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Frontrunning: March 15

Tyler Durden's picture





 
  • Obama, Cameron discussed tapping oil reserves (Reuters)
  • Greek Bonds Signal $2.6 Billion Payout on Credit-Default Swaps (Bloomberg)
  • China leader's ouster roils succession plans (Reuters)
  • China’s Foreign Direct Investment Falls for Fourth Month (Bloomberg)
  • Greek Restructuring Delay Helps Banks as Risks Shift (Bloomberg)
  • Concerns Rise Over Eurozone Fiscal Treaty (FT)
  • Home default notices rise in February: RealtyTrac (Reuters)
  • China PBOC Drains Net CNY57 Bln (WSJ)
  • Fitch Puts U.K. Debt on Negative Outlook Days Away From Budget (Bloomberg)
  • U.S.-Korea free trade pact takes effect amid controversy (Reuters)

Overnight Press Summary

WSJ

* The Securities and Exchange Commission brought charges against two money managers, alleging they misled and overcharged investors on funds formed to buy shares of Facebook, Twitter and other social-media companies.

* Google is giving its tried-and-true Web-search formula a makeover as it tries to fix the shortcomings of today's technology and maintain its dominant market share.

* Citigroup's failure to get regulators' approval to return capital to shareholders caught executives and investors off guard and dealt a blow to Chief Executive Vikram Pandit's efforts to revive investor confidence in the bank.

* Goldman Sachs again was in a harsh spotlight when an employee resigned in a New York Times opinion piece that assailed the firm's culture as "toxic and destructive."

* Johnson & Johnson Chief Executive William Weldon stands to collect pension benefits and deferred compensation valued at $143.5 million after his retirement.

* Family medical practices are facing new tensions as they try to make upgrades but find that these changes often are not reimbursed under the current payment system.

* Edward S. Lampert's hedge fund has stepped in to make sure vendors continue to supply Sears by assuming some of the risk of financial institutions that provide a form of insurance to the vendors.

FT

PAY-TV PROBE TO INCLUDE NETFLIX

UK regulators examining British Sky Broadcasting's position in the pay-TV movies market have expanded the scope of their investigation to include online providers such as Netflix and Lovefilm.

MF GLOBAL CLIENT'S DETAILS PUBLISHED

Private clients of MF Global reacted angrily on Wednesday to what several said was a severe breach of privacy, after KPMG, administrator to the UK arm of the failed futures broker, published their identities, home addresses and the sums owed to them.

CODELCO STEPS UP ANGLO LEGAL CONFLICT

Codelco is preparing new legal action in its dispute with Anglo American that could inhibit the London-listed miner's ability to pay dividends.

MUFG WEIGHS UP EUROPEAN BANK ASSETS

Mitsubishi UFJ Financial Group has weighed up close to 100 billion euros ($130.26 billion) of European bank asset portfolios that shrinking rivals are seeking to offload, according to the man in charge of the Japanese group's global expansion.

UKFI LOOKS AT EARLY SALE OF RBS STAKE

Privatisation of Royal Bank of Scotland could start sooner than expected after the organisation charged with managing the government's bank stakes said shares could initially be sold at a loss.

JOHNSON AND JOHNSON CEO TO LEAVE WITH $140 MILLION

Johnson & Johnson has said that William Weldon, the healthcare company's outgoing chief executive, will receive retirement pay worth more than $140 million after he steps down next month.

UK COALITION NOT SEEN AS BUSINESS FRIENDLY

One in three of the UK's biggest companies think that the coalition government is not business friendly, according to the first FT/ICSA Business Bellwether survey.

NEW POWERS FOR UK PRICE-FIXING PROBE

A new super-regulator will be given enhanced powers to prosecute people for price-fixing as part of the overhaul of British competition law.

UK'S CABLE UNDER FIRE OVER PAY PROPOSALS

Business secretary Vince Cable has come under fire from the CBI employers' group and corporate chiefs after outlining proposals to give shareholders in quoted companies an annual binding vote on future executive pay policy.

NYT

* Criticism by Greg Smith, a largely anonymous 33-year-old mid-level executive who resigned from Goldman Sachs on Wednesday, sent ripple effects through Wall Street.

* Stress tests by the Federal Reserve set off a debate among economists and banking analysts about whether banks have actually achieved renewed strength.

* A group of officials and bankers who helped prevent Eastern Europe from being thrown into the financial crisis in 2009 has reconvened, seeking to avoid a credit squeeze and economic downturn caused by problems at parent banks in Western Europe.

* The Securities and Exchange Commission filed charges against three firms that trade shares of privately held technology companies: Felix Investments, EB Financial and SharesPost.

* An amendment for the Export-Import Bank, which facilitates the sale of American goods overseas, has been holding up the jobs bill while Congress decides whether to grant it more funding.

* The arrest of a former chief reporter for one of Rupert Murdoch's tabloids, The News of the World, raised the first allegations of witness tampering.

