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Frontrunning: May 21

Tyler Durden's picture




 
  • Is Insider Trading Part of the Fabric on Wall Street? (NYT) ... uhm, next question
  • Nasdaq Says Glitches Affected Millions of Shares; IPO System to Be Redesigned (WSJ)... it's all the robot's fault... And the weather... And Bush
  • Special Report: The algorithmic arms race (Reuters)
  • Barclays to Sell Entire BlackRock Stake (WSJ) ... but they don't need the money... and it's not a market top.
  • BoE's Posen: some European banks need more capital (Reuters)... some?
  • Limbo on Bankia Undermines Confidence in Spain's Handling of Crisis (WSJ)
  • JPMorgan CIO Risk Chief Said to Have Trading-Loss History (Bloomberg)... a guy called Goldman, blowing up JPM... the irony
  • Pentagon's tone softens on Chinese military growth (China Daily)
  • EU summit to raise pressure on Merkel (FT)
  • Romney Super PAC raises less, still tops Democrats (Reuters)
  • JPMorgan’s Home-Loan Debt in Europe Increases Anxiety: Mortgages (Bloomberg)
  • Germany's Merkel Didn't Propose Referendum In Greece (Dow Jones)
  • Everybody chill – Grexit is not really imminent (FT)

Overnight Media Digest:

FT

EU SUMMIT TO RAISE PRESSURE ON MERKEL

European leaders are drawing up a series of crisis-fighting proposals to raise at an informal EU summit this week that have in the past been rejected by Germany, putting further pressure on Chancellor Angela Merkel.

BLUEPRINT FOR RESOLVING REGULATION

National flexibility on macro-prudential policy is important for financial stability in the European Union, prominent British and German central bankers said on Sunday.

JOBS PLANS SPLIT COALITION PARTNERS

UK business secretary Vince Cable has vowed to resist "bonkers" proposals to allow bosses to fire underperforming staff at will, as coalition tensions flared over a Downing Street-inspired report on cutting jobs red tape.

NASDAQ 'EMBARRASSED' OVER FACEBOOK IPO

Nasdaq OMX's chief executive admitted he was "embarrassed" by the delay in the opening trade of Facebook's initial public offering and revealed the exchange was in talks with regulators over potentially millions of dollars of customer claims.

CHINA BUYERS DEFER RAW MATERIAL CARGOS

Chinese consumers of thermal coal and iron ore are asking traders to defer cargos and - in some cases - defaulting on their contracts, in the clearest sign yet of the impact of the country's economic slowdown on the global raw materials markets.

US AND UK EYE REACTION TO BANK FAILURE

Regulators and central bankers in the U.S. and UK are crafting the world's first concrete plans to protect the broader financial system in the event that any of seven leading cross-border banks were to collapse.

FRAPORT SEEKS TO ADD TO AIRPORT PORTFOLIO

The operator of Frankfurt airport, Europe's third largest hub, is scouting for deals in emerging markets as it prepares to push ahead with a big expansion of its home base.

ASTRAZENECA IN EXPERIMENTAL DRUGS PUSH

AstraZeneca plans to seal several new deals this year to fill its flagging pipeline of experimental medicines, which may be funded jointly with private investors.

DESPERATE TIMES CALL FOR DESPERATE ECB MEASURES

A properly functioning firewall must be in place to prevent contagion in Europe well in advance of a potential Greek exit from the euro, Poland's finance minister Jacek Rostowski said on Monday.

 

WSJ

* By copying practices at a modern Belgian mill, U.S. workers are learning to make the same amount of steel with nearly half the people employed three decades ago.

* An executive who oversaw risk management at the unit that made trading blunders that have cost JPMorgan Chase & Co at least $2 billion this year earlier lost millions while trading for the unit.

* Yahoo struck a deal to sell up to half of its stake in Alibaba Group Holding back to the Chinese company for $7.1 billion, finally succeeding after multiple attempts to wind down a seven-year relationship that had recently soured.

* The Midwest has largely closed the cost gap in competing for companies with the South, traditionally the nation's cheapest region in which to do business.

* Chinese property conglomerate Dalian Wanda Group will acquire U.S. movie theater chain AMC Entertainment in a deal worth about $2.6 billion.

* The specter of funding problems is once again haunting Europe's banks.

