Frontrunning: January 12

Tyler Durden's picture
  • Hedge Funds Try to Profit From Greece as Banks Face Losses (Bloomberg)
  • Spain Doubles Target in Debt Auction, Yields Down (Reuters)
  • Italy 1-Year Debt Costs More Than Halve at Auction (Reuters)
  • Obama to Propose Tax Breaks to Get Jobs (WSJ)
  • GOP Seeks to Pass Keystone Pipeline Without Obama (Reuters)
  • Debt Downgrades to Rise ‘Substantially’ in 2012, Moody’s Says (Bloomberg)
  • Petroplus wins last-minute reprieve (FT)
  • Geithner gets China snub on Iranian oil as Japan plans cut (Bloomberg)
  • Fed officials split over easing as they prepare interest rate forecasts (Bloomberg)
  • Draft eurozone treaty pleases UK (FT)
  • Premier Wen looks at the big picture (China Daily)
  • US Foreclosure Filings Hit 4-Year Low in 2011 (Reuters)
  • King May Resist Adding Stimulus for Now as U.K. Shows Resilience (Bloomberg)
  • S&P asses risks for China banks from regulatory forbearance (Reuters)

Full Press Digest

WSJ

* Struggling Sears Holdings Corp suffered another setback when a large lender said it would no longer finance loans to suppliers awaiting payment from the company.

Sears representatives played down the decision by CIT Group Inc, the largest US provider of what are known as factoring services for vendors, saying the payables the firm had financed amounted to only about 5 percent of the retailer's inventory.

* Coca-Cola admitted it had discovered an unapproved fungicide in orange juice products sold by it and some competitors in the US.

* BATS Global Markets has struck an agreement with asset manager BlackRock to list eight new exchange-traded funds, as the Kansas City, Mo.-based exchange group tries to expand its profile.

* Amid a swirl of political controversy about the private-equity business, Carlyle Group revealed that its three founders together earned more than $400 million last year.

* Germany's economy contracted in the fourth quarter, putting it at risk of a shallow recession at a time when euro-zone countries struggling with their debts are looking to the bloc's biggest economy to give the region a lift.

Germany's stagnation, after two years of strong growth, could fuel further international calls for the country to stimulate growth.

* From Brazil to Indonesia to the Philippines, emerging-market countries are pouring into the bond market, taking advantage of soaring investor demand to sell debt at record-low interest rates.

Governments and government-linked organizations in the developing world have sold $11.3 billion in bonds in the first two weeks of the year, according to data provider Dealogic. Investors have wanted more, placing orders well above the amount of bonds being sold.

* US energy companies are pumping so much natural gas out of the ground that prices are plummeting, and the cheap gas isn't likely to evaporate anytime soon.

* The US government Wednesday released a detailed listing of facilities that emitted the most greenhouse gases in 2010, with three coal-fired power plants owned by Southern Co topping the list.

Power plants accounted for more than half of the greenhouse-gas emissions by the major emitters on the list, with refineries and chemical facilities also contributing large shares.

* If this winter's streak of strong headwinds across the Atlantic continues, Continental Airlines has few options for stemming a spate of unscheduled fuel stops on its 757 flights from Europe to the U.S. short of adding auxiliary fuel tanks to those smaller jetliners-a move the airline previously considered and rejected, said people familiar with the matter.

FT

FORMER SNB BANKER HILDEBRAND RECEIVES PAY OFF

The Swiss National Bank will pay its former chairman a full year's salary of around 900,000 Swiss franc ($942,000), in spite of his stepping down voluntarily in only the second week of the year.http://www.ft.com/cms/s/0/e872d89a-3c4e-11e1-8d72-00144feabdc0.html#axzz...

CARLYLE FOUNDERS SHARED $413 MILLION LAST YEAR

The three founders of Carlyle shared a $413 million payout last year in a huge windfall that will focus more attention on the private equity industry at a sensitive time in the U.S. presidential election cycle.http://www.ft.com/cms/s/0/1e36247a-3c70-11e1-9bcc-00144feabdc0.html#axzz...

FRENCH RIVALS COMPETE FOR WIND FARM SHARE

French utilities EDF and GDF Suez are set to compete for a large share of a 10 billion euro off-shore wind development off the coast of France.http://www.ft.com/cms/s/0/1c4d3c4a-3c73-11e1-8d38-00144feabdc0.html#axzz...

