Frontrunning: August 4

  • Japan Launches Campaign to Weaken Yen (WSJ)
  • ECB to protect Europe by buying bonds (Telegraph)
  • Silent Scream of Swiss Franc Shows Great Distortion Amid Great Moderation (Bloomberg)
  • Pressured by White House, Treasury Secretary Is Expected to Stay at Post (NYT)
  • The U.S. Economy Feels the Pull of Gravity (BusinessWeek)
  • ECB Sees Lenders Rush to HoardCash (FT)
  • Groupon’s Strikeouts Reveal an Unspoken Truth (BusinessWeek)
  • Americans' Spending Increases in July (Gallup)
  • Pentagon’s First Installment on Cutting Debt May Be $28 Billion (Bloomberg)
  • Korea Finance Ministry Warns of Food Security Issues as Prices Rise (JoongAng)
  • Central Banks Join Rush to Gold (DW)
  • Stiglitz Urges US To Move On Hiking Bank Capital (WSJ)
  • Turkey Cuts Benchmark Interest Rate to 5.75% (Bloomberg)
  • China Refutes Japan's 2011 Defense White (China Daily)

European economic News:

  • Germany Manufacturing Orders (Jun) 1.8% m/m 9.5% y/y – higher than expected.Consensus -0.5% m/m 6.7% y/y. Previous 1.5% m/m 11.7% y/y (revised from 1.8% m/m 12.2% y/y)
  • Norway Unemployment rate (AKU) for May 3.3% - lower than expected.Consensus 3.4%. Previous 3.4%
  • UK New Car Registrations for July -3.5%.Previous -6.2%
  • BOE Rates 0.5% - unchanged as expected
  • BOE Asset Purchase Target 200B – unchanged as expected

Global economic highlights:

  • Japan intervened in the foreign-exchange markets Thursday to curb the yen’s strength.
  • Unemployment rose in nearly all US cities in June as hiring slows, natural disasters hit.
  • US Services firms expand at slowest pace in 17 months - at 52.7 in July vs 53.3 in June.
  • Activision Blizzard's Q2 net jumps 53% to $335M as revs climbed 19% to $1.15B.
  • Adidas AG raised its FY11 sales, EPS forecast after reporting profit advanced in the first half.
  • Atmel Corp. swings to profit of $90.9M in Q2 as revs rose 22% to $478.6M.
  • Career Education Q2 profit falls 13.9% to $55.4M, revs slip 5.8%.
  • Cargill recalling 36 million pounds of ground turkey linked to nationwide salmonella outbreak.
  • Chiquita Brands' Q2 net fell 18% to $78M as revs slipped by 5% to $870M.
  • Clearwire Corp.'s Q2 loss widened to $168.7M on higher operating costs.
  • Comcast Q2 profit up 16%, tops expectations, as cable and NBC Universal post strong results.
  • Dendreon says prostate cancer therapy sales won't reach target of at least $350M.
  • Hot Topic Inc. July same store sales rose 7.3% - beating estimates.
  • ING Group Q2 net rises 24% to €1.51B; takes €310M of impairments on Greek govt bonds.
  • Inmarsat said it will take longer than prev expected for growth in its core business to recover.
  • Lloyds Banking posts $3.78B loss in H1 mainly due to a one-time charges.
  • MasterCard Q2 profit jumps 33% to $608M on heavier card use; debit use surges worldwide.
  • McDermott Intl's Q2 profit down 11% on higher expenses. Revs rose 36% to $849.8M.
  • Munich Re Q2 net profit rose 3.8% to €736M; upbeat on 2011.
  • Pfizer plans OTC version of Lipitor.
  • Prudential Financial Q2 net rise 4.1% to $831M; revs up 32% at $10.15B.
  • RBS to cut 2,000 investment-banking jobs: report.
  • Rio Tinto increased its share buy-back by $2B to $7B; H1 net income at $7.587B (cons $8.36B).
  • Tesla Q2 loss widens to $59M on new car costs, but company raises full-year revenue f'cast.
  • Time Warner 2Q upbeat but economic worries drag.
  • Transocean Q2 net falls 78% to $155M as rigs idled, misses analyst est. Revs fell 5.8%.

Economic Calendar: Initial Claims & Continuing Claims to be released.


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