Gartman Is Selling The Rally

With few in the market knowing what to do in the aftermath of Brexit (aside for chasing quarter end widow dressing of course) at least according to Citi, one voice of confidence has emerged: that of Dennis Gartman. For those interested in the “world-renowned commodity expert’s” take, here is what the CNBC fast money staple is doing as of this morning.

REGARDING GLOBAL EQUITIIES  DEAD CATS DO INDEED BOUNCE, and that is the lesson one is the learn from the massive, sharp rally that has taken place in the global equity markets as all ten of the markets comprising our International Index have risen in the course of the past twenty four hours, with nine of those ten rising by more than 1% and with two of them rising by more than 2%. However, in light of the massive declines that had taken place the previous two trading sessions we are willing to see the strength of the past twenty four hours as a much needed “Dead Cat Bounce,” and nothing more. Further, it is  very worth noting that the volumes on the bounces yesterday were demonstrably less then were the volumes on the breaks Friday and Monday, and if the trend is to follow the volume then the trend is still down.

 

Yesterday we asked the question, “Can the S&P futures rally back toward 2040-2050 in the course of the next few days?” We asked if the EUR StOXX 50 futures could make its way back toward 2825-2850 and could the Nikke futures “bounce” to 15,750-15,850? Our answer was in all three cases, “Of course they can and again it shall be proper to be a seller there.” As we write, the S&P futures are trading 2034;the  EURO STOXX 50 futures are trading 2788 and the Nikkei futures are trading 15,645, so all are approaching our targets to the upside. We shall have orders in the markets today to sell the mid-points of all three indices; that is, we’ll sell the S&P futures today if 2045; we’ll sell the EUR STOXX 50 at 2837 and we’ll sell the Nikkie futures at 15,800… two thirds of a unit for each so that we’ll be short of two units in total if all are filled, risking only 2% on each position from the outset.

And to think just one week ago Gartman said “The Trend Is, Has Been And Shall Be Upward.”

It would appear new all time highs are in store.

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Caught On Tape: US Destroyer Comes ‘Dangerously Close’ To Russian Patrol Boat In The Med

Another day, another report of a US encounter with Russia – it is certainly becoming a routine event. In a statement made on Tuesday, the USS Gravely approached the Yaroslav Mudry, a Russian frigate, on June 17, passing at a distance of 55 meters (180ft), the Defense Ministry said in a statement.

The US guided-missile destroyer Gravely breached international safety rules by coming withing dangerous proximity of the Yaroslav Mudry in the eastern Mediterranean, the Russian Defense Ministry said.

According to the statement, the warship's captain and crew violated the international Regulations for Preventing Collisions at sea (COLREGS) which govern the conduct of two or more vessels when they meet at sea in order to prevent dangerous situations.

From RT

The US sailors, in particular, neglected Rule 13, which stipulates that an overtaking vessel must keep out of the way of the vessel being overtaken,” the Defense Ministry said. It added that the USS Gravely had also violated Rule 15, which says that a vessel that has another vessel on the starboard side must yield and avoid crossing ahead of her.

 

The ministry also said the Pentagon should take note of such incidents rather than accuse the Russian Air Force and Navy of unprofessional conduct. “US sailors allow themselves to neglect key foundations of navigation safety without thinking of the consequences that dangerous maneuvering in a heavily trafficked maritime area might involve.”

 

The USS Gravely is an Arleigh Burke-class guided missile destroyer capable of carrying an Aegis missile defense system. She was commissioned in 2010 and sent to her first overseas deployment in the eastern Mediterranean three years later.

 

Yaroslav Mudry, a Russian-made Neustrashimy-class frigate, has seen service with the Russian Navy’s Baltic Fleet. She was spotted near Malta Earlier in June, reportedly heading to the eastern part of the Mediterranean to join Russia’s maritime task force off Syrian shores.

Unlike many of the claims made recently by the US regarding unsafe incidents, Russia has what is allegedly a video of the event.

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Brexit: Here Are The Latest Known Unknowns

Stocks may have decided to put Brexit in the rear view mirror, but as Deutsche Bank’s Jim Reid lists, there are still numerous outstanding questions.

