Frontrunning: August 8

  • To Reassure Markets, Europe Needs Bigger Bailout Fund, Says Geithner (WSJ)
  • European Central Bank acts to prop up debt of Italy, Spain (WaPo)
  • ECB bond intervention set to spur debate (FT)
  • Debt Issuers Brace for Impact from Downgrade (Reuters)
  • G-7 Seeks to Calm Investor Fear After World Stock Selloff(Bloomberg)
  • S&P Affirming U.S. Short-Term Debt Ratings May Keep Money Markets in Check (Bloomberg)
  • New Rules in Game of Sovereign Debt Risk (FT)
  • Japan Would Sell Yen to Dissuade Speculators (Bloomberg)
  • China Sells Japan Medium-, Long-Term Debt 1st Time in 9 Months (Business Week)
  • Survey Signals Uneven UK Recovery (FT)
  • Washington Attacks S&P’s Competence (FT)
  • Korea Braces for Fallout of U.S. Downgrade (Joongang Daily)
  • China urges US to ‘live within its means’ (FT)

European economic news:

  • Switzerland Unemployment Rate for July 2.8% Consensus 2.8% Previous 2.8%
  • Switzerland Unemployment Rate (sa) for July 3.0% Consensus 3.0% Previous 3.0%
  • Euro-Zone Sentix Investor Confidence for August: -53Previous -50
  • France Bus. Sentiment for July 98 Previous 99
  • Norway Credit Indicator Growth for June 6.0% lower than expected Consensus 6.6% Previous 6.5%

Global economic highlights via Egan-Jones

  • Asian stocks, Oil slide as Gold, Franc advance on US ratings downgrade.
  • China stocks tumble, dragging index down 20% from November high.
  • ECB and G7 signal readiness to intervene; stand poised to act on bonds and currencies.
  • G-7 vows to take ‘all necessary measures’ to stabilize economies, markets.
  • Gold Futures surge to record as investors seek haven after US rating cut.
  • Italian and Spanish borrowing costs tumble after ECB promises to buy up debt.
  • Japan official warns of further Yen selling to deter currency speculation.
  • Oil prices sank below $84 a barrel Monday in Asia amid fears of economic growth.
  • US Consumer jumped $15.5B in June- largest one month gain since Aug 2007.
  • Berkshire Hathaway Q2 profit rose 74% to $3.42B on improved results in its derivatives portfolio.
  • Buckeye Partners beats by $0.18, posts Q2 EPS of $1.00. Revs rose 61.4% to $1.08B.
  • Buffett offers $3.25B for Transatlantic as rivals’ bids lose value.
  • Fannie Mae's Q2 loss widened to $2.89B as credit-related expenses surged.
  • O’Reilly Automotive Inc. increased its share repurchase program by $500M.
  • P&G's Q4 earnings rose 15%, but the company's outlook reflected economic jitters.
  • Rio Tinto, Mitsubishi Corp. offer $1.55B for rest of Coal & Allied.
  • Solvay's buyout of Rhodia wins EU competition OK.
  • Southwest Air announces $500M share repurchase authorization.
  • Viacom Q3 earnings grew 37% to $574M as revs grew 15% to $3.77B.
  • Washington Post reported a 50% decline in Q2 profit due to weakness in an education business.

Earnings Calendar: AL, BPT, BWC, CDE, DTG, DYN, HI, INSM, KCAP, LCUT, NDN, TSN.


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