Frontrunning: July 12

  • If Hilsenrath leaks a Fed party line and nobody cares, does Hilsenrath exist? Fed Weighs More Stimulus (WSJ)
  • Clock Is Ticking on Crisis Charges (WSJ)
  • South Korea in first rate cut since 2009 (FT)
  • Shake-Up at New York Fed Is Said to Cloud View of Risk at JPMorgan (NYT)
  • Italy stats office threatens to stop issuing data (Reuters)... because Italy is "out of money"
  • Italy Faces 'War' in Economic Revamp, Monti Warns (WSJ)... says Mario Monti from Sun Valley, cause Italy is "out of money"
  • NY Fed to release Libor documents Friday (Reuters)
  • U.S. House Again Votes to Repeal Obama’s Health Care Law (Bloomberg)
  • Germany May Turn to Labor Programs as Crisis Worsens, Union Says (Bloomberg)
  • Ireland to unveil stimulus package (FT)
  • China New Yuan Loans Top Forecasts; Forex Reserves Decline (Bloomberg).. and here are Chinese gold imports
  • BOJ holds policy steady, sticks to recovery view (Reuters)
  • TMX in Talks to Buy Direct Edge (WSJ)

Overnight Media Digest:


* U.S. Federal Reserve officials sent new signals they are seriously considering more actions to bolster the economic recovery but disappointed many investors by not indicating they are committed to taking action.

* Former partners of failed law firm Dewey & LeBoeuf llp were offered a stark choice Wednesday: give back as much as $103.6 million in pay and other benefits, or face years of litigation.

* TMX Group Inc, Canada's top exchange operator, is in talks to acquire U.S. exchange group Direct Edge Holdings llc, according to people familiar with the matter, in a move that would add a significant international player to the competitive U.S. stock-trading industry.

* Renault SA lowered its sales-growth target for 2012 as the sputtering European economy offset growth elsewhere.

* German tax inspectors in recent weeks have been raiding the homes of Credit Suisse Group AG clients suspected of evading taxes, according to bank and German government officials.

* Supervalu Inc, whose 4,400 stores include brands such as Albertsons and Jewel-Osco, said it is considering selling all or part of the company and will suspend its quarterly dividend.

* SkyWest Inc on Wednesday announced plans to buy up to 100 Mitsubishi Regional Jets, becoming the second U.S. carrier to commit to the new plane.

* U.S. aluminium company Alcoa Inc has signed new multi-year agreements valued at about $1.4 billion to supply Airbus with products for virtually all of the passenger-jet maker's commercial programs, including the new A350.

* Spanish Prime Minister Mariano Rajoy announced new austerity measures Wednesday that should help Madrid cut its budget deficit by €65 billion ($80 billion) through to 2015, and warned the euro-zone's fourth-largest economy may not grow at all next year.

* Official data due this week are expected to show growth in China slowing to its lowest rate since the global financial crisis. But some economists say they are turning up evidence that the true picture could be even worse.

* India is about to get its third national stock exchange, just as trading volume here dwindles. MCX Stock Exchange Ltd, known as MCX-SX, has received approval from India's capital-markets regulator to offer trading in equities and related products, the exchange said.

* Brazil's central bank on Wednesday tried to counter the slowness with its eighth consecutive rate cut to a record 8 percent low, as many economists say the nation's plan must be redrawn as revival efforts fall short.




John Cridland, director-general of the CBI, has criticised the government for the implementation of its growth plan.


HSBC plans to "acknowledge and apologise" during a U.S. Senate panel hearing next week for failing to spot and deal with money laundering within the bank.


Oxford University is setting up a 300 million pound ($466.83 million) scholarship fund for undergraduates from low-income families.


Twenty big fund managers have sent a letter to Michel Barnier criticising the EU's proposed hedge fund regulation.


Soyabean prices have soared to record highs, surpassing levels seen in the 2007-08 food crisis, due to drought and heat in the U.S.


Spain unveiled 65 billion euros ($79.62 billion) worth of austerity cuts as part of a deal to secure European aid to rescue its banking system.


Investors accepted the lowest yields ever for 10-year paper in a U.S. Treasury auction shortly before the release of Federal Reserve minutes showing a bias towards more monetary easing.


- At a time of soaring health care bills, experts say that doctors, middlemen and drug distributors are adding hundreds of millions of dollars annually to the costs borne by taxpayers, insurance companies and employers through the practice of physician dispensing.

- The Federal Reserve Bank of New York in mid-2011 replaced virtually all of its roughly 40 examiners at JPMorgan Chase to bolster the team's expertise and prevent regulators from forming cozy ties with executives, according to several current and former government officials who spoke on the condition of anonymity.

- With the economy having slowed in recent weeks, business leaders and policy makers are growing concerned that the tax increases and government spending cuts set to take effect at year's end have already begun to cause companies to hold back on hiring and investments.

- U.S. Federal Reserve officials agreed at a meeting in June that unemployment would remain elevated for another five to six years, but most did not regard that as reason enough to expand the Fed's efforts to stimulate growth, according to an official account published on Wednesday.

- Only a month after being lionised for staring down European officials and avoiding budgetary dictates from Brussels, Prime Minister Mariano Rajoy unveiled another package of unpopular austerity measures on Wednesday as the country's miners staged a raucous and occasionally violent protest.




- British Columbia Premier Christy Clark has issued a public warning to Enbridge Inc about its proposed Northern Gateway pipeline in the wake of revelations about the company's handling of a massive 2010 oil spill in Michigan.

- Bolivian President Evo Morales has revoked the mining rights of Vancouver-based South American Silver Corp, the latest blow to foreign miners operating in Latin America amid a growing wave of resource nationalism.


- Quebec student protest leader Gabriel Nadeau-Dubois, known for his telegenic looks and refusal to condemn violence, has been recruited to teach Ontario student leaders about Quebec's paralyzing student strikes, as Ontario students appear to be setting the stage for their own season of discontent.


- British Columbia and Alberta securities regulators said on Wednesday they approved the proposed acquisition of Canadian exchange operator TMX Group by a consortium of financial institutions, pushing the year-long process one step closer to completion.


European Economic Update:

  • Sweden CPI 314.45 – in line with expectations. Consensus 314.53. Previous 315.23.
  • Netherlands Trade Balance 3.6B. Previous 4.4B. Revised 3.9B.
  • Germany Wholesale Price Index -1.1% m/m 1.1% y/y. Previous -0.7% m/m. 1.7% y/y.
  • France CPI-EU Harmonised 0.1% m/m 2.3% y/y – higher than expected. Consensus 0.0% m/m 2.2% y/y. Previous -0.1% m/m 2.3% y/y.
  • Russia Gold & Forex Reserve USD  511.4B. Previous 512.9B.