Frontrunning: July 27
- Bundesbank Maintains Opposition to ECB Bond Buying (WSJ)
- Greek Budget Talks Stumble as EU Urges Samaras to Deliver (Bloomberg)
- Fortified by euro, Finns take bailouts on the chin (Reuters)
- China Job Market for Graduates Shows Stress on Slowdown (Bloomberg)
- China Exports Fade as Inflation Eludes Targets: Cutting Research (Bloomberg)
- Japan Falters as Ito Calls for Euro Buys to Rein in Yen: Economy (Bloomberg)
- Government weighs social insurance reforms (China Daily)
- Colombia’s Split Central Bank to Weigh First Rate Cut Since 2010 (Bloomberg)
- Government stresses quality for FDI, ODI (China Daily)
Overnight media Digest
* Samsung Electronics Co Ltd said that its second-quarter profit jumped 48 percent to another company record as it increased smartphone sales and experienced cyclical recoveries in its chip and display component businesses.
* Investors sent Facebook Inc's shares down 10 percent in after-hours trading Thursday to their lowest level ever following the company's first quarterly report since its initial public offering.
* European Central Bank President Mario Draghi said that the ECB was willing to use its power to print money to preserve the euro, giving investors hope that the bank was poised to undertake massive purchases in euro zone bond markets if the region's crisis worsens.
* Twitter Inc said that failures in its computer-data centers were the cause of an outage that prevented some users from accessing the short-messaging service. The Twitter blackout lasted up to two hours.
* Irving Picard, the trustee assigned to the Bernard Madoff bankruptcy, asked a federal judge to allow him to make a $2.4 billion payout - more than double the amount released so far - to victims of the massive Ponzi scheme.
* Mutual-fund company Fidelity Investments is setting itself on a collision course with rivals by rolling out a pricing service designed to make the roughly $800 billion market for securities lending more transparent, according to people familiar with the firm's plans.
* Several large mutual-fund companies, including BlackRock Inc and Vanguard Group Inc, have launched internal investigations into whether their funds have been harmed by alleged interest-rate rigging by large banks.
* Lackluster second-quarter financial results from Exxon Mobil Corp's U.S. oil and natural-gas production cast a shadow on the record global profit the company reported.
* Google Inc officially thrust itself into competition with cable operators, saying its high-speed internet and TV service in Kansas City, Missouri and Kansas City, Kansas, will launch later this year.
* The management shake-up at Japan's Nomura Holdings Inc could upset the global ambitions of the investment bank. Nomura's incoming chief executive, Koji Nagai, said the company will review its global strategy and focus on select markets and business lines, concentrating on Asia.
* Amazon.com Inc continued to boost sales faster than many companies in the tech sector, but razor-thin margins may finally be catching up with the online retail giant. The company reported a 96 percent drop in second-quarter profit.
* Starbucks Corp reported a 19 percent rise in third-quarter earnings as the coffee giant expanded margins and saw strong sales in its Asian business. Still, its shares fell 8.5 percent after hours as results came in short of expectations and the company lowered its targets for the current quarter.
NOMURA RETREATS TO FALTERING JAPAN
Nomura Holdings CEO Kenichi Watanabe resigned on Thursday over a widening insider trading scandal.
BO XILAI'S WIFE CHARGED WITH MURDER
Chinese authorities have charged the wife of Bo Xilai with the murder of British businessman Neil Heywood.
ECB 'READY TO DO WHATEVER IT TAKES'
The president of the ECB, Mario Draghi, said that the bank was "ready to do whatever it takes" to preserve the single currency.
LLOYDS HIT BY FURTHER 700 MLN POUNDS OF CHARGES
Lloyds took a further 700 million pounds ($1.10 billion) hit for mis-selling loan insurance in the first six months.
CHINA FUNDS NEAR DEAL FOR DEXIA UNIT
Two Chinese private equity funds are closing in on a deal to buy the asset management arm of Dexia.
BARRICK GOLD SLOWS DOWN EXPANSION
The world's largest gold producer has signalled a new restraint on expansion.
FACEBOOK SHARES HIT AS AD GROWTH SLOWS
Facebook shares have dropped to a new all-time low at about $24, against its $38 issue price.
UNIVERSAL IN TALKS TO HIVE OFF PARLOPHONE
Universal Music is in talks to sell most of Parlophone, one of the crown jewels of EMI.
S&P IN TALKS OVER SECURITISATION PROBE
Credit rating agency Standard & Poor's in discussions with US authorities investigating its role in the securitisation of structured products.
* Unhappy with Facebook Inc's first financial report as a public company, investors fled the stock in droves even as Chief Executive Mark Zuckerberg extolled its growth prospects to industry analysts. Facebook's stock lost 18 percent of its value Thursday.
* Congress intensified its focus on the interest-rate rigging scandal, as Timothy Geithner, the Treasury secretary, vowed that authorities would forcefully pursue criminal investigations into some of the world's biggest banks.
* Former senior Chief Operating Officer in Barclays Plc involved in the interest rate manipulation scandal is set to receive a $13.6 million payout, a compensation package that could add to the scrutiny of the British bank.
* President of European Central Bank Mario Draghi said that policy makers would do "whatever it takes" to save the euro zone, buoying global financial markets.
* While much of Wall Street is struggling with constant upheavals in the global market, two of the industry's independent investment banks - Lazard Ltd and Evercore Partners Inc - are faring better than their bigger rivals. The banks reported that their core mergers advisory businesses had held up well on the strength of several major transactions.
* Amazon.com Inc reported sales of $12.8 billion, up 29 percent, in the second quarter while it eked out net income of $7 million, or a penny a share. Those results essentially matched expectations.
* Two California mothers are suing General Mills Inc , claiming the giant food company has deceptively marketed its Nature Valley products as natural when they contain highly processed ingredients.
* To get European regulators to approve its $1.9 billion takeover of EMI, the Universal Music Group may do something once considered unthinkable - sell Parlophone Records, which releases the music of Coldplay and Radiohead and is the heart of EMI's holdings in Europe.
THE GLOBE AND MAIL
* Canada's premiers are taking the lead on health-care reform without direct leadership from Ottawa, a departure from the way the country's cherished but increasingly expensive system has long been managed.
* At one point last week, Alex Chapman, the mercurial complainant in the case against Manitoba Associate Chief Justice Lori Douglas, abruptly announced that his interview with the Canadian Judicial Council investigator had been secretly taped by a former friend wearing "video glasses," bolted from the witness stand, retrieved the video and demanded it be watched immediately.
* Jamie Sokalsky hit the reset button for Barrick Gold Corp by slashing the company's long-term production targets and promising to focus on investor returns ahead of boosting output.
European Economic Update
- Swedish Retail Sales -0.4% m/m 0.9% y/y – lower than expected. Consensus 0.2% m/m 1.5% y/y.
- German CPI Saxony 0.4% m/m 1.8% y/y. Previous -0.1% m/m 1.7% y/y.