Frontrunning: July 24

Tyler Durden's picture
  • Greece now in "Great Depression", PM says (Reuters)
  • Geithner "Washington must act to avoid damaging economy" (Reuters)
  • Moody’s warns eurozone core (FT)
  • Germany Pushes Back After Moody’s Lowers Rating Outlook (Bloomberg)
  • Austria's Fekter says Greek euro exit not discussed (Reuters)
  • In Greek crisis, lessons in a shrimp farm's travails (Reuters)
  • Fed's Raskin: No government backstop for banks that do prop trading (Reuters)
  • Campbell Chases Millennials With Lentils Madras Curry (Bloomberg)
  • Japan Azumi: won't rule out any measures vs yen rises (Reuters)
  • China should ease local government credit curbs –paper (Reuters)
  • Nation seeks strategic industries' development (China Daily)

Overnight Media Digest


* Several groups of traders are under investigation by regulators around the world for allegedly banding together to rig key global interest rates, people close to the probe said.

* In downgrading to negative its outlook on Netherlands, Luxembourg and Germany's triple-A rating, ratings firm Moody's Investors Service pointed to the vast liabilities Germany would incur in a bailout of Spain and Italy, as well as its banking system's "sizable exposures" to them.

* CNOOC Ltd swept into Canada with China's biggest overseas acquisition yet, a $15.1 billion deal to buy one of that country's largest energy producers, Nexen Inc, that reignites a debate over the role of Chinese state players in North America's energy industry.

* Two months after resigning as chief executive of digital media company, Yahoo Inc following a flap over his misstated academic credentials, Scott Thompson on Monday was appointed the CEO of ShopRunner Inc, a high-profile online-shopping start-up based in Philadelphia.

* U.S. network equipment maker Cisco Systems Inc said it would lay off about 1,300 employees, or 2 percent of its global workforce, as the networking giant continues its efforts to cut costs and boost profits.

* BlackBerry maker Research In Motion Ltd disclosed Monday that Prem Watsa, through his Canadian investment firm Fairfax Financial Holdings Ltd, now owns just under 10 percent of the company's shares after buying stock earlier this month making him the largest shareholder by far, according to a regulatory filing.

* U.S. private equity firm TPG Capital Management LP returned with a $713.4 million takeover bid for Billabong International Ltd, pitched at a much lower price than an approach earlier this year that the struggling retailer spurned.

* Fox network said pop singer Mariah Carey will become a new judge on "American Idol", the first move by the network to rejigger the aging but still-popular singing competition.

* Home prices in the second quarter rose from the year-ago period for the first time since 2007, according to a closely watched index, the latest indication the housing market is starting to recover.




Spain's borrowing costs rose severely on Monday, raising fears that Madrid may be forced to request a sovereign bailout.


Six men were convicted on Monday of participating in an insider trading ring that stole confidential information from two of the City's biggest investment banks.


China's Cnooc has agreed to buy Canadian oil group Nexen for $15.1 billion plus debt.


Irish prosecutors have charged two former senior executives of Anglo Irish Bank, which was at the centre of Ireland's economic collapse.


Bank of China is ending its bid to establish a private banking operation in Europe with the sale of its Geneva arm.


Amazon is seeking to improve its relations with warehouse workers by offering to fund training in engineering, computing and healthcare.


The former head of HSBC Lord Green was accused of "treating parliament and the public with contempt" for failing to comment on the banks deficiencies.


City of London bosses have warned that plan to sweep away a culture of short-termism in the City will prove difficult to enact.


Tension is growing between Facebook and its advertisers, as the social network holds back consumer info.


The chairman of Banca Monte dei Paschi di Siena said the bank will lose its independence if it does not meet the targets in its recently announced three-year industrial plan.



* Signs that cracks in the euro zone are widening sent markets on the continent down sharply on Monday. Moody's Investors Service late Monday cut the outlook for its AAA credit ratings for Germany, the Netherlands and Luxembourg to "negative" from "stable."

* Chinese state-run oil giant known as CNOOC Ltd is making its biggest and boldest grab for overseas energy resources yet in a $15 billion deal for a Canadian oil producer, Nexen Inc.

* Congress widened its inquiry into the interest-rate manipulation scandal, pressing the Federal Reserve Bank of New York to further disclose its knowledge of the multi-year scheme.

