Frontrunning: August 9

• Rogoff: Fed Will Embark on QE3, Act ‘Decisively’ (Bloomberg)
• China Inflation Quickens to 6.5%, Limits Policy Response to Global Crisis (Bloomberg)
• ECB Puts Pressure on Italy (WSJ)
• Chinese Fault Beijing Over Foreign Reserves (NYT)
• Senate to probe S&P downgrade (FT)
• Cameron Back to U.K. for Emergency Meeting on Riots (Bloomberg)
• Trichet Turns ‘President of Europe’ as Debt Crisis Stuns Political Leaders (Bloomberg)
• Hong Kong Sells Land 33% Below Surveyors’ Estimates Amid Market Turmoil (Bloomberg)
• U.S. Home Values Have Smallest Drop in More Than Four Years, Zillow Says (Bloomberg)
• Swiss ministers meet over surging franc (FT)
• Korean Banks Are in Better Shape Now Than in 2008 Crisis (Joongang)

European economic news:

• Germany Exports SA for June -1.2% Consensus 1.0% Previous 4.4%
• Germany Imports SA for June 0.3% Consensus -1.5% Previous 3.8%
• Germany Current Account (EURO) for June 11.9BConsensus 11.0B Previous 6.7B
• Germany Trade Balance for June 12.7B Consensus 14.0B Previous 14.8B
• France Central Govt. Balance (Euros) for June -61.3B Previous -68.4B
• Switzerland SECO Consumer Confidence for July -17 Consensus -5 Previous -1
• UK Industrial Production for June 0.0% m/m -0.3% y/y lower than expected Consensus 0.4% m/m 0.2% y/y Previous 0.8% m/m -0.9% y/y
• UK Manufacturing Production for June -0.4% m/m 2.1% y/y lower than expected Consensus 0.2% m/m 2.8% y/y Previous 1.8% m/m 2.8% y/y
• UK Visible Trade Balance (GBP/Mln) for June -£8873 Consensus -£8100 Previous -£8467
• UK Trade Balance Non EU (GBP/Mln) for June -£5718 Consensus -£4800 Previous -5053
• UK Total Trade Balance (GBP/Mln) for June -£4496 Consensus -£3600 Previous

Global highlights courtesy of Egan-Jones

• Asian shares extend their deep plunge, after a massive sell-off in U.S. equity markets.
• Australian Dollar drops below parity for first time since March.
• Chinese consumer prices accelerate further to 6.5% in July, beating expectations.
• Gold prices high a record high, briefly touch $1,750 an ounce.
• Hong Kong's Hang Seng Index below 19,000, off 7.3%.
• Obama says Markets don’t doubt US ability to pay its debts.
• Online retail spending in the U.S. jumped 14% in Q2 compared with the year-earlier period.
• AIG to sue BofA over mortgages; seeks to recover $10B out of the total $28B invested.
• BHP to buy Pilbara contract-mining business for $735M.
• Capital One Fincl in advanced talks to buy the US credit-card portfolio of HSBC Holdings PLC.
• Dollar Thrifty's Q2 net rises 0.6% to $42.5M helped by cost cuts. Revs down 0.3% at $395.1M.
• Dynegy Inc.'s Q2 loss narrowed to $116M on higher generation volumes. Revs up 36%.
• Ensco misses by $0.08, posts Q2 EPS of $0.59. Revs rose 37.1% to $564.2M.
• E-Trade complies with Citadel; Hires Goldman Sachs to conduct review of strategic options.
• FedEx Freight unit to implement a 6.8% general rate hike, effective Sept. 6, across US, Canada.
• Fifth Third receives notice from SEC related to the redemption of trust-preferred securities.
• Freddie Mac's Q2 loss narrows to $3.76B; net interest income rises 10.2% to $4.56B.
• Ingersoll-Rand to sell 60% stake in Hussmann refrigerated display case biz for $370M cash.
• InterContinental H1 adj EPS up 26% to 59.2c; sales up 10% at $850M.
• Jackson Hewitt Tax Srvcs won court approval to exit bankruptcy with its balance sheet revamped.
• McDonald's July global same-store sales rose 5.1%.
• Merck gets DOJ subpoena on drug marketing.
• MGM Resorts swings to Q2 profit of $3.44B aided by strong earnings from its China operations.
• Quicksilver Resources' Q2 profit rises 25% to $108.6M helped by higher prices.
• S&P Cuts Fannie Mae, Freddie Mac Sr Ratings to AA+ From AAA.
• Statoil ASA said it has made a significant oil discovery in the North Sea.
• Take-Two Interactive posts Q1 loss of $8.6M as revs slipped 11% to $334.4M.
• Tyson Foods warned its chicken business is heading for a loss this quarter.

