Greek Cyber Crime Unit To Investigate Varoufakis' Secret Drachma Plan

"Ilias Zagoraios, the chief prosecutor of the Athens First Instance Court, has asked Greece’s cyber crime unit to investigate whether the public revenues service was hacked as part of an effort to create a parallel payment system under ex-Finance Minister Yanis Varoufakis," Kathimerini reports.

ISM Services Spikes To 10 Year Highs Despite Markit "Hope" Plunge To 3-Year Lows

ISM Services soared to its highest sicne 2005 - printing 60.2, beating expectations by the most on record - with the biggest MoM jump in employment in history. Does that sound in any way realistic? Markit Services PMI printed above its preliminary level at 55.7 for a small bounce after 3 straight months lower. However, more problematic is the plunge in 'hope' as busines outlook tumbles to its lowest since June 2012. As Markeit notes, while the headline may be encouraging, "dig a little deeper and there are causes for concern which could worry policymakers into deferring any tightening of policy."

 

The Average Employee Is Worth $22.5 Million At Facebook; $200,000 At McDonalds

Yesterday we showed a chart demonstrating that while the top 10 "Unicorn" startups have a private valuation of $156 billion on just $4 billion in revenue, what caught readers' attention is that the average employee among these 10 companies is worth a whopping $8 million.  But what about the "value" of employees at public companies, and especially at the blue chips, names such as MSFT, XOM, JPM, MCD and, the more recent trailblazers, AAPL and FB? The answer is shown below.

VIX Collapses To 2015 Lows

Seriously...VIX is trading with an 11 handle once again, at the lowest levels of 2015...

Who Is Left To Speak The Truth (Or Why Government Hates Gold)

Simply put, Gold stymies "welfare statists," but back in 1966 no lesser credit-nation-creator than Alan Greenspan still belived in free markets and sound money. You can obstruct price discovery and you can disguise and distort the real value of things. But Mr. Market will get even someday. He always does.

First Ex-Im Casualty: Boeing Loses Deal Due To "Credit Woes"

Boeing, whose Chairman Jim McNerney says the demise of the Export Import bank amounts to "craziness", lost a contract worth several hundred million dollars last month, after the buyer backed out citing credit concers related to the expiration of the Depression-era institution's charter. Now, Boeing and GE alike are threatening to move American jobs overseas if Congress fails to renew the authorization for what some commentators call "a vast, well-funded network of consultants, lobbyists and big-government interest groups."  

US June Trade Deficit Surges 7% To $43.8 Billion As Strong Dollar Slams Exports, Imports Rise

Dear Fed: behold another example of why your ludicrous rate hike ideas will crush the economy. Moments ago the BEA reported that the June international trade deficit spiked by 7.1% from $40.9 billion in May (revised) to $43.8 billion in June, as exports decreased and imports increased.  The previously published May deficit was $41.9 billion. The goods deficit increased $2.9 billion from May to $63.5 billion in June. The services surplus decreased less than $0.1 billion from May to $19.7 billion in June.

Stocks Soar As "Bad News Is Good News" Idiocy Continues

Jay Powell reminded investors that September is not guaranteed and a dismal ADP print confirmed that there's maybe enough bad news that we get one or two more months of ZIRP... so stocks surge on algo eagerness. Bonds are also rallying and the dollar fading...

 

ADP Employment Tumbles Near 2015 Lows, Below Lowest Estimate And Down 20% On The Year

Following June's small-business-driven better-than-expected rise in ADP employment, July printed a stunningly weak 185k against expectations of 215k - the biggest miss since March. This is around the lowest level of the year and lowest since Q1 2014. It is also 20% lower than the 232K ADP print a year ago, and the weakest July print since 2013: all signs screaming QE4 a rate hike is imminent.

Standard Chartered Profit Collapses, Dividend Halved Amid Commodities Carnage

Standard Chartered’s new CEO Bill Winters thinks the bank is positioned well in "markets which will offer outstanding opportunities for decades to come", and while that may be true, the opportunities in those markets didn’t prove to be all that outstanding in the first half of the year, as the bank’s EM and commodities exposure contributed to a 44% decline in H1 profits and prompted a 50% dividend cut. 

