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Frontrunning: July 11

Tyler Durden's picture





 
  • San Bernadino: Another Calif. city goes bankrupt (247)... It appears Hell's Angels don't pay municipal taxes after all
  • Rajoy announces 65 Billion Euros Of Cuts To Fight Crisis (Bloomberg)... And Spaniards prepare to not pay taxes
  • Spain pressed to inflict losses on savers (FT)... And Spaniards prepare to sue
  • Spain to Cede Bank Control (WSJ)... And Spaniards prepare to protest
  • Rate Scandal Stirs Scramble for Damages (NYT)... but who do you sue: the Fed?
  • Paulson Ex-Lieutenant Caught in Fund's Slide (WSJ)
  • ILO warns 4.5m jobs at risk in eurozone (FT)
  • Global economic crunch confirmed every day: Airbus Scraps Target of 30 A380 Sales as Demand Dwindles (BBG)
  • Same old: Finland says requires collateral from Spain for bank aid (Reuters)
  • Cameron and Hollande clash on tax (FT)
  • Wen Says Boosting Investment Now Key to Stabilizing China Growth (Bloomberg)
  • Dimon Risk Reputation on Line as JPMorgan Faces Analysts (JPM)
  • Ozawa Sets Up New Japan Opposition Party in Challenge to Noda (Bloomberg)
  • China opens door to foreign hedge funds (FT)

Overnight Media Digest:

WSJ

* A deepening scandal in the futures-trading business has left an elder statesman of the industry hospitalised after a suicide attempt and regulators seeking to find out what happened to about $215 million of customer money allegedly missing from his firm Peregrine Financial Group Inc.

* JPMorgan Chase & Co plans to reclaim millions of dollars in stock from executives at the centre of the trading blunder that shocked Wall Street and tarnished the reputation of Chief Executive James Dimon. The bank is expected to claw back compensation from individuals including Ina Drew, who ran the company's Chief Investment Office, according to people familiar with the bank's plans.

* The House is expected to vote Wednesday to repeal President Barack Obama's health-care law, as Republicans continue their furious response to the Supreme Court decision to uphold the law.

* American Airlines parent AMR Corp plans to formally sound out potential partners about a merger or other investment deal in coming weeks, the company said, setting the stage for a showdown over the airline's path out of bankruptcy.

* Robert Diamond agreed to give up an additional bonus of up to £20 million ($31 million) as pressure from British lawmakers mounted on the former Barclays Plc chief executive over his role in an interest-rate-rigging scandal and its aftermath.

* China is ramping up state spending to counter its sharpest decline in growth since the financial crisis, further entrenching state-owned companies and dimming the hopes of some that China would use the slowdown to restructure its economy with market-oriented changes.

* Research In Motion Ltd's chairwoman said on Tuesday the company plans to further shake up its board, the latest move by the BlackBerry maker to appease frustrated shareholders.

* Amazon.com Inc is working with component suppliers in Asia to test a smartphone, people familiar with the situation said, suggesting that the Internet retail giant, which sells the Kindle Fire tablet computers, is considering broadening its mobile-device offerings.

 

FT

CALLS FOR OUTSIDERS TO TAKE BARCLAYS HELM

Top Barclays shareholders are demanding that the bank appoint an external chairman to repair its reputation following the damage done by the Libor price-rigging scandal. http://link.reuters.com/pur39s

BOSTOCK QUITS AS M&S CLOTHING SUFFERS

Kate Bostock executive director general merchandise at Marks and Spencer is to leave the retailer by mutual consent. http://link.reuters.com/qur39s

CORPORATE PENSIONS FACE HIGHER INSURANCE

UK companies face a substantial rise in the premiums they pay to insure their pension plans against a company default next year. http://link.reuters.com/rur39s

PEREGRINE ACCUSED IN $200 MILLION FRAUD CASE

The U.S. futures regulator has charged broker Peregrine Financial Group and its owner with running a $200 million fraud. http://link.reuters.com/zur39s

CHINA OPENS DOOR TO FOREIGN HEDGE FUNDS

China has given foreign hedge funds permission to tap its wealthy citizens inside the country for funds to invest overseas. http://link.reuters.com/tur39s

SPAIN PRESSED TO INFLICT LOSSES ON SAVERS

EU authorities are pressing Spain to inflict billions of euros of losses on small savers by wiping out certain types of bank debt before its financial institutions are recapitalised. http://link.reuters.com/vur39s

UNIVERSAL TO PROPOSE REVIVAL 'MANIFESTO'

Universal Music will propose to regulators in the coming weeks a 'manifesto' for restoring music industry growth.
http://link.reuters.com/wur39s

 

NYT

- Robert Diamond, who stepped down last week, faces criticism about his leadership as Barclays Plc deals with fallout from a scandal involving interest rate manipulation.

- Users of Facebook Inc, later this summer, will be reminded about NBC's coverage of the Olympic Games in London. And viewers of NBC's coverage, at the same time, will be nudged to talk about the Games on Facebook.

