOR COMPETITORS
The Office of Fair Trading on Tuesday accused the InterContinental Hotels Group of anti-competitive behaviour.
NOMURA FACES PENALTY OVER INSIDER CASE
Japan's financial regulator is set to penalise Nomura for breaching Japanese financial law.
HOLLANDE AND MONTI VOW TO PROTECT EURO
Francois Hollande and Mario Monti issued a joint statement on Tuesday expressing a determination to "do everything" to protect the euro.
PAYMENT SCHEME LIKELY IF HEATHROW GROWS
BAA, Heathrow's owner, expects that a noise compensation regime will be needed if a third runway at the airport is given the ministerial go-ahead.
DEUTSCHE BANK TO CUT 1,900 JOBS
Deutsche Bank's new co-chief executive Anshu Jain is to cut 1,500 jobs at the group's investment bank.
MICROSOFT LAUNCHES NEW EMAIL SERVICE
Microsoft Corp unveiled a revamped, Facebook-friendly version of its free, online email service on Tuesday.
POKER COMPANIES SETTLE US FRAUD CHARGES
U.S. authorities settled a massive fraud complaint against the world's most popular online poker company on Tuesday.
* Unemployment in the countries that use the euro remained at a record high in June, official figures showed, underlining the debilitating effect of Europe's continuing debt crisis on its economy.
* UBS AG reported a 58 percent decline in its net profit for the second quarter as a fall in investment banking income weighed on the Swiss bank. UBS's investment banking unit was also hit by a $356 million loss connected to the botched Facebook Inc's initial public offering.
* Google Inc announced that it had agreed to acquire Wildfire, a social media marketing firm, for an undisclosed sum.
* A federal jury cleared Brian Stoker, a former midlevel Citigroup Inc executive, of wrongdoing in connection with the bank's sale of risky mortgage-related investments at the peak of the housing boom.
* Metro-Goldwyn-Mayer Inc plans to buy out Carl Icahn's entire stake in the film studio for about $590 million, as preparation to eventually go public, a person briefed on the matter said.
* Two of the world's largest poker companies, PokerStars and Full Tilt Poker, agreed to pay hundreds of millions of dollars, some of it to be reimbursed to online gamblers, to settle federal money laundering and other charges, the United States attorney for the Southern District of New York said.
* As concerns rise about the state of America's cities and the bond markets where they raise money, federal regulators called for broad reforms, while noting that some of the most rudimentary changes would require an act of Congress.
* The independent federal agency that administers Fannie Mae and Freddie Mac said that it would not let the mortgage companies offer debt forgiveness to borrowers, again rejecting the entreaties of the Obama administration.
* On Tuesday, India suffered the largest electrical blackout in history, affecting an area encompassing about 670 million people, or roughly 10 percent of the world's population.
* A leading Indian television network, New Delhi Television Ltd, or NDTV, has sued the Nielsen Company, accusing its Indian unit of providing "false, fabricated and manipulated data" on TV ratings for almost a decade.
THE GLOBE AND MAIL
* Jean Charest is adopting the mantle of economic nationalism as he gambles on a summer election in the face of widespread attacks on the Quebec liberal leader's record, after nine years in office.
Report in the business section:
The chief executive of BCE Inc believes a Canadian broadcaster will acquire the rights to the next Olympic Games even though his own company has withdrawn from bidding and no other broadcasters have come forward.
* Tensions over wealth-sharing between rich and poor provinces could ultimately "destroy" national unity, former Bank of Canada governor David Dodge argues in an essay published by a prominent national think-tank.
* Canada's economy slowed to a crawl in May, surprising analysts who had expected growth to continue after a relatively strong performance the previous month.
European PMI update:
- Sweden PMI Manufacturing 50.6 – higher than expected. Consensus 47.7. Previous 48.4.
- Spain PMI Manufacturing 42.3 – higher than expected. Consensus 40.3. Previous 41.3.
- Italy PMI Manufacturing 44.3 – higher than expected. Consensus 44.1. Previous 44.6.
- France PMI Manufacturing 43.4 – lower than expected. Consensus 43.6. Previous 43.6.
- Germany PMI Manufacturing 43.0 – lower than expected. Consensus 43.3. Previous 43.3.
- Euro Area PMI Manufacturing 44.0 – lower than expected. Consensus 44.1. Previous 44.1.
- UK PMI Manufacturing 45.4 – lower than expected. Consensus 48.4. Previous 48.4.
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