  • When will Article 50 be triggered?
  • Will it ever be triggered?
  • Will there ever actually be a Brexit?
  • Who is the next Conservative leader?
  • Will there be a snap general election?
  • Will Jeremy Corbyn cling on to the leadership of the Labour Party in spite of a stunning 172/212 MPs in his party supporting a no confidence vote in him? Will the UK have a 2nd referendum?
  • On any negotiations will Europe play hard ball or compromise?
  • Will the UK let down swathes of the ‘leave’ voters and strike a compromise deal (eg like Norway) that doesn’t address the immigration issue at the heart of many voters’ fears?
  • Elsewhere will Italy lose the senate reform referendum in October and could Italy have an EU referendum after a fresh election?
  • And will the French elections next year be another spoke in the wheel for Europe?

Keep in mind, these are only the known unknowns. As Jim Reid writes, these questions and many more will remain mostly unanswered for many months which is sure to keep risk premiums on the higher side. However yesterday was a day for thinking the glass as being 10% full rather than 90% empty as various theories were distributed about whether Brexit would actually ever happen or whether some market friendly outcome would eventually be seen.

There’s a possibility of such outcomes but we won’t know that for many many months and possibly much longer so expect lots of mood swings ahead as the prevailing mood changes but there was definitely an air that full Brexit wasn’t necessarily a done deal yesterday.

 

My favourite comment across the day though was from the Luxembourg PM Xavier Bettel who said “Married or divorced, but not something in between. We are not on Facebook with ‘it’s complicated’ as a status”. Those were the days!!

 

That came alongside a flurry of other chatter from various EU leaders, all of which appeared to turn up the pressure valve on Cameron and the UK. Late in the evening we heard German Chancellor Merkel come out and say that ‘as of this evening, I see no way back from the Brexit vote’ and that ‘this is no time for wishful thinking, but to rather grasp reality’. Leaders from Belgium, Sweden and Denmark all voiced their frustrations and urged the UK to move quickly towards exit so as to reduce the uncertainty. Meanwhile French President Francois Hollande also added that the ‘UK won’t be able to access the single market without applying the rules of freedom of movement’. Interestingly, yesterday French press Le Figaro released an opinion poll which showed 45% of French citizens would be in favour of remaining in the EU, versus 33% against. Given all of the events of the last week, polls like this will only take on more and more focus.

Or not. Judging by the market’s reaction, and assuming the current pace of low-volume levitation, the S&P may be back at pre-Brexit levels in just 2 more days, at which point the entire Brexit episode will be completely forgotten by the algos.

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“Panic May Have Passed… But This Is Far From Over”

Don’t read too much into the relief rally of the past 24 hours, warns Bloomberg’s Mark Cudmore. While the initial panic may have passed, markets are very far away from having fully priced the impact of the referendum. For a start, there’s still little firm grasp of exactly what the impact will be…

 

 

In any major bout of risk-aversion, the sell-offs don’t happen in a straight line; bear markets see declining liquidity and hence heightened volatility.

In that context, perhaps the most notable thing has been the meekness of the relief rally in some assets. European financial services and bank stocks performed well on Tuesday, with their respective industry groups rising more than 2.5%, but those moves are nugatory when viewed against the 17%-plus retreats seen by both sectors through Friday and Monday.

[Doesn’t exactly look like a ‘normal’ buyer is back]

 

Meanwhile, havens have barely budged, with gold solidly above $1,300 an ounce, German yields are negative out to 15 years and no Japanese government bond pay more than 0.1%.

The situation is further clouded by the quarter-end which means portfolio rebalancing flows are “distorting” the market.

Central banks around the world have also made it abundantly clear they are willing to act to support markets if needed – another complication for the risk-reward decision around trading this event from the short side.

While we can’t put a scale on the economic damage until we know what the future U.K.-EU framework will be, we do know that the economies of the U.K. and many other European countries will be negatively hit.

However, it’s also important to emphasize that this is now a European issue.

Sure, Europe makes up a sizeable portion of the world economy and there’s no doubt this will dent global growth. But with the specific shock-moment behind us, the rest of the world can soon move on and adapt, supported by the fact that global yields have dropped further yet again.

