Frontrunning: July 17
- Lieborgate fallout: Bank of England Governor Sir Mervyn King faces MPs (Telegraph)
- Yahoo's brand new CEO to seek maternity leave shortly (NYT)
- China’s Foreign Investment Drops 6.9% In June (Bloomberg)
- Falling property investment drives China H1 FDI drop (Reuters)
- German Court Delays Ruling on Fund (WSJ)
- Fed's George Says U.S. Growth May Not Exceed 2% in 2012 (Bloomberg)
- China Echoes 2009 Stimulus Planned Railway Spending Boost (Bloomberg)
- ZEW: Investor Outlook For German Econ At Six-Month Low (MNI)
- Fed Shifts Focus To Jobs As Unemployment Stalls Above 8% (Bloomberg)
- Goldman Builds Private Bank (WSJ) - lock in those deposits asap
- UniCredit, Intesa Among 13 Italian Banks Cut By Moody’s (Bloomberg)
- Spain Yields Fall At Bill Auction That Exceeds Target (Bloomberg)
- South Korea’s Bahk Rules Out Additional Fiscal Stimulus (Bloomberg)
- Next iPhone Has Thinner Screen (WSJ)
Overnight Media Digest
* Goldman Sachs Group Inc is building an in-house bank to lend money to wealthy people and companies, in a significant shift that underlines the harsh business climate facing Wall Street since the financial crisis.
* Yahoo Inc reached inside the ranks of rival Google Inc in its latest changing of the guard, appointing longtime Web-search executive Marissa Mayer as its new chief and returning the struggling Internet company to a leader with deep technology experience.
* Executives of HSBC Holdings Plc ignored warnings for years that the bank's far-flung operations were being used by money-launderers and potential terrorist financiers, according to a Senate investigation.
* General Motors Co expects to report substantial losses in Europe for the rest of the year, damping hopes of a second-half recovery that the auto maker earlier had anticipated, according to people familiar with GM's European operations.
* A recently departed Barclays Plc executive said he was following orders from his boss and regulators when he instructed deputies to understate the British bank's borrowing costs in 2008, a statement that could intensify the political storm over top British officials' role in the interest-rate-rigging scandal.
* Chinese companies once were happy to let Canadians and Americans represent them in Canada. No longer. Today, they're increasingly using Chinese nationals as they invest billions into natural resource projects.
* Hair-salon company Regis Corp said it is selling its Hair Club for Men and Women unit for $163.5 million, ending eight years of owning a company best known for its TV commercials featuring founder and pitchman Sy Sperling. The unit's buyer is Aderans Co of Japan.
* Regulators will conduct a sweeping review of futures firms across the country, seeking to ensure that the firms' bank accounts contain the cash they say they do, according to people familiar with the planned scrutiny.
LIBOR TESTIMONY PUTS DIAMOND UNDER FIRE
Bob Diamond, ex-chief executive of Barclays, was accused of being misleading by regulators on Monday. http://link.reuters.com/pup49s
POPULATION SWELLS FASTEST IN A CENTURY
The population of England and Wales grew over the past decade at its fastest rate in 100 years. http://link.reuters.com/qup49s
IMF SLASHES UK GROWTH FORECAST
Britain's growth prospects for the next two years have worsened more than those of any other big advanced economy over the past three months, the IMF said. http://link.reuters.com/rup49s
GOOGLE REVISES CONCESSIONS TO EU
Google has submitted a revised package of concessions to address the concerns of Europe's top competition authority. http://link.reuters.com/sup49s
GSK FINALISES $3 BILLION TAKEOVER OF HGS
GlaxoSmithKline is to acquire its long-time partner Human Genome Sciences Inc for a sweetened offer of about $3 billion. http://link.reuters.com/tup49s
NANO-SIMS STOCKPILED AHEAD OF IPHONE 5
Apple's European operator partners are stockpiling "nano-Sim" designed for next generation smartphones for use in the eagerly awaited iPhone 5. http://link.reuters.com/vup49s
YAHOO HIRES GOOGLE'S MAYER AS CHIEF
Google Inc's Marissa Mayer will become Yahoo Inc's new chief executive, the company's third CEO in a third year. http://link.reuters.com/wup49s
CUTS IN JOB AND BONUSES HELP CITI PROFITS
Job cuts and lower bonuses helped Citigroup protect its bottom line in the second quarter from a slowdown in markets activity. http://link.reuters.com/xup49s
* Marissa Mayer, one of the top executives at Google Inc , will be the next chief of Yahoo Inc, making her one of the most prominent women in Silicon Valley and corporate America.
* Jerry del Missier, a former senior Barclays Plc executive, faced tough questioning on Monday about his role in the bank's rate-manipulation scandal during a tense parliamentary hearing, indicating that he had instructed bank employees to report lower rates at the behest of regulators.
* The Royal Bank of Scotland Group Plc, one of more than ten banks under scrutiny from authorities around the globe, is refusing to turn over crucial information to Canadian regulators, court documents from Ottawa show.
* The global bank HSBC Holdings Plc has been used by Mexican drug cartels looking to get cash back into the United States, by Saudi Arabian banks that needed access to dollars despite their terrorist ties and by Iranians who wanted to circumvent United States sanctions, a Senate report says.
* Microsoft Corp is seeking to reinvent Office, its venerable family of cubicle-ready applications, for a new era of computing that is increasingly being defined by flashy consumer technologies from other companies.
* The television analytics company TiVo Inc is expected to announce on Tuesday that it has acquired full ownership in TRA, a research company that has found success in recent years with a system that matches up television viewing with consumer buying habits.
THE GLOBE AND MAIL
* Two people are dead and at least 19 others have been injured in a Scarborough shooting. Bill Blair, Toronto police chief, called the shooting the worst in the city's history.
Report in the business section:
* Foreign money is flooding into Canada like never before, helping to drive the yield on Canada's benchmark 10-year bond to a record low and sending rates plunging across the board.
* Canadian officials were looking into reports on Monday that a young Ontario boxer had been killed by Russian security forces during an anti-terrorism operation in the restive North Caucasus.
* Foreign demand for Canadian securities, particularly government bonds, continues to climb as investors seek safety from the ongoing stress in global financial markets.
- Two Russian private banks Nomos Bank and Otkrytie have agreed to merge to make Russia's second largest private lender.
- Russia is at the edge of a serious confrontation with the West over Syria, the daily says referring to tough statements made on Monday by Russia's Foreign Minister Sergei Lavrov.
- Russia's lawmakers plan to introduce amendments to an OSCE charter which could impose legal responsibility for all statements made on behalf of the organization.
- Citizens of Russia's southern town of Krymsk, devastated by floods that killed at least 170 people and left nearly 35,000 without homes at the beginning of the month, keep receiving reminders from BNP Pariba's Cetelem and Ukraine's Privatbank to pay off their debt.
- Russia has lost more than $30 billion in the last twelve months due to the devaluation of the euro , which accounts for almost 40 percent of the national reserves
European Economic Digest
- UK CPI -0.4% m/m 2.4% y/y – lower than expected. Consensus -0.1% m/m 2.8% y/y. Previous -0.1% m/m 2.8% y/y.
- UK Retail Price Index 241.8 – lower than expected. Consensus 242.3. Previous 242.4.
- Germany Zew Survey (Current Situation) 21.1 – lower than expected. Consensus 30.0. Previous 33.2.
- Germany Zew Survey (Economic Sentiment) -19.6 – higher than expected. Consensus -20.0. Previous -16.9.