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Frontrunning: January 10

Tyler Durden's picture





 
  • Italy Is Biggest Risk to Euro, Says Fitch (WSJ)
  • Greek Bailout in Peril (WSJ)
  • Swiss Currency Test Looms for SNB’s Jordan in Race to Replace Hildebrand (Bloomberg)
  • Daley to Depart as Obama Shifts Strategy From Compromise to Confrontation (Bloomberg)
  • BOE Stimulus Expansion May Not Be Enough to Revive U.K. Recovery, BCC Says (Bloomberg)
  • Geithner in China to Discuss Yuan, Iran (Bloomberg)
  • China Won’t See Hard Landing in 2012, Former PBOC Adviser Yu Yongding Says (Bloomberg)
  • Measures to boost China financial markets (China Daily)
  • Obama Panel to Watch Beijing (WSJ)

Press Digest (via Reuters)

WSJ:

 

* Industrial bellwether Alcoa swung to a fourth-quarter loss, largely due to slumping aluminum prices and charges to curtail high-cost production in Europe and the US.

* Hostess Brands Inc is preparing to file for Chapter 11 bankruptcy protection as soon as this week, said people familiar with the matter, a move that would mark the second significant court restructuring for the Twinkies and Wonder Bread baker in the past several years.

* Swiss National Bank Chairman Philipp Hildebrand resigned Monday after emails appeared to undercut his assertion that he knew nothing of a currency trade worth more than $500,000 by his wife last summer.

* Olympus Corp said Tuesday it filed suit against 19 current and former board members, including its current president Shuichi Takayama, after deeming them culpable in some way in the company's $1.5 billion loss-hiding scandal.

* Higher holiday sales and increased card use are expected to help Visa Inc and MasterCard Inc post improved quarterly earnings, say analysts. Visa and MasterCard don't lend to customers but make money by processing card transactions for banks and merchants - a business that has been getting more lucrative, thanks in large part to consumers' continuing move to cards from cash and checks.

* Investors agreed to pay the German government for the privilege of lending it money.

In an auction Monday, Germany sold 3.9 billion euros ($4.96 billion) of six-month bills that had an average yield of negative 0.0122 percent, the first time on record that yields at a German debt auction moved into negative territory.

* In the latest sign of unease about how hard Europe's sovereign-debt crisis might hit US financial firms, securities regulators prodded banks to take a more rigorous approach to disclosing their European exposure.

* Consumer borrowing leapt as holiday spending kicked in late last year, according to a new Federal Reserve report that hinted the era of household debt reduction that has held the economy back for years might be entering a new, milder phase.

FT

 

RBS TO PRESS ON WITH PROMISED BONUSES

Royal Bank of Scotland is determined to press ahead with plans to pay out promised bonuses to investment bank boss John Hourican and other top staff, despite growing rhetoric from the government about excessive pay.http://www.ft.com/cms/s/0/573bcff2-3afb-11e1-be4b-00144feabdc0.html#axzz1itXDsiHg

SWISS CENTRAL BANKER STEPS DOWN

Philipp Hildebrand resigned on Monday as chairman of the Swiss National Bank, after details of email exchanges suggested that he had played a more active role in his wife's controversial currency trades.http://www.ft.com/cms/s/0/13aeddb2-3ac7-11e1-be4b-00144feabdc0.html#axzz1itXDsiHg

BIOFUELS EXPANSION STALL ON OUTPUT DROP

The growth of the biofuel industry has come to an abrupt halt with annual output last year falling for the first time in a decade owing to poor margins in Brazil and the United States, the world's biggest suppliers.http://www.ft.com/cms/s/0/b12edcd0-2bc8-11e1-b194-00144feabdc0.html#axzz1itXDsiHg

VOLKSWAGEN SALES HIT RECORD NUMBER

German carmakers were the toast of the Detroit auto show as Volkswagen announced it had achieved more than 8 million vehicle sales for the first time, overtaking rival Toyota, while BMW maintained its position as the world's biggest premium carmaker by sales.http://www.ft.com/cms/s/0/cd6af76c-3aaa-11e1-a756-00144feabdc0.html#axzz1itXDsiHg

LONDON TAXI MAKER ISSUES PROFIT WARNING

Manganese Bronze, which makes London's black cab taxis, announced that it made a pre-tax loss in 2011 and warned investors that its performance may also fall short of expectations in 2012.http://www.ft.com/cms/s/0/43acafd8-3aba-11e1-be4b-00144feabdc0.html#axzz1itXDsiHg

BRANSON MAKES PLEDGE OVER "FREE" BANKING

Virgin Money will offer current accounts with free banking, Sir Richard Branson promised as he visited Newcastle's most prominent Northern Rock branch to celebrate his 747 million pound acquisition of the lender.http://www.ft.com/cms/s/0/cdeaeb90-3ada-11e1-a756-00144feabdc0.html#axzz1itXDsiHg

