Frontrunning: August 18

Tyler Durden's picture
  • Fed Dissenters Say Pledge Gives Appearance of Targeting Stocks (Bloomberg)
  • U.S. Inquiry Eyes S.&P. Ratings of Mortgages (NYT)
  • 6 dead in string of attacks in southern Israel (CNN)
  • ECB’s Nowotny Says Italy Not Greece, Too Early for Euro Bonds (Bloomberg)
  • France, Germany Push for Sanctions (WSJ)
  • Breaking Europe’s cycle of enfeeblement (FT)
  • Biden tells China's Xi that cooperation key for global stability (Reuters)
  • Hong Kong Exchange in Venture Talks With Shanghai, Shenzhen (Bloomberg)
  • Fed Eyes European Banks (WSJ)
  • Beijing, Shanghai Home Prices Stop Rising (Bloomberg)

European economic update:

  • Sweden Industry Capacity for Q2 88.8%Previous 88.9%
  • UK Retail Sales Ex Auto Fuel for July 0.2% m/m -0.2% y/y weaker than expectedConsensus 0.4% m/m 0.1% y/y Previous 1.0% m/m 0.2% y/y
  • UK Retail Sales w/Auto Fuel for July 0.2% m/m 0.0% y/y weaker than expectedConsensus 0.3% m/m 0.3% y/y Previous 0.8% m/m 0.4% y/y

Global highlights courtesy of Egan-Jones:

  • Asia stocks fall on high Yen, US rates concern.
  • China’s home prices fell in July from the previous month in 14 of 70 cities monitored by the govt.
  • Gold settles at record just shy of $1,800; Venezuela announces gold industry nationalization.
  • Japanese exports fall more than expected 3.3% - falls for 5th straight month.
  • Michigan July unemployment rate hits 10.9%; jobless top 500,000 for first time since Jan.
  • Oil hovers below $87 in Asia amid fears a weakening US economy may hit demand.
  • AFC Enterprises reports EPS in-line, misses on revs; guides FY11 EPS below consensus.
  • Asahi Group to buy New Zealand's Independent Liquor in a deal roughly totaling $1.3B.
  • Australian brewer Foster's again rejects $10 billion takeover bid from London-based SABMiller.
  • BofA said to consider foreclosure deal that leaves securities probes open.
  • CACI Intl beats by $0.27, reports revs in-line; guides FY12 EPS above consensus.
  • Carlsberg issued a full-year profit warning after demand in Russia fell due to increased duties.
  • China Mobile's H1 net rises 6.3% to $9.59B, boosted by growth in its wireless data business.
  • Cree acquires Ruud Lighting to accelerate the LED lighting revolution for ~$525M.
  • Deere Q3 profit up 15% at $712.3M; improves outlook, expects 2011 profit at $2.652.7B.
  • Hot Topic swings to Q2 loss of $6.2M amid restructuring charges. Revs flat at $150.9M.
  • InterDigital Inc. shares surge on report saying Qualcomm, Nokia considering bid.
  • Justice Department clears sale of A. O. Smith's electric motor business to Regal Beloit.
  • Kodak kicks off auction process for patents.
  • Limited beats by $0.02, posts Q2 EPS of $0.48. Revs rose 9.6% to $2.46B.
  • Lenovo says quarterly profit nearly doubles at $108M on strong sales in BRIC's.
  • Marsh McLennan increases buyback from $500M to $1B.
  • Inc.'s Q2 net rises 60% to $119.5M as revs rose 30.7% to $268.2M.
  • PetSmart's profit up more than 26% in Q2 to $61.2M; raises outlook for full year.
  • Staples Inc. Q2 profit rose a better-than-expected 36%, helped by stronger sales.
  • Target's Q2 profit rises 3.7% to $704M on 4.6% jump in sales to $16.24B.
  • Tech Data Corp reports increase in net sales of 18%.

Economic Calendar: Initial & Continuing Claims, CPI-Jul, Existing Home Sales, Philadelphia Fed

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Cole Younger's picture

Los Angeles Fires Standard & Poors... (Because S&P Downgraded It)

Read more:

Careless Whisper's picture

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Oooopps! Photo Of The Day:





IMA5U's picture

this is Change I can believe in


So this is The Hope and The Change

WorkOutWellForAll's picture

Awww, shit. 6 Jews were killed -- Wall Street Jewish Supremacist Multiplier Requires 600 non-Jew deaths.

machineh's picture

They've already thought of that. Israeli Defence minister Ehud Barak: 

"The origin of these acts of terror is in Gaza and we will act against them in our full force and determination."

No evidence cited. Just a set-up for the ritual pounding of Israel's designated whipping boy.

WorkOutWellForAll's picture

Palestinians just came out publically begging that they didn't do it. Don't shoot Herr Juden! Please!

Mr Kurtz's picture

Well as that great humanitarian and all around bonhomme IDF Chief of Staff Rafael Eitan once generously opined a few years back:

""When we have settled the land, all the
Arabs will be able to do about it will be to scurry around like drugged
roaches in a bottle."


mrkolice's picture

as well: pope in spain today, protests announced, lots of aggression in the air. (

buzzsaw99's picture

Fed dissenters hand free money to wall street just as fast as the non-dissenters. Since this is Bard week at zh: Methinks the maggots protesteth too much.

Thomas's picture

The Fed is targeting stocks? Knock me over with a feather.

Caveman93's picture

U.S. Inquiry Eyes S.&P. Ratings of Mortgages....


Now, we begin to eat our own. Love it!

spanish inquisition's picture

We are only going to investigate the ones that downgraded the US. Let this be a warning to the rest of you!

Mr Kurtz's picture

From the New York Times:

The Justice Department is investigating whether the nation’s largest credit ratings agency, Standard & Poor’s, improperly rated dozens of mortgage securities in the years leading up to the financial crisis, according to two people interviewed by the government and another briefed on such interviews.

Well no shit fellas, you bozos at the Times and Justice finally figured that one out?

spanish inquisition's picture

The pledge for low rates is only as good as the conditions remaining the same. Instead of 2013, he could of said 2020 and it everyone would say "that is absurd you can't predict that". So, look up his track record and see how he does on forecasting 2 years out and you will find out he might of well said 2020.