General Motors

Despite broad and deep price cuts introduced earlier in the year, GM's sales in China were roughly flat in June continuing the streak of weakness since March (when GM changed its reporting to retail sales from wholesale delivery). This is the weakest start to a year for China auto sales since 2012 and GM's share price is now back notably below its 2012 IPO price. Judging by the massive volume of cars 'parked' in GM's Shenyang Liaoning lots, it is clear that automakers learned nothing from the last "if we build it, they will come" channel-stuffing inventory surging dysphoria that, among other things, led to their last bankruptcy... if only Chinese buyers would take up the credit terms like Americans.

• Greece faces last chance to stay in euro as cash runs out (Reuters)
• Tsipras Begins Brussels Campaign to Keep Greece Inside the Euro (BBG)
• Greek Crisis Shows How Germany’s Power Polarizes Europe (WSJ)
• Eurogroup Head Dijsselbloem Calls for ‘Credible’ Greece Package (BBG)
• Europe Not Playing ‘Domino Theory’ Leaves Markets Calm on Greece (BBG)
• China stocks fall again despite support measures (Reuters)
• Chinese Trading Suspensions Freeze $1.4 Trillion of Shares Amid Rout (BBG)
• Crude Creeps Higher After Downturn (WSJ)

• Greece Handed New Terms as Tsipras Approaches Decision Time (BBG)
• As U.S. Probes $12.7 Trillion Treasury Market, Trader Talk Is a Good Place to Start (BBG)
• Signs Swedish QE Backfiring as Liquidity Evaporates (BBG)
• ECB approves ELA funding requested by Greece- banking source (Reuters)
• Greek Millennials Can't Find Work But Actually Want to Keep the Euro (BBG)
• Greek deal or not, the euro is now a different beast (Reuters)
• Promoter’s Arrest Sheds Light on Cynk’s $6 Billion Surge (BBG)
• The World's Biggest Economies Are About to Feel the Impact of China's Slowdown (BBG)
• Senate Clears Trade Bill’s Way to Passage (WSJ)

The serial bubbles of the 2000’s are nothing more than what was wrought of the 1920’s, in general. The monetary character of both is not coincidence, as the failures that bookend each of these ages induces the transformation: from monetary to fiscal and back to monetary again. That looks like progress and accountability, but in each it only leads to more extreme measures (relative to the last) to still achieve what Robert Owen and Karl Marx conceived more than a century and a half ago. That leads us to 2015 and what is certainly the ragged end of the eurodollar standard. The third socialist age was undone by August 2007, but that did not stop its proprietors of “eurodollar socialism” under the name “investor capitalism” from trying to rebuild and restore it to full capacity. The groundwork has already been laid, and it is exactly what you would expect given the history since 1907. There are no widespread details about a return to capitalism and sound money practices, only how to overcome the third installation of that timeless barrier thrown down in the collapse of each of the asset bubbles so far – value.

• Tsipras Hardens Greek Stance After Collapse of Talks (BBG)
• Obama Fights to Save Trade Bill (WSJ)
• German Stock Market Pain Seen Just Beginning Should Greece Exit (BBG)
• Russia to boost forces in western flank if U.S. stations arms in east Europe (Reuters)
• Lab Nears Settlement Over Pricey Medicare Drug Tests (WSJ)
• China's $358 Billion in Margin Loans Points to Next Bear Market (BBG)
• Draghi Faces EU Court Ruling on 2012 Bond Plan as Greece Teeters (BBG)
• Sex, lies and debt potentially exposed by U.S. data hack (Reuters)

• Pressing for Greek concessions, Merkel and Hollande keep Tsipras waiting (Reuters)
• Treasuries Extend Slump as Pimco Dumps Two-Thirds of Holdings (BBG)
• U.S. prepares plans for more troops, new base in Iraq: officials (Reuters)
• Texas policeman resigns after video shows him toppling teen (Reuters)
• Kuroda Says Hard to See Yen Dropping More, Spurring Surge (BBG)
• Tech Startups Woo Investors With Unconventional Financial Terms — but Do Numbers Add Up? (WSJ)
• Putin is a 'bully', U.S. needs to respond resolutely: Jeb Bush (Reuters)