Frontrunning: August 5

  • Turkey says coalition to launch 'comprehensive battle' against Islamic State (Reuters)
  • Buffett’s Celebration Tempered by 50th Anniversary Stock Slump (BBG)
  • SEC Set to Approve CEO Pay-Gap Disclosure Rule (WSJ)
  • Greece wants full bailout, not bridge loan, ruling party says  (Reuters)
  • Stocks Rise Fueled by Strong European Corporate Earnings and Chinese Data (WSJ)
  • JPMorgan Reclaims Place Among U.S.'s Top 10 Biggest Stocks (BBG)
  • Eurozone retail sales fall sharply in June (MW)

Why Apple Is Falling Again: Bank of America Cuts AAPL From Buy To Neutral, Lowers Price Target

Curious why after its massive drubbing yesterday, which led to the second highest volume day for AAPL stock in 2015, the phone market is down another 1.3% this morning? The reason: Wall Street's momentum chasing penguins have re-emerged, and moments ago Bank of America, right on time as in just after the stock broke its 200 DMA and entered a correction, decided to downgrade AAPL from Buy to Neutral, lowering its price target from $142 to $130.

Ransquawk BoE 'Super Thursday' preview

 

All surveyed analysts expect the Bank of England to keep monetary policy unchanged, with the bank rate at 0.5% and the Asset Purchase Facility at GBP 375bln

Focus expected to instead by on minutes and Quarterly Inflation Report (QIR) release with minutes expected to show a 7-2 vote split on keeping rates on hold

QIR will be analysed to see if it compares or contrasts to recent hawkish BoE rhetoric

Futures Rebound On Ongoing Dollar Strength; Commodities Rise, China Slides, Greek Banks Continue Plunging

In many ways the overnight session has been a mirror image of yesterday, with the dollar accelerating its Lockhart-commentary driven rise, which curiously has pushed ES higher perhaps as a result of more USDJPY correlation algos being active and various other FX tracking pairs. Indeed, the weak yen is all that mattered in Japan, where the Nikkei 225 (+0.5%) rose amid JPY weakness, despite opening initially lower as index heavyweight Fast Retailing (-4.5%) reported a 2nd consecutive monthly decline in Uniqlo sales. Elsewhere in mirror images, China slid 1.7%, undoing about half of yesterday's 3.7% jump, and is now down for 4 of the past 5 days.

Goldman Is Confused: If The Economy Is Recovering, Then How Is This Possible

"The share of young people living with their parents--which rose sharply during the recession and its aftermath--finally began to decline in 2014. But over the last six months, this decline seems to have stalled. We find that the share of young people living with their parents has increased relative to pre-recession rates for all labor force status groups, not just the unemployed and underemployed." - Goldman Sachs

Louis Farrakhan Urges Black Community To "Rise Up And Kill Those Who Kill Us"

"The Koran teaches persecution is worse than slaughter. Then it says, retaliation is prescribed in matters of the slain. Retaliation is a prescription from God to calm the breaths of those whose children have been slain. So if the federal government will not intercede in our affairs, then we must rise up and kill those who kill us. Stalk them and kill them and let them feel the pain of death that we are feeling."

They Live, We Sleep: A Dictatorship Disguised As A Democracy

We’re living in two worlds, you and I. There’s the world we see (or are made to see) and then there’s the one we sense (and occasionally catch a glimpse of), the latter of which is a far cry from the propaganda-driven reality manufactured by the government and its corporate sponsors, including the media. Indeed, what most Americans perceive as life in America - privileged, progressive and free - is a far cry from reality, where economic inequality is growing, real agendas and real power are buried beneath layers of Orwellian doublespeak and corporate obfuscation, and “freedom,” such that it is, is meted out in small, legalistic doses by militarized police armed to the teeth. All is not as it seems.

Chinese Stock Short Squeeze Stalls After IMF Delays Decision On Yuan SDR Inclusion

Yesterday afternoon's meltup short-squeeze in China - after regulators announced their latest restrictions on short-selling - has stalled in the early trading tonight following The IMF's decision to delay inclusion of Yuan in the SDR pending a review in September 2016. Though this will be a disappointment to the Chinese, the door is still open though given waringse from BMW and Toyota over "normalizing" auto sales, the market problems may be morphing quickly into economic problems.

Fed Lunacy Is To Blame For The Coming Crash

From our perspective, the fundamental reason for economic stagnation and growing income disparity is straightforward: Our current set of economic policies supports and encourages a low level equilibrium by encouraging debt-financed consumption and discouraging saving and productive investment. We permit an insular group of professors and bankers to fling trillions of dollars about like Frisbees in the simplistic, misguided, and repeatedly destructive attempt to buy prosperity by maximally distorting the financial markets.