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Frontrunning: September 3

Tyler Durden's picture




 
  • Germans write off Greece, says poll (FT) - Only a quarter of Germans think Greece should stay in the eurozone
  • As predicted here two months ago: ECB chief and Spanish PM on collision course (FT)
  • Gold Wagers Jump To 5-Month High As Fed Spurs Rally (Bloomberg)
  • Euro zone factories faltering as core crumbles (Reuters)
  • Those who expected more China easing, beware: PBOC Has No Short Term Intention for Loose Money Policy (Financial Market News)
  • French jobless tops three million, minister says (AFP)
  • Spain Leads Europe’s $25 Billion Gamble Before ECB (Bloomberg)
  • US investor is Ireland’s biggest creditor (FT)
  • Draghi May See Silver Lining In Disappointing Investors (Bloomberg)
  • China's steel traders expose banks' bad debts (Reuters)
  • NY probes private equity tax strategy  (FT)

Overnight Media Digest

WSJ

* Asia's manufacturing downturn deepened in August as China weakened sharply, adding to pressure on governments and central banks to do more to prevent a sharper slowdown caused by flagging demand from Western markets.

* The euro's recent rally will face a new test this week, as currency investors turn attention to the European Central Bank's policy decision on Thursday.

* The New York Attorney General is investigating a practice in the private-equity industry that involves converting certain fees into investments eligible for more-favorable tax treatment, people familiar with the matter said on Saturday.

* Apple Inc formally made Samsung Electronics Co's current flagship smartphone, the Galaxy S III, a target in their continuing patent dispute.

* Cambodian police on Sunday said they arrested Gottfrid Svartholm Warg-one of the masterminds behind notorious file-sharing website The Pirate Bay, months after he was due to begin a one-year prison sentence in his native Sweden.

 

FT

CAMERON SEEKS FRESH GROWTH STRATEGY

British prime minister David Cameron will this week attempt to inject life into Britain's stagnant economy.

GERMANS WRITE OFF GREECE, SAYS POLL

Only a quarter of Germans think Greece should stay in the euro zone or get more help from other countries in the region.

NY PROBES PRIVATE EQUITY TAX STRATEGY

At least a dozen U.S. private equity firms have been subpoenaed as part of a probe into tax strategy.

LONDON LUXURY PROPERTY BOOM

A 38 billion pound development boom in London's most expensive neighbourhoods has been spurred by rampant demand from European and Asian buyers.

QUESTIONS OVER THE VIABILITY OF US ETFS

More than a quarter of exchange-traded funds and notes listed in the U.S. have attracted enough assets to be economically viable.

HIBU CREDITORS BEGIN RESTRUCTURING TALKS

Investors in the 2.2 billion pound of debt in Hibu have begun restructuring talks for the second time in a year.

US INVESTOR IS IRELAND'S BIGGEST CREDITOR

A leading U.S. bonds investor has emerged as Ireland's biggest private-sector creditor by aggressively buying Irish government bonds.

FRANCE SEEKS EU APPROVAL FOR BANK RESCUE

The French government has been forced to rescue the distressed domestic mortgage lender Credit Immobilier de France.

CREDIT SUISSE MOVING SOME SINGAPORE JOBS

Credit Suisse is relocating dozens of back-office jobs from Singapore to India and Poland as part of efforts to cut costs.

 

NYT

* Even as Greece desperately tries to avoid defaulting on its debt, American companies are preparing for what was once unthinkable: that Greece could soon be forced to leave the euro zone.

* When the European Central Bank meets this Thursday, Mario Draghi, the bank's president, could have a far harder time reconciling the expectations of twitchy financial markets with the limitations of his power.

* Several major tech companies are cramming product announcements into this holiday-shortened week. Nokia Oyj and Motorola Mobility Holdings Inc, have scheduled events for Wednesday at which they are likely to announce new smartphones. Amazon is expected to introduce new Kindle devices on Thursday.

* Ticket sales at North American cinemas declined an estimated 3 percent, to $4.28 billion, for the period from the first full weekend in May to Labor Day, compared with the period a year earlier.

 

China

China Securities Journal

-- China's Gross Domestic Product (GDP) could still reach 8.01 percent and the Consumer Price Index (CPI) could fall to 2.9 percent in 2012, according to a forecast by a research institution at Xiamen University and another forecast by the economic information office at Xinhua News Agency.

-- A rise in domestic pork prices will cause a rebound in China's CPI.

-- China's crude oil prices could rise again in September due to strength in the global market.

SECURITIES TIMES

-- A total of 62 brokerages have issued 638 bond tranches as of the end of August of this year, up 145 percent from a year earlier, Wind data showed.

