- Mid-Cap Value +.38%
- Airlines +1.89% 2) Homebuilders +1.75% 3) Steel +1.54%
- EXXI, FRC, PBR, BK, EQM, AVAV, YHOO, URI, INSM, STJ, TSLA, XONE and LINE
- 1) AMT 2) MDVN 3) CTL 4) YHOO 5) BRCM
- 1) BWA 2) PIR 3) DAL 4) A 5) PNC
Wednesday, July 17, 2013
Bull Radar
Style Outperformer:
Wednesday Watch
Evening Headlines
Bloomberg:
Earnings of Note
Company/Estimate
8:30 am EST
Bloomberg:
- China’s Structural Shift in Economy Poses Risks, Jain Says. Deutsche Bank AG (DBK) co-Chief Executive Officer Anshu Jain said Chinese policy makers’ efforts to bolster domestic consumption and reduce dependence on the government’s infrastructure spending poses some risks. “It’s the right strategy for them in the long run,” Jain said in an interview with Bloomberg Television’s Haslinda Amin today in Singapore. Still, “if there is something to watch closely in China, it would be the implications of that shift from infrastructure spending.”
- China to Avoid ‘Wide Fluctuations’ in Economy, Li Says. Chinese Premier Li Keqiang said the nation will seek to keep economic growth, employment and inflation within limits, avoiding “wide fluctuations,” without elaborating on what the government deems acceptable. China should also develop a “scientific macroeconomic policy framework” to offer markets “stable predictability,” Li told a forum of advisers and executives yesterday, according to a summary of the event published on the government’s website. Li’s comments, the first made public since the National Bureau of Statistics reported that economic growth slowed for a second quarter, signal he won’t let expansion slow too much, without indicating any immediate plans for stimulus.
- Singapore Exports Fall 8.8% in Longest Slump Since Global Crisis. Singapore’s exports in June extended the longest run of declines since the global financial crisis, suggesting the island’s economic growth last quarter may be lower than the government initially estimated. Non-oil domestic exports slid 8.8 percent from a year earlier, falling for a fifth month, the trade promotion agency said in a statement today. The median of 17 estimates in a Bloomberg News survey was for a 5.8 percent drop. The decline in electronics demand is unlikely to turn around,” Irvin Seah, a Singapore-based economist at DBS Group Holdings Ltd., said before the report. “External headwinds remain strong. Data from the U.S. have been mixed and Europe is still stuck in recession.”
- Asian Stocks Outside Japan Rise Led by Material Producers. Asian stocks outside Japan increased, with a regional benchmark index gaining for a third day, as material producers advanced ahead of Federal Reserve Chairman Ben S. Bernanke’s address to the U.S. Congress today. The MSCI Asia Pacific excluding Japan Index rose 0.2 percent to 443.25 as of 11:23 a.m. in Hong Kong.
- Bank of Portugal Lowers 2014 Growth Forecast on Budget Cuts. Portugal’s economy will grow less than previously forecast in 2014 when the government plans to implement new spending cuts, the country’s central bank said. Gross domestic product will expand 0.3 percent in 2014 after declining 2 percent in 2013, the Lisbon-based Bank of Portugal said today in its summer economic bulletin. In March, the central bank forecast a contraction of 2.3 percent for 2013 and growth of 1.1 percent in 2014. “In a context of high uncertainty, the risks associated with the projection for economic activity are balanced for 2013 and on the downside for 2014,” the central bank said in a statement.
- Greek Coalition Government Faces Parliament Test Over Job Cuts. Greek Prime Minister Antonis Samaras faces the first test of his revamped coalition government today as he seeks parliamentary approval of austerity measures to unlock bailout funds. Greek unions, which held the third general strike of the year yesterday, have called for a rally outside the parliament building this evening as a two-day debate on the bill approaches its climax. A roll-call vote will come around midnight, hours before the scheduled visit of German Finance Minister Wolfgang Schaeuble.
- Egypt’s Brotherhood Plans Mass Protests After Rejecting Cabinet. Islamist supporters of Egypt’s deposed President Mohamed Mursi announced fresh protests in Cairo after rejecting the new interim government. Rebuffing a government offer of reconciliation talks, the Muslim Brotherhood’s Freedom and Justice Party that backed Mursi regards the Cabinet sworn in yesterday as “illegitimate” and formed “over the blood of martyrs,” spokesman Hamza Zawba said by phone. An Islamist coalition called for mass protests today under the slogan “Insistence.”