Canada

THE GLOBE AND MAIL

- The case of a naval intelligence officer accused of leaking classified military documents to a foreign adversary has done significant damage to Ottawa's treasured intelligence-sharing relationships with key allies, sources say.

The fallout has been an extraordinarily sensitive topic for the federal government since January, when a Canadian Forces sailor was arrested for espionage and reports surfaced that some Russian diplomats were asked to go back to Moscow.

- Two major Vancouver hospitals canceled elective heart surgeries this week in response to the countrywide drug shortage.

Vancouver General and St. Paul's hospitals postponed nine scheduled cardiac surgeries Tuesday over fears they could run out of a critical medication and not have enough for emergency cases.

Reports in the business section:

- Small wireless companies gained better access to foreign capital in Ottawa's telecom shakeup, but they lost a significant fight to tilt the rules of the spectrum auction in their favour.

New entrants such as Wind Mobile and Mobilicity had lobbied hard to have the government "set aside" spectrum that only they could bid on. Instead, the Harper government said it would implement a system of "caps" that effectively limit the amount of spectrum that incumbents such as BCE Inc,, Rogers Communications Inc and Telus Corp can purchase in the auction, which will occur early next year.

- Before it waded back into the market with deeply discounted mortgage rates last week, Bank of Montreal sought to give policy makers in Ottawa a heads-up that it was about to shake up the housing market again.

NATIONAL POST

- A source close to the robocalls investigation has claimed it is unlikely a young Tory staffer could have acted alone to pull off the complicated "Pierre Poutine" scam.

Anonymous Conservatives have repeatedly directed blame at Michael Sona, 23, singling out him alone among a group of workers on the campaign of Guelph, Ontario, candidate Marty Burke.

- Julian Fantino, Associate Minister of National Defence, was largely stating the obvious when he gave the first clear sign yet that Canada may be rethinking its stated intention to purchase 65 F-35 stealth fighter jets.

Addressing the House of Commons Standing Committee on National Defence on Tuesday, Fantino said that the Conservative government of Prime Minister Stephen Harper has not "as yet discounted, the possibility, of course, of backing out of  the program."

Reports in the Business Section

- Gold lost some of its shine on Wednesday as a resurgence of confidence in the state of the global economy made the precious metal less attractive as a safe haven for investors.

China

SHANGHAI SECURITIES NEWS

-- Guo Shuqing, Chairman of the China Securities Regulatory Commission said price in China's initial publish offers is still at a high level.

-- The second headquarters of Bank of China will be opened on March 20 in Shanghai, sources said.

-- Gold enterprises industrial output value was at 18.93 billion yuan in January, rising 35.60 percent year on year.

FINANCIAL NEWS

-- The China Insurance Regulatory Commission pledged to improve supervision of the life insurance sector in 2012, with aim of preventing risks and protecting consumers' rights.

CHINA DAILY

--The yuan will be under increasing downward pressure in 2012, with slower increases in yuan holdings for foreign exchange purchases and a lower investment growth rate, said Liu Yuhui, a senior researcher at the Chinese Academy of Social Sciences, who said he obtained the forecasts from the central bank.

-- The National People's Congress passed a long-awaited amendment to the criminal procedure law, requiring top court judges to interrogate criminals when death penalty cases come under review.

 


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Thu, 03/15/2012 - 07:42 | Link to Comment digitlman
digitlman's picture

Tapping the SPR would be a huge mistake.

 

Idiots.

Thu, 03/15/2012 - 08:13 | Link to Comment Ivanovich
Ivanovich's picture

What's one more mistake in a long line of them?

Thu, 03/15/2012 - 10:37 | Link to Comment Sudden Debt
Sudden Debt's picture

I all look like mistakes but like in a chessgame it's important to sacrifice one pawns to win....

Oké... sure.... America's side of the board is nearly empty and China has almost every pawn still on the board but you guys can still win!!!

SURE YOU CAN! BELIEVE.... CHANGE!! YES!!

 

Thu, 03/15/2012 - 08:31 | Link to Comment dwayne elizando
dwayne elizando's picture

But if they can stop the prices from rising it gives them room to print. Hell they could even throw some margin hikes in there and claim its deflation!

Thu, 03/15/2012 - 10:33 | Link to Comment Sudden Debt
Sudden Debt's picture

A few years back a lot of politicians thought it was a good idea to sell all the gold for 290$ per ounce.

 

Thu, 03/15/2012 - 08:22 | Link to Comment dwayne elizando
dwayne elizando's picture

So the trade right now is surgery drugs in canada?

Thu, 03/15/2012 - 08:30 | Link to Comment RagnarDanneskjold
RagnarDanneskjold's picture

http://investinginchinesestocks.blogspot.com/2012/03/leadership-succession-battle-in-china.html

Leadership succession battle in China goes public as Wen slams Bo Xilai on Wednesday; Communist party fires Bo Xilai on Thursday

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