The Banking and Strategy Initiative

Chillin' out till it needs to be funded

iT’S MoNDaY aGaiN; another “too little too late” moment for Obama, more Bank settlements (US Economy and Markets) [July 01 – July 05, 2013]

English: The Colonial Revival headquarters of ...

English: The Colonial Revival headquarters of Fannie Mae, designed by architect Leon Chatelain, Jr. in 1956, located at 3900 Wisconsin Avenue, N.W., in the Cathedral Heights neighborhood of Washington, D.C. (Photo credit: Wikipedia)

The week is a bore really. For probably the nth month in succession where n=9, apart from a spike in Q1 2013, China has posted sub par manufacturing data, Yen has shifted weight to near 100 before the Monday US open, and UK data instead of generalised European data this time is suggesting markets could be more gloomy than required thus making it a positive open for the week despite the bad news end of Half year mark. The June European PMI data is as close to optimistic expansion as it ever got, Spain hitting a score of 50 and others barely behind. UK’s consumer credit overall went to bat with an increase overall though Mortgage lending and retal lending were down substantially by 50% and 40% resectively from the just first positive data of 2013 in May. India again posted an expansionary PMi score but just so as the Asian markets opened positive but at least in late markets in India one saw depleting Auto sales and other consumer data dragging the market’s renewed vigor in belief of recovery. In the US after the 2nd estimate of GDP of Q1 was further degraded to 1.2% one might be excused for listening to the bad when Chicago PMI lunged from 56 in May to barely 50 in June. UK GDP was confirmed as 0.1% though the  new lawmakers in UK (BoE Mark Carney) and China 9president Xi Jining0 may be predisposed better to growth stimulus and not predisposed similarily in China’s case, a rather reversal of required traditional roles but not without much surprise in policy moves


Good news for Pfizer’s urticaaria drug Omlizumab last week is followed by Monday morning wire reports more of less approving Merck’s suvorexant. Onyx rejected Amgen’s $120/share offer (wires) Blood Cancer drug Kyprolis has received accelerated FDA approval as well making glucophages a fashion of yore in the deal market


Banks are stuck with more Fannie Mae settlements, Citi signing a $750 mln one with FNM for a less than $5 B portfolio. Goldman Sachs and others in the big league were served notice for misusing MarkiT and iSDA services to control the growing CDS markets by Competition Commish Joaquim Alumnia ( subscription required). EU has scrapped the Banking union in the meantime . Obama has been told too little too late in going to Africa but one thinks the prized Immigration reform may also come to that with the house not done with the senate proposal that managed to delay PR status till the implementation of eVerify and South Border Security upgrades committed with a $20 B budget in the program


Gold is read to go nose under after Indian imports have fallen to one third of last months level at less than 40 MT per month after Gold had just crossed $1200 down last week.  Two more weeks till banks report Q2 improvements with HAMP/HARP extended till 2015 and Mortgage rates above 4.5% due to the Treasury spikes though margins are still the worst and promised growth in retail for the mortgage experts is still almost all from home loans JP Morgan reports on 12th



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This entry was posted on July 1, 2013 by in Financial Markets and tagged , , , , , , , , , .


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