Before the vote, investor cash levels were at the highest level since November 2001 according to BofA Merrill Lynch’s Fund Manager Survey. Once the new quarter begins, that cash will be put to work in a relatively aggressive fashion – just predominantly outside Europe.

Where markets will finish on Friday isn’t clear. Focus on the economics rather than the price-action. There’s an abundance of assets that will flourish in the second half of 2016 – just not in Europe.

*  *  *

A glance at the very recent market action and once could be forgiven for thinking tradewrs are positiioning for another Fed-QE trade.

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Scandal Erupts At Euro Summit Over Scotland, While Draghi Says In “No Rush” To Ease Policy

For all the expectation of an imminent central bank intervention over the past two days, something which according to Bloomberg was the main catalyst for the stock surge since Monday, so far the world’s money printers have been dead silent: not only is the BOJ trapped and unable to intervene with virtually its entire bond curve trading below 0% (and any further easing will only push it lower), but moments ago the ECB itself chimed in and shot down hopes of more stimulus from Frankfurt when Mario Draghi said moments ago that the ECB is in “no rush” to ease policy after the Brexit vote.

But even more notable, and confirming just how profound the chaos in Europe is in the post-Brexit world, was the mini scandal that just erupted at the EU summit, now sans Cameron, over the fate of Scotland. Here, in an attempt to anger the UK some more, EU commission president Jean-Claude Juncker, in comments to reporters, said that “Scotland won the right to be heard in Brussels.” This takes place just hours before Scottish First Minister Nicola Sturgeon is due to meet with Juncker later Wednesday

But while Juncker’s statement was meant to merely infuriate the UK even more, what he did instead is open a new Pandora’s box, one which invites all secessionist movements in Europe to demand a comparable treatment.

And, sure enough, just moments later, Spain’s PM Rajoy immediately said that he opposes any negotiation by Scotland with the EU adding that “If the UK leaves, Scotland leaves.”

Why the abrupt response? Because Rajoy knows that is Scotland will be heard – and allowed to become independent – then Catalonia and the Basque Country are next.

What happens next? Nobody has any idea. This is what we said moments ago:

Just remember: buy stocks because it is month end, and because central banks which now explained they will not be intervening (unless stocks drop much further) may intervene.

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April Spending Exuberance Plunges Back To Earth In May As Income Growth Slows

After an exuberant April, spiking hope that everything was awesome with a surge in spending, May has dragged US consumers back down to earth. The 1.1% (revised) jump in spending in April (highest since Aug 09) is over as May’s 0.4% gain is back in the land of ‘normal’ once again. Income rose just 0.2% MoM (less than expected) slowing dramatically from last month to near the weakest YoY growth since March 2014. The savings rate fell once again on the back of this (down 0.1%) to 5.3%.

 

With YoY Income growth almost the weakest since March 2014 and spending fading…

 

Pushing the savings rate further down..

 

As spending eats into income…

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Islamic State Blamed For Istanbul Terror Attack That Killed 41

The death toll from Tuesday’s attack on this city’s main airport has risen to 41, including 13 foreign nationals, with 239 injured, the Istanbul governor’s office said Wednesday. Despite the attack, Istanbul Atatürk Airport resumed business Wednesday morning the WSJ reported. Television footage from inside the airport showed check-in lines functioning normally. Turkish Airlines, the country’s flag carrier, said its flight operations had resumed, though the airport’s arrivals and departures board showed heavy cancellations and delays.

AbduRahman Hussein, a filmmaker from Sana’a, Yemen, was about to eat at one of the terminal’s second-floor restaurants when he heard shots and explosions. “I saw the smoke,” he said in a direct message on Facebook. “Then I started running away.” He posted pictures of shattered glass and people running. The dramatic explosion was caught on tape:

And with the damage now largely accounted for, it’s time to cast blame which Turkey was eager to do when Prime Minister Binali Yildirim said in televised remarks that the Islamic State is likely responsible for the killings. “Once again, it has been understood that terrorism is a global threat to all countries and nations and must be fought through mutual cooperation,” Yildirim said. “Our country has the necessary power and determination to overcome over these heinous attacks.”

