US Open regulars, sry about the late post (another medical emergency here...)
News &
Recap – RanSquawk / ZH
Frontrunning
– ZH
Overnight
Summary – BofA
/ ZH
The Lunch
Wrap – FT
EM New York
headlines – FT
Today’s
front pages – presseurop
Daily press
summary – Open
Europe
Morning
MarketBeat: Earnings Off to Rocky Start – WSJ
Broker Note
Briefing – WSJ
Morning
Take-Out – NYT
Spain and the New Model – Marc to
Market
Lying LIBOR
Banks, Spanish MOU, & Earnings – TF
Market Advisors
AM Dear
Dairy: Driftup – Macro
and Cheese
Pre-market
Commentary – Marketwatch
Pre-Market
Trading – CNNMoney
Pre-Market
– NASDAQ
US Equity Preview – Bloomberg
Earnings
& Events – The
Street
MarketCurrents
– Seeking
Alpha
Debt
crisis: live – The
Telegraph
The Euro
Crisis Blog – WSJ
FX Options
Analytics – Saxo
Bank
European
10yr Yields and Spreads – MTS indices
EURO CRISIS
Structural reforms and regional convergence – voxeu.org
A major cause of the Eurozone crisis is the difference
in income and productivity between the core and the periphery. This column
presents evidence suggesting that structural reforms can be instrumental in
fostering the development of lagging regions within a country. It argues that
this in turn can accelerate the rate of convergence across countries within a
currency union.
First, it is true that government bond yields
mostly revert to their level five days before the summit after 5 days. In
particular in Italy and Spain, no systematic improvement is visible in any of the five summits…We
also observe that the pattern of yield developments is rather heterogeneous on
the five summits.
After the recent Eurozone summit, Finnish
politics led some observers to think that Finland might be the next to exit the Eurozone. In reality, most Finns would
prefer full EZ integration. Small countries like big muscle.
The Euro-crisis is at root a political one.
Like all such, there are several levels to it.
All different. Mostly invisible
in the analysis featured by the general media, which instead prefer to describe
this in bogus fashion as a morality play. The economics are exhaustively
covered; here we glance at the politics of the crisis.
draft memorandum of understanding for the
bail-out includes provision to force any bank seeking aid to compulsorily
write-off their preferred shares and subordinated bonds.
The international role of the euro – ECB
(pdf)
Press
release here
EURO CRISIS: ESM & GERMANS
Get me to the court on time – MacroScope
/ Reuters
The head of the court raised the possibility of
a review taking take two to three months. That could create a dangerous vacuum
though he stressed that was just one option. Schaeuble is just out again saying
he hopes for a verdict before the autumn.
After eight hours of discussions, it was clear:
the court wasn’t eager to decide. The decision might be condemned by
politicians and entail crashes cascading around the world. Even a mere
injunction could be interpreted as a decision to scuttle the European bailout
policies.
German court set to delay bailout fund decision – euobserver
Germany's top court might delay its decision on
the EU's permanent bailout fund, despite a warning of "massive
uncertainty" on the markets.
Bigger Delay to ESM: Court May Take Longer to
Rule on Euro Measures – Spiegel
The German Constitutional Court may take several months, rather than the expected three weeks, to
decide on a request that it issue a temporary injunction blocking measures to
rescue the euro. Finance Minister Wolfgang Schäuble urged the court to hurry up
Tuesday, warning that a delay could lead to a further market turbulence.
CHINA
More cracks appear in the Chinese banking
system – ASA
Chinese banks shares have been hit today on the stock market…This is another case that the risks in the shadow banking system of China is feeding into the formal banking system.
Chinese banks shares have been hit today on the stock market…This is another case that the risks in the shadow banking system of China is feeding into the formal banking system.
…while the world focuses on the China hard vs. soft landing
debate, I am thinking about the longer path for Chinese growth. They will slow
down. When the next downturn hits, we could see a classic negative GDP growth recession.
OTHER
Spooks on the payrolls – alphaville
/ FT
‘CleanSweep
Red Team Report’ on America’s most hyped-up economic release, sent to the DOL last year by cybersecurity analysts
at Sandia National Labratories (spooks) – and for a weird tale of official
paranoia and the workings of the financial media
Citi Says: Second Big Wave of Allocations on
the Way – All
About Alpha
the hedge fund industry experienced what was
but a first wave of new institutional allocation in the period 2003 to 2007,
when institutions redirected their capital out of actively managed long-only
funds and into hedge funds with a variety of strategies. Citi expects the
second wave shortly.