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Frontrunning: June 12

Tyler Durden's picture





 
  • J.P. Morgan Knew of Risks: Warning Flags Raised Two Years Ago About CIO (WSJ)
  • Cyprus Poised to Seek Bailout within Days (FT)
  • U.S. Exempts India, South Korea From Iran Oil Sanctions (Bloomberg) - so those countries who need Iran crude?
  • Barroso Pushes EU Banking Union (FT)
  • Hollande Set for Poll Victory (FT)
  • Fed Says U.S. Wealth Fell 38.8% in 2007-2010 on Housing (Bloomberg)
  • Fed Officials Amplify Concerns over Europe (Reuters)
  • Fed's Lockhart Says Lower Yields Bolster Case for No New Action (Bloomberg)
  • IMF Says Yen Is Overvalued and BOJ Should Add Stimulus (Bloomberg)
  • Nomura, Morgan Stanley-MUFG economists tapped for BOJ board (Reuters)
  • Japan May Take Indonesia to WTO Over Ban on Ore Shipments (Bloomberg)

Overnight Media Digest

WSJ

* Some top JPMorgan Chase & Co executives and directors were alerted to risky practices by a team of London-based traders two years before botched bets cost the bank over $2 billion.

* Most of the senior executives at MF Global Holdings Ltd were not registered with commodities regulators, meaning the executives can't be charged with supervision failures related to the firm's collapse.

* Apple unveiled a series of software features for its mobile phones and computers that place erstwhile partner Google squarely in its path.

* U.S. health insurers Humana, Aetna and UnitedHealth said they plan to keep offering some benefits now required under the federal health overhaul legislation, even if the Supreme Court strikes down the entire law.

* The hedge-fund industry may more than double in size during the next five years, to more than $5 trillion in assets, as private fund firms broaden their offerings to compete with traditional money managers, according to a recent Citigroup survey.

* NetJets Inc said it plans to buy up to 425 aircraft from Cessna Aircraft Co and Bombardier Inc worth up to $9.6 billion, the largest ever purchase of private planes and a boon for an industry that has struggled since the onset of the global recession more than four years ago.

* Lawyers for Rajat Gupta tried to demonstrate Monday that the former Goldman Sachs Group Inc director was a man of integrity, not someone, as alleged by prosecutors, who would leak confidential information about the investment bank.

* After watching its share price plunge to record lows, Qantas Airways Ltd is building a team of banks and executive management to ward off any potential hostile takeover.

* Goldman Sachs Group Inc said it has rehired Mark Schwartz as chairman of the Asian Pacific region and a vice chairman of the global firm, underscoring the importance of the region to the New York-based investment bank.

 

FT

IMF REPORT AND BAILOUT CALM BANKING SECTOR

Spain's big banks are breathing a sigh of relief. The twin news of a clean bill of health from a key International Monetary Fund report, combined with confirmation of a planned 100 billion euros ($125.11 billion) European bailout will, they hope, finally convince investors to make a proper distinction between strong and weak.

BARROSO UPBEAT AS POLITICAL WINDS CHANGE

Since the euro zone debt crisis began two years ago, Jose Manuel Barroso has sometimes been criticised for lacking courage in his response.

BARROSO PUSHES EU BANKING UNION

All 27 EU countries should submit their big banks to a single cross-border supervisor as part of a banking union to be enacted as soon as next year, the president of the European Commission Jose Manuel Barroso has urged.

APPLE AND FACEBOOK TAKE AIM AT GOOGLE

Apple has struck a new alliance with Facebook to integrate the social network into its iPhone, iPad and Mac operating system at the same time as it introduces a range of new MacBook computers.

BANKS EYE INTANGIBLE ASSETS AS COLLATERAL

Several U.S. banks want to tap the value of the intellectual property holdings of their borrowers as a way of trimming their capital requirements, which are to be made tougher under Basel III rules.

ANGER AS BUSINESS CHIEFS' PAY SOARS 10 PERCENT

The row over rising executive pay has been reignited by a survey showing the median total remuneration of FTSE 100 bosses increased 10 percent last year to 3.7 million pounds ($5.74 million).

KPMG'S UK BOSS TO CHAIR NEW WATCHDOG

One of the UK's most senior accountants will serve as the first non-executive chairman of the Financial Conduct Authority, the UK's new investor protection and markets regulator.

SAUDI ARABIA SET TO CLASH WITH OPEC

Saudi Arabia is on course for a showdown with fellow OPEC members at this week's meeting of the global oil cartel, after it called for a higher output target despite the recent drop in crude prices.

NYT

- The Obama administration said that it would exempt seven more nations, but not China, from sanctions against countries and banks that do business with Iran.

- The recent downturn left the median American family in 2010 with no more wealth than in the early 1990s, erasing almost two decades of accumulated prosperity, the Federal Reserve said.

- Apple on Monday introduced a new version of its mobile operating system for iPhones and iPads that will bring a host of new features, including maps that let users soar over a three-dimensional rendering of a city.

 

Canada

THE GLOBE AND MAIL

- Prime Minister Stephen Harper on Monday managed to dodge the stormy protests that have rocked Montreal for months, delivering a speech under heavy security that promoted his government's vision for economic recovery.

Report in the business section:

- Ottawa's efforts to cool off Toronto's red-hot condominium market appear to be having an impact, as prices begin to ease and developers pull back on projects and bidding for land.

