US stocks stumbled in low-volume trading. The S&P 500 fell 0.23 per cent after the third month in a row of weak retail sales data (Reuters). Citigroup posted second-quarter earnings of $2.9bn or $1 a share, beating analyst forecasts of 89 cents. Profits were down 12 per cent on the year. Net income in Citi's investment bank rose 18 per cent to $1.4bn after a round of cost-cuts (Financial Times). Losses at Citi holdings however increased, to $920m compared to $661m a year earlier (Reuters). Performance in international banking outside the US was less bright. "No growth in branch, deposit and loan numbers hardly look like a bank in overseas expansion mode," Lex says (Financial Times). Jerry del Missier, former chief operating officer at Barclays, told British MPs he "passed instructions along" from Bob Diamond to traders to lower the bank's Libor submissions in October 2008. Del Missier's testimony appeared to contradict Diamond's evidence to MPs that he gave no instructions, following a phone call with the Bank of England's Paul Tucker (Financial Times). It did not seem an inappropriate action given it was coming from the Bank of England, Del Missier added (Bloomberg). Barton M. Biggs, the pioneer global investor and founder of Morgan Stanley Investment Management, has passed away. Biggs, 79, died after a "short illness," James Gorman, Morgan Stanley CEO, told the employees in a memo praising Biggs" contributions to the bank (New York Times). US retail sales had fell 0.5 per cent in June, confounding forecasts of a 0.2 per cent increase. The decline in sales came in spite of a fall in oil prices, which should theoretically grant customers more disposable income (Wall Street Journal). The IMF cut its growth forecasts for the global economy in 2012, from 3.6 to 3.5 per cent. It also revised down its growth forecasts for the UK by 0.6 per cent, the sharpest cut among advanced economies. The report cited rising troubles within the eurozone and slowing emerging markets growth as contributors to its downward revisions (Financial Times). GlaxoSmithKline finalized its hostile takeover of Human Genome Sciences. GSK increased its bid from $13 a share to $14.25 a share in its all-cash offer, after HGS was unable to find a "white knight" (Financial Times). Tomorrow, stay tuned for US CPI and US Industrial figures. Also, Ben Bernanke delivers his semi-annual monetary policy report to the Senate Banking Committee. "CalPERS 1 percent return is below the fund's discount rate of 7.5 percent..." Capital requirements alone won't fix the banks. Getting Libor right is a fine art... Does the middle class get more than it gives? Calculated Risk, with a closer look at the US retail figures. This entry was posted by Rahul Wagh on Monday, July 16th, 2012 at 22:09 and is filed under Uncategorised.