Frontrunning: July 16
- Looks like the troops won't be steamrolled: JPMorgan Blaming Marks On Traders Baffles Ex-Employees (Bloomberg)
- The Goldman "Huddle" goes to Blackrock - Surveys Give Big Investors an Early View From Analysts (NYT)
- At least housing has bottomed: London House Prices Plunge As Supply Rise Adds To Lull (Bloomberg)
- Christine Lagarde and Nicolas Sarkozy embroiled in new corruption inquiry (Telegraph)- at least that fraud they created: Others helped them create it.
- Heat Leaves Ranchers a Stark Option: Sell (NYT)
- Merkel Gives No Ground on Demands for Oversight in Debt Crisis (Bloomberg)
- The euro skeptics have the best lines again (FT)
- Wen Says China’s Economic Recovery yet to Show Momentum (Bloomberg)
- Europe’s Banks Face Tougher Demands (FT)
- Madrid Region To Sell 100 Office Buildings Amid Austerity (Bloomberg)
- China eases taxes for foreign companies (FT)
- Ohio Files Motion To Lead JPMorgan ‘Whale’ Fraud Suit (Bloomberg)
- Senate Democrats Split From Obama on Taxing Dividends (Bloomberg)
Overnight Media Digest
* The European Central Bank, in a sharp turnaround, advocated imposing losses on holders of senior bonds issued by the most severely damaged Spanish savings banks - though finance ministers have for now rejected the approach, according to people familiar with discussions. http://link.reuters.com/zyk49s
* A trade association representing some 3,700 convenience stores and other companies has hired a longtime legal foe of Visa Inc and MasterCard Inc to help challenge last week's $6.6 billion lawsuit settlement between the credit-card industry and merchants. http://link.reuters.com/cam49s
* The Justice Department and HSBC Holdings Plc are accelerating settlement talks to resolve a criminal probe into laundering of drug-cartel and other money, according to people familiar with the investigation. http://link.reuters.com/dam49s
* GlaxoSmithKline Plc is nearing an agreement to buy Human Genome Sciences Inc for as much as $3 billion, dropping its months long hostile pursuit of the U.S. biotechnology company for a negotiated deal that could be announced as early as Monday, people familiar with the matter said. http://link.reuters.com/ham49s
* The price of Nokia Corp's flagship Lumia 900 Windows phone has been cut in half in the critical U.S. market, a little more than three months after the launch of the smartphone at AT&T Inc stores. http://link.reuters.com/jam49s
* Wages are still climbing rapidly in China and many companies are having trouble filling jobs despite the sharp economic slowdown here - evidence of a structural shortage in the labour market that may help China adjust to slower growth without political instability and whet consumer appetites for foreign goods. http://link.reuters.com/kam49s
* The Federal Aviation Administration proposed a $13.57 million civil penalty against Boeing Co stemming from a missed deadline for instructions to help airlines install devices to reduce fuel-tank explosion risks on hundreds of the company's older jets. http://link.reuters.com/mam49s
EUROPE'S BANKS FACE TOUGHER DEMANDS
The head of the European Banking Authority has raised the bar for lenders' capital requirements, saying that a 9 percent capital ratio must become permanent.
BUCKLES FIGHTS TO KEEP HIS JOB AT G4S
G4S Chief Executive Nick Buckles is fighting for his job in light of the security firm's botched London Olympics contract.
PIPELINES BYPASSING HORMUZ ROUTE OPEN
Saudi Arabia and the United Arab Emirates have opened new pipelines bypassing the Strait of Hormuz, reducing Iran's power over oil markets.
CHINA EASES TAXES FOR FOREIGN COMPANIES
China will cut taxes on the profits that foreign companies take out of the country by up to 50 percent after taxation rules were relaxed.
WALL STREET BANKS STEP UP OIL TRADE ROLE
Wall Street banks are wading deeper into the business of supplying oil as they compete with oil traders and merchants selling crude to refineries.
NOKIA SLASHES LUMIA SMARTPHONE PRICE IN US
Nokia is cutting the price its flagship Lumia 900 smartphone in the U.S. in an effort to breach the market dominance of Apple and Samsung.
EX-CITI BANKER FACES TRIAL OVER CDO SALE
A former director in Citigroup's structured credit products goes on trial on Monday accused of misleading buyers of a mortgage-related product at the start of the financial crisis.
JAGUAR LAND ROVER MOTORS AHEAD IN BRAZIL
Jaguar Land Rover is in talks with Brazilian authorities about assembling Freelander four-by-fours from kits imported from the UK.
* British regulators will face further scrutiny for their role in a rate-manipulation scandal when top officials at the Financial Services Authority testify on Monday before Parliament. http://link.reuters.com/nam49s
* Apple Inc is developing a new tablet with a 7.85-inch screen that is likely to sell for significantly less than the latest $499 iPad, with its 9.7-inch display, according to several people with knowledge of the project who declined to be named discussing confidential plans. The product is expected to be announced this year. http://link.reuters.com/qam49s
* On Sunday night, MSNBC.com did something that successful Web sites almost never do, it renamed itself. The site became NBCNews.com, signifying the end of a relationship between NBC and Microsoft Corp that dates back to the earliest days of the commercial. http://link.reuters.com/pam49s
* The endgame in the music industry's most controversial deal will begin this week in Brussels. There, executives of the Universal Music Group will meet with members of the European Commission to discuss concessions to Universal's $1.9 billion bid for EMI's record labels. http://link.reuters.com/sam49s
* GlaxoSmithKline Plc of Britain is near a deal to buy the biopharmaceutical company Human Genome Sciences Inc on friendly terms for about $2.8 billion, potentially ending a long hostile takeover campaign, a person briefed on the matter said on Sunday. http://link.reuters.com/tam49s
* The Lumia 900, Nokia's most ambitious effort to regain ground in the smartphone market, has dropped to half of its original price in the United States, just three months after its release. http://link.reuters.com/vam49s
* Research in Motion Ltd, the BlackBerry device maker seeking a comeback after falling behind Apple Inc and Google Inc in the smartphone market, has been found liable for $147.2 million in damages for infringing patents held by Mformation Technologies. http://link.reuters.com/wam49s
THE GLOBE AND MAIL
* Two independent Canadian advertising agencies are merging their ranks. Digital agency 58Ninety Inc on Monday, is set to announce it is buying brand agency Due North Communications. The new company will be rebranded under the name "One."
Report in the business section:
* Jim Flaherty is spinning his plan to overhaul the banking industry's dispute-settlement regime as "tough" and "pro-consumer."
* Canada's Competition Bureau is pushing ahead with its own probe of a mushrooming international scandal that has already ensnared a venerable British bank and forced the resignation of its chief executive.
* Tough new mortgage guidelines announced last month by the federal banking regulator are aimed at letting some of the air out of Canada's over-inflated housing market. The trouble is, some of the rules don't affect credit unions, which make up a significant chunk of the consumer loan market in British Columbia, Quebec and other provinces.
European Economic Summary
- Switzerland IP Q1 1.4% y/y – higher than expected. Consensus 0.0% y/y. Previous -1.4% y/y. Revised 3.6% y/y.
- Italy Trade Balance (Euros) 1008M. Previous -202M. Revised -200M.
- Norway Trade Balance (Krone) 29.5B. Previous 35.5B.
- Eurozone CPI -0.1% m/m 2.4% y/y – lower than expected. Consensus 0.0% m/m 2.4% y/y. Previous -0.1% m/m 2.4% y/y.
- Eurozone Trade Balance 6.9B – higher than expected. Consensus 4.0B. Previous 5.2B. Revised 3.7B.