- Regulators on Tuesday took a major step toward reining in risky Wall Street trading, approving new rules aimed at preventing a repeat of the financial crisis.

- An accumulation of concerns caused Duke Energy's board to lose confidence in its chief executive, leading to his ouster just hours after completing a $32 billion merger with Progress Energy, according to testimony Tuesday by James Rogers - the man who replaced him.

- Spain's Prime Minister Mariano Rajoy is expected to announce to Parliament yet another package of austerity measures, this time meant to lower Spain's deficit to 6.3 percent of gross domestic product, as agreed to in Brussels on Tuesday.

 

Canada

THE GLOBE AND MAIL

- Canada's big banks are preparing to launch "virtual wallets" as early as this fall that will allow consumers to digitally consolidate their credit and debit cards from any financial institution, and use them to make purchases online and through their cellphones at cash registers.

- Enbridge Inc has been slammed in a scathing review of its massive Michigan pipeline spill, with a U.S. watchdog saying the company acted like "the Keystone Kops" and ignored safety procedures while suffering "pervasive organizational failures.

NATIONAL POST

- Canada's Foreign Affairs department issued a warning Tuesday to Iranian diplomats who are allegedly using their Ottawa embassy to recruit Iranian-Canadians to serve the Islamic Republic's interests.

FINANCIAL POST

- Bombardier Inc.'s CSeries program has gathered momentum at the Farnborough International Airshow this week despite concerns the first flight of the transcontinental jet might come down to the wire - its fly-by-wire system, that is.

 

European Economic Update:

  • Spain House Transactions -11.6% y/y. Previous -9.9% y/y.
  • Germany CPI – EU Harmonised -0.2% m/m 2.0% y/y – in line with expectations. Consensus -0.2% m/m 2.0% y/y. Previous -0.2% m/m% 2.0% y/y.
  • France Current Account (euro) -4.1B – lower than expected. Consensus -3.5B. Previous -4.2B. Revised -4.4B.
  • Turkey Current Account -5.8B – higher than expected. Consensus -6.2B. Previous -5.0B. 
  • Hungary Consumer Prices 0.1% m/m 5.6% y/y – higher than expected. Consensus -0.1% m/m 5.4% y/y. Previous -0.2% m/m 5.3% y/y.
  • Czech Republic CPI 0.2% m/m 3.5% y/y – higher than expected. Consensus 0.0% m/m 3.3% y/y. Previous 0.2% m/m 3.2% y/y.
 


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Wed, 07/11/2012 - 07:35 | Link to Comment Sudden Debt
Sudden Debt's picture

I was planning to do about 90 billion euro in cuts also in 2016!

That will be about the cost of a small pizza by than...

and if it's a bit more I was also planning on taxing the neighbours for living next to me.

 

Wed, 07/11/2012 - 08:08 | Link to Comment The Monkey
The Monkey's picture

Shorts are going to be scrambling today, probably all day. FOMC on tap after a fast 30 point downdraft in the S&P. Earnings issues = opportunity to buy the dip for long term investors, or at least that is the headline to eek out the next few percent in ES. Jawboning, Google and Apple coming right up.

If you don't already have call options, there is always FAS.

Wed, 07/11/2012 - 08:17 | Link to Comment Sudden Debt
Sudden Debt's picture

There won't be much today. I even think the banks will go down today.

there's just not enough volume

the euro is at 1.2276 and the dollar is to strong.

So unless they print today (Nop) will there be a pop for a few days.

 

Wed, 07/11/2012 - 07:46 | Link to Comment Sudden Debt
Sudden Debt's picture

"TAX" is like the new word of the day here! WOW!

I especially like the UN tax! you know, the green tax or how they like to call it. You pay it and when you see what's left of your paycheck, you'll turn green.

 

THEY!

THE UNELECTED!

HAVE DECIDED THAT THIS!

IS THE BEST AND MOST FAIR THING

TO DO....

now pay up... and shut up...  

 

Wed, 07/11/2012 - 07:49 | Link to Comment LULZBank
LULZBank's picture

Take it easy, man. You might rupture a spleen or something if you carried on like this.

Wed, 07/11/2012 - 08:07 | Link to Comment Sudden Debt
Sudden Debt's picture

ppfff...

It's raining here like crazy... all over the world it's dry and here we'll have floods pretty soon.

I'm BORED as hell at work because there's not much to do...

and my vacation only starts this friday...

2 more long days...

 

 

Wed, 07/11/2012 - 08:11 | Link to Comment LULZBank
LULZBank's picture

I know the feeling man. Not as much rain or vacation in near future... But bored outta my nuts at work!

Thanks to ZH, or else I would'nt know what to do...

Wed, 07/11/2012 - 08:13 | Link to Comment Sudden Debt
Sudden Debt's picture

I think I read the entire internet today

playing a movie on the left, reading ZH and other blogs on the right :)

Wed, 07/11/2012 - 08:24 | Link to Comment LULZBank
LULZBank's picture

LOL.

