Frontrunning: May 25

  • France's Lagarde launches IMF bid, BRICs complain (Reuters)
  • Greek assets could go to ‘fund of experts’ (FT)... and gold "could" go to central banks
  • U.K. Economy Grew 0.5% in First Quarter (Bloomberg)
  • OECD cuts Japan GDP forecast again, urges easy monetary policy (Reuters)
  • Kan targets structural issues after quake (FT)
  • Shanghai Composite down 10% in six weeks, officially enters correction territory (FT)
  • Banks Face $17 Billion in Suits Over Foreclosures (WSJ)
  • EU Juncker: Still In Favor Of 'Reprofiling' Greek Sovereign Debt (WSJ)
  • Murder Trial for Mubarak (WSJ)
  • China in talks with Brazil over trade barriers (FT)
  • The GM hedge fund hotel is no Hotel California: everyone is checking out (Bloomberg) as previously reported by Zero Hedge
  • Tepco Says Fuel Rods Melted Down in Two More Reactors at Fukushima Plant  (Bloomberg)
  • Oil and stockmarkets likely to delink this year (Reuters)
  • Republican leaders say budget cuts would aid economic growth immediately (WaPo)
  • The "this time it's different" tech bubble: Zynga Is Said to Plan an Initial Share Sale (Bloomberg)

European economic highlights

  • Germany GfK Consumer Confidence Survey for June 5.5-lower than expected Consensus 5.6 Previous 5.7
  • Italy Retail Sales s.a. for March -0.2% m/m -2.0% y/y-lower than expectedConsensus -0.1% m/m -0.6% y/y Previous 0.0% m/m 0.0% y/y
  • Sweden Unemployment Rate for April 7.9% m/m-lower than expectedConsensus 8.0% Previous 8.1%
  • UK Total Business Investment for Q1 -3.2% q/q -7.1% y/yPrevious 0.0% q/q 12.2% y/y
  • UK GDP for Q1 0.5% q/q 1.8% y/y-as expectedGS forecast 0.5% q/q 1.8% y/y Consensus 0.5% q/q 1.8% y/y Previous 0.5% q/q 1.8% y/y
  • UK Private Consumption for Q1 -0.6%-Lower than expectedConsensus 0.1% Previous -0.3%
  • UK Government Spending for Q1 1.0%-Higher than expected Consensus 0.2% Previous 0.4%
  • UK Gross Fixed Capital Formation for Q1 -4.4%-Lower than expectedConsensus 1.0% Previous -1.8%
  • UK Exports for Q1 3.7%-Higher than expectedConsensus 2.1% Previous 1.7%
  • UK Imports for Q1 -2.3%-Lower than expected Consensus -0.7% Previous 3.2%
  • UK Index of Services (3mth/3mth) for March 0.9%-as expected Consensus 0.9% Previous -0.4% (revised from -0.3%)
  • UK Index of Services for March 0.6%-higher than expected Consensus 0.5% m/m Previous 0.5% (revised from 0.6% m/m)
  • UK BBA Loans for House Purchase for April 29,355-Lower than expected Consensus 32,250 Previous 31,205 (Revised from 31,660)

Global Highlights courtesy of Egan-Jones

  • Dollar, Yen advance as Asian stock declines boost demand for safer assets.
  • Fed to add government-sponsored entities as reverse repo counterparties.
  • Japan swings to trade deficit as exports slump on quake, commodities rise.
  • AIG’s share offering raises $8.7B for Treasury, bailed-out insurer.
  • Applied Materials f'casts Q3 profit and sales that missed analysts’ estimates.
  • Bankia’s $5.6B IPO is 'brutal stress test' amid Spain debt concern.
  • Barnes & Noble is introducing a smaller, cheaper new Nook device, priced at $139.
  • Books-A-Million reports Q1 ($0.22) vs. $0.13 in last year's qtr; revs fell 11.1% to $104M.
  • Collective Brands said Q1 earnings fell short of cons est. by 48% as sales declined.
  • Compuware Corp.'s Q4 net slips 7% to $34.8M despite 8.5% rise in revs to $249.6M.
  • Diageo said in talks to buy Jose Cuervo Tequila for more than $2B.
  • Dycom beats by $0.05, posts Q3 EPS of $0.10. Revs rose 9% to $252.4M.
  • Express Inc.: Q2 EPS won’t exceed $0.15 (analysts estimated $0.16/sh).
  • HEICO beats by $0.03, posts Q2 EPS of $0.40. Revs rose 20% to $184.5M.
  • HP to acquire Printelligent, a pvt held provider of managed print srvcs. Terms undisclosed.
  • Jackson Hewitt reaches agreement with lenders to restructure debt.
  • Medtronic's Q4 earnings fell 19%, hit by restructuring costs linked to recent job cuts.
  • Nestle raised prices on its bottled water nearly 10% last month.
  • Pacific Sunwear beats by $0.03, beats on revs; guides Q2 EPS below consensus.
  • Penn Natl Gaming, City of Columbus reach comprehensive agreement to end litigation.
  • Take-Two Interactive Q4 loss widens to $22.4M as revs fell by 22% to $182.3M.
  • Wamu targets mid-August for Chapter 11 exit.

Economic Calendar: Data on MBA Mortgage Index, Durable Orders, Crude Inventories to be released.
Earnings Calendar: AEO, BWS, COST, CSC, GES, HRL, NDN, NTAP, RL, TOL, ZLC.


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