UK REGULATOR CALLS FOR NEW AIRPORT RUNWAYS

British ministers will come under fresh pressure on Tuesday to permit new airport runways in the southeast of England after the chief aviation regulator concluded that new capacity is needed.http://www.ft.com/cms/s/0/500d15b4-3ad4-11e1-a756-00144feabdc0.html#axzz1itXDsiHg

RENAULT AND NISSAN EYE U.S. OUTPUT BOOST

Carlos Ghosn said Renault and Nissan might consider adding further production capacity in the United States because its two car plants there were nearing full capacity.http://www.ft.com/cms/s/0/00ca52ac-3af0-11e1-b7ba-00144feabdc0.html#axzz1itXDsiHg

NYT

* Alcoa, the aluminum producer, posted its first net loss in more than a year on Monday on fewer orders for its products.

* The head of the Swiss central bank unexpectedly resigned Monday, saying that doubts about currency trades he and his wife made last year threatened to undermine his ability to focus on steering the bank through a global financial crisis.

The departure of the bank chief, Philipp Hildebrand, 48, cut short the public career of a major international advocate of stricter banking regulation.

* The new chief of Apple, Timothy Cook, received a one-time stock award worth nearly $400 million, the largest given by a company in a decade.

The company's board granted Cook one million restricted stock units to signal its confidence in him after Steven Jobs turned over the helm of the company to his longtime lieutenant.

* Shares of UniCredit, Italy's largest bank, have been in free fall as investors have balked at a new stock offering meant to bolster the bank's capital. Since last week, UniCredit's market value has plunged by more than 40 percent.

* When the companies that supply motor fuel close the books on 2011, they will pay about $6.8 million in penalties to the Treasury because they failed to mix a special type of biofuel into their gasoline and diesel as required by law.

But there was none to be had. Outside a handful of laboratories and workshops, the ingredient, cellulosic biofuel, does not exist.

* Chancellor Angela Merkel of Germany and President Nicolas Sarkozy of France warned Greece on Monday that it needed to move forward with promised structural changes or risk losing the next installment of badly needed bailout money.

* The investigation into MF Global is intensifying as federal authorities unearth new details and confront potential obstacles in their hunt for roughly $1.2 billion in customer money that disappeared from the brokerage firm.

* National health spending rose a slight 3.9 percent in 2010, as Americans delayed hospital care, doctor's visits and prescription drug purchases for the second year in a row, the Obama administration reported Monday.

The recession, which lasted from December 2007 to June 2009, reined in the growth of health spending as many people lost jobs, income and health insurance, the government said in a report, published in the journal Health Affairs.

* The unlikely union of Chrysler and its Italian parent, Fiat, is beginning to produce new vehicles that combine the talents of both companies

European economic highlights:

  • Bank of France Bus. Sentiment for December 96 – higher than expected. Consensus 95. Previous 95.
  • France Manufacturing Production for November 1.3% m/m 2.2% y/y – higher than expected. Consensus -0.4% m/m -0.1% y/y. Previous 0.0% m/m 2.6% y/y.
  • France Industrial Production for November 1.1% m/m 0.9% y/y – higher than expected. Consensus -0.2% m/m -0.4% y/y. Previous 0.0% m/m 1.8% y/y.
  • Norway CPI for December 0.1% m/m 0.2% y/y – lower than expected. Consensus 0.2% m/m 0.4% y/y. Previous 0.0% m/m 1.2% y/y.
  • Norway CPI Underlying for December 0.2% m/m 1.0% y/y – in line with expectations. Consensus 0.2% m/m 1.0% y/y. Previous -0.2% m/m 1.0% y/y.
  • Norway Producer Prices incl. Oil for December 0.2% m/m 8.2% y/y – lower than expected. Consensus 0.3% m/m. Previous 1.4% m/m 12.9% y/y.
  • Sweden Budget Balance for December -90.8B. Previous 5.5B.
  • Sweden Industrial Prod. s.a. for November -1.9% m/m – lower than expected. Consensus -0.6% m/m. Previous 0.4% m/m.
  • Sweden Industrial Prod. n.s.a. for November 0.2% y/y – lower than expected. Consensus 2.5% y/y. Previous 4.7% y/y.
  • Sweden Industrial Orders s.a. for November -4.8% m/m. Previous -1.8% m/m.
  • Sweden Industrial Orders n.s.a. for November -8.4% y/y. Previous -5.0% y/y.
 


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Tue, 01/10/2012 - 08:32 | Link to Comment EscapeKey
EscapeKey's picture

BOE Stimulus Expansion May Not Be Enough to Revive U.K. Recovery, BCC Says

Yep, the problem is DEFINITELY that the stimulus wasn't big enough.

And now, if you'll excuse me, I have to go drinking until my hangover passes.

Tue, 01/10/2012 - 08:53 | Link to Comment Sudden Debt
Sudden Debt's picture

I just did the same and it didn't help this afternoon....

and 10 minutes ago I left a meeting with my boss who was looking at my eyes like he was freaking gay!

