Frontrunning: August 10

• Global stocks rebound after Fed move (FT)
• Bernanke’s Interest-Rate Timeframe Draws Most Negative Votes in 18 Years (Bloomberg)
• Pass the Granade: BofA Sells Part of Mortgage Portfolio to Fannie Mae (WSJ)
• France Asserts Plans to Keep Triple-A (WSJ)
• S&P balks at SEC proposal to reveal rating errors (Reuters)
• Senate’s Baucus In Deficit Super Committee Trio (Reuters)
• SNB’s Franc Dilemma May Force Intervention Even After $36 Billion Losses (Bloomberg)
• Kan Moves Step Closer to Resignation After Japan agrees on Budget Funding (Bloomberg)
• Cracks in China Housing Push (WSJ)
• Australian Consumer Confidence Slumps to Lowest Since 2009 on Market Slump (Bloomberg)
• No exposure at all: none. Commerzbank Profit Drops 93% on Greek Debt (Bloomberg)
• Sarkozy Calls Economic Meeting (WSJ)
• BOE Says U.K. Inflation to Fall Below Target (Bloomberg)
• Growing Confidence of Asian Inflation Peak (FT)
• Korea Bans Shorting as State Funds Aim to Buy (Bloomberg)
• Singapore Cuts 2011 Export Growth Forecast as Risks to Global Economy Rise (Bloomberg)

European economic update:

• Germany Consumer Price Index for July 0.4% m/m 2.4% y/y in line Consensus 0.4% m/m 2.4% y/y Previous 0.4% m/m 2.4% y/y
• Germany CPI - EU Harmonised for July 0.5% m/m 2.6% y/y in line Consensus 0.5% m/m 2.6% y/y Previous 0.5% m/m 2.6% y/y
• France Industrial Production for June -1.6% m/m 2.3% y/y lower than expected Consensus -0.7%m/m 3.9% y/y Previous 1.9% m/m 1.9% y/y
• France Current Account (EURO) for June -3.4B Previous -5.5B
• France Manufacturing Production for June -1.9% m/m 3.3% y/y Consensus -0.1% m/m 6.8% y/y Previous 1.4% m/m 4.5% y/y 
• Norway CPI for July -0.2% m/m 1.6% y/y higher than expected Consensus -0.4% m/m 1.5% y/y Previous -0.4% m/m 1.3% y/y  
• Norway CPI Underlying for July -0.1% m/m 1.2% y/y higher than expected Consensus -0.3% m/m 1.0% y/y Previous -0.2% m/m 0.7% y/y
• Norway Producer Prices incl.Oil for July 1.6% m/m 16.1% y/y Consensus 14.9% y/y Previous -0.9% m/m 14.4% y/y
• Norway Deposit Rates Consensus 2.50% Previous 2.25%
• UK Nationwide Consumer Confidence for July Prior 51

Global highlights courtesy of Egan-Jones

• Asian stocks, commodities gain on Fed’s pledge to keep interest rates low.
• Australia consumer confidence deteriorates as banking chief sees no relief.
• China’s exports rose 20.4% in July, imports climbed 22.9%- leaving a trade surplus $31.5B.
• Crude-oil supplies declined 5.2 million barrels on the week ending Aug. 5: API.
• Fed to keep key rates at record lows through mid-2013 amid weaker economy.
• Productivity in US falls for second straight quarter as labor costs rise.
• AMR to proceed with planned American Eagle spinoff amid market’s turmoil.
• AOL misses est., posts a loss of $11.8M as revs fell 8.4% to $542.2M.
• Apollo Global narrows Q2 loss to $51M as interest income, fees boost revs - meets expectations.
• Capital One Financial Corp. to purchase HSBC’s US credit card business for about $2.6B.
• Cargill Q4 earnings from continuing operations off 7% at $404M amid market volatility.
• Cathay Pacific Airways Ltd.'s H1 net profit fell 59% as a result of rising fuel costs.
• Commerzbank AG Q2 net profit sank 93%; cites €760M in impairment charges on Greek bonds.
• Cree beats by $0.01, beats on revs; guides Q1 EPS below consensus, revs in-line.
• Dish Network's net rose 30%; Co to freeze prices until Jan-2013 as subscriber numbers fell.
• Disney Q3 earnings rose 11.3% to $1.48B - beat expectations on growth at ESPN, theme parks.
• E.W. Scripps Co. posts a loss of $2.2M in Q2 as revs slips 3% to $183M.
• EON cuts target dividend, plans to eliminate up to 11,000 jobs.
• GM uncertain that US auto sales will hit forecast.
• Goldman Sachs faces a growing list of potential mortgage-related lawsuits.
• J&J reaches agreement with US on Risperdal criminal charge.
• Jarden announces $500M stock repurchase program.
• Lions Gate swings to Q1 profit of $12.2M as higher TV revenue offsets movie losses.
• MBIA beats by $0.83, posts Q2 EPS at $0.68. Adj book value as of June'11 at $37.22 per share.
• Nestle SA H1 profit fell 14% to $6.48B, due to a strong Swiss franc, higher raw material prices.
• Singapore Airlines orders 8 Boeing 777-300ER planes for $2.3B.
• Southern Union Q2 net fell 14% to $59.8M on higher expenses, lower volume. Revs up 10%.
• Sunoco announced $500M share repurchase authorization.
• SunPower Corp. said Q3 EPS, revs will be lower than the average analyst estimate.
• Wal-Mart is ending its digital music sales this month after seeing increased competition.
• Acquisitions boost URS Q2 results; net income up almost 8% at $66.8M, but short of expectations.

