Archive - Jul 16, 2010

• Americans blame Bush, not Obama, for deficit, jobs and Afghan War
• Asian stocks fall for 2nd day, Yen strengthens on US output.
• China interest-rate swaps decline to one-year low on slower growth outlook.
• Cost of Living, Consumer confidence in US probably dropped.
• Crude oil falls a third day as economic reports show recovery may falter.
• Turkey's central bank kept its benchmark interest rate steady at 7%.
• BP test cap temporarily staunched the Gulf oil leak.

• Q2 Revenue misses, comes in at $22.1 Bn versus expectation of $22.28 Bn
• Quarterly consumer net credit losses declined by $530 MM
• Tier 1 capital ratio at 12%
• Tier 1 common ratio at 9.7%

In other words, US credit card holders continue to pay off their credit cards before their mortgages. And somehow this is sufficient for banks to lower their Loss Provisions, even as end consumers are bled dry. This will not end well.

After a frabjous placement of 6 month bills last week (at just under a whopping 5%), Greece continues the charade of pretending it has capital markets access by announcing it will sell another €1.5 billion of 3 month bills on July 20, 2 days before the Stress Farce results are announced.

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 16/07/10

While Obama is in Michigan touting the wonders of fiscal stimulus and what he terms the "Recovery Summer", the Fed came out with the minutes of their June meeting. In it they say they expect 5 or 6 years until we've achieved a recovery. Here is the data and it doesn't support Obama's assertion.

Updates as they come in ...

Canadian pension funds are crisscrossing the globe with cash in hand in search of assets for revenue to support this country’s aging population. Are they on the right track?