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Frontrunning: July 20

Tyler Durden's picture




 
  • Gold Plunges to Lowest Since 2010 (BBG)
  • In Greek crisis, one big unhappy EU family (Reuters)
  • Greek Banks Reopen Their Doors (WSJ)
  • Greek reshuffle hints at autumn election (FT)
  • Angela Merkel signals conditions for Greek debt talks (FT)
  • Dollar hits three-month high on rate view, pans gold (Reuters)
  • History Shows Iran Could Surprise the Oil Market (BBG)
  • ‘Charlie Hebdo’ Will Cease Publishing Cartoons of Prophet Muhammad (Newsweek)
  • Lockheed to buy United Tech's Sikorsky for over $8 billion (Reuters)
  • Ukraine extends creditor talks as threat of default looms (FT)
  • The $42 Billion Debt Trap That Putin Has Three Years to Escape (BBG)
  • Omega’s Einhorn Sees Another Two Years Left in U.S. Bull Market (BBG)
  • Barclays Said to Consider Cutting Quarter of Jobs in Cost Push (BBG)
  • Greek maritime industry fears being punished for its success (FT)
  • Barge Carrying 1 Million Gallons of Naphtha Catches Fire Near Houston, Texas (NBC)
  • Rules for Signing Mortgages Online Boosts Black Knight (BBG)
  • PayPal’s Debut Market Value Tops EBay’s as Investors Seek Growth (BBG)

 

Overnight Media Digest

WSJ

* The Obama administration has launched an aggressive campaign to try to allay the fears of allies in the Middle East over the Iran nuclear deal. (http://on.wsj.com/1HDHrae)

* Syngenta plans a series of meetings with investors as it contends with frustration from some shareholders over its rejection of a roughly $45 billion takeover effort by rival agribusiness giant Monsanto Co. (http://on.wsj.com/1Swm4uw)

* The Dodd-Frank regulatory overhaul, the most sweeping financial legislation in a generation, turns five this week. Debate over the law's impact continues to rage. Proponents say it made the financial system safer by making banks less risky. Detractors say the law has hurt smaller banks and hamstrung the economy. (http://on.wsj.com/1Sw9A68)

* Across China, a painful restructuring toward slower, more sustainable growth has pared manufacturing's share of the world's second-largest economy, forcing companies to adapt or founder. (http://on.wsj.com/1KfrFGm)

* The ruling executive committee of soccer's world governing body returned to Zurich on Sunday for its first meeting since FIFA president Sepp Blatter announced in June that he would be resigning. The top item on Monday's agenda is setting a date for the hastily called presidential election, which is expected to fall between December and March. (http://on.wsj.com/1CR1e7k)

 

FT

Royal Dutch Shell, which is all set to acquire rival BG Group Plc, may cut its capital expenditure for the year by several billion dollars from the previously announced $33 billion figure.

The government of Italy is planning to begin the floatation of its post office, Poste Italiane, in the first week of August and is expecting to raise about 4 billion euros from a 40 percent stake listing.

Dividends paid by the companies in the UK reached their highest level in the second quarter since the 2008 financial crisis. About 29.2 billion stg was paid in dividends during the quarter, including special dividends.

 

NYT

* German Chancellor Angela Merkel reiterated her insistence that there be no reduction in Greek debt, but said other relief measures could be discussed. (http://nyti.ms/1Kfo5vX)

* For Greece, it's the economic equivalent of the Big Bang. So far, the questions about the tentative Greek bailout deal have focused on the pact's austere insistence on further cost cuts and new tax increases. But just as disruptive to Greek life could be the fundamental changes the pact is demanding in the cozy old ways that the country conducts business - changes meant to make Greece a more modern, efficient eurozone economy. (http://nyti.ms/1CKoeF8)

* Lockheed Martin has agreed to buy Sikorsky, the maker of the Black Hawk helicopters used by the United States military, people with knowledge of the matter said on Sunday. The deal, which one person said would be worth more than $8 billion, could be announced as soon as Monday. (http://nyti.ms/1JaDo7L)

