Frontrunning: August 15

  • World Bank president Zoellick: "Markets heading to new danger zone" (Reuters)
  • Treasury yields testing bank limits (FT)
  • Three steps to resolving the eurozone crisis (FT)
  • Singapore Prime Minister: Global Recession Is 'A Possibility' (WSJ)
  • A helpless SNB leaks even more disinformation: CHF should be linked to € (Manager Magazin)
  • Japan’s GDP shrinks less than expected (FT)
  • SNB, Swiss Government in Talks Over Franc Target, SonntagsZeitung Reports (Bloomberg)
  • Japan’s Noda Warns of Further Intervention as Yen Again Nears Postwar High (Bloomberg)
  • China calls for enhanced coordination among ASEAN+6 economic ministers (Xinhua)
  • Swan: Australia Economy Can ‘Ride Out’ Turmoil (Bloomberg)
  • Germany and France rule out Eurobonds (FT)
  • Global recovery requires political courage (FT)

European economic update:

  • Norway Trade Balance (Krone) for July 38.1B. Previous 24.7B
  • Switzerland Producer & Import Prices for July -0.7% m/m -0.6% y/y - in line with expectations.Consensus -0.6% m/m -0.6% y/y. Previous -0.5% m/m -0.4% y/y
  • Sweden Industrial Prod. s.a. for June -3.3% m/m 6.4% y/y - lower than expected. Consensus -0.9% m/m 10.5% y/y. Previous 2.1% m/m 13.2% y/y (revised from 2.6% m/m 13.4% y/y)
  • Sweden Industrial Orders s.a. for June -1.0% m/m 5.5% y/y.Previous 0.2% m/m 8.7% y/y (revised from 0.1% m/m 8.6% y/y)
    UK Rightmove House Prices for August -2.1% m/m -0.3% y/y.Previous -1.6% m/m -0.3% y/y.

Global highlights from Egan Jones:

  • Asian stocks gain as US jobless claims data ease economic growth concern.
  • China regulators said to tell banks to tighten curbs on property lending.
  • Grains surge as US cuts crop forecasts after damaging Midwest heat wave.
  • Japan slashes growth forecast to 0.5% after record quake disrupts output.
  • Oil falls below $85 as traders eye EU debt crisis.
  • Short-sales banned after stocks plunge in France, Spain, Italy, Belgium.
  • UK house prices fall to 19-month low as loan restrictions deter buyers.
  • US Postal Service is considering cutting as many as 120,000 jobs.
  • US Unemployment applications fell to 395k, calming recession fears after week of mkt turmoil.
  • AmerisourceBergen Corp.'s board authorized a new $750M stock-repurchase program.
  • Arthur J. Gallagher acquires Robinson-Adams Insurance; terms undisclosed.
  • Bally Tech's Q4 net halves to $25.5M on debt retirement charges. Revs grew 9% to $214M.
  • Burger King's Q2 net falls 13% to $42.8M on high interest exps. Revs too fell 4.3% to $596.2M.
  • Cemex’s 13% yields lure Citigroup after record bond plunge.
  • Citadel said in talks to sell investment bank, shut equity-research unit.
  • DeVry reports Q4 EPS of $1.08 (cons $1.04); revs rose 7.9% to $546.7M.
  • Emulex Corp. f'casts Q1 EPS of not more than $0.12 vs. cons f'cast of $0.15.
  • EPA tells DuPont to halt sales of weedkiller, Imprelis blamed for damaging trees in several states.
  • Legg Mason says it won’t renew French bank debt held in money-market funds.
  • Li & Fung's Hi net falls 15% on higher operating expenses. Revs rose 33% to $8.80B.
  • Mattel to appeal $309M judgment favoring MGA Entertainment in Bratz doll case.
  • Nordstrom beats by $0.06, posts Q2 EPS of $0.80. Revs rose 11.7% to $2.81B.
  • NVIDIA reports EPS in-line, beats on revs; guides Q3 revs above consensus.
  • Pfizer said it has made "potentially improper payments" outside the US.
  • Royal Dutch Shell to buy back B shares.
  • Sara Lee sees 2012 EPS at $0.89-0.95 vs. cons forecast of $1.06.
  • Wal-Mart is said to explore bid for Carrefour’s Brazilian retail business.
  • Wendy's Co.'s Q2 net rose 4.9% to $11.3M helped by 2.5% rise in sales, at $622.5M.
  • Wyndham Worldwide Corp.'s board augmented its share-repurchase program by $500M.
  • Zynga Inc. raised a $1B line of credit in July from Morgan Stanley, Goldman Sachs, others.

Economic Calendar: July Retail Sales, Mich Sentiment, Business Inventories to be released today.
Earnings Calendar: CNTY, CTIB, HH, HPOL, JCP, SUBK.