Today's Headlines

Bloomberg: 

• The Coup Failed, But Erdogan’s Wrath Keeps Investors on Edge. Fresh from an election victory that secured his party’s rule for four years, Prime Minister Ahmet Davutoglu in January assured investors in London that Turkey was a safe place for their cash. Four months later he was forced to resign and two months on from that, F-16 fighter jets bombed parliament in a coup attempt. Already embroiled in Syria’s war, a conflict with the Kurds and beset by a string of terrorist attacks, Friday’s failed plot to topple President Recep Tayyip Erdogan risks shattering what’s left of Turkey’s image as a stable country that can attract enough investment to finance one of the highest current-account deficits among G-20 economies.
• Gloomy Post-Brexit Outlook in Larger Euro-Area Economies: Chart.
• China Curbs Leverage of Asset Management Plans Investing in Debt. China is tightening the leverage of structured asset management plans that invest in bonds, highlighting the authorities’ concern about financial risks as the number of corporate defaults surge. The China Securities Regulatory Commission said the size of the senior tranche of fixed-income products should not be more than three times that of the junior tranche, according to the statement, which didn’t specify the previous figure. Senior portions of such products are usually bought by banks’ wealth management products, which help brokerages and asset management firm subsidiaries to boost their buying in the bond market. The cap before was 10 times, according to Industrial Securities Co. “The regulators have realized the possible risks the leverage can bring,” said Fan Lei, an economist at Mizuho Securities Asia Ltd. “The new rules would help lower financial risks.”
• Yuan Weakens Past 6.7 Versus Dollar for First Time in Five Years. China’s yuan fell beyond 6.7 per dollar for the first time in more than five years, fueling depreciation concerns amid cooling property prices and a rebound in the dollar. There’s room for further declines because the greenback is set to strengthen further, although the People’s Bank of China may provide some verbal support, according to HF Financial Group Ltd. in Hong Kong. Official data released Monday showed new home prices rose in fewer cities in June compared with a month earlier, blunting optimism prompted by last week’s figures showing forecast-beating economic growth.
• SoftBank to Buy Britain’s ARM for $32 Billion in Record Deal. (video) SoftBank Group Corp. agreed to buy ARM Holdings Plc for 24.3 billion pounds ($32 billion), securing a slice of virtually every mobile computing gadget on the planet and future connected devices in the home. The Japanese company is offering 1,700 pence in cash per share or a 43 percent premium to Friday’s close, according to a statement Monday.
• European Stocks Advance as ARM Holdings Leads Chipmakers Higher. A surge in ARM Holdings Plc after a deal announcement pushed chipmakers higher, boosting European equities at the close of a volatile session. ARM jumped 41 percent to a record after SoftBank Group Corp. agreed to buy the chip designer for 24.3 billion pounds ($32 billion). Peers Dialog Semiconductor Plc and Ams AG advanced more than 4.7 percent, pushing a gauge tracking the region’s technology shares to their biggest surge since last August. Miners erased earlier declines, while energy companies in the Stoxx Europe 600 Index fell as oil slipped. The market showed resilience after a failed coup in Turkey, with the benchmark gauge for Europe’s stocks adding 0.2 percent at the close of trading in London. Speculation that central banks will limit the fallout of Britain’s vote to leave the European Union has helped the Stoxx 600 rise in two of the past three weeks. It closed 2.2 percent away from its level on the day of the referendum.
• Swelling Pile of Iron Ore Casts ‘Dark Cloud’ Over Prices: Chart. Iron ore holdings at China’s ports just posted the longest run of gains this year, expanding for five straight weeks to 105.4 million metric tons, according to Shanghai Steelhome Information Technology Co.
• Copper Drops on Outlook for Credit Tightening in Top User China. Copper fell with most industrial metals amid speculation that credit conditions in China, the biggest user, will curb demand in the second half of the year. Nickel held last week’s advance as the Philippines shuttered more mines as part of as environmental crackdown. While new lending figures released last week topped estimates, the stimulative effects of the easing of credit conditions in real estate look to be moderating, Barclays Plc said. Copper also retreated after data on Monday showed China’s home-price gains taperedoff last month, as second-tier cities joined some of the nation’s largest hubs in imposing housing curbs to cool surging prices.
• Traders Reviving Fed Rate-Rise Bets Put a Floor Under the Dollar. Traders boosted bets of an increase in U.S. borrowing costs this year, helping a gauge of the dollar hold its advance after climbing to a one-week high on Friday. The U.S. currency has strengthened against all its Group of 10 peers since July 14 after data the following day showed retail sales and factory output beat estimates. Futures contracts show the probability of a rate increase by the Federal Reserve by December has climbed to 44 percent from 9 percent at the end of last month, when global markets convulsed following the U.K.’s vote to leave the European Union. 

