Frontrunning: July 4

Tyler Durden's picture
  • Most Germans Reject Ceding Sovereignty to EU, Stern Poll Shows (Bloomberg)
  • How Stockton went broke: A 15-year spending binge (Reuters)
  • Manchester United Shoots for $100 Million IPO (WSJ)... with 4x leverage and Jefferies as underwriter
  • Iran says can destroy U.S. bases "minutes after attack" (Reuters)
  • Poison claims spark call for Arafat exhumation  (FT)
  • Romania government moves to suspend, impeach president (Reuters)
  • Diamond Would Be Catch for Investment, Private Equity (Bloomberg)
  • Investors may shun big Libor lawsuit and go it alone (Reuters)
  • New Particle Found, Consistent With Higgs Boson (WSJ)
  • Chinese riot police clash with protesters  (FT)
  • Euro-Area June Manufacturing, Services Output Contracts (Bloomberg)
  • Utilities Struggle to Restore Power in East (WSJ)
  • Dark economic clouds gather anew over Obama campaign (Reuters)
  • RIM chief rejects talk of ‘death spiral’ (FT)

Overnight Media Digest


* A scandal over interest-rate manipulation reached the upper echelons of British banking and government, as the chief executive of Barclays Plc resigned and the bank released documents that threaten to drag Bank of England and U.K. government officials into the affair.

* Manchester United, the legendary English soccer club, filed plans to raise $100 million in an initial public offering in the United States.

* The auction for a potential sale of Getty Images Inc. has progressed to the second round, with several private-equity firms putting in initial bids of around $4 billion, people familiar with the matter said. Buyout firms KKR & Co and TPG are among at least five bidders that remain interested in privately-owned Getty, these people said.

* Nine of the world's biggest financial firms gave the public a peek at their "living wills," or the road maps that were requested by U.S. regulators to help with the banks' liquidation in a severe crisis.

* Two high-profile tech IPOs are planning to launch their IPO road shows next week, with online travel search engine Kayak Software Corp. and computer network security company Palo Alto Networks Inc. gearing up to market their stock to investors, said people close to the deals.

* California physician groups sued health insurer Aetna Inc Tuesday for a slate of business practices the doctors say limit patients' choices, the latest salvo in a classic standoff between managed-care and medical practices.

* Eastman Kodak Co received the go-ahead to auction off its valuable trove of digital patents in a contest that will take place behind closed doors and lacks a court-sanctioned lead bidder.

* Time Warner Inc has increased its stake in TV broadcaster Central European Media Enterprises to 49.9 percent from 40 percent, raising its bet on a still-struggling market.




Bob Diamond lobbed a political grenade at the leading candidate to run the Bank of England as well as the previous Labour government just hours after his forced departure as Barclays' chief executive on Tuesday over the Libor-rigging scandal.


French police on Tuesday raided the Paris home and offices of Nicolas Sarkozy, the former French president, in connection with a long-running investigation into allegations of illicit campaign funding.


Frank Timis plans to step back from running African Minerals with the mining entrepreneur relinquishing the role of executive chairman of the iron ore business following the recruitment of a new chief executive.


Vodafone is in advanced discussions with rival Hutchison Whampoa about merging their Irish telecoms infrastructure in the latest attempt by mobile operators to cut costs and improve coverage in the face of difficult business conditions.


Britain would be prepared to close its borders to immigrants from Greece if that country was ejected from the euro zone, David Cameron has said.


Investment companies have repeatedly sold consumers financial products they do not properly understand, Brussels policy makers warned as they set out fresh standards for the industry.


The U.S. electricity regulator has subpoenaed JP Morgan Chase twice in the past three months as it investigates whether the bank manipulated power markets in California and the Midwest region, court filings showed.


When Philip Hammond, Britain's defence secretary, unveils a thorough overhaul of the British Army on Thursday, one item is certain to be the focus of attention for rank-and-file soldiers: the announcement that five battalions are to be scrapped.



- Barclays Plc's manipulation of key interest rates, which led to a $450 million penalty for the bank, claimed its biggest victims on Tuesday: Robert Diamond, the British bank's chief executive, and one of his top deputies, Jerry del Missier, the chief operating officer. The scrutiny is expected to grow on Wednesday, when Diamond appears before a British parliamentary committee.

