Wednesday's Early Headlines
- PPIP Announcement Delayed. - CNBC reported late Tuesday that the Treasury said additional details on the government's Public-Private Investment Program, or PPIP, won't emerge on Wednesday as many had expected. More details on the program, designed to use government financing and private investors in order to buy bad loans and toxic securities from banks, will come Thursday or early next week, according to CNBC.
- GM's Fate Still Hanging in the Balance. - A hearing to determine the fate of General Motors (GMGMQ) continued at 8 a.m. EDT Wednesday, with the automaker expected to face more objections to its plan to sell the bulk of its assets to a new company and quickly emerge from bankruptcy protection.
- SEC May Tighten Executive Pay Rules. - U.S. securities regulators are considering changing how companies are required to disclose stock options awarded to executives, Reuters reported late Tuesday, citing people familiar with the Securities and Exchange Commission's thinking. At an SEC meeting on Wednesday, the commissioners also will propose giving investors a greater voice in setting executive pay at companies that were given taxpayer funds under the U.S. government's Troubled Asset Relief Program, according to the report.
- FDIC Proposing New Rules on Private-Equity Investors Acquiring Failed Lenders. - The Wall Street Journal reported that the Federal Deposit Insurance Corp. is expected Thursday to propose new guidelines for private-equity investors seeking to buy failed banks, people familiar with the matter said. The FDIC's proposal isn't final and could change before it's issued for public comment, the report said.
- Tepid Bids for BofA's Asset-Management Unit. - Bank of America's (BAC) Columbia Management unit isn't garnering the amount of interest the nation's largest bank expected. Bids for the asset management business have been lukewarm, The Financial Times reports, with bids coming in around $2 billion, far less than the $3 billion Bank of America expected to get for the business.
- Nomura to Buy Citi's NikkoCiti Trust. - Nomura Holdings (NMR) will pay 19 billion yen ($197 million) to buy Citigroup's (C) Japanese trust banking subsidiary NikkoCiti Trust and Banking Corp. The sale is expected to close in the fourth quarter, NikkoCiti said in a statement Wednesday.
- Morgan Stanley, MUFG Expand Alliance. - Morgan Stanley (MS) and Mitsubishi UFJ (MTU) announced a loan marketing joint venture and other initiatives, building on an existing relationship. The joint venture will be capitalized at $500,000, the companies said.
- Gannett Cutting 1,000-2,000 Jobs. - Newspaper publisher Gannett (GCI) plans to cut between1,000 to 2,000 jobs as revenue declines continue, according to The Wall Street Journal. Gannett will trim jobs from its U.S. Community Publishing division, which is made up of Gannett's more than 80 local dailies, according to the report, which cites a person familiar with the company's thinking.
Earnings and Economic News
- ADP Employment Report Worse Than Expected. - The ADP (ADP) employment report showed that the private sector lost 473,000 jobs in June, more than the 400,000 jobs economists expected. Monthly employment losses in the second quarter averaged 492,000, compared to 691,000 in the first quarter. The government's own nonfarm payrolls report will be released Thursday, one day earlier than usual because of the holiday weekend.
- General Mills Reports Earnings. - Fiscal fourth-quarter earnings at General Mills (GIS) soared 94% as the company recorded a large mark-to-market valuation gain and the tax rate in the quarter was lower. On an adjusted basis, earnings were 86 cents a share, topping the Thomson Reuters estimate of 81 cents a share.
- Other Economic Releases Scheduled - At 10 a.m. EDT, several reports on the health of the economy will hit, including construction spending for May, the Institute for Supply Management's manufacturing index for June, and pending home sales data for May. Shortly after, the Energy Department will release its weekly inventory data.