NATIONAL POST

- As long as female employees can eventually achieve the same level of pay as men in comparable jobs, the fact that it takes them three times longer to get there does not create gender inequality, an Ontario court has ruled.

FINANCIAL POST

- Frequently referred to by his initials, GOD, British heavy hitter Lord Gus O'Donnell has been hired by TD Bank, as it hopes to gain from his economic and political insight, particularly in the euro economies.

 

European Economic Summary

  • UK RICS House Price Balance  -16% – higher than expected. Consensus -17%.  Previous -19%.
  • UK Industrial Production  0.0% m/m -1.0% y/y – lower than expected. Consensus 0.1% m/m -1.0% y/y.  Previous -0.3% m/m -2.6% y/y.
  • UK Manufacturing Production -0.7% m/m -0.3% y/y – lower than expected. Consensus -0.1% m/m 0.4% y/y.  Previous 0.9% m/m -0.9% y/y.
  • Sweden CPI – Headline Rate  -0.1% m/m 1.0% y/y – in line with expectations.  Consensus -0.1% m/m 1.0% y/y.  Previous 0.2% m/m 1.3% y/y.
  • France Non-Farm Payrolls  0.1% q/q – in line with expectations. Consensus 0.1% q/q.  Previous 0.1% q/q.
  • Hungary Consumer Prices  -0.2% m/m 5.3% y/y – lower than expected. Consensus 0.2% m/m 5.8% y/y.  Previous 0.8% m/m 5.7% y/y.
 


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Tue, 06/12/2012 - 07:28 | Link to Comment valley chick
valley chick's picture

IMF REPORT AND BAILOUT CALM BANKING SECTOR

Spain's big banks are breathing a sigh of relief. The twin news of a clean bill of health from a key International Monetary Fund report, combined with confirmation of a planned 100 billion euros ($125.11 billion) European bailout will, they hope, finally convince investors to make a proper distinction between strong and weak.

 

HOPE???? 

Tue, 06/12/2012 - 07:47 | Link to Comment Sean7k
Sean7k's picture

Sure, why not? The IMF always tells the truth. Bankers always tell the truth. Hope is a wonderful drug- drug-drug, and what do drugs do? Distort perception.

Bigger story, the FED says one third of our wealth has "disappeared". Unless someone has written off the debt, it doesn't disappear. Just because it has been sequestered on a balance sheet in a bank's backroom, doesn't mean it has disappeared. 

Hope? I hope people open their eyes to the reality of debt based financial systems that function as wealth transfer systems and create the illusion of high wages and benefits through debt financing. 

Pretty sure I will be disappointed.

Tue, 06/12/2012 - 08:42 | Link to Comment GMadScientist
GMadScientist's picture

Modify perception. Don't hate. ;)

Tue, 06/12/2012 - 08:32 | Link to Comment GMadScientist
GMadScientist's picture

HAHAHAHAHAHAHA!

no.

Tue, 06/12/2012 - 07:36 | Link to Comment spanish inquisition
spanish inquisition's picture

Flame update - https://threatpost.com/en_us/blogs/diving-flame-researchers-find-link-stuxnet-061112

According to the Kaspersky researchers, early versions of Stuxnet were, in fact, created out of components that were part of what they refer to as the "Flame platform". But they believe development of the two malicious programs diverged after 2009, suggesting that two different development teams may have been working independently for a single entity to create malware with specific objectives, according to Kaspersky researchers, writing on the company's blog, Securelist.

Tue, 06/12/2012 - 07:42 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

FED usa family wealth fell 38%- how's that for a job well done by you know the FED that is supporting our way of life..kudos to the elite planners at the FED..another 50 yrs of the FED and we will end up with 100% of our wealth stolen.

Tue, 06/12/2012 - 08:33 | Link to Comment GMadScientist
GMadScientist's picture

Ah it was all Mittens and McCain's 12 houses anyway.

 

Tue, 06/12/2012 - 07:53 | Link to Comment lolmao500
lolmao500's picture

Barroso Pushes EU Banking Union

What a fucking traitor...

Fed's Lockhart Says Lower Yields Bolster Case for No New Action

Can you say KABOOOOOOOM???

Tue, 06/12/2012 - 08:34 | Link to Comment azzhatter
azzhatter's picture

I would love to see this fucking Barroso hanging from a lamp post next to Von Rumpboy

Tue, 06/12/2012 - 07:55 | Link to Comment papaswamp
papaswamp's picture

NFIB is out....not pretty.

"“In the last year, small-business optimism has limped along, and today the sector is no better off than it was just over a year ago,” said NFIB Chief Economist William Dunkelberg. “The lack of progress is discouraging, producing no signs that economic activity will pick up this year at all. The calculus of spending decisions requires an estimate of future sales, tax rates, interest rates and credit availability, labor costs, health-care costs, regulatory compliance costs, all of which are very uncertain. Most of this uncertainty is the result of what is happening—and not happening—in Washington."

Tue, 06/12/2012 - 08:17 | Link to Comment chinaguy
chinaguy's picture
Retirement age must rise - OECD

"As life expectancy continues to rise, a new report suggests that governments need to raise the age of retirement in order to keep up."

And so it begins...you & your folks & your kids & grand kids all need to work an extra few years to you can help to bail out the plutocrats.

Tue, 06/12/2012 - 08:34 | Link to Comment GMadScientist
GMadScientist's picture

No problem. If they'll kindly jump in the hole I've provided, we can get started!

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