You're giving stiff competition to the Souhterners ;)

Wed, 07/11/2012 - 08:30 | Link to Comment Sudden Debt
Sudden Debt's picture

Oh! Don't worry! I'm a manager!! I'm not supposed to do a lot during the day!

One meeting a day, keeps the boss away!

Wed, 07/11/2012 - 08:35 | Link to Comment LULZBank
LULZBank's picture

You do a lot during the night?

What line of business are you in BTW? LOL

Wed, 07/11/2012 - 09:05 | Link to Comment Sudden Debt
Sudden Debt's picture

I'm a citizen of the MIGHTY EMPIRE OF BELGIUM!!!!

it's daytime over here :)

Wed, 07/11/2012 - 08:06 | Link to Comment EscapeKey
EscapeKey's picture

I fucking hate the common, socialist use of the word "fair".

Gordon Brown tells us we need to live in a "fair" society.

Nevermind that his MPs are were on the take, that the banks ran circles around him, that he sold British gold at century lows to please his banker overlords, and that government spending already grew 40% during his tenure.

No, we all have to live in an even "fairer" society - where my additional income, which originates from working 12 hour days, has to be taxed at even higher rates, where my local council taxes has to be 3x the cost of those in Northern England (only for those proceeds to be sent there to buy Labour votes), where you actively get penalized for creating a stable environment for kids (ie, the marriage tax), and where all sorts of transportation expenses gets ever-heftier taxes associated, ultimately culminating in a complete lack of reason for commuting to work, as it gobbles up all spare income.

No, we still have to be even "fairer". Because it's only "fair" that Labour's council scum voters get even MORE transfer payments and tax credits, while the ever-squeezed middle class gets cut from existance.

A "fair" society clearly has no space for a middle class.

Fuck your fairness right up the arse.

Wed, 07/11/2012 - 08:11 | Link to Comment Sudden Debt
Sudden Debt's picture

Luckely it's near impossible to do overtime over here. You can, but you won't be paid for it.

thanks to a little change in the law that nobody noticed untill the paychecks came in.

Gold....

Belgium was supposed to have a lot of gold...

but nobody knows where it is. They do lease it out for 6 MILLION EURO A YEAR!!

all the gold our ancient kings like Leopold 1 and 2 worked so hard for... gone...

 

Wed, 07/11/2012 - 07:42 | Link to Comment Abner Doon
Abner Doon's picture
The potential enormity
of George Hartzman's Wells Fargo Whistleblower filing
on Envision Investment Plans and 4front

http://hartzman.blogspot.com/2012/07/potential-enormity-of-george-hartzmans.html

Could George Hartzman's Wells Fargo Whistleblower filing
affect what could be more than $150 billion of Wells Fargo Advisors client assets?

Wed, 07/11/2012 - 07:51 | Link to Comment buzzsaw99
buzzsaw99's picture

I trust what I read in the UK tabloids more than what comes out of the WSJ these days. Rupert actually spies on people to get the dirt for the tabloids. He would never do that to a fellow maggot.

Wed, 07/11/2012 - 08:15 | Link to Comment EscapeKey
EscapeKey's picture

All his news are extremely biased.

Think of Sky News as the news which Murdoch wants you to know, described from the angle Murdoch wants you to understand it.

Not that I'm a fan of the socialist spokesorgan that is the Blair-Brown Corporation.

Wed, 07/11/2012 - 07:52 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

How is the Prime rate calculated?? seems there is a bigger cousin in the closet with no pants on & no one is pointing at it..Prime rate could never be libored never , no never.

Wed, 07/11/2012 - 08:23 | Link to Comment GMadScientist
GMadScientist's picture

I believe it just involves substituting Pabst Blue Ribbon or Coors for the Bolllinger.

 

Wed, 07/11/2012 - 08:06 | Link to Comment GMadScientist
GMadScientist's picture

http://www.youtube.com/watch?v=4wqoVSADKxc

"They got some dark brown air and you can....choke all day..."

Wed, 07/11/2012 - 08:08 | Link to Comment Bogdog
Bogdog's picture

WF has my 403B.

Crooks.

Wed, 07/11/2012 - 08:18 | Link to Comment Broomer
Broomer's picture

"Canada's big banks are preparing to launch 'virtual wallets' as early as this fall that will allow consumers to digitally consolidate their credit and debit cards from any financial institution, and use them to make purchases online and through their cellphones at cash registers."

The end of cash is acomin'

IT BEGINS

Wed, 07/11/2012 - 08:34 | Link to Comment eddiebe
eddiebe's picture

NYT

- Robert Diamond, who stepped down last week, faces criticism about his leadership as Barclays Plc deals with fallout from a scandal involving interest rate manipulation.

Faces criticism. hahahaha good one. Why anyone in the world would do business ever again with barcleys is beyond belief.

 

Wed, 07/11/2012 - 09:32 | Link to Comment Never One Roach
Never One Roach's picture

<<Rajoy announces 65 Billion Euros Of Cuts To Fight Crisis>>

 

...and in other news, Rajoy announces another year of record high bonuses for "working hard to solve Spain's crisis."

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