Weekend Links 27-28 June, 2015

China

• China shares tank ending nation’s longest-ever bull market – Telegraph
• China stock indices plummet by up to 7.9pc as investors stampede out of the market – SCMP
• Why China’s currency is key to resolving its economic policy “trilemma” – SCMP
• China’s scrapping of loan-to-deposit ratio for commercial banks raises hopes for financial reform – SCMP
• Dropping of loan-deposit ratios at China’s banks not seen spurring lending – SCMP
• Chinese banks get closer to losing training wheels – Reuters
• If I had just $1, I’d invest here: Stephen Roach – CNBC
• Beijing turns to natural gas as a cost-effective coal replacement – CER
• China’s pension system still pits the country’s old against its young – CER
• China’s Xi walks a tightrope in targeting party heavyweights – Nikkei Asian Review
• China Investors Get That Greater Fool Feeling as Selloff Deepens – Bloomberg
• With $21 Trillion, China’s Savers Are Set to Change the World – Bloomberg

Asia

• Indian Beef Workers Fight to Bring Back the Bull Market – NY Times
• Philippines Holds Rate With Economy Supported by Consumption – Bloomberg

Europe

• Tsipras Calls Referendum on Greek Debt Deal for July 5 – Bloomberg
• Greece’s Creditors Offer $17.3 Billion Package to End Standoff – Bloomberg
• Politics May Yet Save the Euro – WSJ
• Do Greeks Even Need Greek Banks? – WSJ
• Goldman Says Ukraine To Default In July – WSJ…keep an eye on this…
• Managing Greek default risks – Sober Look
• Greece talks to go down to the wire amid fears of imminent banking collapse – Telegraph
• If Greece Defaults, Imagine Argentina, but Much Worse – NY Times
• Europe strikes back: It seems to be trying to push Greece out of the euro – Washington Post
• Greece will survive, but will the euro or the EU? – Market Watch
• Greek leader meets Hollande, Merkel amid stalemate – CBS
• The seven stages of Greece’s debt tragedy – Guardian
• Why has Greece only now included defence cuts in its Brussels proposals? – Guardian…good question…
• Twilight of the technocrats settles on eurozone – Nikkei Asian Review
• Foreign retailers oppose Istanbul’s tariff hike – Nikkei Asian Review
• IMF Would Be Other Casualty of Greek Default – Bloomberg, El-Erian
• Schaeuble Says the Greater Risk of the Greece Crisis Is Euro Credibility – Bloomberg
• Ukraine Repeating Default Threat Shows Impasse Far From Over – Bloomberg

United Kingdom

• The EU’s dwindling importance to UK trade in three charts – Telegraph
• Four reasons why the Northern Powerhouse won’t happen – Telegraph
• A chancellor in his pomp: emboldened George Osborne eyes budget day – Guardian
• The Bank of England ponders going for a rise – FT.com
• Britain would not survive a vote for Brexit – FT.com

United States

• Blistering US spending growth puts Fed on track for September rate hike – Telegraph
• Supreme Court Says Plaintiffs Can Challenge ‘Unconscious Prejudices’ In Fair Housing Case – IB Times
• Americans Are Delaying Major Life Events Because of Money Worries – NY Times
• More Americans Are Renting, and Paying More, as Homeownership Falls – NY Times
• S. Manufacturing Shows Signs of Stabilizing, New Data Suggests – NY Times
• Forget almonds: Look at how much water California’s pot growers use – Washington Post
• The Supreme Court’s housing decision is a warning against subtle discrimination everywhere – Washington Post
• The dark side of America’s reluctant part-time workers – Market Watch
• Consumer spending rises most in nearly six years – CNBC
• How’s the economy really doing? Look at Americans’ income – Market Watch
• 11 cities with the highest hidden costs of homeownership – CBS
• News flash: affordable housing crisis is hurting all of us (except the well-heeled) – The Conversation
• Personal income, spending, and saving: a trifecta of good news for the US economy – XE.com
• Warning signs are already popping up as the US rate hike looms – Nikkei Asian Review
• Here’s How Quickly Yellen Wants to Raise Interest Rates, According to a Former Fed Policy Maker – Bloomberg
• Prepare for fireworks from America’s populist left – FT.com

Americas

• Puerto Rico Approaches A New Fiscal Year With Mounting Debt, Rising Taxes, Fewer Public Services – IB Times
• Economists question foreign investment concerns in Canadian housing – Financial Post…check the comments too…
• Loonie overvalued by 10%, dragging on Canadian growth: CIBC – Financial post
• Pressure mounting to end U.S. oil export ban and why that might be good for Canada – Financial Post