Wall Street Journal:

• World Anti-Doping Agency Finds Cheating Conspiracy by Russia at Sochi Olympics. Pressure on International Olympic Committee to ban country ahead of Rio Games.
• Baltimore Officer Acquitted of All Charges in Freddie Gray Trial. Prosecutors fail to secure conviction in fourth trial involving 2015 death of black man in a police van.

Fox News:

• Rocky opening for GOP convention as Cruz forces clash with team Trump. (video) The Republican convention appears to be facing a rocky opening both inside and outside the arena – inside, from forces loyal to Ted Cruz mulling a procedural fight and outside, from anti-Trump protesters testing the demonstration rules set by the city.
• GOP Convention: Live Blog. 
• Erdogan's appeal to Islamists in wake of failed coup spurs fears for Turkey's future. (video) Shouts of “Allahu Akbar” and sermons blaring from speakers continue to echo throughout the cosmopolitan districts of Istanbul in the wake of Friday’s failed military coup, creating a “surreal” scene and stoking fears a nation that remained proudly secular for the last century could be hurtling down the path to full-blown Islamic rule.

CNBC:

• Another billionaire questions whether US stocks should be at new highs. (video) The U.S. stock market, making a string of recent record highs, "doesn't make much sense," distressed debt specialist Marc Lasry told CNBC Monday, sharing the view of fellow billionaire investment titan Larry Fink.
• A Goldman metric shows stocks extremelyovervalued. Extreme valuations in stocks should cause investors to think twice before chasing the rally at these levels, Goldman Sachs cautions. "S&P 500 stands at an all-time high and the median stock's P/E is at the 99th percentile relative to the past 40 years," Goldman's market strategist David Kostin wrote in a note to clients Friday.

Zero Hedge:

• Erdogan Purges 20,000 As Europe Voices Concern Coup Was Staged With "Prepared Arrest Lists".
• Turkish Prosecutors Raid Incirlik Airbase Housing US Warplanes And 50 Nuclear Bombs.
• French Prime Minister Booed At Moment Of Silence In Nice. (video)
• The Entire Financial System Is Exposed To This 'Junk' Bond Market.
• European Central Banks Disclose Which Corporate Bonds They Own.
• Why Oil Prices Might Never Recover.
• WTI Tumbles To $45 Handle As 'Failed Coup' Leaves Flows Unhindered. (graph)
• The Cleveland Fed Wants You To Know That Its President Does Not Advocate Helicopter Money.
• Turkish Stocks Crash Most In 3 Years, Give Up Brexit Gains. (graph)
• France "Is On Verge Of Civil War" Security Chief Warns Feckless Hollande.
• Murdered Baton Rouge Cop's Sister: "It's Coming To The Point Where No Lives Matter". “If I could say anything to anyone, it is to get their lives right with God,” she said. “Hell is a horrible, horrible place to be.”

Business Insider:

• The US just issued a 'remarkable' warning to Turkey amid its post-coup crackdown.
• Audience groans as Trump's campaign chair slams John Kasich in his home state.
• Pakistani model's brother confessed to 'honor killing' his sister due to 'shameful' Facebook pictures.
• SCORECARD: These hedge funds are killing it this year.
• Report: The feds are investigating Fiat Chrysler.

AP:

• AP Exclusive: Secret document lifts Iran nuke constraints. A document obtained by The Associated Press shows that key restrictions on Iran's nuclear program will ease in slightly more than a decade, halving the time Tehran would need to build a bomb. The document is the only secret text linked to last year's agreement between Iran and six foreign powers. It says that after a period between 11 to 13 years, Iran can replace its 5,060 inefficient centrifuges with up to 3,500 advanced machines. Since those are five times as efficient, the time Iran would need to make a weapon would drop from a year to six months. Iran says its enrichment is peaceful, but the program could be used for nuclear warheads. Two diplomats providing the information Monday demanded anonymity because they weren't authorized to do so.

El Pais:

• Spain Rejects EU Demand for More Spending Cuts. Spanish govt won't comply with EU demands to make EU 10b of structural spending adjustments by 2017.