The Banking and Strategy Initiative

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Global Moves: Greece stays in, 1 mln Mexicans get citizenship,

A preponderence of Euro Citizens saved Greece by the bell but left democracy in the lurch as the pro Euro New Democracy landed 129 out of 130 required in the 300 member Greek parliament. The ultimate winners get 50 extra seats in the Greek system. New Democracy leader Antonio Samara would therefore be in hectic parleys to put up a coalition with other Conservative parties like the Pasok administration who were in power when EUR 174B in bailouts was granted to Greece after GGB haircuts that reduced investor obligations

The weekend achieved its “targets” leaving the week to a relief rally till Euro gets into the short mode again, this time from 1.28 to 1.26 levels, while the Dollar index trends down from 81.5 last week. Good news for the rupee and the equity markets, continuing from where they left off on Friday. Koreans reported a $2.26 B surplus on $47 B in Exports for May but exports and imports in an ominous sign were lower by 0.6% and 1.1%. Asian companies Sony(10,000), Europeans Nokia (20%), RBS and Lufthansa and US Verizon, Yahoo and HP announced large job cuts this month to recover lost ground Samsung and Korean Car makers survived and grew in the meantime

Asian equities will start a big day today in a week that is promising to take equities to a cliff before earnings season embarks in 3 weeks. Euro is up to 1.27 levels and probably one more rally in it when the elected party scrapes up a coalition but the shorts are unlikely to leave.

Autos remain a lousy bet in India despite the interest rates getting better but Banks will likely star in any ongoing rally and even correction and ICICI Bank remains a good bet for the good days. HDFC Bank hasn’t been really overbought either and others could wait a while to shrug off the excess momentum from a week back

US markets open after a few hours. on the weekend, a battle weary President announced that Mexicans entering the US as children below the age of 16 and having lived here for 5 years would not be asked to cross the border again and ill get rights to Education and health within the United states

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