Links 8th August

Global Macro:

  • Convertibility risk: Acknowledged by not addressed Yanis Varoufakis
  • Gross to Investors: Stay away from Europe CNBC
  • Taiwan’s July exports: dismal BeyondBrics
  • German factory orders fall twice as much as forecast Bloomberg
  • Rice hoard offers world respite as food costs surge Bloomberg

United States

  • Housing inventory down 23% YoY in August Calculated Risk
  • Weekly hotel occupy rate above 75% for first time since 2007 Calculated Risk
  • Fed official calls for bond buying WSJ


  • Italian Q2 GDP falls 0.7% BBC , IP down too, while Monti wins approval for more cuts Reuters
  • Greece sells 6mth T-bills as yields ease Ekathimerini
  • Monti clarifies his statements on national parliaments Spiegel
  • Germany and Italy near blows on euro Ambrose Evans-Pritchard
  • German opposition backs fiscal union FT
  • IMF pushes Europe to ease burden on Greece WSJ
  • Greece agrees with Troika on strengthening policy BusinessWeek


  • Indonesia to allow currency hedging for banks: Islamic Finance Jakarta Globe
  • Rare earths banks roll North Korea’s future Asia Times
  • Electricity use seen overstating China economic slowdown Bloomberg
  • PBOC to strengthen monetary policy fine tuning China Daily
  • Get more China Links later in the daily “China Links” post from Sinocism


  • From South Pacific peso to Southern franc FTAlphaville
  • Tech giants hoard reserves in AUD AFR
  • Swan uses Costello rule on NBN costing AFR
  • Threat of new water front war over automation TheOZ Locked
  • Warning on PM’s powerplay TheOz
  • Barrick says MRRT makes no difference Herald Sun
  • Senators to judge post-GFC impact on banks SMH



  1. “Tech giants hoard reserves in AUD” There was another article on this and makes the point if you’re cashed up where do you invest given the western bonds are historically low. Play into the theme of H&H’s currency posts.

      • a63,

        It could be many things I guess but of note Brazil has been actively fighting the reals appreciation. (6% tax on foreign borrowing. Also inflations higher than aus at 5%

        • You’re right Rich, as the CB of Brazil has been active in the “currency wars”. I know a foreign investor in Brazil and last time we spoke he said the CB was making it harder so I guess that could be it.