* Next week, when Microsoft releases Windows 10, the latest version of the company's operating system, the software will offer a mix of the familiar and new to the people who run earlier versions of it on more than 1.5 billion computers and other devices. But Microsoft will not charge customers to upgrade Windows on computers, a shift that shows how power dynamics in the tech industry have changed. (http://nyti.ms/1HDGDCs)

 

Hong Kong

SOUTH CHINA MORNING POST

-- The ICAC commissioner has for the first time confirmed that the agency was considering the possibility of acquiring technology that could intercept residents' computer and mobile phone data from Milan-based Hacking Team, a controversial cybersecurity company. (bit.ly/1HJMWSF)

-- China-led Asian Infrastructure Investment Bank intends to make use of Hong Kong as a bond-issuing platform, Financial Secretary John Tsang Chun-wah told Xinhua in an interview. Tsang said he would lead a delegation to visit European countries covered by the "One Belt, One Road" initiative in the next two or three months. (bit.ly/1Id5GOi)

THE STANDARD

-- A Legislative Council security panel member has urged Cathay Pacific Airways to review transport procedures after one of 13 bags containing NZ$1 million ($651,300.00) went missing from a cargo transfer service. The transportation service is provided by Hong Kong Airport Services - a wholly owned subsidiary of Cathay Pacific. (bit.ly/1LxdlIi)

-- The local second-hand property market fell further at the weekend as new home projects siphoned off most buyers, said local agencies. Only seven deals were sealed in the top 10 blue- chip estates monitored by Centaline Property Agency, a 22.2 percent drop from a week ago and a 12-week low. Midland Realty saw only seven deals, an 11-week low. (bit.ly/1fh1EJ6)

-- Hong Kong's airport saw steady growth in the first half, with passenger throughput up 9.1 percent to 33.6 million compared with a year ago. Flight movements rose 4.4 percent to 199,620, while the cargo volume handled also edged up by 0.6 percent to 2.1 million tonnes. (bit.ly/1CQJQj4)

HONG KONG ECONOMIC JOURNAL

-- Intime Retail (Group) Co Ltd said Shen Guojun would transfer a total 398 million shares, or 18.18 percent of the issued share capital, to his daughter, sister and other investors, ceasing to be a controlling shareholder of the company. Alibaba Group will become the single largest shareholder of the Chinese department store operator.

 

Britain

The Times

Barclays Plc is planning to cut more than 30,000 jobs within two years after firing Antony Jenkins, its chief executive, this month. (thetim.es/1CKc13g)

Ladbrokes Plc and Coral are close to agreeing to terms of a 3.5 billion stg merger that would create Britain's biggest bookmaker. (thetim.es/1Sw07M1)

The Guardian

The BBC could be part-funded by subscriptions on top of a licence fee in the future, John Whittingdale, the culture secretary has said, stressing that every option would be open to discussion in the government's forthcoming review of the corporation. (bit.ly/1VijkVO)

Prime Minister David Cameron has said the UK should "step up and do more" in the fight against Isis in Iraq and Syria, in the clearest sign yet that he is committed to sending UK forces to join US-led air strikes in Syria. (bit.ly/1e9243t)

The Telegraph

The owners of Travelodge are preparing to check out of the hotel business after appointing Deutsche Bank AG to advise them on a 1 billion stg sale or stock market float of the company. (bit.ly/1CKfcIs)

Seabrook Crisps, the family-owned Yorkshire snacks business, has been sold to the private equity arm of Lloyds Banking Group for 35 million stg. (bit.ly/1Kf1gpm)

Sky News

Fidelity Growth Partners Europe has agreed to inject the money into Made.com (IPO-MADE.L) alongside Partech Ventures, a Paris-based investment firm. (bit.ly/1Viu1HV)

John McFarlane, new chairman of Barclays, will on Monday be named as a new member of the Treasury's Financial Services Trade and Investment Board. (bit.ly/1JqzG5A)

The Independent

Holidaymakers in Greece are already being warned about VAT rises. A letter has surfaced on Twitter informing guests at the Athens Ledra Hotel that VAT on food and drink has increased 10 per cent. (ind.pn/1I8GPgi)

 

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Mon, 07/20/2015 - 07:30 | 6331836 Ghordius
Ghordius's picture

"German Chancellor Angela Merkel reiterated her insistence that there be no reduction in Greek debt, but said other relief measures could be discussed. (http://nyti.ms/1Kfo5vX)"

translated: no, no bailouts. we won't call them bailouts, nor debt reductions. we will call them relief measures

Mon, 07/20/2015 - 09:42 | 6332154 TeethVillage88s
TeethVillage88s's picture

Called Gaslighting, but I don't think she realizes how she is "Exposing" her Flank.

