Frontrunning: July 3Reported by Zero Hedge on Tuesday, 3 July 2012 (on July 3, 2012)
Â· *The next Enron: JPMorgan at centre of power market probe (FT)*
Â· Former Brokers Say JPMorgan Favored Selling Bank’s Own Funds Over Others (NYT)
Â· Ex-JPMorgan Trader Feldstein Biggest Winner Betting Against Bank (Bloomberg)
Â· Finland Firm On Collateral As Spain Aid Terms Discussed (Bloomberg)
Â· Heatwave threatens US grain harvest (FT)
Â· Wall Street Is Still Giving to President (WSJ)
Â· Greenberg Suit Against U.S. Over AIG To Proceed In Court (Bloomberg)
Â· Crisis forces "dismal science" to get real (Reuters)
Â· Hope continues to be as a strategy: Asia Stocks Rise On Expectation Of Monetary Policy Easing (Bloomberg)
Â· Microsoft in $6.2bn ad business writedown (FT)
Â· Under siege: "Stop and frisk" polarizes New York (Reuters)
Â· Best evidence yet found for "God particle:" U.S. physicists (Reuters)
*Overnight media digest:*
orp is booking a $6.2 billion charge for its money-losing Internet division, an admission that a business anchored by the Bing search engine has failed to live up to its expectations.
* Drug maker GlaxoSmithKline Plc agreed to plead guilty to criminal charges of illegally marketing drugs and withholding safety data from U.S. regulators, and to pay $3 billion to the government in what the Justice Department called the largest health-care fraud settlement in U.S. history.
* Airbus detailed plans to spend $600 million to build jetliners in Alabama - its first assembly plant in the U.S. - in a bid to grab more American orders from U.S. rival Boeing Co and to defuse political opposition to the European aerospace giant.
* Barclays Plc Chief Executive Robert Diamond apologized for the interest-rate manipulation scandal that has engulfed the U.K. bank but resisted outside pressure to resign.
* Micron Technology Inc agreed to acquire troubled Japanese rival Elpida Memory Inc for about $2.5 billion, as the U.S. memory maker bulks up to compete against rivals in South Korea and Taiwan.
* The chief executive of Full Tilt Poker, the beleaguered one-time Web poker giant, was arrested Monday on a plane that had just landed at John F. Kennedy International Airport as the government unveiled new criminal charges against him related to an alleged Ponzi scheme.
BARCLAYS CHIEF THREATENS TO HIT BACK
Bob Diamond is threatening to reveal potentially embarrassing details about Barclays' dealings with regulators if he comes under fire at a parliamentary hearing on Wednesday over the Libor rate-setting scandal, according to people close to the bank's chief executive.
GSK TO PAY $3 BILLION TO SETTLE U.S. CHARGES
GlaxoSmithKline has agreed to pay a record $3 billion to settle U.S. regulators' charges of aggressive marketing and the selective use of data from clinical trials in its promotion of drugs beyond their authorised uses, including an antidepressant that one of its sales reps called the "happy, horny, skinny pill".
AMBITIOUS GOALS SET FOR PROBE INTO BANKS
British Finance Minister George Osborne has announced a six-month parliamentary inquiry into standards in the banking industry, an exercise immediately dubbed a "truth and reconciliation" process for the City of London and the British political elite.
HEATWAVE THREATENS US GRAIN HARVEST
An intense heatwave is threatening havoc with this year's U.S. grain harvest, burning up hopes of blockbuster yields and sending prices soaring.
DELL PUSHES INTO SOFTWARE WITH $2.4 BLN DEAL
Dell has laid the foundation for a broader move into software with a $2.4 billion all-cash acquisition that will accelerate the U.S. company's push beyond its core personal computer business.
DREYFUS SUED OVER COTTON 'PRICE-FIXING'
The former head of cotton at Glencore has personally sued rival Louis Dreyfus Commodities, accusing the trading house of market manipulation in a rare move that sheds light on the inner workings of the markets in the commodity.
MEXICO LEADER SHIFTS FOCUS ON DRUGS WAR
The winner of Mexico's presidential election will pursue a new strategy in the country's almost six-year war on drugs by creating a 40,000-strong security force to protect citizens rather than chasing drug traffickers and eradicating illicit crops.
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ng a pharmaceutical company, the British drugmaker GlaxoSmithKline Plc agreed to plead guilty to criminal charges and pay $3 billion in fines for promoting its best-selling antidepressants for unapproved uses and failing to report safety data about a top diabetes drug, federal prosecutors announced Monday.
- Robert Diamond, the chief executive of Barclays Plc , told employees on Monday that he was "disappointed and angry" about the bank's past attempts to manipulate key interest rates to bolster its bottom line.
- Microsoft Corp owned up on Monday to the collapse of its biggest push into digital advertising, announcing that it would take a $6.2 billion accounting charge in its online services division for a failed acquisition.
- Airbus, the European airplane maker, announced Monday that it would invest $600 million over the next five years to build an assembly line here for its popular A320 single-aisle jet - its first factory in the United States.
- Documents in a civil suit in federal court appear to threaten a legal defense that credit ratings agencies have long used to fend off liability for misjudging securities that later cost investors vast sums in losses.
THE GLOBE AND MAIL
- The impending end of the Canadian Wheat Board monopoly has inflamed passions among Western Canadian farmers. It has also sparked an unusual and nasty takeover fight between two century-old Canadian agriculture firms.
Report in the business section:
- The federal government's efforts to cool the overheated housing market are raising concerns among Canada's biggest banks that the changes might hit the economy harder than intended, particularly if the new measures are left in place for too long.
- Mexican President-elect Enrique Pena Nieto pledged to focus on energy, labour and tax reforms and said he hopes to strike deals with opponents to help shepherd changes through Congress before he takes office in December.
- The U.S. Justice Department is probing Chesapeake Energy Corp and Encana Corp for possible collusion after a Reuters investigation showed that top executives of the two rivals plotted in 2010 to avoid bidding against each other in Michigan land deals, a source close to the probe said.
*European economic update:*
Â· Spain Unemployment m/m net (‘000s) -98.9 – lower than expected. Consensus -51.6 m/m. Previous -30.1 m/m.
Â· UK PMI Construction 48.2 – lower than expected. Consensus 52.9 Previous 54.4.
Â· UK Net Consumer Credit 0.7B – higher than expected. Consensus 0.2B Previous 0.4B.
Â· UK M4 Money Supply -0.1% m/m -4.1% y/y. Previous 0.9% m/m -4.0% y/y.
Â· Euro Zone PPI -0.5% m/m 2.3% y/y – lower than expected. Consensus -0.3% m/m 2.5% y/y. Previous 0.1% m/m 2.6% y/y.
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