- Intel(INTC) to IBM(IBM) Feel Putin Pinch as Medvedev Loses Hold on Tech Hub. When Russian agents stormed the downtown offices of the Skolkovo technology hub being built near Moscow on April 18, a startled Intel Corp (INTC). executive got caught up in the raid.
- Barclays, Traders Fined $487.9 Million by U.S. Regulator. Barclays Plc (BARC) and four of its former traders must pay a combined $487.9 million in fines and penalties, the U.S. Federal Energy Regulatory Commission said in a final order stemming from its investigation of alleged manipulation of energy markets. The agency directed the company and the traders to pay to the U.S. Treasury within 30 days $453 million in civil penalties, according to an 86-page order issued today. The London-based bank must also give up $34.9 million in profits, to be distributed to programs that help low-income homeowners pay energy bills in California, Arizona, Oregon and Washington, it said.
- Wild Cards for the Fed's Exit Strategy. Inflation, Jobs and Fiscal Policy Among the Question Marks. The Federal Reserve's plans to wind down its big bond-buying program depend on solving four economic puzzles involving the job market, the inflation rate and fiscal policy. Fed Chairman Ben Bernanke gets another chance to clarify the central bank's thinking when he testifies before Congress on Wednesday and Thursday, after weeks of market volatility generated largely by confusion and uncertainty about the Fed's plans.
- North Korean Ship Yields Worrisome Cargo. Panama Finds What U.S. Suspects Are Missile-System Components Originating in Cuba; Havana Calls the Gear 'Obsolete'. Panamanian authorities detained a North Korean-flagged ship and its crew as they headed for North Korea from Cuba carrying what U.S. officials suspect are components of a surface-to-air missile system. U.S. officials said the intercepted cargo is of potential worry if it indicates a growing bilateral arms trade between North Korea and Cuba.
- As Consumer-Discretionary Stocks Surge, Bears Lurk. Some Investors Tread Lightly Amid High Valuations. Companies whose fortunes are tied to consumer spending have been big winners in the stock market thanks to greater confidence about the U.S. economy. Now, some investors are wondering if the rally has gotten ahead of itself. Consumer-discretionary stocks—which include travel companies, auto makers, restaurants and retailers—are trading at some of their highest valuations in nearly four years.
- Republicans Get Filibusted. Democrats end the 60-vote Senate rule for presidential nominees. Senate Majority Leader Rich Trumka, er, Harry Reid held a gun to the head of Republicans on the filibuster, Republicans blinked, and President Obama and the AFL-CIO will now get their nominees confirmed for the cabinet and especially a legal quorum for the National Labor Relations Board. Cut through all the procedural blather and that's the essence of the Senate's "deal" Tuesday over the 60-vote filibuster rule. While Democrats didn't formally pull the trigger of the "nuclear option" to allow a mere majority vote to confirm nominees, they have now established a de facto majority-vote rule. Any time Democrats want to do so, they can threaten to pull the majority trigger.
- US, Israel comments could haunt UN nominee Samantha Power at hearing. President Obama's pick to be the next U.S. ambassador to the United Nations is facing under-the-radar opposition that could flare during Wednesday's confirmation hearing. While hawkish senators like Republican John McCain have come out in support of Samantha Power, more than four-dozen former military leaders, national security officials and conservative political groups are now asking senators to reject Power’s nomination.
- Gas Prices Surge Toward $5 in California. Most of the focus on the rise in gas prices, caused by the surge in oil prices, has been the effect of the march toward $4 a gallon. The focus is misplaced, at least to the extent that in several regions, most notably California, a gallon of premium may hit $5 before Labor Day.
- Japan’s ‘kamikaze’ economics risk Asia debt crisis. Commentary: Abe’s nationalistic reforms will have a global impact. “Abenomics,” the efforts of Japanese Prime Minister Shinzo Abe to revive Japan’s moribund economy, has important implications outside of Japan.
- Card-transaction fees to be capped under EU proposal. Lucrative fees to process card transactions are to be capped under a proposal by the European Union's executive arm aiming to draw a line under a decade-long battle with payment groups such as Visa Europe and MasterCard.