Erdogan said in an e-mailed statement that the Istanbul airport attack was an effort to hurt Turkey’s image. “For the terrorist organizations, there’s no difference between Istanbul and London, Ankara and Berlin,” he said, urging all countries to join forces against terrorism.

What is odd is that the Islamic State, traditionally eager to immediately take responsibility for foreign terror operations, has kept silent: there was no immediate claim of responsibility. Both Islamist, leftist and Kurdish militants have carried out bomb attacks in Turkey in recent months, hammering the nation’s vital tourism. Tourist arrivals to Turkey fell almost 35 percent in May from a year earlier, the fastest drop in at least a decade and following a 28 percent decline in April.

Here is what is known: three suicide bombers opened fire and then blew themselves up in rapid succession at the airport around 9:20 p.m., Yildirim said from the Istanbul airport, where he assessed the  damage and met with emergency personnel. The attacks left more than 200 people wounded, the governor’s office in Istanbul said by phone on Wednesday. Many of Turkey’s children ended school terms this month, which coincides with the Islamic holy month of Ramadan.

The assaults took place near security checkpoints at the entrance to the airport’s arrivals hall. Justice Minister Bekir Bozdag told lawmakers in parliament earlier that at least one attacker had sprayed gunfire from a Kalashnikov automatic assault rifle. None of the assailants got past security controls, according to a Turkish official who asked not to be identified because he’s not authorized to talk to the press. He said two of them detonated their vests at the arrival hall, and a third in a nearby parking lot.

ISIS lack of confirmation aside, Turkey’s insistence that the Islamic State was behind the latest terrorist act means Turkey has yet another pretext to forcibly cross the Syria border and do with the local “ISIS” forces as it sees fit. How that will affect the already tense geopolitical situation in the area, where both US and alliance forces are active as well as Russian troops and fighter jets, is unknown

Turkey is likely to step up its border security and counter-terrorism cooperation with the U.S., according to Gonul Tol, a Turkey analyst at the Middle East Institute, a Washington research center. With Turkish-backed rebels in Syria on the defensive against Syrian government forces aided by Russia, the attacks “put a spotlight on the government’s unpopular Syria policy,” he added.

The government will do its best to control the way the media frames the attack and divert attention from the government’s Syria policy to external factors contributing to the growth of ISIS threat,” he said, using another acronym for Islamic State.

As Bloomberg adds, the attack is also the latest to target airports and the aviation industry in the Middle East and Europe, coming three months after suicide bombers struck Brussels airport. It serves as reminder of the vulnerability of airport lobbies and other public places where large numbers of people congregate, said Hans Weber, an aviation consultant in San Diego.

“The probability of copycat attacks goes way up high after one of those attacks,” said Weber, who advised the U.S. federal government on airport security issues following the Sept. 11 attacks. “From a terrorist perspective, Brussels was a success. You can see how they would be motivated to copy that.”

This means that even more terrorist attacks are now likely not only in Turkey, but also in Europe, which has been in a heightened state of terror alerts ever since last November tragic suicide bombings in Paris and this year’s attacks in Brussels.

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Germany Just Blew Up Italy’s Bank Bailout Plan

   “You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.”

Rahm Emanuel prophetic words were quickly put to use by Italy on Monday morning, which barely waited one full day before using Brexit as the scapegoat excuse to warn that a €40 billion bailout of Italian banks is coming. 

As a reminder, on Monday morning the local media reported that Renzi’s
government was pursuing a six-month waiver of EU state-aid rules,
allowing it to shore up banks without forcing investors to share losses. Two days ago, when we first reported of Italy’s proposed bank rescue plan, we said that the chairman of Lower House’s Finance Commission, Maurizio Bernardo, confirmed that the government is studying options to support the banking sector, including a capital injection, and said a law decree “with measures going in that direction” could be approved by the end of this week. 

We pointed out that how such an intervention would be implemented was unclear; it was is also unclear how such a direct state recapitalization of Italian banks using public funds would be permitted by current EU and ECB regulations, which prohibit state bailouts of insolvent banks, although Europe has a long and illustrious history of finding massive loopholes to that particular prohibition. “Last but not least it is unclear how existing stakeholders, shareholders, bondholders and uninsured depositors, would be impaired under such a bailout.”

