Frontrunning: January 30

Tyler Durden's picture
  • Euro-Region Debt Sales Top $29B This Week (Bloomberg)
  • Greek Fury at Plan for EU Budget Control (FT)
  • Greek "football players too poor to play", leagues running out of money, may file for bankruptcy (Spiegel)
  • After insider trading scandal, Einhorn wins the battle: St. Joe Pares Back Its Florida Vision (WSJ)
  • China Signals Limited Loosening as PBOC Bucks Forecast (Bloomberg)
  • China's Wen: Govt Debt Risk "Controllable", Sets Reforms (Reuters)
  • IMF Reviews China Currency's Value (WSJ)
  • Watching, watching, watching: Japan PM Noda: To Respond To FX Moves "Appropriately" (WSJ)
  • Cameron to Nod Through EU Treaty (FT)
  • Gingrich Backer Sheldon Adelson Faces Questions About Chinese Business Affairs (Observer)
  • Banks warn rule change will hurt recovery (FT)

Weekend Press Digest


* ABB Ltd was nearing a deal Sunday to acquire Thomas & Betts Corp of the U.S. for about $4 billion, according to people familiar with the matter, in a continued push by the Swiss engineering giant to boost growth through acquisitions.

* Nearly three months after MF Global Holdings Ltd collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that much of it might never be recovered, according to people familiar with the investigation.

* Richard Parsons, who as chairman of Citigroup helped steer the bank through its near-death experience in the financial crisis, is considering stepping down after three years in the post, said people familiar with the situation.

* Bank of America Corp shook up its investment-banking leadership Sunday, naming Christian Meissner as the sole head of that business, said people familiar with the situation.

* British and Swiss regulators are likely to begin enforcement proceedings against Swiss bank UBS for shortcomings that allowed a London trader to make unauthorized trades last year.

* British and Swiss regulators are likely to begin enforcement proceedings against Swiss bank UBS for shortcomings that allowed a London trader to make unauthorized trades last year.

* Jitters from Europe's sovereign-debt crisis are now touching Japan, a country with a long-calm bond market despite fiscal deficits far larger than those of Greece or Italy.

In recent weeks, the cost of insuring against default on Japan government bonds -- a measure of perceived credit risk -- has increased sharply, nearing the historic peak at the height of the Greek debt crisis in October. The price for default insurance, through derivatives known as credit-default swaps, exceeds levels seen last March.



Royal Bank of Scotland is on the verge of clinching a deal to sell Hoare Govett, its corporate broking business and one of the most venerable names in the City of London, to fast-growing U.S. investment bank Jefferies.


Europe's carmakers are crying foul over a proposed trade agreement between the European Union and India, which they say would restrict access to one of their most important but highly protected markets.


Nervous investment bankers in Britain are contacting headhunters in anticipation of a new wave of redundancies this year, while those already laid off are increasingly willing to accept temporary roles or positions overseas, according to senior figures in London's recruitment industry.


ABB, the Swiss electrical engineering group, is close to agreeing a deal to buy U.S.-listed Thomas & Betts for about $4 billion, people familiar with the situation said.


Deutsche Bank is preparing to launch a fund to snap up investors' illiquid or damaged holdings in hedge funds that have failed to recover since the financial crisis.


The chief executive of Lloyds Banking Group Antonio Horta-Osorio is set to unveil plans to simplify the bank's management structure and hand more power to top executives, as he attempts to convince investors he can avoid a relapse of the exhaustion he suffered last year.


Danish shipping company Torm A/S is struggling to find either a significant new source of finance or agree a wholesale restructuring of its obligations to its banks as it seeks to withstand the sector's prolonged slump.


Mark Newton-Jones, chief executive of Shop Direct, is to step down after more than eight years at the helm of the home shopping retailer owned by Sir Frederick and Sir David Barclay.


TNT Post, Royal Mail's largest private sector rival, plans to go head-to-head with the state-owned postal operator by launching its own delivery service for bulk and direct mail.


HgCapital is looking to sell SHL, the UK-based global leader in psychometric testing and the largest private employer of business psychologists in the world.


* Exxon Mobil said on Sunday that it has agreed to sell its Japanese subsidiary to TonenGeneral Sekiyu, a major refinery operator in Japan, for about $3.9 billion.

* ABB of Sweden is near a deal to buy Thomas & Betts, an American maker of electrical connectors, for about $4 billion in cash, a person briefed on the matter said on Sunday.

* The Royal Bank of Scotland's chief executive, Stephen Hester, will not accept a £1 million ($1.5 million) bonus that drew criticism from the British public and politicians, the bank said Sunday.

* Bruce Seidel, who oversaw shows for the Food Network and the Cooking Channel on cable, is moving online to a forthcoming food channel for YouTube.

