Archive - Jul 23, 2015 - Story

On Wednesday evening, Greece took another step toward transforming itself into a vassal state of Brussels when lawmakers passed a second set of prior actions ahead of formal discussions around a third program. As Deutsche Bank noted earlier this week, there’s something quite absurd about the adoption of the new bailout terms being left to a government whose leader openly opposes the deal. And Deutsche Bank isn’t alone in their skepticism. JP Morgan has more on why no one "should put the odds of Greece staying in the euro above 50%".

• Greek PM keeps lid on party rebellion to pass bailout vote (Reuters)
• Greek Prime Minister Alexis Tsipras Remains Popular Despite Tough Bailout Deal (WSJ)
• Beijing's stock rescue has $800 billion bark, small market bite (Reuters)
• Capital exodus from China reaches $800bn as crisis deepens (Telegraph)
• Why Investors Shy Away From China’s $6.4 Trillion Bond Market (WSJ)
• Oil Rigs Left Idling Turn Caribbean Into Expensive Parking Lot (BBG)
• Bank of America replaces CFO in management shake-up (Reuters)
• The Financial Buzz? Pearson to sell Financial Times (Reuters)

A slow week devoid of virtually any macro news - last night the biggest weekly geopolitical event concluded as expected, when Greece voted to pass the bailout bill which "the government does not believe in" just so the ECB's ELA support for Greek depositors can continue - is slowly coming to a close, as is the busiest week of the second quarter earnings season which so far has been largely disappointing despite aggressive consensus estimate cuts, especially for some of the marquee names, and unlike Q1 when a quarterly drop in EPS was avoided in the last minute, this time we won't be so lucky, and the only question is on what side of -3.5% Y/Y change in EPS will the quarter end.