- When (And Why) Did QEternity Begin? (graph)
- About That "Incomes Are Rising" Claim... (graphs)
- Mark Zuckerberg Runs A Giant Spy Machine In Palo Alto, California. Mark Zuckerberg runs a giant spy machine in Palo Alto, California. He wasn’t the first to build one, but his was the best, and every day hundreds of thousands of people upload the most intimate details of their lives to the Internet. The real coup wasn’t hoodwinking the public into revealing their thoughts, closest associates, and exact geographic coordinates at any given time. Rather, it was getting the public to volunteer that information. Then he turned off the privacy settings.
- Cordray Confirmed as Head of Financial Watchdog, After Long Wait. The Senate’s confirmation of Richard Cordray on Tuesday as the first permanent director of the Consumer Financial Protection Bureau cements a new era of intensive oversight of companies that lend money to consumers.
- Fitch Downgrades Pennsylvania's GO Bonds to 'AA' from 'AA+'; Outlook Remains Negative. Fitch Ratings has downgraded the rating on $10.9 billion in
outstanding commonwealth of Pennsylvania general obligation (GO) bonds
to 'AA' from 'AA+'. In addition, Fitch downgrades the ratings on
bonds supported by commonwealth appropriations that are listed at the
end of this release. The ratings on the appropriation-backed securities
are linked to the commonwealth's GO rating. The Rating Outlook is Negative.
- Analysis: Top fund managers were blindsided by U.S. bond market carnage. The plunge in the U.S. Treasuries market in the past couple of months may well have been one of the most well-telegraphed reversals in financial market history. Top money managers and investment strategists had warned the U.S. Federal Reserve was likely to soon begin paring back its bond-buying stimulus if U.S. economic data remained robust.
- US Senate to hear on bank ownership of commodities storage. A U.S. Senate committee will hold a hearing next week on whether banks should control physical storage for commodities, signalling lawmakers may be toughening their stance on the controversial but lucrative business for giant Wall Street firms.
- BOJ June minutes: some members sought steps to calm bond markets. Some Bank of Japan board members sought to supply longer-dated fixed-rate funds in market operations to curb excessive interest rate volatility but the proposal was dropped on opposition by policymakers who feared it could be misinterpreted by markets, minutes of the June rate review meeting showed on Wednesday.
- Passengers eye legal action against Boeing, Asiana over crash. Asiana Airlines Inc and Boeing Co are facing potential legal action by passengers who were on board a flight that crashed in San Francisco on July 6, killing three and injuring more than 180, according to U.S. court filings.
- Initial takeover bids for Onyx seen as soon as this week-sources. Initial takeover bids for Onyx seen as soon as this week-sources.
- Rio Tinto(RIO) keeps big iron ore plans on track, despite China cooling. Rio Tinto is pushing ahead with plans to boost iron ore output over the next 18 months, as it counts on demand from Chinese steel mills holding up, but the miner is assessing if it can meet the target using existing mines to control costs. The plans show global miners such as Rio Tinto and rival BHP Billiton, while focused on costs, feel the risks to the iron ore operations from a slowing Chinese economy are manageable and that their low operating costs will keep the business profitable even in a downturn. Rio Tinto said on Tuesday infrastructure work was "currently underway" to expand its iron ore production capability to 360 million tonnes a year by the end of 2014, estimated by analysts to carry a $5 billion price tag.
- CSX(CSX) posts bigger quarterly profit as intermodal stays strong. CSX Corp posted a bigger quarterly profit as the company continues to see benefits from its intermodal business, offsetting a fall-off in coal volumes.
Financial Times:
Telegraph:- Return of the blueblood macro hedge funds. It used to be said that you could get on in the world of macro trading – betting on the ups and downs of the global economy – by following two simple rules: the trend is your friend and don’t fight the Fed. For much of the past few years though, with markets veering between panic and central bank-backed calm, it has seemed at times like those two maxims have been tugging in opposite directions.
- Ford(F) lashes out at Japan’s entry into TPP trade talks. The big three Detroit-based automakers and other US manufacturers who feel they are being damaged by what they see as Japan’s deliberate weakening of the yen could emerge as a hotbed of political opposition to the TPP and push their view in Congress.