I know I should have kicked his ass but unfortunatly he pays my salary...

Tue, 01/10/2012 - 08:32 | Link to Comment Irish66
Irish66's picture

Europe trading on Alcoa results, oh boy.

Tue, 01/10/2012 - 08:41 | Link to Comment falak pema
falak pema's picture

Fiat & Chrysler what a combination, will the Fiat product line blend into corporate USA? That would be original.

Tue, 01/10/2012 - 08:47 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

China Won’t See Hard Landing in 2012, Former PBOC Adviser Yu Yongding Says

The harder and more often these pundits claim things are not that bad, the more you should not believe them.

China real estate is already crashing.

 

Tue, 01/10/2012 - 08:49 | Link to Comment Dick Darlington
Dick Darlington's picture

I think it's time to raise the full retard -card once again.

*U.S. RETAIL SALES DOWN 5.4% FROM WEEK AGO, ICSC-GOLDMAN SAYS

*U.S. RETAIL SALES UP 2.8% FROM YEAR AGO, ICSC-GOLDMAN SAYS

And the punch line:

Jan. 10 (Bloomberg) -- ICSC sees January comp sales up 2%-
3%, had seen 3%, cites “unseasonable” warm weather

ROFLOL, u just can't make this shit up....

 

Tue, 01/10/2012 - 09:06 | Link to Comment youngman
youngman's picture

8:02 AM ICSC Retail Store Sales: -5.4% W/W, vs. +1.2% last week. It's the largest weekly decline in data going back to 1989. +2.8% Y/Y, vs. +5.3% last week. Warm weather, and its negative effect on seasonal goods, is apparently behind the fall; weak consumer sentiment isn't mentioned. [Consumer, U.S. Economy

 

It was to warm.....lol....

Tue, 01/10/2012 - 09:08 | Link to Comment Dick Darlington
Dick Darlington's picture

Last year the "weather related" strawman was used because it was too cold. Lol!

Tue, 01/10/2012 - 08:50 | Link to Comment LongSoupLine
LongSoupLine's picture

Here we go...another false pretense ramp job to force the shorts into a massive squeeze which, of course, will be relentlessly shoved up the asses of lemming MSM viewers as "recovery", "improved earnings", "easing fear", "improved credit", "improved jobs data" and any/all other completely manipulated as well as manufactured dis/misinformation they can recycle through their raw crap pumping teleprompter reading fucktards and associated sell-side "expert guests".

F'ing horseshit!!

Tue, 01/10/2012 - 08:53 | Link to Comment paul_Liu
paul_Liu's picture

when we have so many bad news, why the market is going up?

Tue, 01/10/2012 - 09:01 | Link to Comment youngman
youngman's picture

Government Housing...did anyone else see where Obama..the one..wants to sell in bulk all of the housing the government owns for rental housing....I.E. Government housing....it will come not with strings attached..but huge steel cables on who you can rent to and for how much....and for how long...I knew this would come about years ago...it what a socialist does...once they control the housing ...they really control you.....in russia you had to know someone to get a flat...it will be the same here too...corruption at its finest

Tue, 01/10/2012 - 09:23 | Link to Comment SWRichmond
SWRichmond's picture

Swiss Currency Test Looms for SNB’s Jordan in Race to Replace Hildebrand (Bloomberg)

I've still got mine, bitches.

Tue, 01/10/2012 - 09:56 | Link to Comment ciaoant1
ciaoant1's picture

Is the eurozone an optimal currency area? Obviously not. Didn't the politicians, the bankers and the corporations that are in charge know this? Of course they did (although few of them will publicly admit it - in fact, most of them will try to "play dumb"). But is suits their interests, so they did it anyway...

 

Germany can withstand a "strong euro", at least much more so than the rest of the eurozone members. So, they continue to do well, as their "eurozone partners" (competitors) are left to rot. This is great for the Germans, as they are become more and more dominant over them.

Everyone else is at their mercy, and the Germans are taking full advantage of this, as they ask for more and more "concessions" in exchange for devaluing the euro (it is obvious that they are pretty much in control of the ECB, as they are -by far- the strongest nation). Spiegel even went so far as to admit that Greece "has become little more than an EU protectorate" two years ago, and Germany is now on its way to do the same in Ireland, Italy and who knows where else. So, the Germans are quite happy to keep destroying the other nations economies

[...]

http://whataboutmarx.blogspot.com/2012/01/if-only-i-had-dime-for-every-t...

Tue, 01/10/2012 - 11:49 | Link to Comment blueridgeviews
blueridgeviews's picture

Why would you pay a gov't to lose part of your money? Anyone?

Loaning money at a negative interest rate? We are full on in bizarro world.

Wed, 03/07/2012 - 05:14 | Link to Comment l.hauri
l.hauri's picture

I know what you mean. It will be an easy thing to track it. I am sure that we will have good results.

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