* Michael Rake, the British bank Barclays Plc's deputy chairman, has ruled himself out as the next chairman, according to a regulatory filing on Monday.

* The Fox network has reached a deal with Mariah Carey that will bring her to television as a judge on the next season of "American Idol," the president of Fox Entertainment, Kevin Reilly, announced Monday.

* The American private equity group TPG Capital Management LP has launched a $714 million takeover bid for Billabong International Ltd, the Australian surf wear company announced Tuesday.

* Senate Republicans will press this week to extend tax cuts for affluent families scheduled to expire Jan. 1, but the same Republican tax plan would allow a series of tax cuts for the working poor and the middle class to end next year.




* A highly contagious bacterial disease is spreading in four provinces in Canada, infecting as many as 2,000 people with a violent, uncontrollable cough, killing an infant in Alberta, as public-health authorities scramble to boost their vaccination programs.

Report in the business section:

* A large but troubled oil sands project will fall into Chinese hands after CNOOC Ltd agreed to pay $15.1-billion (U.S.) for Nexen Inc in a takeover that signals even the most important members in the Canadian oil patch are vulnerable.


* Premier Dalton McGuinty announced his government will permanently fund a special Toronto police squad dedicated to high crime areas, but denied Rob Ford's request for money to hire additional officers, saying the mayor should think about putting up city cash to help quash gun violence.


* While the European debt crisis will slow global economic growth this year and next, developing nations will have the tough task of taking up some of that slack, according to the Conference Board of Canada.


European Economic Update:

  • France July Manufacturing PMI 43.6 – lower than expected. Consensus 45.5. Previous 45.2.
  • France July Services PMI 50.2 – higher than expected. Consensus 47.5. Previous 47.9.
  • Germany July Manufacturing PMI 43.3 – lower than expected. Consensus 45.1. Previous 49.9.
  • Germany July Services PMI 49.7 – lower than expected. Consensus 50.0. Previous 45.0.

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LongSoupLine's picture

There would be enormous poetic justice if Geithner were to be run over by a union built bus driven by a union employee.


I, for one, would pop a cold beer in celebration if that weasel turbotard fell off the face of this earth.

dannyboy's picture

No snarky tyler comments on the news stories today :( me sad.

falak pema's picture

TG : He is the face of NY FED gone public servant; what could be more damning than that : sitting on both sides of the fence to do God's work, like a latter day Crusader for NWO. 

BandGap's picture

Captain Obvious was busy last night.

The rats have already started to jump ship, the media continues to toe the line.  In a strange way this is fascinating to watch as, one by one, honest people begin to ignore certain "news" sources. The German people might be the trigger.


buzzsaw99's picture

Raskin should shut her pie hole. She has no power.

torak's picture

Fed's Raskin: No government backstop for banks that do prop trading.

Ha ha ha!!!

LULZBank's picture

Whats so funny?

The devil is how do you define "prop trading" or differentiate it from "hedging risk" for the clients.... Buwahahahaha!!!

BarryG's picture

German financial manipulation/ economic warfare.

Read this and follow the link in the first paragraph.

westboundnup's picture

IBEX -2.62%.  I've stopped asking "How low can it go?"

Cdad's picture

"No back stops for banks that do prop trading." this what it has come to?  How about no back stops for banks...or any other private business?

Good grief.

youngman's picture

"Several groups of traders are under investigation by regulators around the world for allegedly banding together to rig key global interest rates, people close to the probe said."....hmmmm..this is interesting...from the WSJ....just another corrupt number......remember years back and all those hedge funds were making a killing...and how you felt stupid because you were is the reason why...they cheated...

Bobbyrib's picture

Don't worry Bernanke won't be investigated for rigging the Fed Fund rate at 0-.25%. /sarcasm.

Bobbyrib's picture

Geithner is now saying something needs to be done before the US "goes off  the Fiscal cliff," if that doesn't tell you nothing should be done I don't know what else does.

Jim B's picture

Fed's Raskin: No government backstop for banks that do prop trading 


RFLAMO That is why they are calling the prop trading "hedging"


Raskin, I know you are lying!

QQQBall's picture

Turbo Timmay now knows all. Before he couldn't even do his own taxes correctly, now he knows everything.

roadhazard's picture

The Repubican tax plan is so, Repubican.


God Bless America's 1%