Monday's Early Headlines
- Obama to Remake Powers of Fed. - President Barack Obama is expected Wednesday to propose a reorganization of financial-market supervision, including a move to remake powers of the Federal Reserve to oversee the biggest financial players, The Wall Street Journal reports. The Obama plan also would give the government the power to unwind and break up systemically important companies and create a new regulator for consumer-oriented financial products, the Journal reports, citing people involved in the process.
- Citi and the IFC Launching Partnership. - The Financial Times reported that Citigroup (C) - Get Report will unveil a $1.25 billion funding tie-up with the International Finance Corporation, the private sector arm of the World Bank. The tie-up could mark a new willingness by banks to finance trade in emerging markets, the report said.
- Lincoln National Announces Capital Raise. - Lincoln National (LNC) - Get Report said it intends to raise more than $2 billion in fresh capital, thanks in part to a $600 million stock offering. The life insurance and financial planning concern also plans to raise capital through a $500 million senior debt offering. Lincoln will also accept as much as $950 million in capital with preferred shares issued under the U.S. Treasury's Capital Purchase Program.
- IBM to Roll Out Cloud Computing. - IBM (IBM) - Get Report this week will begin rolling out some initial products and services for cloud computing, according to The New York Times. Cloud computing -- in which information and processing resources can be tapped from afar, over the Internet, using a personal computer, cellphone or other device -- has the potential, analysts say, to cut the costs and complexity of technology for companies and government agencies, the Times notes.
- Icahn Considering Another Run at Delphi. - Billionaire investor Carl Icahn is considering taking another run at auto parts supplier Delphi (DPHIQ) now that a federal judge has opened up the auction process, The New York Post reports, citing a source with direct knowledge of the matter. Icahn and other suitors are interested in buying Delphi through an asset sale, rather than buying it outright, because it would enable the company to leave behind residual obligations like employee severance, the report said.
- United Tech Backs 2009 Forecast. - United Technologies reaffirmed it expects 2009 revenue of about $55 billion and earnings of between $4 to $4.50 a share. In a statement, United Tech also said it expects 2009 cash flow from operations less capital expenditures should equal or exceed net income attributable to common shareowners. Analysts surveyed by Thomson Reuters expect the company to earn $4.09 a share on revenue of $54.13 billion.
Monday's Economic News
- Economic Data Due Monday. - The June read on the New York Fed's manufacturing index is expected to come in at -2.1%, which would be a slight improvement form the -4.6% read in May, which was the highest level since August of last year. Minutes later, the April report on net long-term TIC flows will be published, with economists expecting a decline to $52.9 billion from $55.8 billion the previous month, indicating that foreign investors lessened their demand for U.S. financial assets.
- Speeches from Fed Members - Fed Governors Daniel Tarullo and Elizabeth Duke will make speeches in North Carolina and Washington, D.C., respectively.