Today's Headlines

Bloomberg:

• Putin Holds Poroshenko Talks as Ukraine Tension Grows. Russian President Vladimir Putin began talks with his Ukrainian counterpart, Petro Poroshenko, as tensions flared on the two nations’ border. Putin said he’s ready for an exchange of opinions on Ukraine as he addressed a summit of the Russian-led Customs Union in Minsk, Belarus. Poroshenko said he’s optimistic about the meeting, which includes European Union foreign-policy chief Catherine Ashton and the presidents of Belarus and Kazakhstan. “I understand that all players who’ve been drawn into the situation would like to exit with dignity,” Poroshenko said in Russian. “I’m ready to discuss different options that would allow such an exit strategy -- an exit to a peaceful future for Ukraine, an exit to a peaceful future for Europe.”
• Agricultural Bank Braces for More Bad Loans Amid Slowdown. Agricultural Bank of China Ltd., the lender with more retail customers than the population of the euro zone, set aside more money for future bad loans amid the nation’s economic slowdown. The bank boosted provisions for potential soured credit by 56 percent to 15.6 billion yuan ($2.5 billion) in the three months ended June 30 from a year earlier, according to a Hong Kong exchange filing yesterday. Net income rose 12 percent, the weakest pace in five quarters, to 50.6 billion yuan.
• European Stocks Climb for a Second Day as Lenders Advance. European stocks climbed, completing their biggest two-day gain in four months, as banks advanced on further speculation that the euro area will introduce an asset-purchase program. BNP Paribas SA and Societe Generale SA both gained more than 1.5 percent. WPP Plc (WPP) added 1.4 percent as the advertising agency posted sales that beat projections. Telecity Group Plc (TCY) declined the most in six months after the operator of data centers said its chief executive officer will step down. The Stoxx Europe 600 Index rose 0.7 percent to 342.96 at the close of trading.
• Iron Ore Risks Extending Drop to Lowest Since 2009. Iron ore prices are at risk of slumping to the lowest level since 2009 as increased supplies from Australia and Brazil boost a global surplus and prompt the closure of some higher-cost Chinese suppliers. The commodity may retreat to $80 a metric ton this year, according to Helen Lau, an analyst at UOB Kay Hian Ltd. in Hong Kong, who’s tracked the market for seven years. Ore with 62 percent content at Qingdao, China, fell 1.2 percent to $89.02 a ton today, according to Metal Bulletin Ltd.’s website. That’s the lowest since September 2012, when it bottomed at $88.08. A price below $88.08 would be the lowest since October 2009. Prices tumbled 34 percent this year as mining companies from BHP Billiton Ltd. (BHP) to Rio Tinto (RIO) Group increased output, pushing the global seaborne market into a glut. Major producers in Australia, which have average costs of about $40 to $50 a ton, are continuing to increase supplies even with prices near the lowest level in five years, Australia & New Zealand Banking Group Ltd. said in a report today.
• S&P 500 P/E Reversal Seen as Yield Gap Narrows: Chart of the Day. 

ZeroHedge: 

• It Begins: Council On Foreign Relations Proposes That "Central Banks Should Hand Consumers Cash Directly".
• JPMorgan(JPM) Sees 50% Chance Of ECB QE By Year-End, Will Ease More Next Week.
• (Un)Comfortable Myths About High Yield Debt. (graph)
• Doctor Fed, You Are Wanted In The San Francisco Housing Ward, Stat. (graph)
• Government Confidence Survey Spikes To 7-Year Highs, Near Record Divergence From UMich Sentiment. (graph)
• "Widespread Slowdown In Home Price Gains": Case-Shiller Misses, Rises By Slowest Since 2012. (graph)
• "Tax Me More" Buffett To Finance Burger King's Tax Inversion Deal.
• Durables Goods, Excluding Bumper Boeing Orders, Suffer Biggest Drop Of 2014. (graph)

Business Insider:

• Russian Economy Nears Recession Amid Ukraine Sanctions.
• Israel And Hamas Just Reached Long-Term Ceasefire In Gaza.
• Angry Home Owners Protest In China As Property Prices Fall.

Washington Free Beacon:

• Sad Morning Joe Panel Doesn’t Get Why Warren Buffett Doesn’t Want To Pay Higher Taxes. (video)

Reuters:

• Islamic State turns radical Islam on Syria Muslims. As Islamic State militants advanced in the Syrian province of Deir al-Zor last month, those who had held out against them faced a simple choice: beg for mercy or face certain death. Their options were laid out in stark religious terms by the militant Islamists who are trying to carve out their own state in Syria and Iraq. Defeated fighters were required to "atone" or die, a choice set out in Islamic terms and implying that resisting Islamic State rule amounted to a sin against God.