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Frontrunning: June 13

Tyler Durden's picture





 
  • Osborne says Greece may have to quit euro (Reuters)
  • Osborne Risks the Wrath of Merkel (FT)
  • How original: Syria prints new money as deficit grows (Reuters)- America is not Syria
  • Former SNB head Hildebrand to become BlackRock vice chairman (FT)
  • China second-quarter GDP growth may dip below 7 percent - government adviser (Reuters)
  • Italian Borrowing Costs Surge at Auction of 1-Year Bills (Bloomberg)
  • Greeks withdraw cash ahead of cliffhanger vote (Reuters)
  • Merkel’s Choice Pits European Fate Against German Voter Interest (Bloomberg)
  • Italy Tax Increases Backfire as Monti Tightens Belts (Bloomberg)
  • Dimon says JPMorgan failed to rein in traders (Reuters)
  • Hong Kong Pledges Currency Peg After Yam Urges Review (Bloomberg)
  • World Bank Says It’s ‘Very Open’ to Selling More Dim Sum Bonds (Bloomberg)
  • Greek Radical Leftist Rejects Call for Unity Government (Reuters)
  • Romney Outlines Health-Care Plan as Supreme Court Weighs Law (Bloomberg)

Overnight media digest:

WSJ

* The Justice Department is conducting a wide-ranging antitrust investigation into whether cable companies are acting improperly to quash nascent competition from online video, according to people familiar with the matter.

* JPMorgan's Dimon is expected to tell a Senate hearing that he feels "terrible" about the bank's costly trading blunder and has appointed new managers to fix the problems.

* U.S. lawmakers investigating spying threats from China are pressing two Chinese telecommunications firms active in U.S. markets for details about their relationship with the Chinese government and with U.S. companies.

* ING Bank has agreed to pay a record penalty of $619 million for illegally moving billions of dollars through the U.S. banking system on behalf of Cuban and Iranian clients and threatening to fire employees if they failed to conceal the origin of the money.

* Global Payments Inc, the payments processor that was hit earlier this year with a big data breach, said the incident may have been broader than initially estimated.

* Dell Inc disclosed plans to pay a quarterly dividend, becoming the latest technology company looking to boost shareholder value and attract a new group of investors.

* Lawyers hired by Wal-Mart Stores Inc to evaluate its anti corruption policies have recommended adding India and South Africa to a review that includes Mexico, Brazil and China, said a letter to the company from congressional Democrats.

* Verizon Wireless lifted the curtain on its long-awaited shared-data plans that allow users to put additional devices under one umbrella.

* Former British Prime Minister John Major, testifying before a media-ethics inquiry in London, said News Corp Chairman and Chief Executive Rupert Murdoch in 1997 tried to persuade him to change his stance on Europe in exchange for support from his newspapers.

* BP Plc said Tuesday that it began the start-up process of Galapagos, one of its major oil-and-gas projects in the deep-water U.S. Gulf of Mexico.

 

FT

FEARS RISE OVER EU HANDLING OF DEBT CRISIS

Spain's borrowing costs hit a euro-era high on Tuesday amid sagging investor confidence that Europe can prevent its debt crisis from worsening and wrangling among policy makers over how to implement cross-border banking supervision.

HONG KONG URGED TO REVIEW DOLLAR PEG

Hong Kong should review its U.S. dollar peg and consider linking its currency to the renminbi, according to Joseph Yam, former head of the Hong Kong Monetary Authority.

UK'S OSBORNE RISKS THE WRATH OF MERKEL

A Greek exit from the euro zone may be the price that has to be paid to persuade Germany to save the single currency, British finance minister George Osborne, said on Tuesday.

LSE UNVEILS SWEEPING MANAGEMENT CHANGES

The London Stock Exchange has carried out the biggest management shake-up in the three-year tenure of chief executive Xavier Rolet with a slew of executive departures and hires.

BOE DEPUTY CHALLENGES CREDIT STANCE

Paul Tucker, deputy governor of the Bank of England, distanced himself from Mervyn King - whom he is favourite to succeed as governor - by calling on Tuesday for a review of the bank's stance against directly easing credit conditions.

HILDEBRAND TAKING UP KEY ROLE AT BLACKROCK

Philipp Hildebrand, the former chairman of the Swiss National Bank, is joining BlackRock as vice-chairman and will oversee the firm's largest institutional client relationships outside of the U.S.

F1 SUSPENDS IPO OVER MARKET TURMOIL

Turmoil in financial markets has pushed the owners of Formula One to delay a $3 billion share offering in Singapore due later this month, according to people close to the situation.