- Ban on selling new Mercedes in EU moves closer. Some new vehicles produced by German carmaker Daimler cannot be sold or registered in the European Union because they contain a banned coolant, the European Commission has said.
- OECD fears jobless threat to social fabric as Europe left behind. The unemployment gap between the US and eurozone states will reach the highest levels in modern history next year, according to a report by the OECD.
- Greece Faces Up to EU10b Funding Gap. Greece faces funding gap of as much as EU10b, citing European Commission officials. Euro area countries will have to decide whether to increase financing for Greece after summer break. Plan for how to fill funding gap won't be detailed before German elections in September.
- Apple(AAPL) May Delay iPhone 5s Introduction to End 2013. The
introduction of iPhone 5s may be delayed from original schedule of
September or October after Apple changes design to bigger 4.3-inch
retina display, citing people in the semiconductor industry. New version
of cheaper iPhone is expected by end of 3Q as chips used in this model
have started shipment in June. TSMC may deliver chips mad for iPhone 5s
in August.
- GSK Case Shows China Foreign Cos. Need Scrutiny. GSK's bribery incident in China shows the complications of fighting commercial corruption, citing a commentary by Zhong Sheng. Zhong Sheng is a homonym in Chinese for "voice of China". China should boost supervision of foreign companies, the commentary said.
- China Police Detain 4 for Spreading Debt Rumors. Police in the northern Chinese county of Shenmu in Shaanxi province detained 4 people on spreading rumors of deteriorating local economy and local "triangular" debt problem, according to a report posted on the government's website. Online rumors saying fiscal deficit will force the county to halt free medical and education policies are false, the report said.
- Ex-NPC Official Suggests China Cut GDP Target. He Keng, former deputy director of the Financial and Economic Affairs Committee of the National People's Congress, suggests China cut its economic growth target to the "lower limit" of 7%. The target cut could send a message to local governments asking them to make efforts to improve quality and efficiency of economy, He said. China's economy won't have big problems as long as there's no financial crisis, citing He.
- None of note
- Asian equity indices are -.50% to +.50%. on average.
- Asia Ex-Japan Investment Grade CDS Index 137.50 -3.5 basis points.
- Asia Pacific Sovereign CDS Index 106.25 -1.5 basis points.
- FTSE-100 futures -.03%.
- S&P 500 futures +.04%.
- NASDAQ 100 futures +.12%.
Earnings of Note
Company/Estimate
- (GWW)/2.96
- (MTB)/2.11
- (USB)/.76
- (NTRS)/.82
- (PNC)/1.63
- (ABT)/.44
- (MAT)/.32
- (BK)/.57
- (BAC)/.26
- (STJ)/.94
- (INTC)/.39
- (SNDK)/.93
- (XLNX)/.47
- (KMP)/.60
- (IBM)/3.77
- (AXP)/1.22
- (EBAY)/.63
- (STLD)/.14
- (WYNN)/1.58
8:30 am EST
- Housing Starts for June are estimated to rise to 960K versus 914K in May.
- Building Permits for June are estimated to rise to 1000K versus 974K in May.
- Bloomberg consensus estimates call for a weekly crude oil inventory decline of -2,000,000 barrels versus a -9,874,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -1,500,000 barrel decline the prior week. Distillate supplies are estimated to rise by +1,500,000 barrels the prior week. Finally, Refinery Utilization is estimated to fall by -.4% versus a +.2% gain the prior week.
- Fed's Beige Book.
- None of note
- The Fed's Bernanke speaking, Fed's Raskin speaking, German 10Y auction, BoC rate decision and the weekly MBA mortgage applications report could also impact trading today.
Tuesday, July 16, 2013
Stocks Lower into Final Hour on Rising Eurozone Debt Angst, Global Growth Fears, Earnings Concerns, Biotech/Energy Sector Weakness
Broad Equity Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Most Sectors Declining
- Volume: Below Average
- Market Leading Stocks: Underperforming
- Volatility(VIX) 14.54 +5.44%
- Euro/Yen Carry Return Index 136.04 +.03%
- Emerging Markets Currency Volatility(VXY) 9.81 -1.01%
- S&P 500 Implied Correlation 54.91 +4.43%
- ISE Sentiment Index 105.0 -3.67%
- Total Put/Call 1.0 +20.48%
- NYSE Arms .99 +6.33%
- North American Investment Grade CDS Index 77.91 +1.11%
- European Financial Sector CDS Index 160.22 +1.47%
- Western Europe Sovereign Debt CDS Index 97.29 +1.35%
- Emerging Market CDS Index 300.10 -.03%
- 2-Year Swap Spread 17.0 -1.25 bps
- TED Spread 24.0 -.75 bp
- 3-Month EUR/USD Cross-Currency Basis Swap -10.25 +.5 bp
- 3-Month T-Bill Yield .02% unch.
