Frontrunning: July 6
- Beggars can't be choosers after all: Greece Drops Demand to Ease Bailout Terms (FT)
- It took journalists 4 years to get that under ZIRP all banks have to be hedge funds: US Banks Taking Risks in Search of Yield (FT)
- Made-In-London Scandals Risk City Reputation As Money Center (Bloomberg)
- Merkel Approval Rises to Highest Since 2009 After EU Summit (Bloomberg)
- Judge orders JPMorgan to explain withholding emails (Reuters)
- U.S. hiring seen stuck in low gear in June (Reuters)
- Germans Urged to Block Merkel on Integration (WSJ)
- Crony Capitalism Rules: Countrywide used VIP program to sway Congress (Reuters)
- Barclays’ US Deal Rewrites Libor Process (FT)
- Cyprus Juggles EU and Russian Support (FT)
- Delay Seen (Again) For New Rules on Accounting (WSJ)
- Lagarde Says IMF to Cut Growth Outlook as Global Economy Weakens (Bloomberg)
- Italy Approves €4.5 Billion in Spending Cuts for 2012 (WSJ) - Now if only it could implement them too.
Overnight Media Digest
* Central banks in China, the euro zone, the U.K. and other countries took new steps to bolster growth amid mounting worries about the global economy, but the moves didn't appear to reassure investors.
* Lower gasoline prices and steep promotions did little to get America's consumers out shopping last month. June retail sales grew at the slowest pace in more than two years, held back by flagging consumer confidence.
* Bausch & Lomb Inc could be ready to go public as early as the end of this year, people familiar with the company's thinking said, a move that would come amid renewed health for the eye-products maker.
* Norwegian oil-and-gas giant Statoil ASA and other companies represented by Norway's Oil Industry Association have threatened to lock out workers and shut down production on the Norwegian continental shelf starting Tuesday in hopes of forcing an end to a 12-day strike that has already put upward pressure on oil prices and crimped revenue.
* Yahoo Inc is considering Jason Kilar, the chief of video site Hulu LLC, for its permanent CEO position, according to a person familiar with the search.
* A federal judge Thursday ordered J.P. Morgan Chase & Co to explain why it isn't releasing internal emails to the Federal Energy Regulatory Commission as part of a probe of alleged market manipulation.
CENTRAL BANKS TAKE ACTION OVER GROWTH
The ECB, BoE and the People's Bank of China made their own attempts to stimulate the global economy on Thursday by loosening monetary policy.
SFO SECURES CASH FOR LIBOR INVESTIGATION
British finance minister George Osborne is preparing to bolster the budget of the Serious Fraud Office to help it pursue a criminal investigation into the Libor scandal.
PUBLICIS TO BUY LAUDED AD AGENCY BBH
Publicis Groupe has agreed to buy out advertising agency Bartle Bogle Hegarty, the firm that created memorable campaigns for high-profile clients over past three decades.
BARCLAYS' US DEAL REWRITES LIBOR PROCESS
Barclays' settlement with U.S. regulators over the rigging of Libor is likely to have far-reaching implications for how benchmark interest rates are set in the future.
BIDDERS TO DETAIL PENSION SCHEME IMPACT
Companies launching a takeover bid will have to detail the impact of their offer on their target's pension plans under proposals put out for consultation by the Takeover Panel.
AVIVA OUTLINES PLAN TO BOOST SHARE PRICE
Aviva has unveiled an 18 month plan to sell or wind down about a third of its business.
INVESTORS LOBBY MADRID OVER ENERGY TAX
A group of international investors in Spanish renewable energy have said an expected increase in taxation on renewable energy projects would destroy the value of their investments.
GREECE DROPS DEMAND TO EASE BAILOUT TERMS
Greece's new government has dropped a plan to seek softer terms for its second bailout following warnings that it would be rejected by international lenders.
AIG FUSTRATES MORTGAGE REFINANCING PLAN
AIG, the insurer bailed out by the U.S. authorities, is refusing to automatically waive its right to pursue lenders under a U.S. government refinancing programme.
UK ARMY TO LOSE 20 PERCENT OF REGULAR SOLIDERS
The British army is to cut its regular forces 20 percent, over the next eight years, losing 17 of its 136 major units.
PILOTS BLAMED FOR AIR FRANCE CRASH
Pilots were to blame for the crash of an Air France Airbus passenger jet en route from Rio de Janeiro to Paris in June 2009, investigators said on Thursday.
- Concerned about waning economic growth, central banks in Europe and China announced measures Thursday to increase borrowing and spending by businesses and consumers, a response that was all the more striking because it was uncoordinated.
- Some of the biggest retail chains in the United States reported on Thursday that sales growth slowed in June, as shoppers held back amid wavering consumer confidence and unemployment.
- In what would be a landmark increase in the Indian government's spending on public health, New Delhi is completing a proposal to provide hundreds of essential drugs free to patients in government-run hospitals and clinics at a cost of nearly $5 billion over five years, officials said Thursday.
THE GLOBE AND MAIL
- Prime Minister Stephen Harper put his sprawling Conservative caucus on notice that he'll reward performers and punish stragglers in 2013 when he conducts a significant mid-term shuffle of cabinet ministers.
Report in the business section:
- Bombardier Inc is trying a new approach to tapping into China's rail market - not just building trains, but selling the blueprints.
- The American ambassador to Canada has issued a reassuring statement about the state of relations between the two countries, insisting that while there have been "bumps in the road" and "strains," the relationship has never been better.
- Canadian and especially British Columbia taxpayers aren't adequately protected in the event Enbridge Inc's proposed Northern Gateway oilsands pipeline suffers the same kind of catastrophic failure that resulted in a $765 million - and counting - spill in Michigan two years ago, says a former senior Canadian insurance executive.
European Economic Update:
- Sweden PES Unemployment 4.4% - higher than expected. Consensus 4.3%. Previous 4.0%.
- France Trade Balance (EUR) -5325M – higher than expected. Consensus -5500M. Previous -5768M.
- Spain Industrial Output -0.7% m/m. Previous -4.5% m/m.
- Switzerland CPI (EU Harmonized) -0.2% m/m -1.2% y/y. Previous -0.2% m/m -1.1% y/y.
- Sweden Budget Balance -28.1B. Previous 25.3B.
- UK PPI Output Core n.s.a. -0.2% m/m 2.0% y/y – lower than expected. Consensus 0.0% m/m 2.0% y/y. Previous 0.2% m/m 2.3% y/y.
- Germany Industrial Production 1.6% m/m 0.0% y/y – higher than expected. Consensus 0.2% m/m -1.2% y/y. Previous -2.1% m/m -0.6% y/y.