Frontrunning: June 18

  • Greek radical leftist SYRIZA leader Tsipras says will not join coalition government (as expected)
  • Egypt Islamists claim presidency as army tightens grip (Reuters)
  • French Socialists vow reforms after big poll win (Reuters)
  • Greeks Back European Bailout (WSJ)
  • France, Socialists Win a Solid Majority (WSJ)
  • Denmark Warns over Pressure on Krone (FT)
  • Obama to press Putin on Syria at G20 amid skepticism (Reuters)... Putin to smile
  • China Home Prices Fall in Record No. of Cities (Bloomberg)
  • Europe Gets Emerging Market Crisis Ultimatum As G-20 Meet (Bloomberg)
  • Wolfgang Münchau – What Happens if Angela Merkel Does Get Her Way (FT)
  • Europe’s Mistakes A Lesson for Latin America, Chile Says (Bloomberg)
  • India Holds on Rates Amid Pressure to Cut (FT)
  • Samaras Begins Bid for Greek Coalition That Sustains Rescue (Bloomberg)

Overnight media digest


* Greek voters broke months of political stalemate by narrowly endorsing pro-bailout forces in a momentous election, easing fears of an imminent rupture with the euro zone-for the moment.

* Egypt's military tightened its grip on power, even as the Muslim Brotherhood claimed that its candidate won the country's first democratic presidential election.

* François Hollande secured the parliamentary majority he says he needs to revive France's economy and help repair the euro zone, after voters gave his Socialist Party a lead in legislative elections.

* A government program that helps struggling homeowners take advantage of low interest rates to cut monthly mortgage payments is providing an unexpected revenue boost to large banks such as Wells Fargo and JPMorgan Chase.

* A growing number of tiny community banks are deciding it's time to sell, frustrated by costly, new regulations and limited growth prospects.

* The euro zone debt crisis and looming sanctions against Iran have hindered OPEC's ability to influence the oil market.

* Australia's second-largest newspaper publisher Fairfax Media Ltd plans to cut 1,900 jobs and add a paywall on some of its news Web sites as part of sweeping changes it said would create A$235 million, or $237 million, in annualized savings by June 2015.

* Vincent Bolloré, a French industrialist known for financial flair and tough takeovers, intends to accept a seat on Vivendi SA's board in the fall, according to a person familiar with the matter.

* Hyundai Heavy Industries, the world's largest shipbuilder, said Sunday it has won three orders valued at a combined $600 million to build oil and gas rigs.

Morgan Stanley's Michael Grimes insisted to a senior Facebook Inc executive that he be the "single driver" of the company's initial public offering, adding that if the deal soured, it would be his "throat to choke."




The investment arm of French insurance group AXA has raised $7.1 billion from outside investors to buy stakes in buyout funds from investors looking to cash out.


Brian Hartzer, the outgoing head of retail at RBS, said in an interview that the current model of free bank accounts in Britain needs to be reformed.


British finance minister George Osborne's demand that the Bank of England's Financial Policy Committee should support government growth policy has divided the committee.


Confidence in the ability of policy makers to provide conditions for growth has been dented, stalling the global recovery, according to the FT/Brookings Institution Tiger Index.


The Scottish National Party is set to announce at its October conference that it will reverse 30 years of opposition to NATO membership for Scotland.



- European banks oppose a union, which is meant to encourage the free flow of money in Europe and halt the lending cycle between sick banks and debt-laden governments.

- Greece is expected to continue receiving the international aid it needs to stay afloat, but problems in Spain, Italy and the rest of Europe still need to be addressed.

- Apple's move into maps is hardly a surprise, but the question is if it can build a service that does as good a job, or a better one, than Google has.

- Three years after saying he would not buy a newspaper at any price, Warren Buffett has moved aggressively into the business, buying 63 papers and taking a 3 percent stake in Lee Enterprises.

- European mobile telephone operators are primed to enter a long-awaited phase of consolidation.

As growth slows, and as the need to cut costs and pay out millions for new, faster networks grows, longtime rivals are joining forces in markets across Europe to reap the benefits of economies of scale.

- After more than a decade, the royalties for Internet radio and other digital music streams are finally starting to add up.




- The showdown over Ontario's budget bill has focused on a plan by the McGuinty government to create a one-stop online service for everything from birth certificates to licence-plate validation stickers and property title searches, and sell it to a private operator.

Report in the business section:

- Manitoba Telecom Services Inc is redoubling efforts to find a buyer for its MTS Allstream division by hiring Morgan Stanley to drum up foreign interest, especially from the United States, after attempts to find a Canadian suitor fizzled.


- Former prime minister Jean Chretien says Justin Trudeau "has proven himself in some way," but cautions not to expect him to endorse any potential candidate for the leadership of the federal Liberal party.


- There may be a respite this week for the markets after the outcome of the Greek election but any coalition-formed majority looks set to be narrow and may lack the stability needed to push through painful reforms.