- Yield Curve 221.0 -1 bp
- China Import Iron Ore Spot $129.0/Metric Tonne +1.65%
- Citi US Economic Surprise Index -5.30 +9.7 points
- Citi Emerging Markets Economic Surprise Index -36.0 +.2 point
- 10-Year TIPS Spread 2.12 +4 bps
- Nikkei Futures: Indicating -9 open in Japan
- DAX Futures: Indicating +6 open in Germany
- Slightly Lower: On losses in my medical/biotech/retail sector longs
- Disclosed Trades: Added to my (IWM)/(QQQ) hedges
- Market Exposure: Moved to 50% Net Long
Bear Radar
Style Underperformer:
- Mid-Cap Growth -.84%
- 1) Oil Service -1.46% 2) I-Banking -1.35% 3) Biotech -1.28%
- TSLA, ADUS, MPC, DVA, GTN, IBN, TVL, TLK, TI, FMX, KO, PFLT, EQM, KOP, LQDT, HSII, CSH, AFOP, XONE, ANIK, SMP, ADUS, BERY, QIHU, EXLP, SSYS, DFRG, STMP, BWLD, MOS, INGR, FDML and CHUY
- 1) XLY 2) TSLA 3) EWY 4) AKAM 5) MOS
- 1) DVA 2) SMP 3) BWLD 4) TSL 5) DFRG
Bull Radar
Style Outperformer:
- Large-Cap Growth -.65%
- Gold & Silver +4.1% 2) Hospitals +1.13% 3) Gaming +.16%
- FST, ANV, RGLD, HCA, THC, NTLS, USM, SHFL, BYI, BLUE, XPO, POWI, WWAV, SFUN, MGAM, BIDU, MOVE and TDS
- 1) XLK 2) FST 3) CHRW 4) NIHD 5) EXPE
- 1) JEC 2) TXN 3) OXY 4) WHR 5) CVX
Monday, July 15, 2013
Tuesday Watch
Evening Headlines
Bloomberg:
Business Insider:
Earnings of Note
Company/Estimate
8:30 am EST
Bloomberg:
- Wealth Products Threaten China Banks on Ponzi-Scheme Risk. Zhang Defa hurried into an Industrial & Commercial Bank of China Ltd. branch in Shanghai on a sizzling July afternoon breathlessly looking for the manager. The day before, Zhang had received a text message saying the bank was selling a 37-day wealth-management product with a 5 percent expected annualized return, principal guaranteed. He was too late. The offer, requiring a minimum of 500,000 yuan ($81,000), had sold out in less than three hours. Zhang would have netted 2,534 yuan in just five weeks. “This is crazy, but where else can I put my money without losing sleep these days?” said Zhang, 61, a retired engineer who has been moving cash out of his savings accounts into such investments for more than a year. “The return is fairly decent, and more importantly, I know my money is safe at a government-owned bank. Even if the bank runs out of the money, the government won’t.”
- China Widens Drugmaker Probe as Glaxo Bribery Charges Outlined. China is investigating at least four multinational drugmakers as it widens its probe of GlaxoSmithKline Plc (GSK), according to a lawyer in Hong Kong whose firm advises companies on cross-border anti-corruption. The investigations point to an increased targeting of the pharmaceutical industry in corruption probes as the world’s most populous country faces rising health-care costs and seeks to lower drug prices. While the drugmakers are being examined by local regulators, the results may draw added questions from officials in Beijing and scrutiny by the U.S. government under the Foreign Corrupt Practices Act.
