Thursday's Early Headlines
- Geithner to Sell Obama Administration's Financial Regulation Reform Plan to Congress - Treasury Secretary Timothy Geithner will appear on Capitol Hill to testify on the Obama administration's restructuring of the financial regulatory system, which the President outlined during a press conference Wednesday.
- Financial Regulation Reform Plan Gets Cold Shoulder From Banks. - Bloomberg reports that banks and lawmakers are wary of President Obama's plan to reform regulation of the financial system. Financial firms, some of them blamed for causing the credit crisis, say they want to make sure the industry isn't further damaged by ill-conceived or burdensome regulations, Bloomberg reported. The report also said the new rules face a lobbying assault on Capitol Hill, as lawmakers question the Federal Reserve's role and bankers say the plan may hinder economic growth
- Poll Shows Public Wary of Deficit, Economic Intervention. - The Wall Street Journal reported that President Obama faces new concerns among the American public about the budget deficit and government intervention in the economy as he works to enact ambitious health and energy legislation, according to a new WSJ/NBC News poll. Nearly seven in 10 survey respondents said they had concerns about federal interventions into the economy, including Obama's decision to take an ownership stake in General Motors (GMGMQ) , the Journal reported. A solid majority -- 58% -- said that the president and Congress should focus on keeping the budget deficit down, even if takes longer for the economy to recover, the poll found.
- GM, Magna Set July 15 to Reach Opel Deal. - GM and Magna International (MGA) - Get Magna International Inc. Report have set July 15 as a target date for agreeing on the sale of a majority stake in Opel to Magna and its Russian partner Sberbank, Reuters reports, citing sources.
- AIG Taps Morgan, Deutsche Bank for Asia IPO. - AIG (AIG) - Get American International Group, Inc. Report has assigned Morgan Stanley (MS) - Get Morgan Stanley (MS) Report and Deutsche Bank (DB) - Get Deutsche Bank AG Report as global coordinators for the upcoming initial public offering of AIG's Asian life insurance unit, according to The Wall Street Journal. The spinoff of American International Assurance, through a public listing on an Asian stock exchange, is part of AIG's efforts to repay a government bailout of more than $180 billion.
- State Street Repays TARP. - Late Wednesday, State Street (STT) - Get State Street Corporation Report said it has repaid $2 billion in Troubled Asset Relief Program, or TARP, funds, becoming the last of 10 approved banks to do so. State Street said the effect of the redemption will be to reduce net income available to common stockholders by approximately $105 million in the second quarter of 2009.
- World Bank Ups China '09 Growth Forecast. - The World Bank raised its 2009 economic growth forecast for China to 7.2% from 6.5% because of its stimulus-driven investment boom but cautioned Thursday it was too soon to say a sustained recovery was on the way, according to The Associated Press.
- Sirius XM Launches iPhone Application. - Sirius XM (SIRI) - Get Sirius XM Holdings, Inc. Report announced the release its own native application Thursday for Apple's (AAPL) - Get Apple Inc. (AAPL) Report iPhone and iPod touch. The app will give Sirius and XM Internet subscribers access to 120 channels of sports, talk, entertainment, news, comedy and commercial-free music.
Earnings and Economic News
- RIM to Post Quarterly Results Later Thursday. - Research in Motion (RIMM) is expected to notch a fiscal first-quarter profit of 94 cents on sales of $3.43 billion, according to Thomson Reuters. That compares to a profit of 90 cents a share in the previous quarter and 84 cents a share in the year-ago quarter.
- Economic Data Coming Due - Thursday will see the release of weekly initial jobless claims at 8:30 a.m. EDT, followed by the 10 a.m. EDT release of the Philadelphia Federal Reserve's manufacturing index, which should improve in June to a reading of -16.4 from -22.6 in May, as well as the May report on leading economic indicators.