Frontrunning: July 5
- Finland (which with Holland accounts for 50% of the Eurozone's AAA rated countries), just says "Ei" to stripping ESM subordination (Bloomberg)
- Libor Rate Scandal Set to Spread (WSJ)
- #ByeBarclays flashmob descends on bank (FinExtra)
- What is financial reform in China? (Pettis)
- Cities Consider Seizing Mortgages (WSJ)
- China Beige Book Shows Pickup Unseen in Official Data (BBG)
- China’s New Rules May Curb Credit Growth, CBRC Official Says (BBG)
- India Said to Pay in Euros for Iranian Oil Due to Rupee Hurdles (BBG)
- Wealthy Hit Hardest as France Raises Taxes (FT)
- Euro Bank Supervisor Faces Hurdles (WSJ)
Overnight media digest:
* A day after abruptly resigning amid a mushrooming scandal over interest-rate manipulation, former Barclays Plc chief Robert Diamond on Wednesday was assailed by British lawmakers for the bank's actions, in a preview of the scrutiny likely to lie ahead for other big lenders that are under investigation.
* Scientists said they found a subatomic particle resembling the long-elusive Higgs boson, a landmark discovery that could explain why particles have mass and, by extension, why stars, planets and all other objects in the universe exist at all.
* Apple Inc's component suppliers in Asia are preparing for mass production in September of a tablet computer with a smaller screen than the iPad, people familiar with the situation said, suggesting a launch for the device is near.
* Volkswagen AG said late Wednesday it reached an agreement to acquire the rest of the Porsche sports-car business it doesn't own, completing a turbulent takeover effort nearly three years in the making.
* A hedge fund managed by the investment firm of Alphonse "Buddy" Fletcher Jr. has filed for bankruptcy protection in Manhattan, as the firm faces a mounting legal challenge.
FSA HAD CONCERNS OVER BARCLAYS CULTURE
The UK's financial regulator, the FSA, had concerns about cultural failings at Barclays under former chief executive Bob Diamond four months before the Libor revelations.
SPAIN OPENS BANKIA FRAUD PROBE
Spain's high court has opened a probe into Rodrigo Rato who was until recently chairman of Bankia, the lender at the forefront of Spain's banking crisis.
SCIENTISTS BASK IN 'GOD PARTICLE' DISCOVERY
Physicists at Cern, the European nuclear research centre in Geneva, on Wednesday announced the discovery of the long-sought Higgs boson, known as the "god particle".
FIAT WARNS ANOTHER ITALIAN PLANT AT RISK
Fiat's chief executive said the carmaker may need to close another plant in Italy if the company does not secure more flexibility from workers unions.
SANY JOB CUTS SIGNAL CHINESE SLOWDOWN
Sany Group, China's biggest maker of construction machines by revenues, has started cutting its workforce in a sign of slowing growth in the world's second-largest economy.
WELLS FARGO TAKES LEAD IN BANK LOBBYING
Wells Fargo spends more on lobbying from its Washington office than any rival, paying millions of dollars to influence mortgage rules.
ETIHAD PLEDGES TO HOLD ON TO AER LINGUS STAKE
Etihad Airways is not willing to sell its 2 percent stake in the Irish flag carrier Aer Lingus, which is subject to a takeover bid by Ryanair.
VW TO BUY REST OF PORSCHE FOR BILLIONS
Volkswagen has agreed to buy the other half of Porsche's carmaking operations that it does not already own.
- Robert Diamond, the former chief executive of Barclays Plc, told a British parliamentary committee on Wednesday that the manipulation of global interest rate benchmarks involving 14 traders at the bank had made him "physically sick."
- On Wednesday, a Spanish national court judge ordered Rodrigo Rato, a political ally of Spain's prime minister and former head of the International Monetary Fund, to appear in court to face criminal fraud accusations over his recent stewardship of the giant mortgage lender Bankia.
- Volkswagen AG says it is able to proceed with its deal to buy the 50.1 percent stake in Porsche's automotive business that it does not already own for 4.46 billion euros ($5.6 billion).
- European legislators on Wednesday rejected an international treaty to crack down on digital piracy, a vote that Internet freedom groups hailed as a victory for democracy but that media companies lamented as a setback for the creative industries.
THE GLOBE AND MAIL
- Stephen Harper has chosen to keep his existing cabinet largely intact after the departure of Bev Oda, shunning a major shuffle and the prospect of change because he believes the government needs stability as it confronts big tasks from immigration overhauls to budget cuts.
Report in the business section:
- The consortium of banks and investors trying to buy TMX Group Inc has only one, surprisingly tricky, obstacle left to clear after winning two key approvals for the plan to create a powerful national financial market operator.
- Sales in Canada's most expensive housing market continue to plummet with the Greater Vancouver area hitting a 10-year low in June for activity.
- Ford Canada said Wednesday it was the top selling automaker in Canada last month as it outsold Chrysler Canada by a wide margin in June, despite seeing a nearly 9 percent drop in sales compared with a year ago.