2nd August EARLY - more of the same

Summary & View: Unchanged from Sunday: everything getting plain worse – except my track record. Hire me.

Quote of the day: “The Italy sovereign cds has soared +114 bps in 7 days. The Spain and France sovereign cds are making new record highs today. Italy is right near an all-time high. The Eurozone Financial Sector CDS Index is very close to record highs, as well.”

(coming) Joke of the day: “Expect a "stern warning" from ECB president Jean-Claude Trichet soon. Also expect the market to laugh in his face.” Mike Shedlock via Mish’s Global Economic Trend Analysis

EURO CRISIS

Italy, Spain Stuck in No-Go Debt Zone for Merrill, DWS Funds: Euro Credit – BB

Italy, Spain 10-Year Bond Spreads Are at Euro-Era Record on Growth Concern – BB

Italy in eye of the storm as cash runs low – The Telegraph

BNP Paribas’ analysis

How to value a Greek bond like a CDO – FT Alphaville

About those Greek privatisations.. – FT Alphaville

Selling Italy, buying UK [updated] – FT Alphaville

Eurozone still burning, this column asks how it started – in three phases. Good read.

Germany’s capital exports under the euro – Sinn via www.voxeu.org

FINANCIAL CRISIS

House Passes $2.1 Trillion U.S. Debt-Limit Increase; Senate to Vote Aug. 2 – BB

Wonkbook: A terrible, no-good, very bad deal – Ezra Klein / Washington Post

U.S. yield products, swap spreads etc. charted in every possible way.

SSA Daily Chartbook – August 1, 2011 – Stone Street Advisors

The US budget dilemma in context – Humble Student of The Markets

The GDP revisions explain the slow recovery fully

No more jobs mystery. Period. End of story. – TheMoneyIllusion

Demographic pressure versus labour market space: A global view – Reijer & Groot via www.voxeu.org

Long and pretty picture of an ugly topic

“Many Americans Believe That The 2008-2009 Downturn Never Ended”. They’re Right. – The Big Picture

EMERGING

Brazilians in Miami shop ’til they drop – beyondbrics FT

Not a lot of quality in developed world to invest in

China’s Dollar Problem – bric breaker / Forbes

China must psych out inflation – Market Watch

GS Asset Management’s chair Jim O’Neill on brics

Ready for a BRIC Century – The Moscow Times

Senior Chinese think tanker Wang Yusheng sounds very strange, and therefore this is a must read, as it reflects the actual will of Beijing. I leave further conclusions to the reader.

 The changing reality in Asia Pacific – China Daily

Did you know that over half of Citigroup’s profits come from emerging countries?

Banks in BRICs Signaling Credit Crisis With Loans Showing Increasing Risks – BB

OTHER

Good and quick look at historical P/E, inflation and stock market performance

Crestmont Market Valuation Update – Advisor Perspectives

OPERATORS

Barclays Reports Profit Plunge and Job Cuts – Dealbook NYT