Frontrunning: August 6
- Monti Warns of Euro Breakup as Tussle Over Spain Aid Hardens (Businessweek)
- Italy doesn't need German cash, Monti tells Germans (Reuters) - at least we know who needs whose cash...
- Spain has time to Wait for Clarity on EU Aid -Econ Min (Reuters) - which came first: the Spanish bailout request or the denial to need a Bailout request? Ask the Spanish 2 year...
- Bundesbank Weidmann’s opposition to a proposed new wave of ECB bond purchases has support of Merkel’s CDU - Volker Kauder
- China media tell U.S. to "shut up" over South China Sea tensions (Reuters)
- Top Chinese Leaders Gather in Annual Summer Conclave (WSJ)
- Greece Agrees With Troika on Need to Strengthen Policy (Bloomberg)
- Coeure Says ECB Should Look at Getting Loans Into Real Economy (Bloomberg)
- Italy Central Banker Sees Potential Rate Cut as Euro Economy Slows (WSJ)
- A Dose of Dr. Draghi's 'Whatever It Takes' (WSJ)
- Greek bank head sent savings abroad (FT)
- China Central Bank to step up Monetary Policy Fine-tuning in H2 (Reuters)
- Romney Says Fed Should Hold Off on Buying More Bonds (Bloomberg)
- Senator Graham Says Reid Is ‘Lying’ About Romney Taxes (Bloomberg)
Overnight Media Digest
* Heineken NV got a step closer to taking control of Asia Pacific Breweries Ltd, after Fraser & Neave Ltd's board recommended selling the company's APB stake to the Dutch brewer for $4.1 billion.
* Knight Capital Group Inc officials raced over the weekend to negotiate a deal to save the crippled brokerage firm as new details emerged showing regulators rebuffed the company's pleas to be released from errant trades it had booked.
* To turn around its flagging business, Zynga Inc is betting big on mobile games and creating a network that connects mobile-game players.
* AT&T Inc is shutting down its second-generation, or 2G, wireless networks by 2017 as it continues to upgrade its systems to faster technology and better use its limited airwaves.
* "The Dark Knight Rises" fended off competition by new releases to remain dominant for the third consecutive weekend. The film, from Time Warner Inc's Warner Bros Pictures, grossed $36.4 million in its third week in theaters, bringing its cumulative domestic total to $354.6 million.
* Private-equity firm Advent International said it agreed to buy a majority interest in the bedding company that owns the Simmons mattress brand and licenses the Serta brand.
* Federal investigators released alarming details about controller errors that nearly caused a midair collision last year between a heavily loaded American Airlines jet and a military cargo plane off the East Coast, highlighting problems at New York's premier traffic-control facility.
* Executives at many small banks complain that the forthcoming rules by the OCC, Federal Reserve and Federal Deposit Insurance Corp to implement an international agreement known as Basel III could force them to cut back on loans to small businesses or homeowners.
FOUR-YEAR SILVER PROBE SET TO BE DROPPED
A four-year investigation into the possible manipulation of the silver market looks increasingly likely to be dropped.
LONDON STATE SCHOOLS BEST IN ENGLAND
London state schools and are now the best in England, according to Financial Times analysis.
WALL ST EYES PROTECTION AGAINST EURO EXIT
Wall Street banks are telling counterparties and borrowers to restructure contracts or find another bank as they prepare for the potential exit of a country from the euro zone.
TRADER PROBED ON LINK TO RABOBANK
A trader at the centre of rate-manipulation allegations levelled at Barclays communicated with counterparts at Rabobank, Euribor trading positions.
KEY REPO CONTRACTS MARKET FALL 14 PERCENT
The market for a key funding instrument for banks has shrunk in Europe, highlighting how reliant financial institutions in the region have become on European Central Bank support.
EURONEXT PLANS SMALL COMPANIES EXCHANGE
A new pan-European stock exchange is being planned by NYSE Euronext to plug the gap in funding for small companies.
IAG EYES AMERICAN AIRLINES STAKE
International Airlines Group is considering the case for buying a minority stake in American Airlines .
TRADERS URGE ACTION AFTER KNIGHT FIASCO
U.S. regulators are under pressure to tighten standards for the complex computer systems after the software glitch at Knight Capital.
GREEK BANK HEAD SENT SAVINGS ABROAD
The former chief executive of Greece's Agricultural Bank (ATEbank), Theodoros Pantalakis, is embroiled in political controversy after sending saving abroad.
CHINA OPENS SECRET LEADERSHIP CONCLAVE
The Chinese Communist party have convened a secretive conclave to finalise plans to hand power to a new generation of leaders.
MOUCHEL CHAIRMAN SET TO WIN BONUS
Mouchel Group said it agreed to a restructuring that will give its lenders a majority interest in the firm.
* Envoys of Greece's international creditors on Sunday wrapped up a review of the country's progress in meeting the terms of its second bailout and said they would return in September for a final assessment that will determine whether further money would be released.
* The Knight Capital Group Inc reached a deal to secure a financial lifeline from an investor group that included TD Ameritrade Holding Corp and the Blackstone Group LP , capping its efforts to stay alive, people with direct knowledge of the matter said.
* Critics of NBC's coverage of the London Olympics have voiced sometimes brutal commentary on Twitter, but with one week left in its multiple-platform coverage, NBC's own take is that its programming is a success. A predicted loss of $200 million or more has been turned around to a cautious prediction of a possible small profit.
* Advent International said that it had agreed to buy a majority stake in the parent company of Serta and Simmons bedding, taking control of one of the country's biggest makers of mattresses. The deal for AOT Bedding Super Holdings is valued at about $3 billion, according to a person briefed on the matter.
* Lucky is the latest magazine to look to e-commerce to buttress its income. On Aug. 17, the magazine will introduce a shopping site called mylucky.com that will direct readers to buy clothing and accessories directly from more than a dozen retailers like Macy's and Sephora.
THE GLOBE AND MAIL
* A network of signs, maps and apps is being proposed to make Toronto easier to navigate for both tourists and residents.
Launched late last year by the city, the Toronto "wayfinding" team has drafted an initial plan that will go to the public works committee in September and to council the following month.
Report in the business section:
* Yellow Media Inc's proposed debt restructuring is headed for a court challenge after the company's bankers and a vocal group of debt holders voiced their opposition to the plan.
* Nordstrom, ranked as a top U.S. luxury retailer for luring back shoppers with courteous and knowledgeable staff, prepares to bring its stores to Canada.
Nordstrom's arrival threatens to shake up a retail market known for a more passive approach to helping shoppers. Its department-store competitors, include the Bay, Holt Renfrew, Sears and Quebec-based Simons.
** There may not be enough mustard in all of England to properly garnish the 25-year-old Jamaican, but for all his mugging in front of the cameras and his pre- and post-race hot-dogging, Bolt proved Sunday night that it isn't bragging if you can back it up.
European Economic Summary:
- Eurozone Sentix Investor Confidence -30.3 – lower than expected. Consensus -31.0. Previous -29.6.
- UK Lloyds Employment Confidence -51. Previous -53.
- UK New Car Registrations 9.3% y/y. Previous 3.5% y/y.
- Sweden Service Production -0.2% m/m sa 1.1% y/y wda. Previous 2.3% m/m sa 1.9% y/y wda.
- Czech Republic Trade Balance (Koruna) 29.4B – higher than expected. Consensus 25.0B. Revised 22.5B. Previous 23.1B.