Frontrunning: September 6
- Draghi Credibility At Stake As ECB Tries To Save The Euro (Bloomberg)
- Clinton Returns to Back Obama (WSJ)
- Taxi fares up 17% in New York City (Toronto Sun)
- High Speed Scandal: Ferrari Incident Rocks China (Daily Beast)
- China’s Richest Man Benefits From Thirst For Soft Drinks (Bloomberg)
- China August export growth seen weak, imports slow (Reuters)
- Death to PowerPoint! (BusinessWeek)
- Sweden surprises with interest rate cut (WSJ)
- IMF demands greater clarity on Irish austerity plans (Reuters)
- At Abercrombie & Fitch, Sex No Longer Sells (Bloomberg)
- Economic troubles spark rethink in Poland (FT)
- Clinton Stresses Closer With China Amid Disputes (Bloomberg)
- And the best for last: California Treasurer Backs Law to Ban Costly Long-Term Bonds (Bloomberg) -> legislating low, low yields
Overnight Media Digest
* Democrats led by former President Bill Clinton gave a rousing defense of Democratic economic philosophies on Wednesday, promising that re-electing President Barack Obama would produce changes to an economic system they said was often stacked against the middle class.
* Nokia Oyj, once the world's largest mobile-phone maker, hoped to make a splash on Wednesday when it introduced two phones, but its shares tumbled 16 percent after it didn't say when the phones would become available, where to buy them or what they will cost.
* The combatants in the imperiled tie-up between Glencore International Plc and Xstrata Plc could still salvage the $34 billion deal before a Friday shareholder vote, people close to the companies say, though recent attempts to break an impasse over price have been unsuccessful.
* The euro zone's economic downturn accelerated during the summer, economic reports on Wednesday suggest, raising concerns that even aggressive anti-crisis measures from the European Central Bank won't be enough to keep the euro bloc from sliding into a deep recession.
* India plans to widen the scope of price controls on pharmaceuticals, a senior government official said, creating another potential hurdle for multinational drug companies doing business in the country.
ECB HOLDS BACK FROM BOND YIELD CAP
The ECB will refrain from publishing any formal cap on bond yields when it announces a new plan to buy distressed euro zone sovereign debt.
NOKIA SHARES FALL DESPITE NEW PHONES
Nokia launched its new smartphone on Wednesday, but failed to excite investors as share prices fell again.
SECRET SERVICE RECRUITS HELP FOR BOND GADGETS
MI5 is appealing to small and medium-sized technology companies to help provide the gizmos for covert operations.
AG BARR SPRINGS BID FOR BRITVIC
AG Barr, maker of Scotland's Irn-Bru, has launched an audacious bid for Britvic.
CHINA LIFTS BAR ON SECURITISATION SALES
China Development Bank will sell $1.6 billion in asset-backed securities this week, the country's biggest securitisation deal.
CITIGROUP SAILS INTO EUROPEAN BANK WATERS
Citigroup is launching a commodity trade finance business to capitalize on a market gap.
LLOYDS TARGETED IN NEW MIS-SELLING SWOOP
Lloyds Banking Group is under investigation by the FSA as part of a crackdown on incentives that encourage the mis-selling of products.
GOLDMAN BOOSTS PRIVATE LOANS TO WEALTHY
Goldman Sachs is upping its lending to wealthy individuals with a host of new loan products and credit offerings.
HEATHROW EXPANSION DECISION SHELVED
A decision on whether to expand Heathrow airport has been shelved until beyond the 2015 election.
EMIRATES SET TO UNVEIL QANTAS PARTNERSHIP
Emirates Airline is set to announce plans on Thursday for a far-reaching partnership with Qantas.
* Shareholders in Xstrata Plc, one of the world's biggest miners of copper and coal, are to vote On Friday on an offer from Glencore International Plc, which dominates the global trading of such materials. But Qatar Holding, a unit of the Gulf nation's sovereign wealth fund, is poised to squash the acquisition.
* Motorola Mobility and Nokia Oyj held events on Wednesday in New York to unveil their latest smartphones, just one week before Apple Inc is scheduled to introduce its next iPhone. Much depends on the success of those phones, as Nokia and Motorola's shares of the phone market continue to slide while sales of Apple and Samsung devices soar.
* Samsung Electronics says global sales of its Galaxy S III smartphone have surpassed 20 million in a little more than three months.
* The Dutch financial services giant ING Group plans to sell its 9 percent stake in Capital One in a deal that could be worth around $3 billion.
* Spain's Prime Minister Antonis Samaras has been scrambling to seal a deal with his coalition government for fresh cuts to pensions, salaries and other expenses before Greece's so-called troika of international lenders returns to Athens on Friday to inspect his progress. The country's next installment of bailout money will depend on his getting a passing grade.
THE GLOBE AND MAIL
* A human torso placed in a suitcase and found drifting on Lake Ontario is the latest in a string of body parts discovered in and around Toronto over the past month. The grisly discovery was made on Wednesday morning by a man and a woman on personal watercrafts, according to area residents. They found the suitcase some two and a half kilometers off Bluffer's Park in Scarborough, pulled it back to land and called police.
* Premier Jean Charest announced on Wednesday he will leave politics after 28 years as a strong voice for federalism within Quebec. Stung by defeat, including the loss of his hometown seat for the first time in 28 years, Charest said he and his family reached the conclusion shortly after his defeat.
Reports in the business section:
* A consortium led by Royal Dutch Shell PLC has launched the first project to bury greenhouse gases from the oil sands, part of a C$950-million government-sponsored defence against global criticism of Alberta's "dirty oil."
* TransCanada Corp has again rerouted its proposed Keystone XL pipeline in Nebraska in the face of local opposition to the C$7.6-billion project to carry Canadian oil sands crude to the U.S. Gulf Coast. In a statement on Wednesday, TransCanada said it filed a supplemental environmental report to the Nebraska state government, with a 32-kilometre jog that would take a bigger detour around the sensitive Sandhills area and avoid crossing groundwater sources for two towns.
* The suspect in the fatal shooting at Tuesday's Parti Québécois victory party is a kilt-wearing fishing-lodge owner who may have learned of a business setback hours before gunshots rang out, it emerged Wednesday.
* Less than three months after he was one of 23 people wounded by gunfire at a Scarborough block party, a 17-year-old has once again been shot, this time in a targeted daylight attack. The youth, who cannot be named, was cycling just north of Finch and Victoria Park avenues on Sunday when his alleged attacker, a 16-year-old, drew a handgun and fired.
* A takeover of Canadian hardware chain Rona Inc by Lowe's Companies Inc appears less likely now that the Parti Québécois, which has rallied against foreign ownership of Quebec-based companies, has won a minority government.
* ShawCor Ltd said its controlling shareholder and chair of its board of directors, Virginia Shaw, may sell her shares as part of a sale of the company. The energy services company has set up a committee to conduct a strategic review of alternatives, including canvassing potentially interested third parties, the company said in a statement.
European Economic Update
- Netherland CPI 0.1% m/m 2.3% y/y – lower than expected. Consensus 0.3% m/m 2.4% y/y. Previous 0.7% m/m 2.3% y/y.
- Riksbank Interest Rate 1.25% - lower than expected. Consensus 1.50%. Previous 1.50%.
- Eurozone Q2 GDP -0.2% q/q -0.5% y/y – lower than expected. Consensus -0.2% q/q -0.4% y/y. Previous -0.2% q/q -0.4% y/y.