Archive - Jul 9, 2013

• ICE's NYSE to determine the rate used by key competitor CME: NYSE Euronext to Take Over Libor (WSJ)
• Japan slams China over maritime disputes (FT)
• The Twinkie Returns, With Less Baggage (WSJ)
• Pentagon Workers From Pennsylvania to Ghana Hit by Cuts (BBG)
• Why Prostitutes Aren't Enough to Deprive the World of Eliot Spitzer (BBG)
• Groups gather in Turkish protest park after night of clashes (Reuters)
• Apartment Rents Rise, But the Pace Is Slowing (WSJ)
• Asiana Seen Saving Millions With Tactic to Bar U.S. Suits (BBG)
• Bin Laden's life on the run revealed by Pakistani inquiry (Reuters)
• Fracking Firms Face New Crop of Competitors (WSJ)

According to analysts, the world will end up facing a crisis over water shortages, and it has already begun in many parts of the world; and not just in those that are in Africa.

If Portugal had hoped that as a result of this weekend's political manoeuvering, which preserved the tenuous majority of the Coelho coalition cabinet by granting the previously resigned CDS-PP leader Paulo Portas the vice-premiership, thus "forcing" him to rescind his resignation and prevent a government collapse, it would project a vision of political stability, it may need to reevaluate as moments ago the leader of the Socialist Party (the biggest opposition party) Antonio Jose Seguro reaffirmed a call for Portugal to have early elections. Quote Seguro: "Our country is faced with the need to negotiate a new program, which may be called a precautionary program or anything else. Only a new government would have the democratic legitimacy to negotiate a new aid program for our country." Seguro spoke to reporters in Lisbon after meeting Portuguese President Anibal Cavaco Silva.

Overnight news began in China where the CPI came in 2.7% versus consensus of 2.5% although PPI continues to decline at a faster pace than expected (-2.7% v -2.6%). While nobody believes the actual print, that the PBOC is telegraphing an inflationary "leak" shows its willingness to continue with pro-tightening measures which is why despite an Alcoa "beat", the SHCOMP was up only 0.37%. Elsewhere in China, Bloomberg news quoting Xinhua said that some district governments of Ordos of Inner Mongolia is struggling with finances and had to borrow money from companies to pay salaries of municipal employees. Ordos is the infamous "ghost town" spurred by the mining boom in Inner Mongolia. The Bloomberg article noted that Ordos local government entities have CNY240bn of debt versus CNY37.5 billion of revenue last year.  And while the Alcoa "beat", helped handily by a hilariously "tapered" consensus into reporting day, did little for China it was the catalyst that pushed global stocks higher worldwide.