The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Global Mid-Day Report: It took the banks to revive the Dow!

As it happens 2 times out of 3 , the sharp finish by JP Morgan to its climactic loss announcements of June 2012 was  a resounding success in moving the Dow 150 points on its closing day of the week, with JP Morgan up nearly $2 and probably still not done in the intra day move. Trust J P Morgan and King Dimon to complete the Princely cover in all respects and present it on results day, the process speaking for itself, the bank and its myriad investors, also putting the pressure on also rans like Morgan Stanley and of late even those franchises like Citi, BofA and Wells Fargo.

Also seemingly another  Fed voter, this one the Atlanta Guv, Lockhart spoke for active Fed intervention, namely printing new money and bonds as support or QE3. Out of 9 votes, at least three have shown on long re reading of the minutes that they have entertained the idea of a fresh QE3. Another portfolio manager with some personal experience suggests one with all cash and all bonds approach will end up without any in the long run so should invest in stocks

Meanwhile US PPI remains strong esp Core PPI at more than 2.5% on year while Italy’s governance continues to give one insane hope on their survival and reentry in to the top governing councils hile Spain searches for the truth of its banks and retail investors holding bad debt with bad mortgages flooding the Southern, Mediterranean resort economy and Portugal cannot show any results for nuts.

Across the pond, UK takes over the limelight with the Olympics and its strengthening currency twin global hopes  for the UK to even the keel and bring back its glory days. Unlikely winners of the JP Morgan resurgence, IBM and Caterpillar as global markets close for the week in an hour.

Monday , we hear more from around 20 banks due to pay fines in LiborGate and get a few soundbites from the ousted Barclays CEO who ” would not enjoy the Bank’s trust and confidence”

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