Morning Links – Tuesday June 12th

There is a new word entering the language after yesterday’s Asian eurphoria about Spain gave way to concerns overnight – Spanic.

Here is some other things Reynard found interesting today.

Global Macro:

• Europe is the single biggest Macro headwind at present and DE will have something up this morning but he has been saying for ages that Italy is the main game – here is a chart of the Italian 10 year yield – The Big Picture and France24 on shrinking GDP.
• This is as indicative of the German attitude to this crisis as any statement from Merkel or Schaeble. Handelsblatt’s retort to the latest Economist cover – via The Economist. But they are right in their view on the German mindset. Links may not be the place to Editorialise but for me the romantic notion of the Germans will get the job done could be very misguided.
• Something positive from Goldman Sachs who see a 29% return from Commodities over the next 12 months – Bloomberg

United States:

• John Hussman says the recession is already happening in the US – here
• Middle Class squeeze in the US – The Fed survey of wealth via MarketWatch and Reuters take
• JP Morgan says QE3 won’t be bullish – Prag Cap

Europe:

• The half life of European bailouts is shrinking – Marketbeat on the Spanish 10 Year Yield
• The Guardian on the “hurried” bailout failing to calm nerves. If you want to know when the bailout failed I reckon it is easy – when Rajoy said that he was off to the Soccer because the issue had been resolved Twitter almost melted down. That was another signal that Europe still doesn’t get it. Let alone the details…but that’s another story
• The Brilliant Scott Barber and some charts of Eurozone bailout timeline – Reuters
• The Finns remain unhappy about bailing others out and have said no money for unhealthy banks – thats the point though right? – Bloomberg
• CNBC says that the EU is floating worst case plans for a Greek exit – here. Reuters via Yahoo Finance reinforces this notion with talk of capital controls
• Nomura reckons the Euro is trading like an EM currency – FTAlphaville
• Oxford Analytica on Europe’s prospects – here
• Joe Stiglitz had a few things to say about the Spanish Bailout – Reuters and Bloomberg
• Greece wants a better deal now that Spain has had a fix – The Oz
• Oh and don’t forget Cyprus – Reuters here

Asia:

• While we all focus on the European mess India is slowing falling in a hole. S&P says India could be the first BRIC to lose investment grade – Reuters
• UK Telegraph on the Chinese and Indian slowdowns – here. Note the OECD in the story talks about how things have changed in the “past month”.
• OPEC’s Pending Bloodbath – Forbes
• China to build 70 airports by 2015 – UK Telegraph

Local:

• What’s going on here? Has Nathan Tinkler ever been to Singapore? As much as I like it, it’s not Newcastle. But he’s moving from the Hunter according to Bloomberg
• Qantas says it can weather the storm – Business Day
• Pushing back against the big 2 retailers – Adele Ferguson

Interesting/Other stuff:

• Scary fact about traders and testosterone – Business Insider
• Amazing Pic for the day – check out this cloud formation, Reddit

Have a good one and Go Pies, back at the top of the ladder!