- The auto industry surpassed expectations in June by reporting a 22 percent increase in sales, fueled in part by lower gas prices and a surge of interest in new car models. General Motors Co and Chrysler reported double-digit sales growth of new vehicles, while Ford Motor Co's sales rose 7 percent. Toyota Motor Corp's sales were up 60 percent.

- Federal regulators released so-called living wills on Tuesday for nine of the nation's largest banks - blueprints for how they could be dismantled in the event of a collapse - but some analysts and other banking experts warned that they were still too big to fail without sending shock waves through the financial system.

- Manchester United filed for an initial public offering in the United States on Tuesday, a move that would return the English soccer team to the public markets.

- The European Commission has said that the proposed purchase of EMI Music by Universal Music Group would significantly harm competition in the recording industry, indicating that Universal might have to make substantial concessions in order to win approval, according to several people briefed on the matter.

- Duke Energy Corp said it completed its $32 billion merger with Progress Energy, a few hours after South Carolina gave final approval. The move creates the largest electric utility in the United States, with 7.1 million customers in six states in the Southeast and Midwest.

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Silvertrader's picture

All big banks are criminal institutions! So what is new? What i hate is that they manipulate the market and screw small traders and investors

EL INDIO's picture

It’s their fault for playing a rigged game and they know it.

The system seems to be unravelling quickly though, hopefully a better one will emerge.

Apeman's picture

Higgs Boson news is argueably the biggest discovery in science in the last couple of decades. Finally another reason to celebrate. Time to pop a beer. Cheers.

Yogieu's picture

A few months ago they discovered that particles travel faster than speed of light. Later they said they made a mistake. How sure are we that this discovery is valid? :)

EL INDIO's picture

Good point.

The discovery is sure until it is disproven.

Apeman's picture

Their mistake was that the instruments used weren't calibrated correctly. The press jumped the gun on the story.

To answer your question. Assuming there was nothing wrong with the equipment, the likelihood of the discovery being invalid is roughly 1 in 2 million.

Race Car Driver's picture

I junked ya for making shit up.

Apeman's picture

What did I make up?

Seriously... what's wrong with you economists? Do you guys hate real science? Are you guys jealous? I posted the facts and get some random guy accusing me of making things up.

I guess it's not that strange that people without knowledge of real science look at these real scientifical topics with contempt and jealousy, which is obvious by the junks my first comment received. I know... pseudo-science like economics just doesn't have that special something, but hey, you can't have it all.

You guys don't realise the significance of this. This is a much bigger story than anything that has been posted on this site ever. And I truely love ZH btw.

I looks to me like everyone is excited about this news except religious nut jobs and economists. Seriously, I expected more from you guys.

Btw, I junked you for using a coinflip to determine if someone made something up.

sabra1's picture

i thought HFT's travel faster than light speed! wait! what?

JuicedGamma's picture

Yes we should celebrate the God particle I am sure that Blankfein will find some muppets to pay up for it.

Apeman's picture

It's been funded by 10 participating nations.

JuicedGamma's picture

I thought it was obvious.... </SARC>!

Catullus's picture

It's a race for Germany to come up with a solution before this goes to a general referendum

EL INDIO's picture

I bet they are preparing their exit.

Yogieu's picture

A sane politician would do it. What will a corrupted one do?

EL INDIO's picture

Whatever it takes to get re-elected or whatever his/her master says.

Yogieu's picture

I wonder who is master of politicians in Poland. They are really eager to join Euro Zone, still!

The Navigator's picture

For all mankind, happy 4th of July

I wish you all LIBERTY, here in the USA and worldwide.

Free of the Tyranny of Government bonds that tie us down

I hope Independence Day refers to all of us, one day.

I will not comply.

Flakmeister's picture

Wasn't someone complaining about all the subsudies that solar gets..... try this one for a taste of what goes on in fossil fuels:

Cheaspeake’s 1% Tax Rate Shows Cost of Drilling Subsidy

Chesapeake Energy Corp. made $5.5 billion in pretax profits since its founding more than two decades ago. So far, the second-largest U.S. natural-gas producer has paid income taxes on almost none of it.

Chesapeake paid $53 million over its 23-year history, or about 1 percent of the cumulative pretax profits during that period, data compiled by Bloomberg show. That’s less than half of Chief Executive Officer Aubrey McClendon’s compensation, for example, in 2008 alone.

Joebloinvestor's picture

Arafat should have been buried at sea by rolling him off the deck of the MS Achille Lauro.