Economic Calendar: Wholesale Inventories, Crude Inventories & Treasury Budget to be released today.
Earnings Calendar: ABH, CSCO, IOC, JOUT, KELYA, M, NWSA, RL.

Comments

[Sudden Debt]

I hate slow days like today...

[snowball777]

"If the commission were to define the term significant error ... we believe it would effectively be substituting its judgment" for the credit-rating agencies, S&P President Deven Sharma said in the letter. He said S&P's own error correction policy "has proven to be effective and, where errors have occurred, our practice of reacting swiftly and transparently has benefited the market." Barbara Roper, director of investor protection for the Consumer Federation of America, said that policy has proven inadequate. "What was their correction policy on their Enron rating? What was their correction policy on their Lehman rating? What was their correction policy on their Bear Stearns rating? They don't have an error correction policy -- they have an error denial policy, and the SEC is absolutely right to step in," Roper said.

They can still be sued for their fuck-ups, yes?

http://law.justia.com/us/cfr/title17/17-2.0.1.1.12.0.36.124.html

(g)(1) Notwithstanding the provisions of paragraphs (a) and (b) of this section, the security rating assigned to a class of debt securities, a class of convertible debt securities, or a class of preferred stock by a nationally recognized statistical rating organization, or with respect to registration statements on Form F–9 (§239.39 of this chapter) by any other rating organization specified in the Instruction to paragraph (a)(2) of General Instruction I of Form F–9, shall not be considered a part of the registration statement prepared or certified by a person within the meaning of sections 7 and 11 of the Act.

Oh, right...

Fraud on!

[Rusty_Shackleford]

“The earnings were very positive if you strip out the Greek writedown,”

Priceless

[snowball777]

And Charllie Sheen's a billionaire, if you strip out that wicked coke habit.

[Smiddywesson]

• The problem with intervening in markets is they always need another shot of heroin.  Today will be ugly.
• Football (soccer) used to be the favorite international sport, now it is rioting.
• Stocks up, gold up.  Stocks down, gold up.  USD up, gold up.  USD down, gold up.  Remember in the good old days when they could run gold prices lower for days on end?  Silver is next.
• Apmex was so uncertain about moving gold prices it actually stopped taking orders.  Now the mint has stopped selling gold collectable coins.  These incidents are the canary in the coal mine.
• Economic recovery is generally accepted to be dead, even by the Fed, who revealed the obvious, interest rates have to stay at zero forever or it is game over.
• Germany balks at digging out everyone in the EU
• Italy becomes the new Greece, and all eyes are on France
• The mirage that China will drag its customers out of a depression is revealed to be just that, a mirage.
• The last four tiny lifeboat currencies are becomming swamped by would-be survivors

This week has revealed a whole new world to those who listen to the MSM.  The process is accelerating.

[mess nonster]

"Aug. 10 (Bloomberg) -- Senate Democratic Leader Harry Reid will appoint Senators Patty Murray of Washington, Max Baucus of Montana and John Kerry of Massachusetts to a special committee charged with finding $1.5 trillion in budget savings."

Oh, F**K. That's "RubberStamp" Murray, (emptyheaded bimbo), "I never met an insurance company I didn't like" Baucus, and John Kerry, the white man's answer to Barack Obama. Why is the SuperCongress going to give us nothig but dreck? Because it is comprised of dumb-fucks like this. My head is exploding! I wish words were adequate to convey the sensation of disgust, anger, and frustration I am feeling right now. I wish I had a London hooligan's petrol bomb to hurl at these reptilian ass-wipes. FUCK!!!!

[Smiddywesson]

LOL.  Hey, it doesn't matter who they appoint to find $1.5 trillion.  The mission itself is ridiculous. 

Their budget projections are so outrageously optimistic that they have no idea what their budget shortfall is.  That $1.5 trillion is nothing next to their spending increases and falling tax revenues, which are collapsing, even if the cuts were front loaded and not spread over the next ten years.  This is just a dog and pony show.

[Smiddywesson]

duplicate

[Smiddywesson]

Say hello to $1800 gold everyone.  We may see it by this afternoon.

[LongSoupLine]

BofA just put the taxpayer on the hook some more...with the FULL cooperation and blessings of the US Govt., of course.

F'ing BS!

[slewie the pi-rat]

Pass the Granade: BofA Sells Part of Mortgage Portfolio to Fannie Mae (WSJ)

i saw this earlier;  hoping to learn more soon.  let's make sure everybody @ BAC gets paid, and if there are any problem loans, nationalize the losses thru F&F, whose payments are, at least for now, guaranteed as "sovereign" debt. 

so maybe somebody should ask why tf BAC gets to off-load their crimes and mistakes to you and me at this point.  did we get a really good price, or what?  huh? 

[snowball777]

Hmmm $500M for 400,000 underwater loans...$1250 apiece...not a bad deal if each house had a few hundred pounds of copper, lead, aluminum, and scrap lumber ...especially after QE3 boosts commodity prices a bit more. /sarc

[MobBarley]

BOA: Yes passing the bad paper to the taxpayer. However, I will recall you that

BOA was forced to ingest countrywide at gunpoint. This is a game of hide the

bad paper, and countrywide was a CIA op all the way. Social destruction

through loans to Pedro, legal recourse, Pedro goes to jail, your neighborhood

is destroyed through social integretation and attrition, your economy is destroyed

systematically to create hyperinflation leading to a new currency.

Play book is page 1 but the people  prefer dancing with the ELEnin's.

[Grand Supercycle]

UPDATED S&P500 CHART THAT FORECAST THE CRASH:

http://bit.ly/x618

My long term indicators still warn of USD rally and EURUSD weakness.

[chinawholesaler]

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