• Greece Said to Submit Revised Budget Plan in Bid for Funding (BBG)
• Protesters seek firing of Texas officer who threw girl to ground (Reuters)
• HSBC to cut 50,000 jobs in quest for higher dividends (Reuters)
• U.S. base shipped live anthrax to 19 states plus D.C.: Pentagon (Reuters)
• Obama Administration Opens Door for More Student-Debt Forgiveness (WSJ)
• China Said to Weigh Margin Finance Rule Change Amid Stock Boom (BBG)
• Doctor who trained U.S. troops suspended for macabre techniques (Reuters)
• Exxon to Face Regulators’ Questions Over Quakes (WSJ)

Putting Uber's latest valuation in perspective, according to CapIq there were just 95 companies in the S&P500 with a market cap over $50 billion, suggesting Uber which did not exist when Lehman filed for bankruptcy, now has a market capitalization greater than 80% of the S&P. Specifically, at a $50 billion valuation, Uber is more "valuable" than FedEx, Marck, Deutsche Bank, General Dynamics, Nissan, Time Warner, Yahoo, Credit Suisse, Heineken and many other companies.

• Full picture of Clinton charities' foreign government funding remains elusive (Reuters)
• Greece Readies for Another Week of Deadlines (BBG)
• Greece says deal will be 'difficult' at Eurogroup meeting (Reuters)
• Saudi Arabia’s Rulers Snub Arab Summit, Clouding U.S. Bid for Iran Deal (WSJ)
• Saudi Aramco Said to Plan Spending $80 Billion Overseas (BBG)
• The $900 Billion Influx That’s Wreaking Havoc in U.S. Bills (BBG)
• Cameron rules out another Scottish independence vote (Reuters)
• Banks Prep Defense for Anti-Wall Street Campaigns (WSJ)

In a quarter in which US GDP is set to decline consumer credit, according to the latest update from the Federal Reserve, increased by just over $45 billion. But how is it possible that with such a massive expansion in household credit there was no actual benefit to the underlying economy? Simple: 98% of the credit lent out in the first quarter, or $44.3 billion, went to student and car loans!

• Record month ends in pain as biotech, small-caps, Apple tumble (BBG)
• Japan inflation rises for first time in nearly a year (WSJ)
• US Navy starts to accompany ships in strait where Iran seized cargo carrier (WSJ)
• Russia may be readying for new Ukraine offensive: NATO commander (Reuters)
• Big banks use loophole to avoid ban (WSJ)
• China April official PMI shows factories struggling to grow (Reuters)
• CME suspends traders for alleged Sarao-like manipulation (BBG)

The 20th century could be categorized as THE century when communications took off and we started living in each other’s pockets. Lives had been ruined by war, trouble and strife. Wealth had been redistributed beyond belief.

But low oil prices are supposed to be unequivocally good? On the day when Ford lays off 700 Michigan plant workers in small cars and hybrids manufacturing, The Detroit News reports that, according to Edmunds.com, sales of electric cars and hybrids are at the lowest level since 2011. What is even more worrisome, motorists who leased those first-generation cars, and have decided not to buy them, are turning them in, leaving dealer lots full of low mileage cars at huge discounts to new ones. As Edmunds concludes, while "the government's going to keep pushing it, there is time to pause right now."

Today is shaping up to be a rerun of yesterday where another frenzied Asian session that has seen both the Shanghai Composite and the Nikkei close higher yet again (following the weakest Chinese HSBC mfg PMI in one year which in an upside down world means more easing and thus higher stocks) has for now led to lower US equity futures with the driver, at least in the early session, being a statement by the BOJ's Kuroda that there’s a "possibility" the Bank of Japan’s 2% inflation target will be delayed and may occur in April 2016.

• Euro zone bond yields sink to historic lows (Reuters)
• Clinton Foundation to Keep Foreign Donors (WSJ)
• Russia says U.S. forced it to act on Ukraine (Reuters)
• Bankers to China's Rescue (BBG)
• Saudi Arabia Adds Half a Bakken to Global Oil Market in a Month (BBG)
• Valuations of Hong Kong's stock market operator go interstellar (Reuters)
• Switzerland Attracts Fewer Firms as Politics Hurt Business Image (BBG)