Frontrunning: July 23

Tyler Durden's picture
  • Greece should pay wages in drachmas - German MP (Reuters)
  • Greece Seeks More Cuts as Deadlines Loom (WSJ)
  • Greece Back at Center of Euro Crisis as Exit Talk Resurfaces (Bloomberg)
  • Berlusconi seeks return to liberal roots (FT)
  • For brokers like Peregrine, from bad times to worse (Reuters)
  • Japan Sees More ‘Widespread’ Global Slowdown With China Cooling (Bloomberg)
  • China Central Bank Adviser Forecasts Growth Slowdown to 7.4% (Bloomberg)
  • London Out to Prove It's Still in the Game (WSJ)
  • Stockton Reveals Bondholder Offers From Mediation (Bloomberg)
  • US lawmakers propose greater SEC powers (FT)
  • S. Korea to Ease Mortgage Lending Rule to Spur Consumption (Bloomberg)
  • Scores Killed in Iraq's Deadliest Day This Year (WSJ)

Overnight Media Digest:



A leading official in the FED said the U.S. will make little progress tackling high unemployment before 2014 unless the bank eases policy further.


A government-sponsored review into equities has found the stock market needs to move closer to simpler times by cutting the number of go-betweens that divide investors and companies.


Olympic athletes are exchanging their personal physical data for the latest gadgets that record sleep, diet and exercise patterns as they try to boost their performance.


Euro zone banks have cut their assets dramatically from the U.S. over the five years since the financial crisis began.


The U.S. is turning to Brazil for help with corn supplies amid low stocks and the worst drought in half a century.


Nokia is considering ripping up its traditional mass marketing strategy when it unveils its new Windows 8 smartphone in the autumn.


Barclays is looking for its next chairman from outside the bank after a shareholder revolt against the proposed appointment of Michael Rake.


British finance minister George Osborne is facing pressure over data published this week expected to show the economy has contracted for the third consecutive quarter.


Wall Street analysts are scaling back the estimates of revenue growth for the largest U.S. companies amid concern the U.S. may enter soon enter recession.


Universal plans to propose a list of concessions to get around regulators in its bid for EMI.


* Greece's newly elected government is seeking billions of euros of additional budget cuts and looks poised to announce the first steps toward streamlining the country's bloated public sector, ahead of the return of a troika of international inspectors -- the European Commission, the International Monetary Fund and the European Central Bank to Athens this week.

* Bids for patents being auctioned by Eastman Kodak Co could become less generous now that the company has lost a key intellectual property case against Apple Inc and Research In Motion Ltd.

* In the stock market, defense is the new offense. Investors are flocking to stocks of large, dividend-paying companies, particularly those seen as less vulnerable to a slowing economy or turmoil in Europe.

* The collapse of Peregrine Financial Group Inc has prompted new scrutiny of the futures industry's front-line regulator and triggered plans to change its practices just as the agency prepares to take on a bigger role in policing derivatives markets.

* The proposed creation of a single euro zone bank supervisor is shaping up to be a test of the willingness of countries to give up national powers for the sake of the euro. The effort, which envisions a key role for the European Central Bank in supervising the bloc's largest and most internationally active banks, faces hurdles as officials try to streamline a patchwork of regulators and supervisors numbering in the dozens.

* DreamWorks Animation SKG Inc is acquiring Classic Media, an entertainment company that owns "Casper," Lassie and over 450 family entertainment titles, for $155 million, to increase the studio's intellectual property base and leverage Classic's extensive library across its various entertainment divisions.

* UK oil company BP Plc has proposed that its Russian joint venture TNK-BP pay shareholders a $1 billion interim dividend, TNK-BP said in a statement.

* India's largest auto maker by sales Maruti Suzuki India Ltd declared a lockout at its Manesar factory until local authorities finish investigating a riot that left parts of the plant charred and a senior executive dead last week.

* Reliance Communications Ltd pulled the initial public offering of a unit that holds its undersea-cable assets, adding to a string of large IPOs that have been scrapped in Asia this year.



* In the race for digital advertising dollars, Google Inc has been the clear winner, with its ability to customize advertisements based on what you search for. But Facebook Inc, which customizes ads based on who you and your friends are, hopes to be a contender. An important test of how it is doing will come on Thursday.

* When it comes to dealing with labor unions, Caterpillar Inc has long taken a stance as tough as the bulldozers and backhoes that have burnished its global reputation. The company has been a leader in devising new ways to cut labor costs, with other manufacturers often imitating its strategies.

* AT&T Inc announced this weekend that it had reached tentative three-year contracts with a union representing more than 13,000 workers in its Midwest division and an additional 5,700 workers at a unit specializing in major corporate accounts.




* Thousands of Canadians marched in the streets for the first time in weeks, reviving a vacationing protest movement that faces difficult tactical choices in a looming provincial election campaign.

Report in the business section:

* Massive mortgage debt is top priority for Bank of Canada Governor Mark Carney, but in his quest to curtail Canadians' borrowing, he might want to start thinking about the vehicles sitting in their driveways and garages too.

The use of long-term loans to buy new vehicles is skyrocketing, as car buyers look for ways to cut or hold steady a key component of a family's spending - the monthly car payment.


* One of Africa's most repressive dictatorships, Eritrea, has been collecting money to bankroll its military through its consulate in Toronto, according to a United Nations report obtained by the National Post.


