Thursday, 2 July 2015

Financial Orbit wrap 02/07/15

Five sentences or graphics which sum up the Financial Orbit output over the last 24 hours across the website, twitter account and anything else thought about...

1. I posted this on the European GDP divergence from the front page of the Financial Times and it caused a bit of excitement on Twitter...


2. China – the Shanghai index closed below the key 4k level.  Meanwhile perhaps because of headlines like ‘Chinese investors blame share collapse on state’ margin requirements are eased.  Check out why130% of limits are no longer a worry at this link 

Meanwhile I liked this...is c. 3,500 the buying point?  Hmm.  


3. I wrote on a couple of European stocks as in the pre Independence Day holiday in the US there was hardly any direct equity action in the US.  First Electrolux who suffered a potential legal reversal to their hopes of striking a US deal (link here)...



4. ...and then on the K+S / Potash Corp I listened to the conference call when the management of the former formally rejected the bid approach of the latter.  A full review here.  

5. And finally...NFP numbers were consensus-like (and hence a touch disappointing) but continued to show gains in a lowly volatile manner...



...but the real focus was on the lacklustre wage numbers.  Do you really believe that US interest rates are going to rise now?


Bonus write-up on a couple of excellent interviews by Bloomberg TV with key Greek policy-makers.  Here are my notes from the interview with Mr Varoufakis the finance minister.  It seems pretty obvious to me that either you compromise/introduce concepts like a debt restructuring or there is a big problem (as I detailed in my latest Yahoo Finance Contributors column earlier in the week (link here): 

Greek finance minister #Varoufakis tells @BloombergTV: The Greek banks will open next Tuesday as planned.

'profound difference with what happened in Cyprus...political crisis, nothing to do with the banks' 

#Varoufakis on @BloombergTV: 'Europe making up rules as they go along'.  After the flip-flop of Greece's govt last 48 hrs a bit rich!

#Varoufakis 'if "yes" we will sign the deal...we are unreconstructed democrats'.  "No" - start negotiations again and ultimately sign a deal

#Varoufakis is absolutely right got to 'end this'.  Kicking can bonkers.  'I won't sign another extend and pretend...but won't scupper it'

VAROUFAKIS: WILL QUIT IF YES VOTE

#Varoufakis 'ever so close' re compromise...'has to be made sustainable'. He has a fair point here.

I prefer to cut my arm off than to sign a deal without debt reorganisation

He's correct about the debt reorg. Any deal doesn't involve it feels unsustainable. Ditto #Ukraine #PuertoRico  

Postscript:  Just saw this from the Greek PM...the rhetoric debate goes on!  I think the practicalities post referendum are pretty clear though...

We will not accept Mr. Schäuble's view that the euro stands for poverty, austerity & social catastrophe.

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