UK-BACKED BANKS NOT OBLIGED TO WARN INVESTORS

UK banks that receive confidential state support should not always be obliged to warn investors about their viability, a regulatory panel tasked with answering one of the most contentious accounting questions posed by the financial crisis says.

NYT

- Frito-Lay said it would begin to emphasize the extremes of the snack-food market, pursuing both the customers who crave premium products and those who shop for cheaper items.

- The Federal Trade Commission fined Spokeo $800,000, contending that it violated federal law in how it compiled and sold people's personal information on its Web site.

- In a first for the American wireless industry, Verizon Wireless said on Tuesday that it was introducing plans that would allow customers to pay for a certain amount of wireless data and share that allotment across their family's smartphones, tablets and laptops.

- In a testimony prepared for a Senate Banking Committee hearing on Wednesday, JPMorgan's Jamie Dimon sounded a note of contrition, but also emphasized the strength of the bank.

- Geetanjali Gupta was articulate in answering questions about the former director of Goldman Sachs and his relationship with Raj Rajaratnam, the fallen hedge fund titan.

- Google insiders said they were not aware of the data collection in the Street View project either because it was not part of their job or they did not review the project documentation.

- Seeking to improve its standing among business news Web sites, CNBC will announce a new partnership on Wednesday with Yahoo Finance, the largest such Web site in the United States.

 

Canada

THE GLOBE AND MAIL

- Canada's top soldier says it is time to get the lead out on the $35-billion federal shipbuilding contract, just as defence analysts warn that belt-tightening in Ottawa could further delay delivery of the country's next fleet of combat ships.

Report in the business section:

- Several Canadian banks have been quietly re-evaluating their appraisal strategies amid increased worries about the accuracy of property values in a market deemed at risk of overheating.

NATIONAL POST

- Canada's Conservative government has joined a growing international campaign aimed at persuading the International Olympic Committee to reverse its decision disallowing at this year's London games an official moment of silence to remember Israeli Olympians murdered by terrorists at the 1972 Munich games massacre.

FINANCIAL POST

- Canada is the most expensive auto-producing jurisdiction in the world and the Canadian Auto Workers union must close the labour cost gap with their U.S. counterparts in upcoming contract talks, General Motors CEO Dan Akerson said Tuesday.

 

European economic data:

  • Eurozone Ind. Prod. w.d.a.  -2.3% y/y – higher than expected. Consensus -2.7% y/y. Previous -2.2% y/y.
  • Switzerland Producer & Import Prices  -0.2% m/m -2.3% y/y – lower than expected. Consensus -0.1% m/m -2.0% y/y. Previous -0.1% m/m -2.3% y/y.
  • Spain CPI – EU Harmonised  -0.2% m/m 1.9% y/y – in line with expectations.  Consensus -0.2% m/m 1.9% y/y. Previous 1.1% m/m 1.9% y/y.
  • Italy CPI – EU Harmonised  0.0% m/m 3.5% y/y – in line with expectations. Consensus 0.0% m/m 3.5% y/y. Previous 0.0% m/m 3.5% y/y.
  • Germany CPI – EU Harmonised  -0.2% m/m 2.2% y/y – higher than expected. Consensus -0.3% m/m 2.1% y/y. Previous -0.3% m/m 2.1% y/y.
  • France CPI – EU Harmonised  -0.1% m/m 2.3% y/y – in line with expectations. Consensus -0.1% m/m 2.3% y/y. Previous 0.2% m/m 2.4% y/y.
 


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Wed, 06/13/2012 - 07:27 | Link to Comment lolmao500
lolmao500's picture

http://www.cnbc.com/id/47793980

Greeks Withdraw $1 Billion a Day Ahead of Vote

Bullish!

Wed, 06/13/2012 - 07:57 | Link to Comment Sudden Debt
Sudden Debt's picture

http://en.wikipedia.org/wiki/Greece

.

OMG!!! WITH A POPULATION OF 11 MILLION THAT'S

90 EURO PER CITIZEN!!

Yep.... they're really running scared right now...

Lemmings are everywhere. Most of them will get burned BIGTIME!

So on average they pulled 2000 euro per citizen from their accounts...

not counting the BIG withdrawls into the picture...

GREEKS ARE DOING SHIT!!

DEER IN THE HEADLIGHT!

I have on a average day 200 euro in my wallet...

Wed, 06/13/2012 - 08:01 | Link to Comment Nussi34
Nussi34's picture

If all they have is EUR 100, EUR 90 is a lot!

Wed, 06/13/2012 - 08:07 | Link to Comment Sudden Debt
Sudden Debt's picture

I CALL THAT DAILY EXPENSES!

They where pulling out 100 million to 500 million a day on average in a month?

THAT'S 4 EURO TO 20 EURO A DAY!!!