Even after the European Central Bank pumped more than 1 trillion euros ($1.278 trillion) of cheap three-year loans into hundreds of banks, the Continent's financial system remains vulnerable to the prospect that stampedes of customers could yank their deposits from institutions perceived as shaky.

* Investors in U.S. Treasurys stand a good chance of losing money over time. And yet they can't seem to get enough of Uncle Sam's paper.

 

NYT

* Universal Studios, the theme park chain now controlled by Comcast, is rolling out new weapons in its battle against Walt Disney Parks and Resorts - and Disney is fortifying its defenses.

* As it has grown increasingly difficult to find a steady full-time job with benefits, more men are reaching for a chance at the American dream in female-dominated occupations.

* Rajat K. Gupta, the most prominent criminal defendant in the Justice Department's vast campaign against insider trading, will stand trial Monday in Federal District Court.

* The Wanda Group will buy AMC Entertainment, making the world's largest theater group, the companies said.

 

Canada

THE GLOBE AND MAIL

- Prime Minister Stephen Harper will pledge money to help Afghanistan pay for its own army after foreign troops leave in 2014, but he has so far resisted pressure to extend the Canadian Forces training mission there, officials say.

- Quebec's emergency law aimed at reining in protest marches and restoring social peace failed to stop outbursts of violence during its first test over the weekend, while the months-long student movement gained some big-name support on the global stage.

Reports in the business section:

- Canadian Pacific Railway Ltd is facing a strike by 4,800 employees on Wednesday, posing the first major test for the company's new interim chief executive officer and revamped board of directors.

NATIONAL POST

- The head of NATO Anders Fogh Rasmussen reiterated his request for Canada to contribute military trainers to Afghanistan beyond the 2014 withdrawal date.

FINANCIAL POST

- Air Canada's talks with the union representing its pilots have broken off and the dispute will now go before final offer arbitration.

 

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Mon, 05/21/2012 - 07:57 | 2446867 Catullus
Catullus's picture

On IPOs: They tried to make selling illegal.  But can they make not buying illegal too?  Oh wait, they did.  Thanks Obamacare!

Mon, 05/21/2012 - 07:59 | 2446869 sudzee
sudzee's picture

Tsipros, in his first "walkabout" , has already tossed his supporters under the EU bus. The nazi party will be the one to watch in the coming election.

Mon, 05/21/2012 - 08:07 | 2446877 CPL
CPL's picture

Algo arms race?

 

It's as smart as an ant and takes directions just as well.  Speaking of which, gotta go round up the Anons and test some new theories today.  Friday was incredibly fruitful.  I hope everyone is ready for the fireworks ala nonsense being spewed out of twitter, 3400 freshly written news stories with the correct keyword volume and typical nonsensical computer written news stories.

 

5 "major" news stories for each of the unfortunate 500.  Just have to wait for the no volume lull, then step on the HFT's backs and get them working with a balanced decision tree to pick from instead of the usual MSM nonsense.

 

Mon, 05/21/2012 - 08:24 | 2446922 Lux Fiat
Lux Fiat's picture

Enjoyed the additional commentary that showed up after most links.  Made me smirk this morning.  Is someone warming up for a run as a writer on a certain comedy show that sometimes nails current political events better than "serious" news outlets?

Mon, 05/21/2012 - 09:05 | 2447056 spanish inquisition
spanish inquisition's picture

Interesting credit union article http://www.startribune.com/business/152230015.html

Mon, 05/21/2012 - 14:19 | 2448291 Lux Fiat
Lux Fiat's picture

Thanks for sharing.  Interesting that the credit union mentioned is/was losing money on deposits, and to hear about the impact that new deposits have had on capital ratios.  One would think that all of these inflows would be welcome, but apparently not.  If the inflows weaken some smaller credit unions, those large depositors may want to make sure they keep their individual acct balances at or below $100k.

Mon, 05/21/2012 - 09:42 | 2447173 Miss Expectations
Miss Expectations's picture

a guy called Goldman, blowing up JPM... the irony

continues as the guy who replaced Goldman is named Chetan.

Mon, 05/21/2012 - 09:47 | 2447193 The Alarmist
The Alarmist's picture

"Is Insider Trading Part of the Fabric on Wall Street? (NYT) ... uhm, next question"

You can't read that and not want to reply with the proverbial, "Does a bear shit in the woods?" Or maybe that should be, "Does the Fed not shit on a bear?"

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