Frontrunning: August 25

Tyler Durden's picture
  • So Draghi was bluffing after all: ECB Said To Await German ESM Ruling Before Settling Plan (Bloomberg)
  • German finance ministry studying "Grexit" costs (Reuters) - it would be bigger news if it wasn't
  • Money Funds Test Geithner, Bernanke Resolve as Schapiro Defeated (Bloomberg)
  • Top Merkel MP says Greek deal can't be renegotiated (Reuters)
  • China Eyes Ways to Broaden Yuan's Use (WSJ)
  • Armstrong ends fight against doping charges, to lose titles (Reuters) - Dopestrong?
  • Need more socialism: Public confidence in France's Hollande slips (Reuters)
  • Seoul court rules Samsung didn't violate Apple design (Reuters)
  • France, Germany Unify Approach to Greek Talks (WSJ)
  • Stevens Sees Mining Boom Peaking, RBA Ready to Act (Bloomberg)
  • Colombia replaces finance minister in surprise move (Reuters)
  • RBI Says Weak India Growth Outlook Imperils Budget Deficit Goal (Bloomberg)

Overnight Media Digest:

WSJ

* Lance Armstrong said Thursday night he is finished fighting a barrage of drug charges from the U.S. Anti-Doping Agency, putting his unprecedented string of seven Tour de France titles at risk along with his legacy as one of the greatest cyclists in history.

* Sales of newly built homes rose briskly in July and inventories declined to the lowest level on record, a sign that builders may need to ramp up construction.

* A federal court ruled that the Tennessee Valley Authority is liable for damages caused by a 2008 spill of toxic coal because it failed to follow its own safety rules.

* Federal authorities accused an aspiring Hollywood actor of threatening the families of several wealthy individuals, including film executive Harvey Weinstein and the chairman and co-founder of Groupon Inc, according to people familiar with the investigation.

* The regulator who scuttled new rules on money market funds decided to vote against the proposal after he learned that SEC Chairman Mary Schapiro released copies of a report that the industry views as unfair and misleading.

* The competition for $4 billion contract to start replacing the U.S. military's Humvee trucks entered a new stage as the Pentagon awarded three development contracts.

* A Texas judge ruled in favor of TransCanada Corp's use of eminent domain in its effort to build an oil pipeline that could ultimately stretch from the Canadian tar sands to the U.S. Gulf Coast.

* Mitt Romney said Thursday that he would replace Federal Reserve Chairman Ben Bernanke, dismissing the advice of a top adviser who suggested this week that the chairman should be considered for a third term.

* The Federal Reserve Bank of New York closed the book on its crisis-era acquisition of AIG's most toxic assets, at a $6.6 billion profit in the latest sale of bonds.

* The number of U.S. workers filing applications for jobless benefits rose by 4,000 to a seasonally adjusted 372,000. Separately, sales of newly built homes in the U.S. rose in July

 

FT

ATHENS AND BERLIN IN SPAT OVER FUNDS

Leaders in Athens and Berlin wrangled publicly over how to deal with Greece's plea for further assistance on Thursday.

MURDOCHS AT ODDS OVER BBC

Elisabeth Murdoch on Thursday sought to distance herself from her brother James' hostility to the BBC, by hailing the public service broadcaster.

CAMERON PRESSED TO REPLACE GREENING

David Cameron is coming under increasing pressure to appoint a new transport secretary in next month's cabinet reshuffle.

BOE FINDS QE HURT DEFINED BENEFIT PENSIONS

Some pension groups have been harmed by side effects of QE, according to a Bank of England paper released on Thursday.

SEC FACES CALL TO REJECT FACEBOOK OFFER

U.S. regulators are facing pressure to reject Nasdaq OMX's proposed $62 million settlement for its members after Facebook's debut on its stock exchange.

BEST BUY AND FOUNDER RESUME BUYOUT TALKS

Best Buy and founder Richard Schulze have resumed talks about a potential buyout.

ASIL NADIR JAILED FOR 10 YEARS

Asil Nadir was sentenced to 10 years in prison on Thursday for stealing 20 million pounds ($31.77 million).

REPUBLICANS EYE RETURN TO GOLD STANDARD

The Republican party plans to adopt a "gold commission" set to become part of party policy.

BRC TO NAME ITS DIRECTOR-GENERAL

The British Retail Consortium will on Friday name Helen Dickinson, the head of retail at KPMG, as its director-general.

AVIVA WARNS IT MAY AXE UP TO 800 UK JOBS

Aviva has warned that as many as 800 jobs at its UK business are under threat as a result of a cost-cutting push by the FTSE 100 insurer's new chairman.

 

NYT

* After the failure of one effort to overhaul a major part of the mutual fund industry, top government officials worked on Thursday to find alternative ways to rein in what they see as a systemic threat to the financial system.

* The severity of China's inventory surplus has been masked by the blocking or adjusting of economic data by the government.

* Mitt Romney is proposing to end a century of federal control over oil and gas drilling and coal mining on government lands to court western voters and supporters from the energy industry.

* Three years after General Motors Co hobbled out of bankruptcy, it is betting that the new Cadillac ATS will become a global contender in luxury cars.

* Facebook Inc is trying to find ways to show lucrative ads to mobile users without cluttering up their hand-held screens and driving them away in frustration.

* The Federal Reserve Bank of New York said on Thursday that it had wound down the final remnant of its rescue of the American International Group Inc, generating a multibillion-dollar profit in the process.

 

Canada

THE GLOBE AND MAIL

* Canada is cancelling $130 million in debt owed by Cote d'Ivoire, erasing an old tab to help the African country dig itself out from a pile of debt.

Report in the business section:

* Some of the country's largest corporations are striking back at Bank of Canada Governor Mark Carney, arguing he is wrong to assert that domestic companies are hindering economic growth by socking away cash.

NATIONAL POST

* Some of Ontario's most powerful unions will fight the province in court if proposed legislation imposing new contracts on teachers becomes law.

FINANCIAL POST

* Research In Motion Ltd plans to soon begin commercial talks with Canadian wireless carriers such as BCE Inc and Rogers Communications Inc after showing them early versions of the BlackBerry 10 phone this week.

 

European economic update:

UK GDP -0.5% - higher than expected