- ADB Trims Developing Asia’s Growth Forecasts on China Slowdown. Growth in developing Asia will be weaker than initially estimated this year and next amid a slower expansion in China and lackluster export demand from advanced nations, the Asian Development Bank said. The region’s gross domestic product will probably increase 6.3 percent in 2013 and 6.4 percent next year, the Manila-based lender said in a report today. In April, it forecast expansion of 6.6 percent this year and 6.7 percent in 2014.
- India joins Brazil to China as emerging markets cut liquidity. India stepped up efforts to help the rupee after its plunge to a record low, raising two interest rates in a move that escalates a tightening in liquidity across most of the biggest emerging markets. The Reserve Bank of India increased the marginal standing facility and the bank rate to 10.25 per cent from 8.25 per cent, it said in a statement on its website late yesterday.
- RBA Says Rate Appropriate After Aussie Drop; Currency Gains. Australia’s central bank said the currency’s decline and past interest-rate cuts meant its policy setting was appropriate even as it maintained room for future reductions, according to minutes of its July 2 meeting. “Given the exchange rate adjustment that was occurring, and with the substantial degree of monetary stimulus already in place, members assessed the current stance of policy to be appropriate,” the Reserve Bank of Australia said today in Sydney in minutes of the meeting at which it held the cash rate steady. The RBA said the inflation outlook was “slightly higher” due to the Aussie’s recent drop.
- China’s Stocks Fall as Developers Slump on Tightening Concerns. China’s stocks fell, led by real-estate developers, on concern the government will introduce property curbs to stem increases in home prices. Hangzhou Binjiang Real Estate Group Co. slid 2.4 percent after the China Securities Journal said Hangzhou city may start a property tax trial. Agricultural Bank of China Ltd. dropped 0.8 percent as 258.6 billion shares sold during its initial public offering became tradable today.
- Asia Stocks Rise on Earnings Optimism as Rupee NDFs Jump. Asian stocks rose, following U.S. equities higher, as Citigroup Inc. (C)’s better-than-estimated results fueled optimism over company earnings and investors weighed the outlook for China. The yen held at a one-week low versus the dollar, while corn futures rebounded. The MSCI Asia Pacific Index of regional stocks added 0.4 percent by 10:24 a.m. in Tokyo, rising for the first time in three days.
- Rubber Reaches One-Week Low as China’s Slowdown Reduces Demand. Rubber fell to a one-week low as concerns grew that demand from China, the largest consumer, may weaken after data showed the nation’s economy slowed for a second quarter. Rubber for delivery in December on the Tokyo Commodity Exchange lost as much as 2.1 percent to 233.5 yen a kilogram ($2,335 a metric ton) and was at 234.6 yen at 9:57 a.m. after a holiday yesterday. Futures extended last week’s 2.7 percent loss, the first weekly drop since the five days through June 14.
- Cintas(CTAS) 4Q net income rises but outlook disappoints. Uniform supplier Cintas Corp. said Monday that its fiscal fourth-quarter net income rose 9 percent, but it gave a tepid outlook for the current year due in part to the health care overhaul. Cintas said the federal government's Affordable Care Act could cause some customers to delay hiring decisions, which would affect demand for uniforms. Cintas provides uniforms for a wide range of businesses in North America, as well as other products like entrance mats, restroom supplies, first aid and fire protection products.
- Mexico Captures Head of 'Zetas' Cartel. Arrest Marks an Important Victory for the New Administration of President Enrique Peña Nieto. The Mexican government Monday said its navy captured the leader of the country's most violent drug-trafficking organization, an important victory for the new administration of Mexican President Enrique Peña Nieto.
- Early Peeks at Data Draw Scrutiny. Sen. Grassley Seeks Information on Arrangement With University of Michigan.
- China Falters in Effort to Boost Consumption. Growth in Urban Households' Disposable Income Slows, Hindering Beijing's Plan to Cut Emphasis on Unreliable Exports. China's push to get consumers to open their wallets more and refocus the economy on domestic consumption is stalling, contributing to lower growth in the second quarter.
- Mort Zuckerman: A Jobless Recovery Is a Phony Recovery. More people have left the workforce than got a new job during the recovery—by a factor of nearly three. In recent months, Americans have heard reports out of Washington and in the media that the economy is looking up—that recovery from the Great Recession is gathering steam. If only it were true. The longest and worst recession since the end of World War II has been marked by the weakest recovery from any U.S. recession in that same period.