FIAT CHIEF SAYS CARMAKERS MUST MERGE

Consolidation among European carmakers is unavoidable as they battle with chronic overcapacity and mounting financial losses in a weakening market, according to Sergio Marchionne, Fiat and Chrysler's chief executive.http://www.ft.com/cms/s/0/c2e35b3e-3c6e-11e1-9bcc-00144feabdc0.html#axzz...

TALBUT TO CHAIR ABI'S INVESTMENT COMMITTEE

As the pressure on asset management bosses builds, Robert Talbut, chief investment officer of Royal London Asset Management, has been made chairman of the Association of British Insurer's influential investment committee.http://www.ft.com/cms/s/0/b4d0d0c4-3c7f-11e1-8d38-00144feabdc0.html?ftca...

CREDIT SUISSE OFFERS TRADES FOR EURO ZONE SHORTING

Credit Suisse is offering its hedge fund clients off-the-shelf products that allow traders to replicate hypothetical gains made by betting against European stock indices that include equities covered by eurozone short-selling bans.http://www.ft.com/cms/s/0/02b33f3c-3bb0-11e1-bb39-00144feabdc0.html?ftca...

OIL REFINERS BEGINNING TO SEVER IRAN OIL TIES

European refiners have started to sever links with Iran, stopping spot purchases of crude ahead of a European Union meeting later this month that could impose a full oil embargo on Tehran.http://www.ft.com/cms/s/0/1cda2496-3c7a-11e1-9bcc-00144feabdc0.html#axzz...

LME FACES REVOLT OVER FEE INCREASE

The chief executive of the London Metal Exchange faces a revolt from some of the most senior figures in the metals industry after he pushed through a sharp increase in trading fees last month.http://www.ft.com/cms/s/0/3795e4ba-3c47-11e1-8d72-00144feabdc0.html#axzz...

NATIONWIDE CONSIDERS LOANS FOR SMEs

Nationwide, the UK's largest building society, is considering offering loans to small and medium-sized businesses to broaden its traditional customer base and fill a void left by the country's biggest banks.http://www.ft.com/cms/s/0/aa1a50a2-3c7e-11e1-9bcc-00144feabdc0.html#axzz...

DRAFT EURO ZONE TREATY PLEASES UK

British Prime Minister David Cameron has won some respite in his battle to stop the euro zone laying down terms on the European Union single market and new rules for Britain's financial services sector, according to the latest draft of a new treaty on fiscal discipline in the single currency area.http://www.ft.com/cms/s/0/a346fe62-3c81-11e1-9bcc-00144feabdc0.html#axzz...

New York Times

FORMER SNB BANKER HILDEBRAND RECEIVES PAY OFF

The Swiss National Bank will pay its former chairman a full year's salary of around 900,000 Swiss franc ($942,000), in spite of his stepping down voluntarily in only the second week of the year.http://www.ft.com/cms/s/0/e872d89a-3c4e-11e1-8d72-00144feabdc0.html#axzz...

CARLYLE FOUNDERS SHARED $413 MILLION LAST YEAR

The three founders of Carlyle shared a $413 million payout last year in a huge windfall that will focus more attention on the private equity industry at a sensitive time in the U.S. presidential election cycle.http://www.ft.com/cms/s/0/1e36247a-3c70-11e1-9bcc-00144feabdc0.html#axzz...

FRENCH RIVALS COMPETE FOR WIND FARM SHARE

French utilities EDF and GDF Suez are set to compete for a large share of a 10 billion euro off-shore wind development off the coast of France.http://www.ft.com/cms/s/0/1c4d3c4a-3c73-11e1-8d38-00144feabdc0.html#axzz...

FIAT CHIEF SAYS CARMAKERS MUST MERGE

Consolidation among European carmakers is unavoidable as they battle with chronic overcapacity and mounting financial losses in a weakening market, according to Sergio Marchionne, Fiat and Chrysler's chief executive.http://www.ft.com/cms/s/0/c2e35b3e-3c6e-11e1-9bcc-00144feabdc0.html#axzz...

TALBUT TO CHAIR ABI'S INVESTMENT COMMITTEE

As the pressure on asset management bosses builds, Robert Talbut, chief investment officer of Royal London Asset Management, has been made chairman of the Association of British Insurer's influential investment committee.http://www.ft.com/cms/s/0/b4d0d0c4-3c7f-11e1-8d38-00144feabdc0.html?ftca...

