Links – Wednesday June 13th

Here is some things Reynard found interesting today.

Global Macro:

• Gideon Rachman is clearly very worried about the political impact of badgering Germany into a corner – FT
• Deep T will be interested in this. For all the talk of risk weighted assets it seems the ECB looks through to a more simple yet accurate view – FTAlphaville
• It’s hard to believe that Europe couldn’t pull off a proper Spanish bank bailout – here’s Henry Blodget’s formula for doing it right

United States:

• David Rosenberg is starting to get the bullish tingles for the US – Prag Cap
• US regulators question Basel III capital reforms – Reuters
• Jim Bianco in The Big Picture on US corporate cash – not as much on the sidelines as initially thought

Europe:

• Qantas was in play yesterday and it seems that Europe was over night with a take over offer from Germany. Here is Joe Weisenthal’s take in Business Insider and a story in Ekathimerini quoting a Bundesbank VP saying similar things. We now know the respective positions – very interesting development.
• But they don’t want G20 to talk about it – Reuters
• Dripping with irony and controlled rage Pantelis Boukalas on the leaking bailout raft – Ekathimerini
• Fitch puts the boot into Spain, downgrades 18 Banks – Bloomberg.
• CNBC says this caused borrowing costs to soar – here
• FTAlphaville on the vexed question of seniority in Spain and what it might mean.
• ESM Graphic from Reuters via Scott Barber – here
• Austrian Finance Minister unhelpfully points the finger at Italy – Reuters. Yeah we know but who needs mate like these…
• Not good – Italian wages lag behind inflation – Bloomberg
• US Funds pulled money out of Europe in May – Reuters via Yahoo

Asia:

• We, at MacroBusiness, are thinking that the Chinese Governmental moves are looking like they might be able to turn China around. Here is a piece from the Street that suggests a similar view by US Global Investors
• IMF says Yen is overvalued – Bloomberg. By a mile
• China bond market ready for take off – Bloomberg

Local:

• Federal Budget has harmed business – David Uren in The OZ
• Court rules against low doc lenders – The Oz
• NSW Treasurer Mike Baird “dishes out the medicine” – SMH
• NSW plays the Joker, sorry home building card – AFR
• Gittins on the return of prudence – SMH Following the Pascometer, another bubble denier flips

Interesting/Other stuff:

• Jack Schwager, author of the Market Wizard Series of books, tlaks to Abnormal Returns about setting stops and asymetric trades – here