Frontrunning: June 6

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  • Wisconsin's Walker makes history surviving recall election (Reuters)
  • China Labor Shortages in Guangdong Show Stimulus Limits (Bloomberg)
  • Oil rises toward $100 ahead of ECB (Reuters)
  • China's Property Controls to Stay (China Daily)
  • Spain Makes Explicit Plea for Bank Aid (FT)
  • Fed Considers More Action Amid New Recovery Doubts (WSJ)
  • Noda Sales-Tax Push Confronts Rising Japan Majority Opposition (Bloomberg)
  • National Interests Threaten EU Bank Reforms (FT)

Overnight press digest:

WSJ

* Wisconsin Governor Scott Walker withstood a recall effort, dealing a blow to organized labor, unsettling Obama's re-election strategy and signaling to GOP lawmakers that challenging government unions could pay dividends.

* Disappointing U.S. economic data, new strains in markets and deepening worries about Europe's fiscal crisis have prompted a shift at the Fed, putting back on the table the possibility of action to spur the recovery.

* U.S. defense contractors are preparing to disclose mass job cutbacks ahead of November elections if Congress fails to reach a deficit-reduction deal by then.

* The $2 billion JPMorgan loss stemmed from a breakdown in the firm's risk-management activities that started in late 2011.

* The regulatory concerns are the latest security questions about the third-party firms that process transactions for banks.

* Nasdaq OMX Group is considering offering discounted trading fees to the financial firms that lost money after the exchange botched their trades during the ill-fated debut of Facebook shares.

* Italy, where fewer women work compared with most other industrialized countries, is trying to turn a page - starting in the boardroom.

A new law requires Italian listed and state-owned companies to ensure that one-third of their board members are women by 2015. Currently, only around 6 percent of the total number of corporate board members in Italy are women - one of the lowest levels in Europe and a number that reflects how few women work here.

* The largest U.S. wireless carriers expect to get rid of plans that let subscribers buy only the number of minutes they need and replace them with a flat rate covering unlimited calls.

 

FT

SAWIRIS BACKS OUT IN BID FOR EFG-HERMES

Naguib Sawiris, the Egyptian telecommunications mogul, has decided against joining a consortium of investors attempting to take over EFG-Hermes, the Middle East investment bank.

TAX 'FRAUD' TRIAL FOR EX-UNICREDIT CHIEF

Alessandro Profumo, former chief executive of UniCredit , and 19 others must stand trial for alleged tax fraud involving a scheme set up by Barclays, a Milan judge said on Tuesday.

WPP'S SORRELL DEFENDS PAY PACKAGE

Sir Martin Sorrell, chief executive of WPP, has issued a robust defence of his pay ahead of a showdown with some big shareholders in the world's largest advertising group that is shaping up as a test case for executive remuneration in the UK.

BANK STAFF COSTS TAKE BIGGER SHARE OF POT

The world's big international banks are paying out much more on staff costs relative to profits since the financial crisis while slashing the portion of income paid out in dividends, according to data compiled by the Financial Times.

SPAIN MAKES EXPLICIT PLEA FOR BANK AID

Spain has made its most explicit call to date for European institutions to recapitalise the country's banks amid concerns about its own ability to raise the billions of euros needed on sovereign bond markets.

FSA RELAXES SCRUTINY OF SOME FINANCIAL ROLES

The top City of London regulator is relaxing its scrutiny of non-executive recruits to banks and other financial services groups amid company complaints that the tests hinder them in making appointments.

EX-FACEBOOK EXECUTIVE UNVEILS VIDEO CHAT SITE

Sean Parker, an early executive at Facebook, is starting a video chat site because he thinks social media is making people lonelier.

 

NYT

* Officials in Greece said that despite the latest bailout, the government faces a shortfall of 1.7 billion euros because tax revenue and other sources of income are drying up.

* Robert F.X. Sillerman made the concert business more corporate and wants to do the same with the latest trend in the music industry.

* Congress is expected to quiz regulators on Wednesday about their failure to keep an eye on the JPMorgan unit responsible for a trading loss of more than $2 billion.

* Airtime, a live video chat service designed by Napster founders Sean Parker and Shawn Fanning, hopes to recreate the spontaneity of the 1990s AOL chat rooms.

* A new survey finds that those without a college degree have dismal job prospects and considerable obstacles blocking improvement.

* Republicans united against a bill that would make it easier for women to sue employers for pay discrimination.