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Frontrunning: May 14

Tyler Durden's picture




 
  • Default now or default later? (FT)
  • Monti warns of tears in Italy's social fabric (Reuters)
  • Fear Grows of Greece Leaving Euro (FT)
  • Greek Elections Loom as Key Bailout Opponent Defies Unity (Bloomberg)
  • Santander, BBVA to Set Aside 4.5 Billion Euros for New Cleanup (BBG) - Thank god they both passed the stress test
  • Austerity Blow for Merkel in German State Election (Reuters)
  • Apple Founder Wozniak to Buy Facebook Regardless of Price (Bloomberg) - so... another ponzi.
  • Dimon Fortress Breached as Push From Hedging to Betting Blows Up (Bloomberg)
  • Saudi and Bahrain Expected to Seek Union: Minister (Reuters)
  • Obama Pitches Equal Pay to Win Women Even as Charges Drop (BBG)

Overnight Media Digest:

WSJ

* JPMorgan's Jamie Dimon faced increasing pressure after the trading blunder that cost the bank over $2 billion. Three high-ranking executives are expected to leave.

* Dewey partners in the office of the chairman explain why the firm is unable to survive and how they have been working with lenders in recent weeks.

* How many executives have been convicted of criminal wrongdoing related to the tumultuous events of 2008-2009? The Justice Department doesn't know the answer.

* Hedge-fund manager Philip Falcone's LightSquared venture is preparing for a potential bankruptcy-protection filing, as negotiations with lenders falter.

* Chesapeake Energy is expecting activist investor Carl Icahn to disclose soon that he has taken a significant stake in the embattled natural-gas company, according to people familiar with the matter.

* Facebook, Groupon and Zynga have been snapping up companies at a record pace, lifting start-up valuations and hopes for technology entrepreneurs looking to cash out.

* Lawyers for former Goldman Sachs Group Inc director Rajat Gupta, who is facing a criminal trial on insider trading charges, urged the court late Friday evening to bar from evidence three wiretapped conversations that federal prosecutors said were crucial to their case.

 

FT

3I SET TO APPOINT EX-CITY BANKER AS CHIEF

3i, the UK's largest listed private equity group, is set to name Simon Borrows as its new chief executive this week in a move that will appease unhappy shareholders.

FEAR GROWS OF GREECE LEAVING EURO

Euro zone central bankers have talked publicly for the first time of managing a possible Greek exit from Europe's monetary union as stalemate in Athens talks on a coalition government raises the prospect that Greece will renege on the terms of its international bailout.

JP MORGAN PROBE INTO LONDON ROLE IN LOSS

JPMorgan Chase is investigating whether London-based traders hid the extent of losses on credit derivatives positions, according to people familiar with an internal probe following last week's revelation of $2 billion losses.

EU KEEPS TIGHT REIN ON BANK PENALTIES

Lloyds Banking Group and Royal Bank of Scotland should not count on securing softer bailout penalties, the EU's top competition enforcer has warned, as he expressed confidence the banks would meet Brussels deadlines for forced sell-offs.

UK READY TO BACK BANK REFORM

Britain is to drop some of its objections to the EU's flagship reforms for the banking sector, removing the main political obstacle to a deal on one of the most divisive regulation issues in Brussels.

YAHOO REPLACES CEO OVER RESUME STORM

Yahoo chief executive Scott Thompson departed on Sunday, 10 days after the revelation that he did not have one of the academic qualifications claimed in his personal resume.

DREYFUS TO TAP CAPITAL MARKETS

Louis Dreyfus Commodities, one of the world's biggest food trading houses, plans to tap the capital markets for the first time in its 160-year history, as it embarks on a $7 billion spending programme that will include a string of acquisitions.

DIXONS PREPARES FOR GREEK EURO ZONE EXIT

Dixons, the electricals chain, is drawing up plans to shutter its stores in Greece and protect itself against civil unrest should the country pull out of the single currency.

DUBAI SET FOR TIE-UP WITH SAMSUNG LIFE

Dubai is set to team up with Samsung Life Insurance to launch an 'alliance' focused on emerging markets, reinforcing efforts by the emirate to act as a launch pad for Asian companies seeking to move into the Middle East.

US AHEAD OF EUROPE ON ENERGY POLICY

Europe's manufacturers are rapidly losing ground to U.S. rivals because of soaring energy costs and the failure of the continent's governments to be "rational" about nuclear power and shale gas, the head of one of the world's biggest chemicals groups has warned.

 

NYT

* Ina R. Drew, JPMorgan Chase's chief investment officer and a three-decade employee there, and two traders who worked for her will leave the company.

* Ubiquitous trading practices are creating a headache for regulators who are trying to devise rules to prevent another financial crisis.

* Broadcast networks are offering shorter seasons and agreeing to air serialized shows uninterrupted by reruns to fight "cable envy" among series creators.

* Yahoo's embattled chief executive, Scott Thompson, will leave his post after a controversy over his embellished academic credentials. Yahoo also reached an agreement with Third Point's Daniel S. Loeb to end the hedge fund manager's proxy fight.

* Because Facebook tends to be tight-lipped about its plans, the company's string of acquisitions may reveal a lot about the course it is charting.

 

Canada

THE GLOBE AND MAIL

- Beyond the oil patch, Canada's West has China to thank for its economic prosperity. The Asian giant is gobbling up grains and oilseeds at an enormous pace, helping push prices sky high.

