Summary: Stocks higher, waiting for clues on euro crisis, Google-Motorola deal, largest-ever acquisition for G. EURUSD up to near the top of its recent range.
Views: I am closing the short position on Brazil – too much of a pullback for my taste. Should’ve, would’ve, could’ve – but still +24% on the position in couple of weeks. EURUSD: sell at-the-market 1.4440, stop 1.4520, take profit on half at 1.4350.
Joke of the Day: “BERLUSCONI: -17, ZAPETERO: -13, COELHO: -15, G-PAP: unch, LETERME: -16, SARKOSY: -2, FAYMAN: -7, CAMERON: -3, GUINNESS: -40, MERKEL: unch, TOVARISH: 186/190 -29, JASON STATHAM IN SNATCH: 236/240 -12” – Euro Sovereign CDS Update on Zero Hedge
Quote of the Day: “Hugely regressive tax system:rich pay a lower %of their income in tax than middle class due to low taxes on cap gain, divs, estates,carr int” – Nouriel Roubini via Twitter
Happy 40th birthday, fiat money! Nixon ended the gold standard on 15th August 1971. Notice the language: Nixon says the gold standard is ended because of the evil speculators.
EURO CRISIS
George Soros: EFSF, Eurobonds and European banking authority
How to Resolve the Euro Crisis – Project Syndicate
A Eurozone Charter, a Eurobond Programme, and a Debt Restructuring Programme.
A three-pillar solution to the Eurozone crisis – voxeu.org
The head of Germany's leading export association urged the leaders of Germany and France to agree at a meeting in Paris on Tuesday to issue joint euro zone bonds
Soros suggests Greece, Portugal quit euro zone – The Sydney Morning Herald
Morgan Stanley: banks are increasingly dependent on ECB financing
A grinding credit crunch in the periphery – alphaville FT
also on the same topic:
Banks Reckon Their Money Is Safer Deposited With ECB – The Source WSJ
Italy's problem is not a high budget deficit but chronically weak growth and forced austerity
ECB Purchases €22 Billion Of Italian, Spanish Bonds In Past Week, Highest Weekly Amount Ever – Zero Hedge
Calculations on a French web site claim the leverage ratios of the big banks are very high
Thomas White International’s Economic Review July 2011
FINANCIAL CRISIS
Citi’s Schofield thinks it’s strange for markets to simultaneously price in a collapse in growth while maintaining high inflation expectations. Something’s got to give.
The price of JGB-isation – alphaville FT
“Politicians doing stuff a day late has increased markets’ worry and we’re moving from drama to trauma”, says head of World Bank
OTHER
EM equities: time to get bullish? – alphaville FT
Modern US dollar, 40th birthday
The ultimate Google-Motorola Mobility linkfest – Abnormal Returns
Google-Motorola Mobility Deal: Analysts React – Market Beat WSJ
Now, Apple Has a Direct Competitor That May Make Samsung Look Conservative In Comparison – Zero Hedge
Sentiment data in real time from a dictionary analysis of tweet samples – lead time 2-4 days
Tracking tweets proves profitable for Derwent Capital – Financial News