Frontrunning: May 13

  • Japan’s Most Important Banker Sees Only Bubbles (Bloomberg)
  • China May Limit Rate Increases After Raising Bank Reserve Ratio (Bloomberg)
  • Japan Approves Tepco Nuclear Claims Plan (Reuters)
  • What Is The Purpose Of The Euro? (Forbes)
  • Senior IMF Official: Asian Countries, Including China, Increasingly See Currency Rise Needed (WSJ)
  • Suicide Bombing Kills At Least 69 in Pakistan (Reuters)
  • U.S. Attorney Sends a Message to Wall Street (NYT)
  • Mighty Determined Sellers (NYT)
  • IMF Weighs Extending Greek Repayments (WSJ)
  • Beef Buying Koreans Fuel Record U.S. Meat Rally (Bloomberg)
  • Money Markets: Stretching Hard for Yields (PIMCO)
  • Exchange operator BATS Global files for IPO (Reuters)
  • Greece Debt Default Anticipated by 85% in Poll (Bloomberg)
  • Dispute Looms over Leading Roles at ECB (FT)
  • Sons of Blackwater Open Corporate Spying Shop (Wired)
  • Uncertain Leadership Strains Financial Overhaul (NYT)


European Economic Highlights:

  • Germany GDP for Q1 - Flash +1.5%qoq – higher than expected. Consensus +0.9%qoq. Previous +0.4%qoq.
  • France GDP - Provisional for Q1 +1.0%qoq – higher than expected.Consensus +0.6%qoq. Previous +0.3%qoq.
  • Spain GDP for Q1 – Flash +0.3%qoq, +0.8%yoy – higher than expected.Consensus +0.2%qoq +0.7%yoy. Previous +0.2% qoq +0.6%yoy.
  • Euroland GDP for Q1 - Flash +0.8%qoq +2.5%yoy – higher than expected.Consensus +0.6%qoq +2.2%yoy. Previous +0.3%qoq +2.0%yoy.
  • Italy GDP - Provisional for Q1 +0.1%qoq +1.0%yoy – lower than expected.Consensus +0.1%qoq +1.3%yoy. Previous +0.1%qoq, +1.5%yoy.

Summary Highlights via Egan-Jones:

  • Asian stocks, oil decline on China tightening.
  • Bank of Korea unexpectedly leaves interest rate unchanged at 3%.
  • Bernanke: System unstable if debt limit not lifted.
  • China hikes reserve requirement ratio for banks to 21%.
  • Retail Sales in US rise 0.5% vs. 0.7% expected, helped by gains in fuel, food.
  • Advent Software to acquire Black Diamond Performance Reporting for $73M.
  • Burger King swings to Q1 loss of $6.8M, sales drop 8% 552M.
  • CA Tech sees 2012 EPS at $2.12-2.19 (cons $2.10); Board announces addln $500M of repurchase of Co's shares.
  • Enel Q1 net rose 14%, above expectations, due to lower financial charges.
  • Feds seeks $1B to resolve a long-running probe into J&J's marketing of Risperdal.
  • FleetCor beats by $0.03, beats on revs; reaffirms FY11 EPS, revs guidance.
  • General Mills seeing higher prices sticking: CFO.
  • Japan to aid Tepco compensation for Fukushima nuclear crisis.
  • Kohl's Corp. Q1 net rises 6% to $211M as sales rose 2.9% to $4.16B.
  • Nissan ends record sales year with $380M quarterly profit; plans to ramp up US deals.
  • Nordstrom announces $750M buyback of its common stock. Q1 net up 25% at $145M as revs rose 12% to $2.23B.
  • Precision Castparts' Q1 net rises 12% to $271M as overall revs rose 17% to $1.68B.revs rose 12% to $2.23B.
  • Rambus to acquire CRI for an aggregate of $342.5M.
  • Rent-A-Center increases quarterly cash dividend 167% to $0.16/sh.
  • Takeda: No truth to reports on Nycomed deal.
  • Teekay Corp.'s Q1 loss doubled to $29.7M as revs slipped 14.6% to $488M.
  • agrees to sell home loan business to Discover Financial Services for $55.9M.
  • Tyson board reactivates 22.5M share buyback.
  • Vivendi SA's Q1 net rises 193.7% to €1.73B on gains from tax settlement in Poland. Revs up 3.8% at €7.18B.
  • Yahoo said the transfer of control of Alipay - an online payment unit of Alibaba Group, in which Yahoo holds a roughly 39% stake, occurred without its knowledge.
  • Yum Brands plans to privatize Little Sheep Group Ltd. and gain a roughly 93% stake in the Chinese restaurant chain.

Economic Calendar: Data on CPI, Mich Sentiment to be released today.

Earnings Calendar: A, ARKR, BEC, CLSN, DDS, INTG, LDK, PRKR, USBI.


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