Frontrunning: July 26
- Draghi Says ECB To Do Whatever Needed As Yields Threaten Europe (Bloomberg)
- Spain not mulling seeking further EU help (Reuters)... and it won't need a Bank bailout either. Oh wait
- Weak lending adds pressure for ECB action (Reuters)
- Sweden's economy still resilient to eurozone woes (Reuters)
- Bo Xilai’s Wife, Zhang Xiaojun, Prosecuted for Homicide (Xinhua)
- China’s Changsha City Unveils $130 Billion Investment Plan (Bloomberg)
- Foreclosure Filings Increase in 60% of Large U.S. Cities (Bloomberg)
- Free ECB’s hand to aid states, says minister (FT)
- Hungarian Premier Says Aid Deal Not Near (WSJ)
- Nomura Chief Resigns Over Insider Trading Scandal (NYT)
- Barroso to push Athens on reforms (FT)
- Philippines Cuts Rates as Korean Growth Slows on Europe (Bloomberg)
Overnight Media Digest
* Sanford Weill, the company's former chief executive who built Citigroup Inc through repeated acquisitions-including the 1998 megadeal that prompted Congress to strike down a six-decade-old ban on commercial banks doing investment banking, and vice versa- called for the breakup of huge U.S. financial conglomerates.
* The chief executive and chief operating officer of Nomura Holdings Inc are stepping down to take responsibility for their company's involvement in a series of leaks of inside information.
* The online games maker Zynga Inc showed its vulnerability as the company's stock plunged 40 percent following weak results. The company swung to a loss for its second quarter and reported that its year-over-year revenue growth slowed to 19 percent.
* MGM Holdings Inc, the parent of film studio Metro-Goldwyn-Mayer Inc, is planning a possible public stock offering, the company said.
* Japanese medical-equipment provider Terumo Corp said that it has proposed a merger with Olympus Corp in an apparent bid to counter Sony Corp leading position among a group of bidders for a stake in the scandal-hit camera maker.
* A top independent director at Barclays Plc, Alison Carnwath, resigned, deepening the turmoil at the giant British bank following the resignations of its chief executive and chairman.
* Telefonica SA said it will cancel the payment of all remaining dividends and share buybacks for this year, highlighting the dire straits faced by corporate Spain amid the country's worst economic crisis in decades.
* The Internet company, eBay Inc, may allow consumers who are under 18 years old to set up accounts and access the eBay.com website to buy vintage T-shirts, jewelery, school supplies or other products, said Devin Wenig, eBay's president of global marketplaces.
* Box Inc, a venture capital-backed company whose software lets workers store and access documents on the web, is raising a new round of financing that would value the start-up at $1.2 billion, people familiar with the matter said.
UK DATA RAISE FEARS FOR TRIPLE-A STATUS
Britain's economy shrank far more than expected in the second quarter, which cost the country its triple-A rating.
EX-CITI CHIEF WEILL URGES BANK BREAK-UP
Citigroup's former chief executive Sandy Weill has called for a break-up of large banks.
PAY-TV CASE RAISES FUNDING QUESTIONS FOR PROSECUTORS
The Premier League helped to fund the public prosecution of a man accused of importing cut-price satellite decoder cards.
BLOW TO MAKING PROFITS ON SECURITIES LOANS
Asset managers will have to return to investors in their funds any profits made from lending out securities in Europe under new rules.
CARNWATH RESIGNS FROM BARCLAYS BOARD
The Barclays non-executive director responsible for former chief executive Bob Diamond's 17 million pound ($26 million) final pay package resigned on Wednesday.
MAN UTD PAUSES US LISTING PLANS
Manchester United has temporarily paused plans to launch its $300 million initial public offering in the U.S.
TELEFONICA AXES DIVIDEND TO SHIELD ITSELF
Telefonica has axed its dividend and cut directors' pay in a drastic move to protect the company.
BANKS TOLD TO FIX SYSTEMS AFTER RBS CRASH
The Financial Services Authority plans to tell the UK's biggest lenders To upgrade their dated IT systems.
FSA PROPOSES COMPENSATION SHAKE-UP
The FSA on Wednesday proposed an overhaul of the scheme that compensates retail customers when financial firms fail.
AIRPORT STRIKE FOR EVE OF OLYMPICS CALLED OFF
A strike by British immigration officers, scheduled for the eve of the Olympics, has been called off
* The U.S. government said it expected the record-breaking weather to drive up the price for groceries next year, including milk, beef, chicken and pork. The drought is now affecting 88 percent of the corn crop, a staple of processed foods and animal feed.
* Sanford Weill, the former chief executive of Citigroup Inc who turned the company into a financial behemoth, called for a wall between a bank's deposit-taking operations and its risky trading businesses. In other words, he would like to resurrect the regulation that he once fought, which separated commercial banks from investment banks.
* U.S. Treasury Secretary Timothy Geithner was questioned sharply about the rate-rigging scandal that has consumed the banking industry, as lawmakers at a house hearing asked why he had failed to thwart wrongdoing during the financial crisis.
* Antitrust regulators in the European Union brought their first enforcement action in so-called pay-for-delay drug cases. The European Commission told Lundbeck, a Danish drug company, that it thought the company's agreements with generic companies violated antitrust laws.
* Weak second-quarter financial results and worse expectations for the rest of the year sent Zynga Inc's already faltering stock down in late trading Wednesday by more than a third, to $3.18 a share.
* The world's largest steelmaker, ArcelorMittal, reported second-quarter operating income of $1.1 billion, on sales of $22.48 billion. While the sales were down 10 percent from a year earlier, income was down more than 50 percent.
* AOL Inc, the onetime internet giant that is transforming itself into a media company, announced quarterly earnings of $970.8 million, or $10.17 a share, up from a loss of $11.8 million a year earlier.
THE GLOBE AND MAIL
* The Canadian Prime Minister's Office is defending a Conservative MP who raised thousands of dollars at a private fundraiser that had deep connections with a company registered to lobby the federal government.
* Suncor Energy Inc, Canada's oil sands goliath is taking a hard look at tens of billions of dollars of planned spending, and threatening to pull back from big projects unless it can wrangle back costs and boost profits.
* Canadian intelligence services appear to have probed financial links between Canada and Chinese companies as scrutiny continues to mount on China's interest in Canada's natural resources sector.
* Canadian Pacific Railway Ltd shareholders may have gotten the chief executive they wanted in Hunter Harrison, but it came at a price.
European Economic Update
- Swedish Consumer Confidence 5.6 – higher than expected. Consensus 2.5. Previous 3.1.
- Swedish PPI 0.2% m/m 0.4% y/y – in line with expectations. Consensus 0.2% m/m 0.4% y/y. Previous -0.5% m/m 0.3% y/y.
- Swedish Unemployment Rate 8.8% – lower than expected. Consensus 8.9%. Previous 8.1%.