Frontrunning: July 9
- Euro zone fragmenting faster than EU can act (Reuters)
- Wall Streeters Lose $2 Billion in 401(k) Bet on Own Firms (Bloomberg)
- Eurozone crisis will last for 20 years (FT)
- Chuckie Evans: "Please suh, can I have some moah" (Reuters)
- Quote stuffing and book sales: Amazon ‘robo-pricing’ sparks fears (FT)
- Situation in Egypt getting worse by the minute: Egypt parliament set to meet, defying army (Reuters)
- Chinese goalseek-o-tron speaks: China’s inflation eased to a 29-month low (Bloomberg)
- A contrarian view: "Barclays and the BoE have probably saved the financial system" (FT)
- Flawed analysis: Dealers Declining Bernanke Twist Invitation (BBG) - Actually as shown here, ST Bond holdings have soared as dealers buy what Fed sells: more here
- And all shall be well: Brussels to act over Libor scandal (FT)
- Obama team targets Romney over taxes, Republicans cry foul (Reuters)
- Bank of England's Tucker to testify on rate rigging row (Reuters)
- Another Greek cabinet resignation: Greek Deputy Labor Minister Resigns, State-Run Net TV Reports
Overnight Media Digest:
* Senior euro-zone finance officials, moving ahead on a plan to create a single overarching bank supervisor for all the countries in the 17-nation currency bloc, are settling on a framework that would create a new agency reporting to the European Central Bank to police the largest banks in the currency union, people involved in the discussions said.
* A Mexican cocaine-trafficking cartel used accounts at Bank of America Corp to hide money and invest illegal drug-trade proceeds in U.S. racehorses, the Federal Bureau of Investigation said.
* The scandal over UK banks' manipulation of key interest rates cost the jobs of three senior financial figures last week. On Monday, the deputy governor of the Bank of England Paul Tucker will try to ensure it doesn't derail his own career.
* Leading Internet-service providers said Sunday that they had moved to ensure that computers infected with malware left behind by a hacking spree that started in 2007 continue to access the Internet normally, and expect relatively few Internet users to face a disruption.
* Boeing Co. looks set to start Europe's big air show with orders from at least two leasing companies-deals that should help the U.S. plane maker consolidate its lead in orders over Airbus this year.
* At least 160 U.S.-based mutual funds and exchange-traded funds, including those run by Fidelity Investments, Morgan Stanley Investment Management Inc and OppenheimerFunds Inc, bought shares of Facebook in May, according to monthly disclosures made in June and July compiled by investment-research firm Morningstar Inc for The Wall Street Journal.
BRUSSELS TO ACT OVER LIBOR SCANDAL
Brussels is expected to propose outlawing attempts to manipulate market indices across the EU along with a fundamental review of the rules on how Libor is set.
MCDONALD'S SPONSORSHIP OF OLYMPICS QUERIED
Top officials in the International Olympic Committee have questioned whether it is appropriate to allow high-calorie consumer brands to continue sponsoring the Games.
DILNOT REVIEW TO OPEN NHS FUNDING ROW
British prime minister David Cameron will fight the next election promising real-terms increases for the NHS.
AIRBUS AND BOEING PUSH SUPPLIERS TO MERGE
Airbus and Boeing are pushing their large suppliers to buy smaller ones to help with the companies plans to increase production of passenger jets.
ARCELORMITTAL FAILS TO RULE OUT EUROPE CUTS
ArcelorMittal has refused to rule out further site closures in Europe as the global steel industry enters a slowdown.
PERMIRA PLANS TO REFINANCE BIRDS EYE IGLO
Permira, the private equity firm, is planning a 500 million euros ($615.35 million) refinancing of Birds Eye Iglo.
SFO TO REOPEN CASE INTO COLLAPSE OF WEAVERING
Britain's SFO is set to reopen the investigation in to collapse of one of London's oldest hedge funds during the financial crisis.
BEIJING THREATENS TRADE ACTION
China has threatened retaliation against a trade dispute with the EU that is straining commercial relations between the two sides.
- Prices are tumbling across the Chinese economy, according to government data released on Monday, as a flood of goods pouring out of the nation's vast and ever-expanding factory cities exceeds anemic demand from Chinese households and businesses.
- Premier Wen Jiabao of China warned on Sunday of "huge downward pressure" on the Chinese economy, in the clearest expression yet of concern at the top of the country's leadership about a sharp slowdown in recent months.
- Paul Tucker, a deputy governor at the Bank of England, will give evidence on whether senior government officials put pressure on Barclays Plc to lower its submissions to the London interbank offered rate, or Libor.
- Several securities law experts and some investors say the delay in the BlackBerry 10 and overly optimistic remarks as recently as last week by Thorsten Heins since he took over the top job in January, may also make Research in Motion Ltd , the target of shareholder lawsuits.
- In the most visible sign yet of its efforts to curb its reliance on soda sales, PepsiCo this month will start selling yogurt in the Northeast and mid-Atlantic states.
THE GLOBE AND MAIL
- Canada has joined a group of U.S.-led international donors in pledging $16 billion in aid for Afghanistan over the next four years, with some of the cash conditional on Kabul fighting widespread corruption.
Report in the business section:
- Bombardier Inc has bulked up the order book for its new C Series airplane with a sale of 15 of the narrow-bodied commercial jets as the Farnborough International Air Show begins in Britain.
- Prime Minister Stephen Harper told a gathering of party supporters that other nations hoping for economic success in the future must "become what Canada is today."
European economic highlights:
- Eurozone Sentix Investor Confidence -29.6 – lower than expected. Consensus -26.6. Previous -28.9.
- Lloyds Employment Confidence -53. Previous -59.
- Switzerland Unemployment Trade s.a. 2.9% – lower than expected. Consensus 3.2%. Previous 3.2%. Revised 2.9%.
- Germany Trade Balance 15.3B – higher than expected. Consensus 14.0B. Previous 14.4B. Revised 14.5B.
- Germany Current Account (euro) 9.0B – lower than expected. Consensus 10.1B. Previous 11.2B. Revised 11.0B.
- Bank of France Bus. Sentiment 91 – lower than expected. Consensus 92. Previous 93. Revised 92.
- Turkey Industrial Production n.s.a. 5.9% y/y – higher than expected. Consensus 2.0% y/y. Previous 1.8% y/y. Revised 1.5% y/y.