CREDIT SUISSE OFFERS TRADES FOR EURO ZONE SHORTING

Credit Suisse is offering its hedge fund clients off-the-shelf products that allow traders to replicate hypothetical gains made by betting against European stock indices that include equities covered by eurozone short-selling bans.http://www.ft.com/cms/s/0/02b33f3c-3bb0-11e1-bb39-00144feabdc0.html?ftca...

OIL REFINERS BEGINNING TO SEVER IRAN OIL TIES

European refiners have started to sever links with Iran, stopping spot purchases of crude ahead of a European Union meeting later this month that could impose a full oil embargo on Tehran.http://www.ft.com/cms/s/0/1cda2496-3c7a-11e1-9bcc-00144feabdc0.html#axzz...

LME FACES REVOLT OVER FEE INCREASE

The chief executive of the London Metal Exchange faces a revolt from some of the most senior figures in the metals industry after he pushed through a sharp increase in trading fees last month.http://www.ft.com/cms/s/0/3795e4ba-3c47-11e1-8d72-00144feabdc0.html#axzz...

NATIONWIDE CONSIDERS LOANS FOR SMEs

Nationwide, the UK's largest building society, is considering offering loans to small and medium-sized businesses to broaden its traditional customer base and fill a void left by the country's biggest banks.http://www.ft.com/cms/s/0/aa1a50a2-3c7e-11e1-9bcc-00144feabdc0.html#axzz...

DRAFT EURO ZONE TREATY PLEASES UK

British Prime Minister David Cameron has won some respite in his battle to stop the euro zone laying down terms on the European Union single market and new rules for Britain's financial services sector, according to the latest draft of a new treaty on fiscal discipline in the single currency area.http://www.ft.com/cms/s/0/a346fe62-3c81-11e1-9bcc-00144feabdc0.html#axzz...

European Economic Highlights:

Eurozone Industrial Production w.d.a. -0.3% y/y – lower than expected. Consensus 0.2% y/y. Previous 1.3% y/y. Revised 1.0% y/y.
Eurozone Industrial Production s.a. -0.1% m/m – higher than expected. Consensus -0.3% m/m. Previous -0.1% m/m. Revised -0.3% m/m.
Germany CPI for December 0.7% m/m 2.1% y/y – in line with expectations. Consensus 0.7% m/m 2.1% y/y. Previous 0.7% m/m 2.1% y/y.
Germany CPI - EU Harmonised for December 0.7% m/m 2.3% y/y – lower than expected. Consensus 0.8% m/m 2.4% y/y. Previous 0.8% m/m 2.4% y/y.
France CPI - EU Harmonised for December 0.4%m/m 2.7% y/y – higher than expected. Consensus 0.3% m/m 2.5% y/y. Previous 0.3% m/m 2.7% y/y.
France CPI for December 0.4% m/m 2.5% y/y – higher than expected. Consensus 0.2% m/m 2.3% y/y. Previous 0.3% m/m 2.5% y/y.
France CPI Ex Tobacco Index for December 123.51 – higher than expected. Consensus 123.31. Previous 123.0.
France Current Account for November €-2.3B. Previous €-4.5B. Revised €-4.2B.
France Central Govt. Balance for November €-97.2B. Previous €-99.4B.
Italy Industrial Production s.a. for November 0.3% m/m – higher than expected. Consensus -0.2% m/m. Previous -0.9% m/m.
Italy Industrial Production w.d.a. for November -4.1% y/y – lower than expected. Consensus -2.9% y/y. Previous -4.2% y/y. Revised -4.1% y/y.
Sweden CPI Level for December 314.78 – lower than expected. Consensus 314.92. Previous 314.16.
Sweden CPI - Headline Rate for December 0.2% m/m 2.3% y/y – in line with expectations. Consensus 0.2% m/m 2.3% y/y. Previous 0.2% m/m 2.8% y/y.
Sweden SW CPI - CPIF for December 0.0% m/m 0.5% y/y – lower than expected. Consensus 0.0% m/m 0.6% y/y. Previous 0.2% m/m 1.1% y/y.
UK Industrial Production for November -0.7% m/m -3.1% y/y – lower than expected. Consensus -0.1% m/m -2.2% y/y. Previous -0.7% m/m  -1.7% y/y. Revised -1.0% m/m -2.0% y/y.
UK Manufacturing Production for November -0.2% m/m -0.6% y/y – higher than expected. Consensus -0.2% m/m -0.5% y/y. Previous -0.7% m/m  0.3% y/y. Revised -0.9% m/m 0.1% y/y.