* Five large American banks, including JP Morgan Chase and Goldman Sachs, have more than $80 billion of exposure to Italy, Spain, Portugal, Ireland and Greece, the most economically stressed nations in the euro currency zone, according to a New York Times analysis of the banks' financial disclosures.

* As European Union leaders prepared for a summit meeting on Monday in Brussels that will seek ways to spur economic growth, Greece's prime minister struck a different tone on Sunday, suggesting that the three leaders in his fractious coalition were prepared to back additional austerity measures and reforms needed to receive a second bailout.

* RIM, Apple and Android phones now equally share the workplace market. In a recent global survey of information workers -- people who use a computer or another smart device for at least an hour a day -- Forrester Research found that 27 percent of smartphone users said they had an Android phone; 26 percent, a BlackBerry; and 24 percent, an iPhone. "Android and Apple together are eating BlackBerry's lunch," said Frank Gillett, a Forrester analyst.

European Economic Highlights:

  • Eurozone Business Climate Indicator -0.21 – higher than expected. Consensus -0.25. Previous -0.31. Revised -0.32.
  • Eurozone Consumer Confidence -20.7 – lower than expected. Consensus -20.6. Previous -20.6.
  • Eurozone Economic Confidence 93.4 – lower than expected. Consensus 93.8. Previous 93.3. Revised 92.8.
  • Eurozone Industrial Confidence -7.2 – lower than expected. Consensus -6.8. Previous -7.1. Revised -7.2.
  • Eurozone Services Confidence -0.6 – higher than expected. Consensus -1.6. Previous -2.1. Revised -2.6.
  • Germany CPI for January -0.4% m/m 2.0% y/y. Previous 0.7% m/m 2.1% y/y.
  • Germany CPI - EU Harmonised for January -0.4% m/m 2.4% y/y. Previous 0.7% m/m 2.3% y/y.
  • Italy Business Confidence for January 92.1 – lower than expected. Consensus 92.3. Previous 92.5.
  • Spain GDP Q4 Prelim -0.3% q/q 0.3% y/y – in line with expectations. Consensus -0.3% q/q 0.2% y/y. Previous 0.0% m/m 0.8% y/y.
  • Sweden Wages - Non-Manual Workers for November 2.6% y/y. Previous 2.3%/
  • UK Hometrack Housing Survey for January 0.0% m/m -1.6% y/y. Previous -0.2% m/m -2.1% y/y.

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lolmao500's picture

Gingrich Backer Sheldon Adelson Faces Questions About Chinese Business Affairs

This is such BS. He isn't questioned about his affairs in China, he's investigated for corruption and making business with the triads (chinese mafia).

Greece faces “the spectre of bankruptcy and all the dire consequences that entails”, the Greek prime minister warned last night.

RagnarDanneskjold's picture

A long winter for Chinese real estate: Beijing market frozen during Spring Festival; Greentown sells more assets; 67% of developers could exit the market; Wenzhou capital goes from angel to devil

AnAnonymous's picture

Ah, the US citizen drama is over. Cameron to nod through EU treaty.

Staged disagreement.

On Libya: Sarkozy and Cameron were the best bedfriends that be, with Merkel staying at the door, holding the candle.

On EU fiscal reform: Sarkozy and Merkel were the best bedfriends, with Cameron staying at the door, holdingthe candle.

Next iteration, Sarkozy out. Same play.

Hey, US citizens should not be that puritan, Cameron, Merkey, Sarkozy should get their party all at once.

Would save that pitiful, boring drama piece pushed out anytime US citizens want to maintain the illusion that their system favours diversity and offer alternatives.

boiltherich's picture

You missed one Tyler, Spanair abruptly shut down leaving passengers stranded at airports:

Spanair Collapse Puts Europe's 'Zombie' Airlines on Alert

Jan. 30 (Bloomberg) -- Spanair SA's collapse over the weekend after the withdrawal of state funding suggests Europe's debt crisis may spur airlines from the Mediterranean to the Baltic to consider mergers or risk failure.

The first collapse of a scheduled European airline since the last recession comes as cash-strapped governments mull disposing of at least half a dozen other carriers in auctions pitting Qatar Airways Ltd., which had been in talks with Spainair, and other emerging-market bidders against Air France- KLM Group, Deutsche Lufthansa AG and British Airways parent IAG.

Governments are becoming reluctant to save ailing airlines as the debt crisis forces austerity programs in other parts of the economy. State investors in Stockholm-based SAS AB, Aer Lingus Group Plc of Ireland, Portugal's TAP and the flag carriers of Poland, Hungary and the Czech Republic have all signaled plans to reduce direct support and seek new investors.


It is an implosion of Europe, though it may appear to be a death by ten thousand cuts that takes years, as long as all EU resources are dumped into saving the vile moribund euro and governments are forced into 20%+ unemployment and austerity the rule, we will read more and more of this kind of thing.  End the Fed AND the ECB. 

l.hauri's picture

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l.hauri's picture

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