Economic Calendar: Productivity, Unit Labor Costs, FOMC Rate Decision to be released today.

Earnings Calendar: AGYS, AOL, APO, AXAS, BZH, CVC, CWCO, DIS, DISH, FOSL, IPAR, LGF, SATS, SNI, SSP, UTSI.

Comments

[No Bid]

rogoff is an idiot.

futures turn negative in 3... 2.... 1...............

[choorles]

agreed

[Michael]

Thank God no new productive higher paying manufacturing jobs will be created in the United States ever again because of NAFTA, CAFTA, and GATT.

Otherwise my shadenfreude maximization plans may be in jeopardy.

[choorles]

1

[westboundnup]

I agree.  QE3 not in the cards. 

[the not so migh...]

QEIII..yes...hookers and blow for everyone!!!

[Miles Kendig]

The only trickle down the folks here off South Main Street will see from that boost to consumption

[Betty Swallsack]

Hey Rogoff, what's "decisive" about throwing more paper-backed-by-nothing-but-debt (tens of trillions of it, too) into an already ailing economy where manufacturing has disappeared and 43 million are on food stamps?  I want to read THAT article.

In the meantime, here's one to peruse

The U.S. labor force is shrinking, as more Americans are giving up hope.  Last month, only 58.1% of Americans age 16 and over were employed, a significant drop from before the recession and the lowest since 1983.

http://dailybail.com/home/chart-just-58-of-americans-over-16-have-a-job.html

[eddiebe]

Disagreed. Maybe they won't call it Qe., but the effect will be the same.What truely amazes me is how US.T-bonds held up during the crash. I think the banksters will go after the bond next, and the S&P downgrade was part of the strategy. What a show!

[Miles Kendig]

Obama says Markets don’t doubt US ability to pay its debts.

Citizens now appreciate that the government has no plans to reduce the principal outstanding.  And everyone on and off Main Street knows what making the minimum monthly interest only payments means to household finances

Note to the republicans, especially Dick Cheney and the current "leadership", deficits do matter

[machineh]

“They certainly should do something right away,” said Rogoff, a former International Monetary Fund chief economist who attended graduate school with Fed Chairsatan Ben Bernanke.'

Rogoff wrote such a great book with Carmen Reinhardt. Now he unmasks himself as a kneepad-clad Federal Reserve buttboy, slurping on Ben's johnson.

Another idol crumbles to the earth! Guess I should have paid attention to that troubling IMF semen stain on his resume.

[alexwest]

reading rogoff..

#Rogoff recommended the Fed say in “very clear statements” that it’s trying to create “moderate inflation.” “In the classic classroom QE, it’s open-ended,” Rogoff said. “You say, ‘I’m trying to create inflation of, let’s say 2 or 3 percent, and I’m going to do whatever it takes.’”

#

this guy is an idiot.  i cant believe my eyes.. underempl +20%, oil prices yet higher than in 2010..

all cpi , core cpi-ppi, pce etc are proably 3% or higer.. and idiot is talking about inflation..

actualy I like it  , w/ friends like this who fuck needs BinLaden..

speechless

alx

http://www.bloomberg.com/news/2011-08-09/rogoff-says-fed-likely-to-embar...

[smithcreek]

When Rogoff says “In the classic classroom QE, it’s open-ended,” Rogoff said. “You say, ‘I’m trying to create inflation of, let’s say 2 or 3 percent, and I’m going to do whatever it takes.’” is he really taling "classroom" as in grad school?  No-fucking-wonder this country is so fucked.  We have a fucking adjunct law professor as president and all these assholes with phd's running the fed.  "Holy shit, now we can try all all those groovy theories we talked about in the staff lounge the past 40 years."

[the not so migh...]

the president and his people are proof of a failed education system.

[DonnieD]

No, a failed Ivy League education system, where these clowns are completely removed from reality for 95% of the country.

If these idiots try to try to achieve "moderate inflation", I'll bet my last dollar they will achieve "hyper inflation" as they've never proven they can do anything right except steal.

[the not so migh...]

Touche

[laomei]

Chinese Fault Beijing Over Foreign Reserves (NYT)

This one is the funniest one if you actually read the story.  It's a standard hit piece from the rag which is NYT.   Purely made up drivel. Chinese are not yelling at Beijing about it.  Chinese are laughing at america about it.

[Mediocritas]

This was probably already posted yesterday, but: http://online.wsj.com/article/SB1000142405311190400730457649640040964813...

Not sure if it means anything. Seems like it might.

[chinawholesaler]

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