Frontrunning: August 15
- Investors Shift Money Out of China (WSJ)
- Rajoy Risks Riling ECB in Bid to Avoid Union Ire (Bloomberg)
- Romney-Ryan See Fed QE as Inflation Risk Amid Subdued Prices (Bloomberg)
- Spanish savers offered haircut then money back (FT)
- Must wipe all traces of illegality and settle for $25,000: Standard Chartered Faces Fed Probes After N.Y. Deal (BBG)
- Greece debt report backs cuts plan (FT)
- Greece seeks two-year austerity extension (FT)
- Brevan Howard Looks To U.S. To Raise Money For Currency Fund (Bloomberg)
- Can he please stop buying gold? Paulson, Soros Add Gold as Price Declines Most Since 2008 (Bloomberg)
- BOE Drops Reference to Rate Cut as It Considers Policy Options (Bloomberg)
- EU Banking Plans Asks ECB to Share Power, Documents Show (Bloomberg)
- New York Times Names Cost-Cutting BBC Chief Thompson As New CEO (Bloomberg)
- India's PM forecasts GDP growth over 6.5% this year (Reuters)
- Moody's eyes Aussie states for possible ratings cut (Sydney Herald)
Overnight Media Digest
STAN CHART SETTLES WITH NY REGULATOR
Standard Chartered has agreed to pay $340 million to settle accusations it potentially violated U.S. regulations.
GREECE SEEKS TWO-YEAR AUSTERITY EXTENSION
Greece will seek a two-year extension of its latest austerity programme at talks next week with Angela Merkel and Francois Hollande.
LIB DEMS PUSH TO REOPEN BANK REFORM
Nick Clegg and Vince Cable are leading a push to reopen talks on UK banking reforms in a move that could stoke coalition tensions.
SPANISH SAVERS OFFERED HAIRCUT THEN MONEY BACK
Spain is in talks with Brussels to allow retail clients who bought savings products from now nationalised lenders to avoid losing their investments as part of Spain's bailout.
ICAHN'S SON HONES SKILLS WITH $3 BLN FUND
Carl C Icahn, the hedge fund manager and activist scourge of U.S. boardrooms, has given $3 billion of his fortune to his son.
MANGANESE BRONZE GOES SOUTH ON IT ERROR
Investors have piled out of Manganese Bronze after the maker of one of London's black cab, blamed errors in its IT system for a 3.9 million pound ($6.12 million) accounting black hole.
KIEV TO OPT FOR EXXON MOBIL AND SHELL BID
Ukraine has approved a joint offshore exploration bid led by ExxonMobil and Royal Dutch Shell to unlock oil and gas reserves deep under the Black Sea.
RIM PREPARES NEXT BLACKBERRY GENERATION
Research In Motion has begun manufacturing "beta" or test units of its next generation BlackBerry 10 devices.
EURO ZONE EDGES BACK TOWARDS RECESSION
The euro zone edged closer towards its second recession in three years as the single currency bloc contracted in the second quarter
* Standard Chartered has agreed to pay New York's top banking regulator $340 million to settle claims that it laundered hundreds of billions of dollars in tainted money for Iran and lied to regulators.
* As Russia's military has cut back Kalashnikov purchases, American enthusiasts have started buying civilian versions of weapons manufactured by the same factory.
* Spanish construction rivals Actividades de Construcción y Servicios (ACS) and Judlau Contracting -- 51 percent owned by OHL -- who are working on the Long Island Rail Road extension project, have traded charges over who is responsible for a $250 million loss.
* Growth in Germany in the second quarter was not strong enough to compensate for persistent recession in Spain and Italy, data released on Tuesday showed.
* Wells Fargo settled a case with the Securities and Exchange Commission involving investments in asset-backed commercial paper that it sold to nonprofit groups, local governments and other investors.
* Mark Thompson, 55, is the departing director general of the British Broadcasting Corp He will join the Times Company in early November.
* Fisker Automotive, the struggling manufacturer of luxury plug-in hybrid cars, has chosen Tony Posawatz, who led the development of the Chevrolet Volt, as chief executive, the company announced in a teleconference on Tuesday.
* Canada should double the number of international students studying here by 2022, a new report commissioned by the federal government says.
The task force responsible for the report, headed by Western University president Amit Chakma, wants Ottawa to boost the number of international students from about 239,130 to 450,000 in 10 years - from kindergarten through Grade 12 and post-secondary institutions - without taking away seats from Canadians.
Report in the business section:
* In more ways than one, the economic downturn has been Canada's time to shine. Now we can add climbing business investment to a bragging list that already includes a rock star central banker, a stable financial system and a relatively strong employment rebound since the downturn.
Canada is on track to spend more on capital investment per worker than the average in OECD countries in 2012, the best relative performance since collection of this kind of comparative data began in the early 1990s, according to a report released last week by the C.D. Howe Institute in Toronto.
* The future of 20,000 of the best-paying jobs in Canada's battered manufacturing centre is on the line as the Canadian Auto Workers union seeks to reverse concessions that helped keep auto makers afloat during the recession, while the companies insist labor costs must be cut at what they say are the most expensive plants in the world.
* If the past month has been a cooling off period for B.C. and Alberta in the heated dispute over royalties from the proposed Northern Gateway pipeline, relations may be turning downright icy.
Alberta Premier Alison Redford was in Clark's backyard Tuesday where she reiterated that she has not and will not be meeting with her B.C. counterpart to discuss any sharing of Alberta royalties from the proposed multibillion-dollar pipeline project.
* The head of the Canadian Auto Workers sent a stern warning to the Detroit Three Tuesday to break with their pattern of seeking more concessions from workers as contract talks between the parties kicked off.
European Economic Update
- Norway Trade Balance (NOK) 30.3B. Previous 29.5B.
- UK Claimant Count Rate 4.9% - in line with expectations. Consensus 4.9%. Previous 4.9%.
- UK Average Weekly Earnings ex Bonus (3mth/yr) 1.6% - lower than expected. Consensus 1.7%. Previous 1.5%.
- UK ILO Unemployment Rate 8.0% - lower than expected. Consensus 8.1%. Previous 8.1%.
- UK Employment Change (3m/3m) 201K – higher than expected. Consensus 165K. Previous 181K.