Frontrunning: May 25

  • This is the solution? - Germany Writing Six-Point Plan for Europe Growth, Spiegel Says (Bloomberg)
  • JPMorgan Gave Risk Oversight to Museum Head Who Sat on AIG Board (Bloomberg)
  • Vatican bank president Gotti Tedeschi ousted -statement (Reuters)
  • Bribery, crime and stupidity pays. From this: SEC Staff Ends Probe of Lehman Without Finding Fraud (Bloomberg)
  • To this: Lehman to buy remaining Archstone stake for $1.58 billion (Reuters)
  • Governments must restore faith in debt sustainability: ECB's Praet (Reuters) - by issuing more debt
  • IMF Helping EU Explore Alternatives to Euro Bonds (WSJ)... such as US-funded bailout bonds?
  • China Banks May Miss Loan Target for 2012, Officials Say (Bloomberg)
  • Facebook market makers' losses total at least $100 million (Reuters)
  • World Bank’s Sri Mulyani Says Asean Is Resilient to Europe Woes (Bloomberg)
  • Time to flip "The Scream" - Tiffany Cuts Full-Year Profit Forecast (Bloomberg)
  • Definitely Maybe: Italy's Monti says Greece will probably keep euro (Reuters)
  • Draghi chides Cameron’s call for ECB action (FT)

Overnight Media Digest:

WSJ

* Trading desks at Goldman and JPMorgan, firms with roles in Facebook's IPO were among those lending Facebook shares that hedge funds needed for short sales.

* Authorities arrested a man they said had confessed to the murder of Etan Patz, a 6-year-old boy who disappeared 33 years ago.

* New signs of a global slowdown are emerging from business sentiment in Europe and manufacturers around the world.

* Major financial firms are willing to consider a compromise on a key issue delaying a new regulatory plan for the $2.6 trillion money-market mutual fund industry.

* U.S. bank lending stumbled in the first quarter after nearly a year of growth, raising fresh questions about the economic recovery.

* Airbus, a unit of European Aeronautic Defence & Space Co , shelved a plan to boost output of its popular A320 single-aisle jetliner, a sign that global uncertainties are starting to affect the otherwise resilient aeronautic industry.

* Beijing accused the U.S. of illegally helping its own solar-panel industry, while Chinese solar firms teamed up to speak against the decision to impose tariffs.

 

FT

INDIA WARNS EU OVER AIRLINE CARBON TAX

India has threatened to ban European airlines from its airspace if Brussels sanctions Indian carriers in a dispute over an EU plan to charge carriers for their pollution.

INSULTS FLY OVER TROUBLED HP BUYOUT

As many as a quarter of the staff at Autonomy quit the British software group soon after its acquisition by HP, former employees said, with one likening the U.S. computer maker's internal procedures to "being water-boarded" almost daily.

ASOS CHIEF TO RECEIVE BIG SHARE PAYOUT

Nick Robertson, chief executive of Asos, the online fashion retailer, is to receive a 25 million pound ($39.20 million) share payout, after a three-year management incentive scheme reached its maximum potential.

MASTERCARD OVERCHARGED, EU COURT RULES

European consumers will face more transparent credit and debit card fees and potentially lower retail costs after a landmark court ruling confirming MasterCard overcharged for cross-border card transactions.

TIFFANY'S US SALES DISAPPOINT

Sales at Tiffany & Co's flagship New York store declined 4 percent in the past quarter as its Americas business performed worse than expected, triggering a downgrade to its sales forecast and a plunge in its shares.

CO-OP PLANS 3,000 JOBS FOR LEGAL UNIT

The Co-operative Group plans to hire 3,000 people for its law business as it aims to become the largest provider of consumer legal services in the UK within five years.

GEORGIAN RAILWAY PULLS LONDON IPO

Georgia has pulled the planned listing of its state railway monopoly in London in a further setback for the moribund UK market for initial public offerings.

 

NYT

* As Spaniards move their money out of troubled institutions, officials worry about the ripple effect of a full bank run.

* Circulation and staff reductions at The Times-Picayune of New Orleans and three Alabama newspapers are the latest instances of reorganization in a rapidly changing industry.

* China, which has driven global growth as the United States and Europe struggled, is seeing a real estate downturn, stalling exports and a drop in consumer confidence.

* Nasdaq said 30 million Facebook shares were executed improperly on Friday because of technical flaws, and retail investors have spent the week looking for someone to address their losses.

 

Canada

THE GLOBE AND MAIL

- A breakthrough may be in the making between the Quebec government and the province's striking students after Premier Jean Charest hired Dan Gagnier, one of his closest advisers, as his new chief of staff to resolve the escalating crisis.

Reports in the business section:

- Shareholders have killed Astral Media Inc's plan to give the company's outgoing chief executive officer a $25-million thank-you payment as part of the company's merger with BCE Inc.

NATIONAL POST

- Two of Canada's biggest unions are floating the idea of opening membership to everyone, including the retired and the unemployed.

FINANCIAL POST

- Sears Canada CEO Calvin MacDonald hopes to woo back the retail chain's customer base in suburban and rural Canada with eye-popping store displays and a sharper assortment of fashion.

 

European Economic Summary:

  • Germany GfK Consumer Confidence Survey 5.7 – higher than expected. Consensus 5.6. Previous 5.6. Revised 5.7.
  • Spain Producer Prices -0.8% m/m 3.1% y/y – lower than expected. Consensus 0.0% m/m 2.7% y/y. Previous 0.8% m/m 3.3% y/y. Revised 4.5% y/y.
  • Italy Retail Sales -0.2% m/m 1.7% y/y – in line with expectations. Consensus -0.2% m/m. Previous 0.6% m/m 0.1% y/y.  Revised 0.9% m/m 0.5% y/y.