Well, they wouldn’t, despite Europe’s recent implementation of bail-in rules. That was the whole point.

However, while Italy was hoping it would get a “pass” on using public funding, mostly Eurozone generated and thus courtesy of Germany, this appears to have hit a dead end moments ago, when Bloomberg reported that Germany opposes any attempt to shield private bank investors from losses if Italy pushes ahead with plans to recapitalize lenders. Chancellor Angela Merkel’s government says that European Union rules on handling struggling banks should apply in any rescue effort, including forcing losses on shareholders and some creditors before public money can be injected, the person said, declining to be identified because the deliberations are private.

And just like that Renzi’s entire recapitalization plan has gone up in smoke, because if there is one person in Europe who can veto an Italian bailout, it’s Merkel, which is precisely what she has done.

As Bloomberg adds, any waiver of the rules would be complicated, as Germany insists that the EU’s Bank Recovery and Resolution Directive be applied. That will mean Italy must first avoid triggering a wind-down procedure. The assumption in BRRD is that the need for “extraordinary public financial support” for a bank indicates that a bank is “failing or is likely to fail, and therefore triggers the need for resolution,” according to the European Banking Authority.

Also according to the source, Germany isn’t pushing for banks to be wound down, according to the person. The government does, however, want to ensure that private investors are tapped before any public money is put into the banks. EU state-aid rules normally require shareholders and junior creditors to share losses.

That, as we noted on Monday, is a dead end: currently, it is practically impossible for Italian banks to raise capital. “They are caught in a pincer as the ECB simultaneously demands compliance with tougher capital adequacy buffers, in some case demanding fresh infusions of capital three or four times.  The banking squeeze has become politically explosive in Italy after thousands of small depositors were wiped out at four regional banks late last year. They were classified as junior bondholders, even though most of them were just ordinary savers who did not realize what was being done with their money.”

But worst of all for Renzi, Merkel’s government in Berlin rejects the argument that the U.K. vote to leave the EU constitutes an “exceptional circumstance” which, under EU basic law, can allow a national government to grant aid to a company outside of the state-aid rules. 

Which simply means that Europe will need a bigger crisis, something which can be easily arranged, because recall as we concluded last time that the biggest winner from an Italian bank bailout would be none other than the ECB’s Mario Draghi under whose tenure as governor at the Bank of Italy from 2005 until 2011 is when Italy’s banks loaded up on all those €360 billion in bad and non-performing loans which Italy is now desperate to eliminate or at least offset. The last thing Draghi would want is for his legacy to one remember for the collapse of the Eurozone’s most insolvent banking system.

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Frontrunning: June 29

  • Global stocks gain as Brexit nerves settle (Reuters)
  • Draghi Wishes for a World Order Populists Will Love to Hate (BBG)
  • Merkel Says No Way Back From Brexit as Cameron Regrets Loss (BBG)
  • EU leaders meet without UK to plot Brexit response (FT)
  • Division, confusion as EU rethinks future without Britain (AP)
  • Goldman denies plans for Frankfurt office switch after Brexit (Reuters)
  • Brexit Vote Roils Real-Estate Markets (WSJ)
  • Will Brexit Actually Happen? (BBG)
  • Donald Trump Lays Out Protectionist Views in Trade Speech (WSJ)
  • Islamic State prime suspect after suicide bombers kill 41 at Istanbul airport (Reuters)
  • Istanbul Airport Reopens Even as Attack Death Toll Rises (WSJ)
  • European Banks Spend Billions to Get U.S. Units Fit for the Fed (BBG)
  • Syria rebels battle IS at Iraqi border, aim to cut ‘caliphate’ in two (Reuters)
  • 5 Things to Watch in the Fed’s Stress Test Results (WSJ)
  • Brexit Economic Fallout Worries Americans in Bloomberg Poll (BBG)
  • Teachers Union and Hedge Funds War Over Pension Billions (WSJ)
  • UK consumer borrowing growth hit 10-year high before Brexit storm (Reuters)
  • Every Banker in the World Is Chasing the Saudi Aramco Deal (BBG)
  • Energy Transfer Equity Calls Off Williams Merger (WSJ)

 

