Frontrunning: July 1

  • Strauss-Kahn Case Seen as in Jeopardy (NYT)... yes, the soap opera is back.... although don't expect Lagarde to hand the keys back to DSK - after all the mission has been accomplished. Though president DSK would be a shoo in if cleared of all charges.
  • China Salutes 90 Years of Communism (WSJ)... US salutes nearly 100 year of Federal Reserve central planning
  • Obama Pushes for a Deficit Deal by July 22 (FT)
  • China manufacturing at lowest in 2 years (FT)
  • German Banks Agree to Greek Aid Deal (WSJ)
  • Ex-Goldman director Gupta SEC Case Postponed Indefinitely (Fin Alternatives)
  • Greek, Italian Bonds Lead Peripheral Rebound as Default Concern Ebbs (Bloomberg)
  • Republicans boycott trade vote (FT)
  • Obama Pushes for a Deficit Deal by July 22 (FT)
  • US set to step up Syria sanctions (FT)
  • In Washington, Rifts Over Libya Exposed (WSJ)
  • India Manufacturing Expands at Slowest Pace in Nine Months After Rate Rise (Bloomberg)
  • Concern as Turkish growth hits 11% (FT)
  • UBS names ex central banker Weber as future chairman (Reuters)

European economic highlights:

  • Sweden PMI Manufacturing  June 52.9 – Lower than expected.Consensus 55.5. Previous 56.1.
  • Hungary PMI Manufacturing  June 54.4.Previous  52.4.
  • Norway PMI Manufacturing  June 56.1 – Lower than expected.Consensus 57.0. Previous 56.8.
  • Norway Unemployment Rate  June 2.5% - As expected.Consensus 2.5%. Previous 2.5%.
  • Poland PMI Manufacturing  June 51.2.Previous 52.6.
  • Turkey PMI Manufacturing  June 52.3.Previous 50.6.
  • Czech Republic PMI Manufacturing  June 55.1.Previous 55.9.
  • Switzerland PMI Manufacturing  June 53.4 – Lower than expected.Consensus 57.8. Previous 59.2.
  • Euroland PMI Manufacturing  June 52.0 – As expected.Consensus  52.0. Previous 52.0.
  • Euroland Unemployment Rate May 9.9% - As expected.Consensus 9.9%. Previous 9.9%.
  • Italy PMI Manufacturing 49.9 – Lower than expected.Consensus 50.6. Previous 52.8.
  • Italy Unemployment Rate  May 8.2% - Lower than expected.  Consensus 8.3%. Previous 8.1%.
  • UK PMI Manufacturing 51.3 – Lower than expected.Consensus 52.3. Previous 52.1.    

Global headline summary from Egan-Jones

  • Chinese manf index was 50.9 in June compared with a previously reported 52 in May.
  • Geithner said to consider leaving Treasury after budget deal.
  • ISM’s business barometer unexpectedly rose to 61.1 in June from 56.6 a month earlier.
  • Japan’s Tankan index of sentiment fell to minus 9 in June from 6 in March.
  • Ansys Inc. to acquire simulation-software provider Apache Design Solns for $310M.
  • Apollo Group Inc. sees 2012 revenue of as much as $4.25B (cons $4.13B).
  • AXA SA's PE arm to buy a $740M PE portfolio from UK's Barclays PLC.
  • AZZ Inc. beats by $0.12, beats on revs; guides FY12 EPS, revs above consensus.
  • Borders Group has agreed to sell itself to private investment firm Najafi Cos. for $215M.
  • Constellation Brands' Q1 net jumps 52% to $74.5M on cost-reductions. Revs fell 19% to $635.3M, due to divestiture of its Australian and UK wine business.
  • Darden Restaurants reports in-line; 34% increase in dividend to $0.43.
  • Dendreon's prostate cancer medicine Provenge to be covered by Medicare program.
  • Eaton to acquire German filtration systems provider E. Begerow GmbH. Terms undisclosed.
  • First Solar Inc. won $4.5B in conditional loan guarantees from US Energy Dept for three projects it’s developing in California.
  • HP being urged by PE firms to break up and sell some units to them.
  • HSBC to cut 700 jobs from retail operations in UK.
  • KB Home says it has no plans to issue equity; f'casts cash balance of more than $500M after paying off bond, settlement.
  • Lilly sees 2011-2014 revenue at least $20B; at least 10 drugs in Phase III by end 2011.
  • McCormick & Co.'s Q2 net rises 11% to $73.6M, helped by price increases. Lowers full-year EPS view to $2.74-2.79 (prev $2.80-2.85).
  • NetApp Inc. f'casts 2012 EPS of $2.46-2.62, compared with cons estimates of $2.48.
  • New York Fed halts sales of AIG mortgage-backed bonds on market conditions.
  • Nortel to sell patents for $4.5B.
  • Rite Aid June same-store sales rise 1.8%, on improvement in both front end and pharmacy.
  • SABMiller PLC said it will enter the high growth market of specialty beers.
  • Smith & Wesson reports Q4 EPS of $0.02; revs rose 7.7% to $111.8M.
  • Solorz-Zak buys Polkomtel, telecom co., for $5.5B, in record Polish deal.
  • Transocean adopts no-apology strategy in pushing blame on BP for oil spill.

Economic Calendar: Data on Michigan Sentiment, Construction Spending, Auto Sales to be released.
Earnings Calendar: HIHO, LPHI, PWX, RADA, SLP.


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