It is ill-advised to Gaslight a whole nation since hundreds of thousands will realize you are trying to indicate that they are crazy or stupid.

Merkel is asking for war or a Grexit at the very least.

I would just like to know what they threatened Tsipr-ass with.

Mon, 07/20/2015 - 07:32 | 6331839 Notayesmanseconomics
Notayesmanseconomics's picture

It seems that the plan such as it is relies on crushing the Greek economy yet again!

The VAT rise


This is another kick in the teeth for businesses. The fall in the value of the Euro was something which hopefully would give a boost to the Greek tourism business. However as we arrive at peak season prices have been pushed higher via the VAT (sales tax) increases. The rate for restaurants and taxis has risen sharply from 13% to 23%.

 

If we move to the domestic market there are a range of increases including a similar jump as stated above on some foods. This has been estimated by Macropolis as having an average effect of some 650 Euros per household. As net household income is of the order of 13,800 Euros (OECD 2014) we see that this will take quite a bite out of it.

 

Frankly this seems set to prove that the Laffer Curve can apply to indirect as well as direct taxes.

 

http://wp.me/pHQQ9-1mk

 

When will the punishment of ordinary Greeks end?

Mon, 07/20/2015 - 08:53 | 6332012 Anopheles
Anopheles's picture

Punishment?   Since when is paying back money you borrowed considered punishment? 

Mon, 07/20/2015 - 09:02 | 6332039 Catullus
Catullus's picture

Who borrowed it? The person buying lunch in Greece or the Greek government?

Mon, 07/20/2015 - 10:32 | 6332365 TeethVillage88s
TeethVillage88s's picture

Stormtroopers comin' to Greece.

My Prediction is Greeks can not implement the Austerity and Tax Collecting required by the Bankers, Greedy Blut Suckers.

So they can expect EU Police Forces to stormtroop into houses and businesses to collect Taxes and Look at the Books. They can always Outsources these Jobs to Chinese or Africans or other allies.

http://www.paulcraigroberts.org/?wp_cta_redirect_19418=http://www.paulcr...

Free Trade has made it possible under Globalism to use slave labor or Latinos that will do tough Jobs.

And it can be transferred from Greece to Detroit, Chicago, Minneapolis, Huston, or California as Credit and Financial Ratings are Tightened up.

Mon, 07/20/2015 - 07:38 | 6331848 Tribulation Blues
Tribulation Blues's picture

It's not just the coming collapse we have to worry about... God's judgement is about to strike America, read His warnings this past week to prophet Linda Newkirk re the Revelation 8 asteroid... http://revelation12.ca

Rev 8: 8 And the second angel sounded, and as it were a great mountain burning with fire was cast into the sea: and the third part of the sea became blood;

Mon, 07/20/2015 - 07:58 | 6331893 usednabused
usednabused's picture

Cut the BS

Mon, 07/20/2015 - 08:03 | 6331895 Monetas
Monetas's picture

Greek austerity .... tax the tourists .... stretch out loan repayments .... beg for handouts and debt relief !

Mon, 07/20/2015 - 09:47 | 6332168 TeethVillage88s
TeethVillage88s's picture

This is what Martin Armstrong Suggested. He seems to have a template that we could all change or add to.

http://www.armstrongeconomics.com/research/cyprus-proposal

Mon, 07/20/2015 - 08:09 | 6331915 Brazen Heist
Brazen Heist's picture

Gold got hammered today.

Mon, 07/20/2015 - 09:59 | 6332213 TeethVillage88s
TeethVillage88s's picture

BBG

- Commodity Rout Extends Toward 13-Year Low as Gold Shunned on Fed
- Gold Speculators Least Bullish on Record as Rate Rise Approaches

Mon, 07/20/2015 - 13:10 | 6333050 Handful of Dust
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