TOP NEWS: Economy: August 16th, 2012
- Seven banks in New York Libor probe
- Inflation well under Fed targets
- Doubts on Fed Hit Treasurys
- No Criminal Case Is Likely in Loss at MF Global
- U.S. Consumer Prices Stay Flat
Excerpts and More Top Stories
LIBOR/NYS PROBE: Seven banks in New York Libor probe
Shahien Nasiripour, Tracy Alloway, FT – Eric Schneiderman, the state attorney-general, has sent subpoenas to Deutsche Bank, Citigroup, JPMorgan Chase, Royal Bank of Scotland, Barclays, HSBC and UBS
FED/ INFLATION: Inflation well under Fed targets
Dylan Matthews, WP – The consumer price index was a flat 0.0 percent in July, raising expectations that the Federal Reserve will act to boost the economy when it meets next month.
MARKETS/TREASURIES: Doubts on Fed Hit Treasurys
MATT PHILLIPS, WSJ – Investors’ waning confidence that the Fed will start another fresh round of bond-buying next month is damping market appetite for U.S. Treasurys.
MARKETS/TREASURIES: Japan Narrows Gap With China as Biggest Holder of Treasurys
IAN TALLEY AND TOM BARKLEY, WSJ – China was a small net buyer of U.S. Treasurys in June, but Japan continued to threaten taking the No. 1 position after another month of record holdings.
MARKETS/BOND RISK: Risk Builds as Junk Bonds Boom
PETER LATTMAN, NY Times – Demand for high-yield corporate debt is insatiable, even as analysts warn that the market has become overheated and is ripe for a fall.
MARKETS: US growth stocks index hits decade high
Kandy Wong, Michael MacKenzie, FT – Investors are buying growth and defensive shares, with healthcare and telecommunications the second and third best performers after technology
MARKETS/MUNI BONDS: Study: Muni bond defaults higher than reported
Danielle Douglas, WP – Defaults on municipal bonds have been far higher than reported by rating agencies, a study says, bringing into question the true risk of an investment widely considered to be safe.
AZAM AHMED, BEN PROTESS, NY Times – Investigators are expected to conclude that sloppiness, not criminal intent, was the main driver behind the disappearance of customer money.
MF GLOBAL: MF Trustee Looks to Join Suits
AARON LUCCHETTI, MIKE SPECTOR, WSJ – The bankruptcy trustee for the brokerage arm of failed securities firm MF Global agreed to join existing lawsuits against the firm’s former executives.
CONSUMER PRICES: U.S. Consumer Prices Stay Flat
ERIC MORATH AND SARAH PORTLOCK, WSJ – U.S. consumer prices remained flat in July, the fourth consecutive month that costs didn’t increase, showing inflation pressures remain contained.
GAS EXPORTS: The Case for Natural Gas Exports
MICHAEL A. LEVI, NY Times, OPINION – America should allow exports of liquefied natural gas but guard against the risks.
KNIGHT CAPITAL/JP MORGAN: Knight Put Fate in Familiar Hands
JENNY STRASBURG AND TELIS DEMOS, WSJ – As Knight Capital Group Inc. faced its darkest hours earlier this month, J.P. Morgan Chase & Co. found itself in a familiar position: helping decide the fate of a Wall Street firm in crisis.
STATE FINANCES/CALIFORNIA: California’s Boom Masks State’s Uneven Recovery
SCOTT THURM, PUI-WING TAM, WSJ – California added jobs faster than the rest of the nation over the past year, and tech firms are showering riches on Silicon Valley. But for a broad swath of residents, the Golden State’s rebound is a lot less golden and is likely to stay that way.
STATE FINANCES: There Is No California
Victor Davis Hanson, RCP, OPINION – There is no California. Instead there are two radically different cultures and landscapes with little in common, each equally dysfunctional in quite different ways. Apart they are unworldly, together a disaster.
WALMART PROBE: More Questions on Wal-Mart de Mexico
AMY GUTHRIE, WSJ – Two U.S. congressmen said they have company documents that suggest Wal-Mart’s Mexico affiliate may have engaged in “questionable” financial behavior such as tax evasion and money laundering, in addition to prior allegations of bribery.
MANUFACTURING/FORD: Ford Charges Electric Car Development
MIKE RAMSEY, WSJ – Ford is bringing more of its hybrid and electric vehicle development in house as the No. 2 U.S. auto maker by volume prepares a big push to challenge Toyota’s Prius.
DIGITAL ADVERTISING: Inside Facebook’s Push to Woo Advertisers
SHAYNDI RAICE, WSJ – Facebook executive Carolyn Everson has set in motion plans to convince the world’s biggest brands that ads on the social network can indeed work–and to quantify how so.
NEWS CORP: News Corp. Names Compliance Officer
WILLIAM LAUNDER, WSJ – News Corp. said its general counsel, Gerson Zweifach, was named to the additional post of chief compliance officer. The media company also unveiled a new structure to strengthen compliance supervision.
UNIONS/CATERPILLAR: Union Leaders Split on Caterpillar Offer
JAMES R. HAGERTY, BOB TITA, WSJ – Union leaders are split on the merits of a slightly revised pay offer made by Caterpillar in an effort to end a strike in Joliet, Ill.
GM BANKRUPTCY: General Motors Is Headed For Bankruptcy — Again
Louis Woodhill, Forbes, OPINION – President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again.
PROFITS/CISCO: Cisco Profit Rises 56%; Dividend Boosted
BEN WORTHEN, WSJ – Cisco posted a jump in quarterly profit and said it would pay a bigger dividend, continuing the networking-equipment giant’s transformation from a fast-growing upstart to a more mature company.
FARMLAND PRICES: Farmland Prices Surge in Plains States
IAN BERRY, WSJ – Farmland values in the U.S. Plains remain well above year-ago levels, but the recent boom is easing as the drought eats into farm income, the Federal Reserve Bank of Kansas City said.
RON NIXON, NY Times – Passengers weary of the security and delays of airports are flocking to trains, which now dominate commercial travel in the Boston-Washington corridor.
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