GERMAN BUNDS COULD GO SOUTH/WSJ - Thorold Barker: “As the euro zone's future hangs in the balance, everyone is jumping on the bund wagon. But German government debt is riskier than some investors imagine.”
FANNIE MAE NAMES TIMOTHY MAYOPOULOS AS NEW CEO/AP – Marcy Gordon: “Timothy Mayopoulos, the general counsel of Fannie Mae, will be the next CEO of the government-controlled mortgage giant.”
NEW FANNIE CEO HAS BANK BAGGAGE/WSJ – Nick Timiraos & Joann Lublin: “…Mr. Mayopoulos joined Fannie in April 2009 as general counsel and later added the position of chief administrative officer. His promotion to CEO caps a remarkable turnaround for the financial-services lawyer, who was unexpectedly fired by Bank of America Corp. as its general counsel on the eve of the bank's acquisition of Merrill Lynch & Co. in 2008 to make room for Brian Moynihan, the general counsel who later became Bank of America's chief executive.”
SEATTLE'S BEST SIGNS KIOSK DEAL WITH COINSTAR/WSJ - Joan Solsman & Annie Gasparro: “Coinstar Inc. and Starbucks Corp. have entered an exclusive five-year agreement to open several thousand coffee kiosks in the U.S., brewing cups of Seattle's Best brand coffee for $1 a cup. The companies plan to roll out kiosks named "Rubi" in grocery stores, drug stores and mass retailers. While financial details of the deal weren't disclosed, Coinstar won't be able to sell other brands of coffee in kiosks through these channels, and Starbucks-owned Seattle's Best won't be able to open its own vending stations. If the outcome of the deal is successful, the companies have the option of extending the agreement.”
MF GLOBAL AND THE RISKS LOOMING IN THE REPO MARKET/Dealbook- Peter Eavis: “MF Global employees are the ones responsible for the risky trades that propelled the company toward its demise. But those crippling bets were only possible because MF Global was able to borrow voraciously in a debt market that also played a big role in the collapses of Lehman Brothers and Bear Stearns. New reports released this week by the MF Global trustees outlined extensive details about the trades, which centered on bonds issued by European governments. The $6 billion of European bets drained crippling amounts of cash from MF Global, hastening its crash. But the firm had no problem putting on these trades just weeks earlier. This suggests that problems still loom in the repo market, the place where MF Global raised money to pay for its European trades.”
US ALREADY IN 'RECESSION,' EXTEND TAX CUTS: BILL CLINTON/CNBC – Jeff Cox: “Former President Bill Clinton told CNBC Tuesday that the US economy already is in a recession and urged Congress to extend all the tax cuts due to expire at the end of the year.”
SPRINT'S VIRGIN MOBILE TO OFFER IPHONE/Thomas Gryta & Greg Bensinger: “Sprint Nextel Corp. is set to become the second U.S. mobile-phone carrier to offer Apple Inc.'s iPhone on a pay-as-you-go basis. Sprint will announce this week it will offer the popular smartphone on its Virgin Mobile pay-as-you-go brand as soon as July 1, according to people familiar with the company's plans. The Overland Park, Kan., carrier follows Leap Wireless International Inc. in selling the device with prepaid service.”
Economic Data
830am et 1Q rev Productivity
830am et 1Q rev Unit Labor Costs
1400pm et Beige Book
*1Q 1st reading
Earnings
Before the bell:
Brown Forman, Hovnanian, Vail Resorts
After the bell:
Annie's, Harry Winston Diamond, Men's Warehouse, Pall Corp., Pep Boys, Greif
Key Guests
Stephen Roach, Yale University (700a)
Rep Kevin McCarthy, R-CA (715a)
Ann Winblad, Hummer Winblad Venture Partners (730a)
Jay Timmons, National Association of Manufacturers CEO (840a)
Nicholas Pinchuk, Snap-On CEO (900a)
Paul Davis, Coinstar CEO (1200p)
Liam McGee, The Hartford Financial Services Group CEO (100p)
Carla Harris, Morgan Stanley Investment Management Managing Director (200p)
Peter Orszag, Citigroup Global Banking Vice Chairman (330p)
Sean Egan, Egan-Jones Ratings Company (330p)
Bob Doll, BlackRock Chief Equity Strategist (400p)
James Grant, Grant's Interest Rate Observer (410p)
William Brodsky, CBOE CEO (500p)
Gov Bob McDonnell (700p)
Jeb Bush, Fmr Gov of Florida
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