Reuters

To Mexico And "Beyond": Flash Boys Get Warm Welcome In Emerging Markets

"Exchanges around the world are avidly wooing high-frequency traders, those controversial speed demons of Wall Street. Despite the often explosive debate over this kind of trading in the U.S., bourses in Mexico, Turkey, South Africa and beyond are trying to lure HFT types to boost business," Bloomberg reports.

Greece Fails To Make Another IMF Loan Payment But It Is Tonight's Samurai Bond That Everyone Is Watching

It was not today's IMF (non) repayment that traders, if not eurocrats and economists, are concerned about but tonight's maturity of a JPY 20 billion (about $160 million) Samurai note sold in 1995 and which matures on July 14. The reason why this paltry, in the grand scheme of things, payment is critical is that while continuing to repay the IMF is not an event of default if only purely technically, and for the rating agencies, a non-payment on the Samurai bond would start a cross-default cascade.

After "Deal", Here's What's Next For Greece

Now that Greece has capitulated and offered up its sovereignty in what can only be described as an unconditional surrender to Berlin and Brussels, here's what's next for the country, the government, and the Greek people.

Frontrunning: July 13

  • Greece Capitulates to Creditors’ Demands to Cling to Euro (BBG)
  • Euro zone strikes deal with Greece after all-night struggle (Reuters)
  • Tsipras Moves From Predator to Prey at Euro 'Torture' Summit (BBG)
  • Euro’s Greek Boost Evaporates as Analysts Predict Losses to Come (BBG)
  • Greek Fury Meets Resignation at Demands for Concessions (BBG)
  • Poland Blames ‘Carefree’ Greek Populists for Tough EU Aid Deal (BBG)
  • Europeans Press for Iran Nuclear Deal on Monday (WSJ)
  • Iran nuclear talks: Deal 'near completion' (BBC)
  • In speech, Clinton to put wages at heart of economic policy (Reuters)
  • China’s Incendiary Market Is Fanned by Borrowers and Manipulation (NYT)

Deal Struck Following Total Capitulation By Tsipras: Market Awaits Greek Reaction To Draconian Deal Terms

Just around 9am CET, after a 17-hour mammoth all-night session, Greece did manage to cobble together a "deal" if one may call this latest embarrassing can-kicking that, which was nothing short of total capitulation by Tsipras. As part of the deal, Greece "surrendered to European demands for immediate action to qualify for up to 86 billion euros ($95 billion) of aid Greece needs to stay in the euro" in the words of Bloomberg.

The Purge Begins: Tsipras To Expel Hard Core Left Wingers, Including Energy And Deputy Labor Ministers

The first targets of Tsipras purge of "party rebels opposed to an austerity package that will have to go through parliament within days" include the most prominent rebels, Energy Minister Panagiotis Lafazanis, leader of the so-called "Left Platform" within Syriza and Deputy Labour Minister Dimitris Stratoulis, a former unionist and a fierce opponent of pension cuts. The next scalp Tsipras would love to have is that of the "uncompromising speaker of parliament, Zoe Constantopoulou, who also defied Tsipras and abstained from the vote" although she would require a no confidence vote to be replaced "but the other rebels would be expected to resign their seats, the same people say."

Leaked Eurogroup Statement Demands Much More From Greece, Keeps "Temporary Grexit" Option

While there is "hope" in the unforgettable words of France's Moscovici, it is once again up to Greece to convince Europe it really wants to stay in the Union. According to Reuters, the Eurogroup is about to release a statement, whose draft it has seen, which will demand much more from the tiny country caught in a state of permanent depression. To wit: Greece will not be able to start negotiations on a third bailout until it makes changes to its sales tax and pension systems and strengthens the independence of its statistics office, a draft statement of euro zone finance ministers said on Sunday.

Someone Told Merkel...

€10-14 billion was bad enough, but €25 billion may have been simply too much to bear...

Schauble Proposes "5 Year Grexit With Humanitarian Support"

Here is the punchline from Greek nemesis #1, Schauble: SCHAEUBLE PROPOSES TIME-LIMITED `GREXIT': FAZ; SCHAEUBLE SUGGESTS 5-YR GREXIT, HUMANITARIAN SUPPORT: FAZ

In other words, Germany just said kick Greece out, conditionally, for 5 years (it is not quite clear what Greece would use for currency in the meantime), quarantine it, and treat it as a third-world country until 2020. Somehow we doubt global stocks expected this outcome when they soared on Friday...

Eurogroup Meeting Ends Without Agreement: "Huge Problems", "Issue Of Greek Trust Very Difficult"

Equity markets roared higher Thursday and Friday as they 'knew' a deal was imminent in Greece because Tsipras appeared to backpedal. However, after someone told Merkel the truth, and "everyone knows you can't believe" the Greeks, The Eurorgoup Meeting ends with zero agreement after 9 hours of rumor-mongering and escalating tensions. Local reporters noted the leaders could not even agree on what to disagree about as an increasing number of EU member states pushed for either a Grexit or considerably tougher sanctions austerity on the Greeks. There is no press conference and the meeting will resume tomorrow at 11am... shortly before FX markets open.

Troika Says Greek Proposal Not Enough To Meet Targets, Serves As "Basis For Negotiations"

Tsipras betrayed the public trust last night when we rammed through a draft proposal for a Third Greek bailout, one which would push total Greek Debt/GDP over 200%, which the Greek population overwhelming rejected in a democratic vote last weekend. And now, it is up to Europe to decide if it will trust the Greek government, which clearly has no problem lying to anyone, to implement reforms which Greece has been unable to effect for over 5 years.

Peter Schiff On The Big Picture: The Party's Ending

While the party in the 1990s ended badly, the festivities currently underway may end in outright disaster. The party-goers may not just awaken with hangovers, but with missing teeth, no memories, and Mike Tyson's tiger in their hotel room.