The Banking and Strategy Initiative

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Global Mid-Day Report: The Big winners are the Consumers again!

Image representing Netflix as depicted in Crun...

Image via CrunchBase

A mid day comeback on Wall Street is only too common this month as Europe scares but small islands of data that disappoint are covered by more qualitative improvements and despite some dud fireorks, the markets are keen to make a celebration in equities happen this year value being available in individual and regional performance. Apple introduces the 7 screen iPad to beat the Kindle, Android and the Galaxy Tab ‘smartphone’ gets to compare like for like if it has in it for the long run.  The $6 B sell off from Microsoft augurs well for the company too. The ISM services data is not so weak at 52.1 as Services account for 160,000 jobs of the 176,000 in the MOM June report from ADP on Private payrolls.

Asia is leading the faster recovery in the East with India Services Indices at 54.3 and China running rates down to force banks to stay risk-takers like ECB. ECB problems are more deep rooted however, and the markets waiting for Eurobonds to start the liquidity run had no hope against the conservative run of white hope at the governing councils in the EU from Banking Union to Fiscal and Political setting up of a stable life for the Euro economies.  BIS will have to note much more Credit book contraction from European Banks to attain its own leverage standards in the new regime and LIBORGate will takes its toll on most Global Banks again, though trading profits are back. Barclays is ofcourse on negative outlook/rqatings atch at S&P and moodys after changes at the top were the price paid for LIBORgate

Image representing iPad as depicted in CrunchBase

Image via CrunchBase

Netflix is back, up 13% on news of 1 billion hours of streaming video in June announced by CEO Hastings on Facebook. Netflix is down 70% on year and interestingly rising from its bottom though another analyst ppooh poohed the achievement for Netflix Flat fees model. Citi equities teams are putting out some attractive, quick buys on the markers.

McDonalds has finally recovered from the loss of CEO Skinner , hopefully, up 1.5% on trade. MCD, Facebook, JP Morgan and Delta Airlines could make great options plays across all strategies ith good upticks in near or next ATM or OTM strategies even in naked calls. Caterpillar has fallen off and will be back only next year or even later. Disney is another with great results around the corner, running up INR 345 Mln in India in its 3rd July release, breaking other Hollywood openings. Its 13 markets released the movie ahead of US (July 3rd ) for a $50 M lead on collections. it grosses another $150 m in the US on Independence Day ( TBD)

General Motors reported a 15% jump in June Car(Light vehicle) sales as Ford saved its Europe underperformance with a 14.5 M run rate of 202,000 Light Medium and Heavy vehicles in June. Nissan sold 92,000 cars in US in June too. Look for a detail Auto sales report ith shares soon.

Obama’s Mountain West tours started the ne swing state run for him as Obama bets on a re-election to set the record straight on his performance. That’s Nevada, while North Carolina will hold the convention  ( and thus an important battleground state)

Spiderman (Madame Tussauds London).

Spiderman (Madame Tussauds London). (Photo credit: Wikipedia)

A boring Wimbledon Ladies final with 30+ Serena making it with Radwanska also leads to a boring anticlimax in the mens as Federer and Djokovic meet in the semis and Tsonga/Murray comes from the other tree, Nadal having left.

Walgreens is keeping the Deal Economy moving with another $438 m buy of 144 drugstores in the South. According to Factset there ere 745 Deal announcements in May in the US, April and May values catching up but 20% below 2011. Fees worth $3.2 B in Financials and $1.7 B in Healthcare in the US mean Investment Banking M&A Advisory and origination is well and truly happening yet, Financials deals having been worth another $3 B in Europe and Asia. US and Europe have equally split Dealvolumes of almost $900 B in 2012 yet in M&A Advisory at $350 B each ( League Tables)

In May Eaton bought Cooper for $11.5 B and DaVita bid $4.7B for Healthcare Partners

As bloomberg ticks right no, its Consumption up on the Street after the day began on a surly note , dry mouthed for no QE coming.

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