Frontrunning: June 8

  • Fed Sees Recovery Lagging (Jon Hilsenrath)
  • Grand Bargain U.S. Debt-Deal Failure Would Set Up 2012 Election Showdown (Bloomberg)
  • Ruling party lawmakers attack new Greek bailout (Reuters)
  • IMF's Lipsky says QE3 not necessary (Reuters)
  • Yuan's band may be widened (China Daily)
  • Tank Looks Dry for the Australian Dollar (WSJ)
  • Berlin seeks 7-year Greek debt extension (FT)
  • It’s Bubble Time as Asia Braces for Fed’s QE3 (Bloomberg)
  • G20 targets volatile food prices (FT)
  • SEC Asks for Time on Query (WSJ)
  • China agrees to halt subsidies to wind power firms (Reuters)
  • How will history judge Obama's economic policy (WaPo)
  • China Purchases of Japan Debt Reach Record (Bloomberg)
  • Race for leadership of IMF heats up (FT)
  • Brussels criticises Spain’s budget (FT)

European economic highlights:

  • Switzerland Unemployment Rate for May 2.9% - Lower than expected. Consensus 3.0%; Previous 3.1%.
  • Czech Republic Real Average Wages for Q1   0.4%yoy. Previous -1.2%yoy.
  • Czech Republic Unemployment Rate for May 8.2% - As expected.Consensus 8.2%; Previous 8.6%.
  • Turkey Industrial Production for Apr +8.3% yoy – Lower than expected.Consensus 9.7%yoy; Previous 10.4%yoy.
  • Czech Republic Current Account Balance for Q1 CZK +811.0mm.Previous CZK -848.2mm.
  • Norway Industrial Production for Apr -8.7%yoy.Previous -6.5%yoy.
  • Germany Industrial production for Apr 9.6%yoy – Lower than expected.Consensus 10.0%yoy; Previous 11.2%yoy.

Global highlights courtesy of Egan-Jones:

  • Asian stocks fall, Yen gains on growth concerns.
  • Bernanke signals no new round of easing.
  • EIA sees global oil demand in 2011 at 1.7M barrels per day, up by 300,000 over prev est.
  • German April factory orders rise 2.8% vs. cons est. for +1.9%.
  • OPEC meeting pits Iran, Venezuela against Saudis on raising crude output level.
  • US Consumer credit up at 3.1% annual rate in April.
  • World Bank sees global overheating risks.
  • ABM Industries beats by $0.01, posts Q2 EPS of $0.28. Revs rose 23.9% to $1.06B.
  • Analogic reports Q3 EPS of $0.35 (cons $0.44); revs rose 11.2% to $117.3M.
  • Avaya Inc. plans to file for a $1B initial public offering as early as this week.
  • Citigroup to sell a $1.7B portfolio of private-equity assets to AXA Private Equity.
  • Comtech's Q3 net falls 34.4% to $14.3M as revs fell 39.4% to $131.1M.
  • Hovnanian Entrpr misses by $0.18, posts Q2 loss of $0.69/sh. Revs fell 19.9% to $255.1M.
  • HSBC pays $63M to settle Madoff lawsuit.
  • Infineon on track for accelerated growth and is well-equipped to make acquisition: CEO.
  • LDK Solar beats by $0.09, reports revs in-line; guides Q2 revs below consensus.
  • LyondellBasell to buy 200 miles of BP pipeline; financial terms undisclosed.
  • Najafi Cos. in discussions to buy Borders Group out of bankruptcy court.
  • Navistar's Q2 net rises 72% to $74M; revs grew 22% to $3.36B. Narrows FY EPS view to $5.50-6.0 (cons $5.34).
  • NBCUniversal won rights to televise Olympic Games in US through 2020 with a $4.38B bid.
  • Prudential Fincl to buy back $1.5B in common shares before June 30, 2012.
  • Talbots Inc. said sales and traffic are taking a hit in the second quarter.
  • Treasury said to be reluctant to sell part of GM holding at current price.
  • Volvo's May car sales in China surge 82%; global sales up 42%.

Economic Calendar: Data on MBA Mortgage Index, Crude Inventories & Fed's Beige Book to be released today.
Earnings Calendar: CIEN, GEF, LAKE, LUB, MW, PLL, PNY, SHFL, THO, UHAL.


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