Terra Lalalandis

• Housing market puts Australia at risk of becoming nation of ‘imprisoned tenant serfs’, Liberal MP John Alexander says – ABC…he may have a point there…
• Rental growth slowdown signals property boom on borrowed time – Fairfax…but there has never been a better time to buy real estate…
• Means test welfare but not education. That’s privatisation by stealth – Guardian
• Australian Workers Union says mining company’s employees responsible for $47k ‘member donation’ – ABC
• Superannuation shakeup: Government’s proposed rule changes a political stunt, industry fund executive says – ABC
• GE invests in $348 million windfarm after Australian subsidy deadlock ends – Reuters
• What the Treasury, not the Treasurer, really thinks – Fairfax, Pascoemeter
• Adani walking away, or upping ante on Australian coal project? – Reuters, Clyde Russell
• Dollar still at ‘unjustifiable’, ‘unsustainable’ levels, RBNZ says – NZ Herald
• Trade deficit unexpectedly shrinks in May – NZ Herald
• Chart of the day: Australian debt volatile – SCMP
• Is Australia leaning on a house of cards? – Nikkei Asian Review
• The notional debt:Where does the idea of an Australian debt crisis come from, and what does it mean? – The Monthly
• China Goes on a $46 Billion Aussie Home Spending Spree – Bloomberg
• When monetary policy reaches its limits, what of fiscal policy? – The Conversation
• The new economy – how do we get there from here? – The Conversation
• A key factor in housing affordability in Canberra is how fast land is released – Fairfax…and not just Canberra…
• Australia Post’s future is no longer in the mail – Fairfax
• Joe Hockey could learn something from George Washington’s right-hand man – Fairfax….well I don’t think Bubbles gets data at all…
• IMF research confirms paying more to the poor will build the economy – Fairfax

Commodities

• Molycorp — sole U.S. rare earth producer — files for bankruptcy – LA Times
• China plans to launch Yuan gold fix by end of 2015 – Mineweb
• Russia’s Gazprom does not rule out participation in Iran LNG projects – Reuters
• Why are China’s copper scrap imports in long-term decline?  – Reuters
• Fed Rate Hikes & Plunging Platinum Bode Ill For Gold – ETF.com
• World’s kitchens braced for olive oil shock – FT.com

Capital Markets

• ‘Sell’ recommendations on endangered list – FT.com
• The Myth of Currency Manipulation – Project-Syndicate
• Equities: Spanish IPO market catches QE fire – Euromoney
• FX: The great internalisation debate – Euromoney…good read…
• Why Chinese stocks could slide 50 percent – CNBC
• Stocks are flashing red, as these key signals show – CBS
• Interpreting the yield curve: Pessimism or precaution? – Vox
• BofAML: These Asset Classes Are Most at Risk When Interest Rates Rise – Bloomberg
• Debt default risk not just a Greece story – FT.com…this is the real story…

Global Macro

• Markets Headed to ‘Bubbleland,’ Warns Jeremy Grantham – WSJ
• Is Financial Repression Here to Stay? – Project-Syndicate
• Farmland prices can teach investors a lot about asset bubbles – Market Watch…good read…
• How to make your portfolio ‘as inefficient as possible’: Pay down the mortgage – Financial Post
• Trade and growth – end of an era? – Vox…maybe something in this….
• TPP now in sight – Vox
• Government spending multipliers and the business cycle – Vox…one for Bubbles and TestosterTone…
• The effects of ultra-loose monetary policies on inequality – Bruegel (pdf)
• Where Does Money Come From? – Pragmatic Capitalism
• The world’s workforce will stop growing by 2050 – Quartz
• U.S. compares China’s South China Sea moves to Russia’s in Ukraine – Reuters…must be a lot of people on those islands who want to join China…

…and furthermore…

• Unforgiving pope is right on money – Reuters, Hadas
• HSBC ends tie-up with Markit to produce key China index – SCMP
• America, China, and the Productivity Paradox – Project-Syndicate, Roach
• Why Small Booms Cause Big Busts – Project-Syndicate, DeLong
• Recent Declines in Labor’s Share in US Income: A Preliminary Neoclassical Account – Peterson Institute (Pdf)
• Booming universities take taxpayers for a ride – Telegraph
• The revival of cities and the urban land premium – Vox
• Can an Algorithm Hire Better Than a Human? – NY Times
• An Advance May Double the Capabilities of Fiber Optics – NY Times
• Credit rating agencies are miscalculating risks of climate change, report finds – Guardian
• Skivers and strivers: this 200–year–old myth won’t die – Guardian
• These Three Maps Show How Drugs Move Around the World – Bloomberg
• What’s Really Warming the World? – Bloomberg
• The rise of climate inactivism: The factual argument on climate change is over. Now lobbyists are trying to make a moral case for fossil fuels – The Monthly
• Economic theories that have changed us: game theory – The Conversation
• Economic theories that have changed us: efficient markets and behavioural finance – The Conversation