Chillin' out till it needs to be funded
Retail sales are down 0.5% for June 12, the most disappointing but probably putting faith back in the multiple reports of retail same store sales that dot the landscape after the ingratuitous jump in sales data in May. However for us optimists, there is still the big bad Wall Street that keeps churing up a Profit number t behold and enjoy, Citibank safekeeping its Q1 achievenents with a ditto performance in Q2 and a jump in lending from its Investment Banking divisions. In the league tables of course Citi has slipped to no. 10 with who else but Wells Fargo, the new kid on Wall Street
Techs are going to be as nasty as retail sales from tomorrow as big results choke up that corner of Broadway where Wall Street starts oto the big board. Of course Times Square on the other side of town will land the Facebook ticker on its indices in a fe weeks despite the big hullabulloo as legals an d paralegals crowd Morgan Stanley and Knight Frank offices among others for possible actions to be fought in court and settled.
On the other side LiBORgate is ready for some Criminal indictments too with the US apparently procveeding on the RIICO filings and adding some more to find the LIBORGAT Ethat lasted ever since the inception of LIBOR in the nineties and was kno for at least 10 years till Diamond left office for alloing traders and rate setters to commingly and set artificially low rates in the eeks leading to the crisis
China’s Economic data though reported a discontinuous score with the low GDP score of 7.6% suspected to be much like 7% with Power production down while Core industry sub index reported a 9.7% groth in the government data putting Chinese Government claims in question on stand
The indian inflation rate came in better at 7.25% and even Hongkong and Korea closed positive while yields in Europe went a rising again despite the Trade surplus ( meagre $1 B) reported by Italy in June and its otherwise strength of Economy undermined by a Moody’s threat in terms of a downgrade as Silvio Beloscuni was heard contemplating a return to “good governance” Italy’s progress may thus require more commitment from Mario Monti who was variously heard as not being interested in a second terms though he spent some time in Idaho with great Tech and Media Entrepreneurs in the ongoing Sun Valley conference. The Canadians in the meantime got some attention in June as Foreign investor interest in Canadian bonds doubled to $26 B from $13 B forecast for June
The Empire State survey was better again at 7.4 and the French Treasuries auctioned for the second time at negative yields.
Meanwhile, IMF also took the deratings from Central Banks to heart and tuned down the Global growth target 10% to 3.9% from 4.3%. As we discussed last week, US growth is now targeted at just above 2% India has been rerated to 6.5%. Tomrro’s Redbook and CPI data may not throw much surprises but the Foreign investor Interest in Bonds will be key to evaluating how many friends US still has four months to the cliff and a new Presidential term.