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Frontrunning: May 22
- Hilsenrath: Fed Pondering Why Inflation and Deflation Threats Ebbed (WSJ)
- The Naivete: France to push for eurozone bonds (FT)
- The rebuke: Merkel Says She Won’t Shy From Clash With Hollande at EU Summit (Bloomberg)
- The Euro-love: Hollande's euro arguments "nonsense": Austria's Fekter (Reuters)
- Obama Campaign Does Damage Control After Dems Question Anti-Bain Strategy (ABC)
- Greece: four major banks recapitalized by Friday (L'Echo)... and if they aren't?
- China to fast-track infrastructure investments (Reuters)... because China needs more cement
- Jeeps Sell for $189,750 as China Demand Offsets Tariffs (Bloomberg)
- As Facebook’s Stock Struggles, Fingers Start Pointing (NYT)
- Facebook 11% Drop Means Morgan Stanley Gets Blame (Bloomberg)
- Once Made in China: Jobs Trickle Back to U.S. Plants (WSJ)
- King’s Crisis Response to Face Scrutiny After U.K. Lawmaker Push (Bloomberg)
Overnight media digest:
WSJ
* Facebook shares skidded on their second day on the stock market, leaving some investors in the red and raising questions about whether the company and its lead banker, Morgan Stanley, botched the deal.
* Dozens of Roman Catholic dioceses, schools and other institutions sued the Obama administration over a mandate requiring most employers to provide birth-control coverage.
* The trading blunders that have cost JPMorgan Chase & Co at least $2 billion are shaping up as a boon for some of the bank's biggest rivals.
* One of Wall Street's quant pioneers, Robert Jones, is changing his tune -- somewhat. The answer to improving the computer-driven stock-trading model is to weave in research from analysts, but to leave out the biases and emotions that can creep into final trading decisions.
* Some CEOs delivered more bang for the buck, while others were well rewarded despite poor results.
* EU leaders headed for a potential showdown this week after France and Germany appeared no closer to a compromise on reviving euro-zone growth.
* The Federal Deposit Insurance Corp (FDIC) is suing several big banks over soured mortgage securities that were purchased by failed lenders the regulator seized in 2009.
FT
BOE BOWS TO PRESSURE FOR PROBES
The Bank of England bowed to outside pressure on Monday, launching three independent reviews to learn lessons from the financial and economic crisis, but it immediately ran into criticism that their scope was too limited and technical.
SFO LAWYER WARNED AGAINST PURSUING TCHENGUIZS
The lead lawyer in the Serious Fraud Office's investigation of the Tchenguiz brothers warned the agency two months before the property tycoons' arrest that it should not pursue the case.
DIPLOMATS BACK EU 'PROJECT BONDS' PLAN
Diplomats have approved a pilot programme to issue commonly backed bonds that will fund pan-European infrastructure projects, the first element of a new "growth compact" that EU leaders will begin to piece together at a summit meeting on Wednesday.
FACEBOOK SHARES DROP BELOW ISSUE PRICE
Facebook shares fell below the price at which they floated, inflaming a debate about who was to blame for the stock's failure to "pop" after the social network's keenly watched initial public offering.
WATERSTONES STRIKES DEAL WITH AMAZON
Waterstones' managing director, James Daunt, has set aside his earlier criticisms of Amazon.com as "a devil" to strike a deal to sell its Kindle e-reader in the book seller's stores.
MAN GROUP TO ACQUIRE RIVAL FRM
Man Group,the world's second-largest hedge fund manager by assets under management, is to acquire rival FRM , almost exactly two years after its landmark buyout of GLG Partners.
CABLE WANTS MIGRATION RULE DROPPED
British business minister Vince Cable's is lobbying the Home Office to reconsider a new immigration rule that companies say will stunt growth and disrupt the labour market.
NYT
* AquaBounty Technologies, which wants to produce genetically engineered salmon, is reliant on its largest shareholder, Kakha Bendukidze. http://link.reuters.com/rew38s
* The European Commission warned Google to propose changes in "a matter of weeks" to its method of answering user queries, or possibly face an antitrust lawsuit. http://link.reuters.com/sew38s
* Much of the blame for Facebook's initial public offering debacle is landing on Morgan Stanley, the lead banker. http://link.reuters.com/tew38s
* After missing the warning signs of the financial crisis and the Ponzi scheme of Bernard L. Madoff, the S.E.C. has adopted several new strategies to restore its credibility. http://link.reuters.com/vew38s
Canada
THE GLOBE AND MAIL
- The explosive issue of corruption in Quebec returns to centre stage Tuesday as a long-anticipated public inquiry gets under way into the shadowy workings of the province's construction industry.
Reports in the business section:
- Paris-based Organization for Economic Co-operation and Development is urging Canada's central bank to raise interest rates in the fall, and continue doing so through 2013 to cool housing prices and contain inflation.
NATIONAL POST
- Apple Inc is asking the residents of Cupertino, California, to support the company's new 2.8 million square foot spaceship-like campus, which critics say would increase traffic and pressure city services.
FINANCIAL POST
- Fast-rising home prices and record-levels of household debt are posing a possible threat to Canadian banks' credit portfolios, according to a report on Monday by U.S. ratings agency Fitch.
- Canada's fertilizer and grain grower industries are asking Ottawa to legislate Canadian Pacific Railway Ltd employees back to work in the event of a strike.
European economic summary:
- Norway GDP 1.4% q/q – higher than expected. Consensus 0.9% q/q. Previous 0.5% q/q. Revised 0.6% q/q.
- UK ONS House Price -0.4% y/y. Previous 0.3% y/y. Revised 1.0% y/y.
- UK Public Finances (PSNCR) -23.2B. Consensus -6.0B. Previous 16.5B.
- UK CPI 0.6% m/m 3.0% y/y – in line with expectations. Consensus 0.6% m/m 3.1% y/y. Previous 0.3% m/m 3.5% y/y.
- UK Core CPI 2.1% y/y – higher than expected. Consensus 2.0% y/y. Previous 2.5% y/y.
- UK Retail Price Index 242.5 – higher than expected. Consensus 242.4. Previous 240.8.
- UK RPI 0.7% m/m 3.5% y/y – higher than expected. Consensus 0.6% m/m 3.4% y/y. Previous 0.4% m/m 3.6% y/y.
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In addition there has been criticism of those doing the Bank of England Policy Review.
The Facebook "fingerpointing" just gets better and better. Even the article is ridiculous. "May change the IPO process". As in like Vanguard and Fidelity having more say in how the IPO should be priced.
What's incredible is how little say they have now in how much money a company can raise. Seems like a tiny bit of cognitive dissonance when you give someone control over your money and they don't have a say in how much they'll bit for something.
Hilsenrath (ie - Fed) translation...
Deflation = QE
Inflation= QE
re.: finger pointing and Facebook
spin control is too funny - like arguing about why the jockey lost the race without acknoledging that the horse was dead.
...he's pining for the fiords
there is a psychopathic detachment from reality
well at least mark is having a good time - though it would have been more entertaining for the masses had he bagged a kardashian
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