Wall Street Breakfast: Must-Know News

Includes: BCS, QQQ, SPY
by: Wall Street Breakfast
Wall Street Breakfast
Seeking Alpha's flagship daily business news summary, gives you a rapid overview of the day's key financial news. It is published before 7:00 AM ET every market day and delivered to over 900,000 email subscribers.

Top Stories
Barclays names insider as CEO. Barclays (NYSE:BCS) has named Antony Jenkins as CEO to replace Bob Diamond, who resigned in the wake of the Libor scandal. The appointment of Jenkins, who is the head of the firm's retail and business banking operations, comes a day after Barclays said the U.K.'s Serious Fraud Office is investigating the bank for payments it made during its Middle East capital raising in 2008.

Scotiabank to buy ING's Canadian Internet ops for $3.16B. Scotiabank (NYSE:BNS) has agreed to acquire the Canadian online bank of ING (NYSE:ING) for $3.16B in a deal that will provide the Dutch company with a $1.4B after-tax gain. The sale comes as ING looks to sell its Asian insurance ops and to continue repaying its 2008 bailout. To fund the purchase, Scotiabank will undertake a secondary offering of 29M shares at C$52 each.

Top Stock News
AMR in talks to obtain $1B-$2B from creditors. AMR (AAMRQ.PK) is in negotiations to receive $1B-$2B in equity financing from a group of distressed debt funds that includes JPMorgan Securities (NYSE:JPM) and which holds over $600M in the carrier's bonds. The money would help AMR exit bankruptcy protection and put it in a stronger position as it negotiates a potential merger with US Airways (LCC).

Visteon's $2.3B Halla unit attracts interest. South Korea's Mando today said it may offer to acquire the 70% of Halla Climate Control that's owned by U.S. autoparts company Visteon (NYSE:VC). However, Shinyoung Securities analyst Lee Hyung Sil is skeptical, saying Mando doesn't "have the means." In July, Visteon unsuccessfully tried to acquire the remaining 30% in Halla, which has a market cap of $2.3B.

MF Global trustee wants "global resolution" to get cash back. Louis Freeh, the trustee for MF Global's (OTC:MFGLQ) parent company, yesterday called on the firm's other bankruptcy administrators in the U.S. and U.K. to come to a "global resolution" with him over getting money back for creditors and clients rather than going through costly and time-consuming litigation.

Intel unveils wireless charging. Intel (NASDAQ:INTC) has provided details about its wireless charging technology for notebooks and mobile devices, saying that unlike older technology that requires a "charging mat" (such as with electric toothbrushes), it can work simply by placing two devices near each other and running the required software. Intel said its tech can allow an ultrabook to fully charge a smartphone in an hour.

S&P 500 loses another founding name. LyondellBasell (NYSE:LYB) will replace Sears (NASDAQ:SHLD) in the S&P 500 after the close of trading next Tuesday. Sears' public float has been well below the 50% threshold for inclusion for an extended period of time and is no longer considered representative. The change ends a 55-year run for the Sears name in the S&P 500 - Sears, Roebuck & Co. was one of the original members when it was created in 1957.

Top Economic & Other News
German jobless rate rises again. German unemployment has provided more signs of the effect of the eurozone debt crisis, growing for a fifth consecutive month in August with an increase of 9,000 to 2.901M vs. consensus for a rise of 8,000. The jobless rate stayed unchanged at 6.8%. "The significant labor market indicators as a whole are developing increasingly weakly. Lower German economic growth is showing here," the Labor Office said.

Isaac could prove to be a boon - for farmers. Having drenched New Orleans and caused the shutdown of much of the oil and gas production in the Gulf of Mexico, there are hopes that as the Isaac weather system - which is no longer a hurricane - lumbers north towards the Midwest, it will provide the rains that are so desperately needed in the "drought belt," at least for some.

China to continue buying eurozone debt. Angela Merkel is visiting China, whose Premier, Wen Jiabao, said his country will continue to buy European sovereign debt but on the condition of a full risk evaluation. The trip has heralded a number of major deals, including the air leasing arm of the Industrial & Commercial Bank of China ordering 50 Airbus (OTCPK:EADSF) A320 jets valued at $3.5B.

Economy expands gradually - Beige Book. The U.S. economy grew "gradually" in the past month, the Fed's Beige Book said yesterday, with credit conditions improving but manufacturing soft. Housing markets across all districts showed improvement as sales and construction continued to rise. Employment held steady or grew only slightly in most districts, while wage pressures were contained.

Japanese retail sales fall. Japanese retail sales fell a greater-than-expected 0.8% on the year in July, with economists expecting things to get worse in the coming months due to the tapering off of government subsidies for car purchases.

How the regulatory sector is like the private sector. Competition is booming in New York - among enforcement and regulatory agencies. The city has offices for the U.S. Attorney, the state AG, the DA and the new Department of Financial Service, not to mention the SEC and federal agencies such as the FBI. The multiple organizations make corporations and Wall Street nervous, and while there are fears of "chaos and confusion," said Eliot Spitzer, "competition works."

Editors' Picks
Beige Book And Revised GDP Make More QE Unlikely
The Gold Standard Gets Another Look
Market Warning Signs, Trading Momentum, And You

Today's Markets:
In Asia, Japan -0.9%. Hong Kong -1.2%. China flat. India +0.3%.
In Europe, at midday, London -0.2%. Paris -0.5%. Frankfurt -0.8%.
Futures at 7:00: Dow -0.3%. S&P -0.4%. Nasdaq -0.4%. Crude -0.2% to $95.34. Gold -0.3% to $1658.

Today's economic calendar:
Chain Store Sales
8:30 Initial Jobless Claims
8:30 Personal Income and Outlays
9:45 Bloomberg Consumer Comfort Index
10:00 Factory Orders
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $29B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

Notable earnings before today's open: BRLI, CIEN, TD

Notable earnings after today's close: OVTI, SAI, SPLK

See full real-time earnings coverage »

Wall Street Breakfast is sent out by email for free -- Get it now »