* When Canada's 13 provincial and territorial premiers gather in Halifax next week for their annual Council of the Federation meeting, they will likely be outnumbered by industry lobbyists looking to bend their ears on important policy items.

European Economic Update:

  • Spain Mortgages - Capital Loaned -32.4% y/y. Previous -26.4%.
  • Switzerland Money Supply 7.4%. Previous 6.2%.

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Alexmai's picture

The whole financial system of the planet is in panic mode …

Lohn Jocke's picture


agent default's picture

Yeah they fixed the clock on the timebomb.

TPTB_r_TBTF's picture

there will be *no* Euroland Breakup.

TPTB do NOT want that!

Ghordius's picture

can't follow. your nick says that The Powers That Be ARE The Too Big To Fail. Goldman Sachs and JPMorgan are TBTF, ergo belong to TPTB. And they are doing everything in their power to break the eurozone. how do you square that?

TPTB_r_TBTF's picture

They are breaking down each nation's sovereignty in the EU.  I had thought [a few years ago] that US Citizism would be first on their list, but they seem to be going after Europe first.

Before they can implement a one-world govt, they must break down each individual country's sovereingty.

They are breaking each nation down economically in order to gain more political power over each nation.  They are breaking down the sovereignty of each nation => which will only lead to more EU, not less.

When in doubt, assume that everything is going according to [their] plan.  Then try to understand their plan.  They are not going to fail.  They may experience some setbacks, but they wonT fail.  The sheeple *always* lose.

agent default's picture

This is just a rehash of the "This time is different" mantra.  Economic collapse historically has lead to the break up of empires and international institutions. Accelerating the collapse will lead to the eventual collapse of the EU project as a whole, not in more integration.  It is never different.

TPTB_r_TBTF's picture

Yes, the Empire of the USSofA is collapsing and the institute of Euroland as well.

What is "different" this time, is that a shadow empire called "TPTB" is purposefully running these into the ground in order to found a NWO.

DonT lose sight of their goal. You can be sure, that they havenT lost sight of their goal!

Empire America and Euroland are undergoing controlled demolition.

i-dog's picture

LOL ... "Look children! ... Look what the magician has in his right hand!" ... "NO! ... don't look at the left hand! Look at the right hand. That's better."

Look, Ghordie, Goldman Sachs IS the Luciferian bank of banks! 

JPM will be imploded first ... IMO. One of Dimon's credentials is that he's a Sandy Weill protégé. Another of his credentials is that he's a "hands-on manager ... a details man ... reads every major contract at home overnight before signing". There is no fucking way that JPM is doing anything without his detailed knowledge. It's all an act (well ... 'farce' is a better word).

Nobody in American finance is doing anything to break the Eurozone. The Eurozone (along with the rest of the developed world ... including America!) is self-destructing -- due to excessive consumption, excessive debt and insufficient wealth production. TPTB are trying to manage a controlled demolition in an order that they would prefer ... with Europe going last. But the pesky complex system keeps tilting towards Europe going first!


(BTW, Ghordie, his nick says simply: "TPTB are Too Big To Fail". Without the "the". Just trying to help.)


TPTB_r_TBTF's picture


TPTB are trying to manage a controlled demolition in an order that they would prefer ... with Europe going last. But the pesky complex system keeps tilting towards Europe going first!


I hadnT thought of it from that angle.  Thanx for planting this idea!

Ghordius's picture

"... with Europe going last" !!! i-dog, this would be the first time an empire in history would neglect it's military center, it's financial center or it's ideological center first. It's always the periphery that get's shaken, first.

i-dog's picture

If Europe falls first, it will indeed be the first time in history that an empire has neglected its ideological and financial centre (and therefore also the locus of control of its military power).

We can only hope, Ghordie! Complex systems are a bitch to control.

pauldia's picture

Obama's re-election campaign is going to speak in August..



Fed official highlights benefits of flexible QE: FT



LONDON (Reuters) - An open-ended round of quantitative easing that could be adjusted to suit economic conditions should be considered if the Fed launches a fresh round of monetary stimulus, a top policy official in the Federal Reserve said in an interview with the Financial Times.

There is "pretty significant" downside risks to the U.S. economy from the euro zone crisis, John Williamspresident of the Federal Reserve Bank of San Francisco, said in an interview with the Financial Times on Monday.

"The main benefit from my point of view is it will get the markets to stop focusing on the terminal date and also focusing on, ‘Oh, are they going to do QE3?'" he is quoted as saying.

If the Fed launched another round of quantitative easing, Williams said that buying mortgage-backed securities, rather than Treasuries, would be more advantageous.

"There's a lot more you can buy without interfering with market function and you maybe get a little more bang for the buck," he said.

He said the Bank of England's "funding for lending" scheme, which will provide cheap funding for British banks that increase their lending to households and businesses, would not work in the United States.

Williams is regarded as close to the center of gravity on the rate-setting Federal Open Market Committee, of which he is a voting member this year. The FOMC will conclude its next meeting on August 1.


pauldia's picture

Sorry,the time stamp was not posted. This interview was in the Financial Times and was posted 9 hours ago. 

Bogdog's picture

Remember, everything will happend slowly until it happens very quickly.

Grand Supercycle's picture

As mentioned on Fri, SPX downleg continues.

SPX bearish weekly chart strengthens: an important development.

Useful SPX weekly chart at blog.