The Banking and Strategy Initiative

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US Morning Report: Chinese want to buy Hawker Beechcraft, Bob Diamond does not want Barclays pay

Italy added 0.8% in Production on Month though still 6.9% down on year while France revised its may data downward to sho a net 3% degrowth on year and the British 1.2% growth in production on month could not stop it from contracting 1.7% on year mostly because of two working holidays in June that were not there in 2011 because of the Diamond Jubilee celebrations

Hang on, Brent Oil falling through! Deal Economy shines thru as well

On Trade Balance data, happy ticks on news of a bigger Chinese trade surplus were also lost in the morning as the surplus again came at the cost of shutout in imports as Exports to the US took over Exports to the Euro zone as well. However macros of the Euro region are being restructured positively as Spain gets an extra deficit year from the EU meet of Finance Ministers. The Chinese Surplus was up 66% on last month’s large figure though some would claim China still wants to try its hand at a BOP reduction/Trade deficit to grow domestic consumption but that does not look at all like what Chinese think is needed from them. china is already taking punitive action against Euro complaints/ investigations of its companies and the reducing imports mean lower incomes for Australia and Brazil and bigger trade deficits with the USA.  A  Chinese buyer, Superior Aviation Beijing co is meanwhile bidding for Hawker Beechcraft under $2 B, a likely sore point. Other bidders are PE group Carlyle and Indian Auto major M&M

Also Intel is buying ASML for $4B for less than 15% of the company before performance linked structures

Meanwhile the jumpback in the Euro brought the Dollar index a buit down relieving those Asian currencies restricting trading to the benchmark, US equities moved in to the positive zone on the good news Oil is likely to hit 75 on the way down as Brent comes below $80

The US reports its trade data tomorrow morning though Alcoa results swing its hopes wildly to the west ( or is it south) as JP Morgan gets ready to report good tidings having saved itself from the London whale on Friday showing how it is not too big to fail. The rest of the week of course will be Dollar correcting and Commodities staying down as they already look overpriced from last week’s rally.

 

English: United States Balance of Trade, 1980–...

English: United States Balance of Trade, 1980–2010. Data Source: US Census Bureau Foreign Trade Division: http://www.census.gov/foreign-trade/statistics/historical/gands.txt (Photo credit: Wikipedia)

British Trade Balance at GBP 8.4B in deficit as also a big positive surprise showing to its Eurozone brethren as did Italy that much more can be done when a freer hand to manage is available. Spanish and Itlaian yields almost cut off 1% and more in the last to days of trading since Draghi spoke in the European Parliament with ITalian yields ready to go back under 6% , the decision to aard Spain one more year to balance the budget and negative yields on German, Dutch and French treasuries/BTFs implying the Big three could move together as Big brothers of the Euro zone, taking pressure off Germany as it sinks in slowly

A large rally  in India as accentuated by the good tidings in afternoon trading in Europe, Shanghai and Nikkei continuing down in early morning trades.

Marketwatch helps us with this ‘gem’ : Barclays’ Chairman Marcus Agius on Tuesday told a U.K. parliamentary committee that Bob Diamond, the bank’s former chief executive, “has voluntarily decided to forgo any deferred consideration or deferred bonus to which he would have been entitled.” Agius said the maximum value of the bonuses was around 20 million pounds ($31 million). Diamond resigned last week

Marcus Agius resigned today morning.

Small Business, Retail Sales, Canadian Housing Starts (due at 0830ET)

Small Business optimism was too high at 94 to sustain and fell to 91 while retail sales for the first week of July were back to 2% from a pathetic 0.2% in the last week of June , the orse month for retail sales data, and Year on year growth is back to 3% Redbook data will likely be muted in the first week hile Korean, Australian and more Pacific Data follow after markets close  Seriously how much does the Dollar shock in a day! Canadian housing starts of 222k  beat estimates for example and mean more bad news for the Dollar and in some small measure raise your Car price and that of Gasoline. American housing data is due on Wednesday and Thursday while Crude and Gas(oline) inventories have started ticking down and are due in the afternoon while the surfeit of British outperformance means lot of jumps for Pound Sterling against the Dollar and the Euro

 

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