- Senate heads for showdown as Reid demands GOP approve nominees -- or else. Senate Majority Leader Harry Reid issued an ultimatum to Republicans on Monday to confirm at least seven presidential appointees or face a controversial rule change that could drain their power. A late night meeting attended by nearly every senator failed to produce an agreement to resolve the dispute. After the hour-long session, Democratic Senate leaders reaffirmed that a key vote on the issue was scheduled for Tuesday morning.
Business Insider:
- ZIMMERMAN JUROR: This Case Wasn't About Race. That juror pointed out that Martin was supposedly stopping, turning, and "cutting through the back" yards of the gated community where the teen's dad lived. She believes Zimmerman would have treated anybody who acted that way in the same manner — regardless of that person's race. "I think he just profiled him because he was the neighborhood watch, and he profiled anybody who came in and acted strange," she told Cooper.
- BREAKINGVIEWS - Asian capital flight risk goes beyond hot money. A reversal of hot money inflows is a worry for Asia. But there's another: policymakers must guard against their own savers turning tail.
- On public finances, Britain is still living in cloud-cuckoo land. Asked at the Spring meeting of the International Monetary Fund whether he thought austerity had gone too far, Anders Borg, Sweden’s finance minister, said there was really only one way to avoid painful fiscal consolidation for countries with very high debt and that was never to get yourself into such a mess in the first place.
- Egypt turmoil: Morsi supporters clash with police. Hundreds of supporters of Egypt's ousted President Mohammed Morsi have clashed with security forces in Cairo.
- Queensland Treasurer Warns of Ratings Downgrade. The Australian state of Queensland may face a downgrade to its credit rating, citing Treasurer Tim Nicholls. A downgrade may come if taxation revenue and mining royalties don't recover, citing Nicholls.
- China June-July Daily Rail Cargo Volume Unchanged. China's daily rail cargo volume was 8.36m tons on average in the month ended July 15, citing China Railway Corp.
- China Can Tolerate Slower Growth. China can tolerate slower economic growth in order to implement structural adjustment and reforms, according to a front-page editorial. The 7.5% y/y growth in 2Q is obviously higher that the "lower limit," the editorial says. GDP growth lower than 7% in a given quarter, or even year, won't affect China's long-term goal, it said. China should promote interest rate liberalization and income distribution reform. China should also push forward long-term policies to curb the property market, according to the editorial.
- China's Richest Village in Jiangsu May Fail. Huaxi village in eastern Chinese province of Jiangsu, so-called the nation's richest village, may fail as most of its factories are empty, citing its own investigation.
- GlaxoSmithKline(GSK) is a victim of unspoken rules in china's medical industry that drugmakers give money to increase the incomes of doctors and hospitals, according to a front-page commentary.
- None of note
- Asian equity indices are -.75% to unch. on average.
- Asia Ex-Japan Investment Grade CDS Index 141.0 -6.0 basis points.
- Asia Pacific Sovereign CDS Index 107.75 -3.0 basis points.
- FTSE-100 futures +.02%.
- S&P 500 futures -.04%.
- NASDAQ 100 futures -.02%.
Earnings of Note
Company/Estimate
- (SCHW)/.19
- (CMA)/.70
- (KO)/.63
- (DFRG)/.19
- (MOS)/1.15
- (GS)/2.89
- (JNJ)/1.39
- (IBKR)/.22
- (CSX)/.47
- (YHOO)/.30
- (URI)/1.00
- (PKG)/.63
- (HCSG)/.19
8:30 am EST
- The CPI for June is estimated to rise +.3% versus a +.1% gain in May.
- The CPI Ex Food & Energy for June is estimated to rise +.2% versus a +.2% gain in May.
- Net Long-term TIC Flows for May are estimated at -$25.0B versus -$37.3B in April.
- Industrial Production for June is estimated to rise +.3% versus unch. in May.
- Capacity Utilization for June is estimated to rise to 77.7% versus 77.6% in May.
- Manufacturing Production for June is estimated to rise +.2% versus a +.1% gain in May.
- The NAHB Housing Market Index for July is estimated to fall to 51 versus 52 in June.
- None of note
- The Fed's George speaking, Germany ZEW Econ Sentiment Index, Eurozone/UK inflation data and the weekly retail sales reports could also impact trading today.
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