Reports in the business section:

- Gerald Schwartz, one of Canada's richest men and most prolific deal-makers, says he is "enthusiastic" about proposals to build a casino in Toronto, adding his name to a growing list of suitors for the country's most ambitious gaming opportunity.

NATIONAL POST

- The Avengers, the smash hit movie about Marvel superheroes who team up to save the Earth, crushed competitors for a second weekend with a record $103.2-million in U.S. and Canadian ticket sales and was poised to top $1-billion worldwide, studio estimates showed.

FINANCIAL POST

- Friday's stronger-than-expected job numbers could help push Canada's GDP growth to 3 percent in the second quarter, a development that could spur the Bank of Canada to begin hiking interest rates this summer, one economist said.

European Economic News:

  • Eurozone Industrial Production s.a. -0.3% m/m – lower than expected. Consensus 0.4% m/m. Previous 0.5% m/m. Revised 0.8% m/m.
  • Eurozone Industrial Production w.d.a. -2.2% y/y – lower than expected. Consensus -1.4% y/y. Previous -1.8% y/y. Revised -1.5% y/y.
  • Switzerland Producer & Import Prices -0.1% m/m -2.3% y/y – lower than expected. Consensus 0.2% m/m -2.1% y/y. Previous 0.3% m/m -2.0% y/y.
  • Sweden Industry Capacity 88.4%. Previous 87.5%. Revised 87.7%.
  • Netherlands Retail Sales 2.2% y/y. Previous 0.9% y/y. Revised 1.1% y/y.
  • Italy CPI – EU Harmonized 0.9% m/m 3.7% y/y – lower than expected. Consensus 0.9% m/m 3.8% y/y. Previous 0.9% m/m 3.8% y/y.
  • Germany Wholesale Price Index 0.5% m/m 2.4% y/y. Previous 0.9% m/m 2.2% y/y.
  • France Current Account -4.1B. Previous -5.0B. Revised -5.3B
 

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Mon, 05/14/2012 - 07:40 | 2423067 maxmad
maxmad's picture

Collapse Bichez!

Mon, 05/14/2012 - 07:41 | 2423074 q99x2
q99x2's picture

"Monti warns of tears"

Is that tears or tears?

'Three high-ranking executives are expected to leave.'

Bait to cover the trap with.

Mon, 05/14/2012 - 07:53 | 2423092 CPL
CPL's picture

We've all seen Monti cry like a bitch before, dozens of times...in the last three months.  There are people with severe depression that cry a lot less than Monti.

 

The JPM guys are sneaking out before anything sticks and all the civil servant pensions across the world start to pop like balloons when someone points out that they were empty from day one.

Mon, 05/14/2012 - 07:42 | 2423075 Croatian Patriot
Croatian Patriot's picture

Santander, BBVA to Set Aside 4.5 Billion Euros for New Cleanup (BBG) - Thank god they both passed the stress test

 

Thanks God.Can you imagine what would happened if not?

LOL

 

 

Mon, 05/14/2012 - 07:53 | 2423094 CPL
CPL's picture

It's about the same outcome if fighting off a lion with over cooked spaghetti.

Mon, 05/14/2012 - 07:45 | 2423077 insanelysane
insanelysane's picture

I hate the term Austerity.  If someone says it out in public, I am going to punch them in the face.

Austerity is NOT borrowing and spending more money than you take in.

Austerity is NOT spending all the money you take in.

Austerity IS when you actually spend less money than you take in and actually have a bit of savings and there is NO government claiming austerity that is actually practicing austerity.

Mon, 05/14/2012 - 07:47 | 2423080 Hobbleknee
Hobbleknee's picture

"Apple Founder Wozniak to Buy Facebook Regardless of Price"

What kind of idiot would put out this information?  It's like going to the car dealer and telling them you're loaded.

Mon, 05/14/2012 - 07:49 | 2423085 GeneMarchbanks
GeneMarchbanks's picture

Europe's manufacturers are rapidly losing ground to U.S. rivals because of soaring energy costs and the failure of the continent's governments to be "rational" about nuclear power and shale gas, the head of one of the world's biggest chemicals groups has warned.

The comparison would make sense if Europe had its own policy instead of the one drawn up by the Yanks. At this point I'm just glad we don't have to ration to subsidize the 'liberators'.

Mon, 05/14/2012 - 07:55 | 2423096 CPL
CPL's picture

Weird...I can't vote up.

Mon, 05/14/2012 - 08:53 | 2423215 Hobbleknee
Hobbleknee's picture

You can't vote up on a comment that uses the quote style.

Mon, 05/14/2012 - 07:52 | 2423088 Sudden Debt
Sudden Debt's picture

Putting Apple's money reserve to good use by pumping it from one cloud to another...

so as long as they don't fire silver iodine into the clouds and it doesn't rain, we'll be fine...

Mon, 05/14/2012 - 08:51 | 2423205 RagnarDanneskjold
RagnarDanneskjold's picture

Real estate investment collapses in China

Chinese real estate investment growth is reported as a cumulative figure. Investment was up in the first three months by 23.5% y-o-y, but only up 18.7% for the first four months......if you break the numbers out, real estate investment was only up 8.4% y-o-y in April......

Mon, 05/14/2012 - 08:53 | 2423214 Hobbleknee
Hobbleknee's picture

*double post*

Sun, 07/15/2012 - 15:19 | 2618063 adnan202
adnan202's picture

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