THERE IS NO BANKRUN AMONGST THE PEOPLE!!

Only the rich are out. Greeks will get burned.

Wed, 06/13/2012 - 08:49 | Link to Comment Catullus
Catullus's picture

Being that they are rich, they have the most money. So when rich people pull their money, it has a much larger impact on a fractional reserve system.

Presumably the rich have half the accumulated wealth in most western countries, if they pull just 7% of their account holdings, the country's banks are essentially busted. That could be as little as a few dozen rich people jumping ship or a couple or corporations looking to protect payroll accounts.

Who gives a fuck about "the people"? Theyre bag holders

Wed, 06/13/2012 - 07:31 | Link to Comment AUD
AUD's picture

Syria is America though.

That Rooters piece is a hit job. Sure the Syrians are issuing banknotes against junk, likely government bonds. Everyone else issues banknotes against junk, likely government bonds, or in the case of the Fed, worthless 'private label' mortgage debt.

Inflation is not the preserve of the Syrians.

Wed, 06/13/2012 - 07:38 | Link to Comment insanelysane
Wed, 06/13/2012 - 07:47 | Link to Comment fiercekitty
fiercekitty's picture

I saw some guy from the Council on Foreign Relations on Bloomberg during lunchtime (lost my appetite as a result..) spouting the same old crap:  shared sacrifice, blah blah blah..

Wed, 06/13/2012 - 07:49 | Link to Comment lolmao500
lolmao500's picture

http://www.spacewar.com/reports/US_braces_for_action_in_Persian_Gulf_999...

U.S. braces for action in Persian Gulf
Amid dimming expectations that next week's talks in Moscow will defuse the U.S.-Iranian confrontation in the Persian Gulf, the U.S. Navy has sent four additional mine countermeasures ships to the region to oppose an Iranian threat to close the vital oil artery.

But former CIA officer Philip Giraldi has warned that U.S. Internal Look war games conducted in March indicated that the Navy "would have considerable problems dealing with Iranian offensive operations" in the narrow waters of the strait.

The games "revealed that there is a high probability that Americans vessels will be sunk, with considerable loss of life," Giraldi observed.

http://www.danielestulin.com/bilderberg-reportinforme-2012/

 

Furthermore, Bilderberg is concerned with yet ANOTHER Lehman-type megashock -  a very real possibility of bank runs. As one Bilderberger said: “Europe and the U.S. are now on a collision course with a second Lehman-type megashock.”

As one European bankers present at the Bilderberg conference stated, “If you think Europe’s crisis and its deflated currency is going to help support the U.S. $, think again.” In fact, there was a general agreement at the Bilderberg meeting that the FED will be called to the rescue to prop up Europe’s system failure by printing even more money, and thus weakening the dollar in the long run.

Wed, 06/13/2012 - 08:20 | Link to Comment chinaguy
chinaguy's picture

Former SNB head Hildebrand to become BlackRock vice chairman.

After the way he shorted the CHF and then went and peg it to the EUR a few days later (in his capacity as SNB head) ...he's a sterling candidate for the high moral values needed at Blackrock.

Wed, 06/13/2012 - 08:34 | Link to Comment CPL
CPL's picture

TD Bank is out of silver.  Bought the last 864 ounces in their vault.  Timeline for replenishing the PM.  Completely unknown.

 

I wonder if I can buy all the silver left in the rest of the banks in Canada.  Strikes me as odd that something as fundemental as silver is kept in such low supply.

 

Anycase if anyone is holding Canadian TD ETN's for silver, your investment has nothing backing it right now and you are now holding a bunch of worthless paper.

Wed, 06/13/2012 - 08:56 | Link to Comment lolmao500
lolmao500's picture

TD sells silver? Linky?

Wed, 06/13/2012 - 13:40 | Link to Comment CPL
CPL's picture

Go to a large branch and ask for corporate investments and buy it from that guy.  You can either obtain the certificate for delivery or ask for delivery.

 

Delivery is done by Brinks.  Depending where it's getting shipped, if a branch it's $400 bucks, if to a private residence (which I advise against advertising the fact to neighbours) it's very expensive.

 

The pricing structure is as such.

Spot + 3 bucks.

 

They still have 20oz bars left, not sure how much.  Though.  I was trying to scoop all the one ounce bars and that's what they had left in Toronto.

Wed, 06/13/2012 - 08:54 | Link to Comment Catullus
Catullus's picture

Looks like Romney'z health care plan is not much different than obama's. Of course the press will tell you they're on completely different planets. The mandate is not the only problem. The eligibility for SHCIP to 3x poverty levels makes most of the country eligible for gumbmint health insurance. But the again, no one ever questioned Romney'z conservative creditials: he was always a fucking socialist.

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