SHANGHAI DAILY

-- Chinese Premier Wen Jiabao on Sunday called on Eurasian countries to maintain stability and further open up their markets to promote common development at the China-Eurasia Expo in Urumqi, Xinjiang province.

-- Chinese philanthropist Chen Guangbiao is planning to buy advertising space in Japanese newspapers to assert China's sovereignty over the Diaoyu Islands after taking out a similar ad in the New York Times.

FINANCIAL NEWS

-- China's foreign exchange watchdog, the State Foreign Exchange Administration, has approved $500 million quotas for qualified domestic institution investors (QDII) to invest in offshore markets, such as securities and bonds, in August, with the quotas totalling $84.297 billion.

CHINA DAILY (www.chinadaily.com.cn)

-- Vice-President Xi Jinping urged Party officials not to be distracted by other issues during their short stay this coming semester at the top Party school. Teachers and students of the Party's education system interpreted Xi's remarks as meaning he expects students to focus on learning rather than taking advantage of a houseful of officials to create relationships, as has happened before.

-- Defence Minister Liang Guanglie started the first visit by a Chinese defence minister to India in eight years. An expert said Liang's visit showed military exchanges between Asia's two largest powers have "returned to normal". The rapid and almost simultaneous rise of China and India has raised concerns about an inevitable confrontation between the two emerging economies, experts said.

-- Peking University will sue a former professor for libel over claims he made about a sex scandal at the college. The college is seeking an apology and damages from Zou Hengfu, an economist who falsely alleged that its deans and directors had sexually harassed waitresses working on campus.

 

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Mon, 09/03/2012 - 08:38 | 2757381 bank guy in Brussels
bank guy in Brussels's picture

Above list has the title but not to the link to this Bloomberg article:

http://www.bloomberg.com/news/2012-09-03/spain-leads-europe-s-25-billion...

An article which also discusses the great bond-selling success of Belgium:

« Belgium today sold 3.195 billion euros of debt maturing between 2019 and 2041, its first sale since July 30. The bonds due in September 2022 were sold at an average yield of 2.584 percent, down from 2.624 percent in July and the lowest for similar-maturity debt since at least the introduction of the euro in 1999.»

Mon, 09/03/2012 - 08:54 | 2757404 HardAssets
HardAssets's picture

Thanks for the link . . . but many of us don't trust Bloomberg at all

Mon, 09/03/2012 - 08:53 | 2757400 HardAssets
HardAssets's picture

German ZHers - please let us know what citizens in Germany think about all this. We can't trust out own media or various biased sources to give us the real picture.

Thank you

Mon, 09/03/2012 - 08:59 | 2757410 Haager
Haager's picture

Over what part exactly out of the whole bs shall I give you my opinion? 

Mon, 09/03/2012 - 08:58 | 2757409 Muppet Pimp
Muppet Pimp's picture

So....nominal GDP targeting, aye?  Get yer PM's while you can, the Bernanke is going to try to inflate it all away.  Screw 'the legacy', turns out this is really just a love story between a man and a printer (who no one has the authority to stop).

Mon, 09/03/2012 - 18:19 | 2758810 youngman
youngman's picture

This is where Central Planners get into la la land....nominal GDP if they do not make it...they will invent it or fake it...they will make some factory produce things to make the Nominal GDP...even though no one buys them or needs them....they will cover up the supply demand laws with we saved the jobs shtick.....all for the good of the laboror and the "economy"....The CCCP will be proud

Mon, 09/03/2012 - 09:00 | 2757414 midtowng
midtowng's picture

Get this headline: China, Germany plan to settle trade in yuan and euros.

That should get people's attention.

http://www.cnbc.com/id/48838061

Mon, 09/03/2012 - 09:00 | 2757415 LikeClockwork
LikeClockwork's picture

Wait.. So did China bail-out Europe? Are my charts upside-down?

Mon, 09/03/2012 - 11:00 | 2757652 spanish inquisition
spanish inquisition's picture

OT - I need to apologize. I was going about my routine and had the TV on in a different room, much to my horror they were showing Sex in the City 2. I changed the channel right away, but it may have not been quick enough and will show 1 viewer to the ratings. Which means they will show it again, I am sorry.

Mon, 09/03/2012 - 11:06 | 2757681 Jim B
Jim B's picture

Econtalk podcast: 

Barofsky on Bailouts

Confirms what we knew, the FED works for the banks!

 

http://www.econtalk.org/archives/2012/09/barofsky_on_bai.html

Do NOT follow this link or you will be banned from the site!