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Frontrunning: October 14

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  • China inflation dips to 6.1% in September (FT)
  • G-20 Said to Weigh Boosting IMF Lending Power to Stem Europe Debt Crisis (Bloomberg)
  • German Bankers Argue Against Capital Plans (WSJ)
  • State Revenue Under Forecasts to Produce Cuts From New York to California (Bloomberg)
  • Germany’s Banks Said to Prepare for Greece Debt Losses of as Much as 60% (Bloomberg)
  • Bank’s Bean says will do more QE if needed (FT)
  • Banks’ Paths Vary in Greek Write-Downs (WSJ)
  • ECB warns against private role in bail-outs (FT)
  • China Inflation Wen’s Scope for Easing (FT)
  • Three-Prong Approach to Euro-Zone Crisis (WSJ)
  • Singapore Cuts Growth Forecast, Eases Policy (Bloomberg)
  • Bank of Korea’s Kim Says 2011 Inflation Likely to Surpass 4% Target Limit (Bloomberg)

European economic highlights:

  • Italy Trade Balance (Total) for August -€3152M. Previous €1438M. Revised €1435M.
  • Italy Trade Balance EU for August -€766M. Previous 1773M. Revised 1771M.
  • Euro-zone Core CPI for September 1.6% y/y - higher than expected. Consensus 1.5% y/y. Previous 1.2% y/y.
  • Euro-zone CPI For September 0.8% m/m 3.0% y/y – in line with expectations. Consensus 0.8% m/m 3.0% y/y. Previous 0.2% m/m 3.0% y/y.
  • Euro-zone Trade Balance s.a. for August -€1.0B. Previous -€2.5B. Revised -€3.7B.
  • Euro-zone Trade Balance for August -€3.4B. Consensus -€4.0B. Previous €4.3B. Revised €2.5B.
  • Italy CPI-EU Harmonised for September 2.0% m/m 3.6% y/y. Consensus 1.9% m/m 3.5% y/y. Previous 1.9% m/m 3.5% y/y.
  • Bulgaria Current Account Balance €705.7M. Previous €641.7M. Revised €614.4m.

Global economic highlights:

  • Asia markets fall with resource firms weak.
  • China’s Sept. consumer prices rise 6.1% from year earlier.
  • Singapore cuts growth forecast, Central Bank eases policy stance.
  • 99 Cents Only reports Q2 sales of $363M (cons est. $348.51M); same sales rose +6.7%.
  • Agnico-Eagle Mines launched a bid to take over Grayd Resource Corp. for $463.5M.
  • Allied World Assurance expects $30-35M in catastrophe related losses.
  • Carrefour SA cut its full-year profit target for a second time in a 2 mos. amid sluggish demand.
  • Credit Suisse likely to eliminate its CMBS unit.
  • Fluor pays $30M for majority stake in NuScale Power, which develops small nuclear reactors.
  • Gap Inc. plans to close stores in the US, while expanding in China.
  • Google beats by $0.95, posts Q3 EPS of $9.72. Net revs rose 37% YoY to $7.51B.
  • Hulu no longer for sale, owners say, citing unique strategic value.
  • Investor Carl Icahn buys 9.8% stake in Navistar; says shares are undervalued.
  • JB Hunt Trans beats by $0.01, reports revs in-line. Q3 EPS of $0.57, revs up 18.8% at $1.17B.
  • Johnson Controls said it overestimated demand for its automotive batteries; to spend much of the next year working down its inventories.
  • JPMorgan's Q3 net income fell 4% to $4.26 billion, or $1.02 per share, on revs of $24.37B.
  • KKR & Co., Blackstone among PE firms considering possible bids for Yahoo! Inc.
  • Microchip sees Q2 revs of $340.6 (cons est 360.2M); EPS of $0.45-0.47 vs. $0.52 cons.
  • National Cinemedia lowered its fourth quarter and full year 2011 revenue below consensus.
  • Netflix agreed to pay CBS and Time Warner about $1B for the right to stream CW series.
  • PRE Resources, GE unit, partner to buy Rocky Mountain oil and gas reserves.
  • RailAmerica September traffic down 10% because of coal plant maintenance.
  • TCF Financial subsidiary buys auto financing co., Gateway One Lending; terms undisclosed.
  • Unilever is nearing a deal to buy Russian skincare company Kalina for about $850M.
  • Willbros Group reduced total indebtedness by $113.4M, exceeding co's target objective.

Economic Calendar: Retail Sales, Export-Import Prices, Mich Sentiment Oct, Business Inventories to be released today.
Earnings Calendar: ALRN, ATNY, CAW, MAT, ROSG, WBS.


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