Overnight Media Digest

WSJ

– British Prime Minister David Cameron began the tortuous process of extricating his country from the European Union at his last summit with leaders of the other 27 EU states, who told him there would be no special deals for ex-members of the bloc. http://on.wsj.com/293LlhS

– A federal judge has ordered Texas entrepreneur Sam Wyly to pay $1.1 billion in taxes and penalties for committing tax fraud using offshore accounts, even though the former billionaire’s net worth has fallen to a fraction of that amount. http://on.wsj.com/293LgL5

– Federal officials made clear Tuesday that Volkswagen AG’s deal to pay up to $14.7 billion to settle emissions-cheating claims with U.S. consumers and regulators won’t end the auto giant’s woes-nor stop scrutiny of other car makers. http://on.wsj.com/293Lp1b

– IKEA has agreed to recall 29 million chests and dressers in the U.S. following a raft of injuries and the deaths of six toddlers caused by the furniture tipping over. http://on.wsj.com/293Lv99

– Turkey’s busiest airport, Istanbul Atatürk Airport, was struck by suicide bombers late Tuesday, who killed at least 36 people and injured scores, on the eve of a major holiday, the deadliest in a string of attacks in Istanbul this year. http://on.wsj.com/293LuBU

 

FT

Jeremy Corbyn refused to step down as leader of the labour party despite a vote of no confidence and resignations from his front bench.

U.S. prosecutors said Volkswagen AG and its suppliers still face a criminal investigation for their role in the diesel emissions scandal, even as the company agreed to pay up to $15.3 billion in fines.

U.S. online lender LendingClub Corp will cut about 12 percent of its workforce as it attempts to deal with a scandal that led to the departure of its founder.

Apartment-sharing startup Airbnb is in talks for a new round of funding that would give it a valuation of $30 billion.

 

NYT

– Airbnb has charmed and strong-armed lawmakers around the world to allow it to operate in their communities. But two cities, Airbnb’s hometown, San Francisco, and New York, the service’s largest United States market, have not been so compliant. http://nyti.ms/292X4Qn

– Donald Trump vowed on Tuesday to rip up international trade deals and start an unrelenting offensive against Chinese economic practices, framing his contest with Hillary Clinton as a choice between hard-edge nationalism and the policies of “a leadership class that worships globalism.” http://nyti.ms/292vfEz

– Volkswagen AG solved one big problem stemming from its diesel emissions deception, agreeing on Tuesday to pay up to $14.7 billion to settle claims in the United States. But the final financial toll, once the company deals with a long list of fines, lawsuits and criminal investigations around the world, may well be far higher. http://nyti.ms/290i7P7

– In a deal with federal regulators, Ikea announced Tuesday that it would recall 29 million chests and dressers in the United States after at least six toddlers were crushed to death in tip-over accidents. http://nyti.ms/2992vwH

– The federal government has proposed adding a line to forms filled out by visitors to the United States that would ask them to voluntarily disclose their social media accounts, a step that it said would help in screening for ties to terrorism. http://nyti.ms/299xngv

 

Canada

THE GLOBE AND MAIL

** Canada ranks second in the world when it comes to turning economic prosperity into social progress, according to a report by Social Progress Imperative. (http://bit.ly/292lxpm)

** Empire Co Ltd, the parent of grocer Sobeys Inc, posted a loss of $942.6 million as its problems deepened in its Western Canadian business in its fourth quarter and Chief Executive Marc Poulin warned of signs that Sobeys’ sluggish sales are spreading to other regions of the country. (http://bit.ly/294uwY9)

** BuzzFeed Canada is cutting its political reporting staff more than a year after its official launch, suggesting there are cracks in the social news company’s plan to expand its reporting capabilities outside the United States. (http://bit.ly/292cXns)

NATIONAL POST

** Canada has lodged a formal complaint with the Palestinian Authority over what it says were “baseless” accusations against Israel by President Mahmoud Abbas. The move came after Abbas alleged in a speech to the European Parliament in Brussels last week that Israeli rabbis had plotted to murder Palestinians by poisoning their wells – a claim that was quickly proven false. (http://bit.ly/297cjqn)

** Last minute negotiations are underway to extend the closing date for Superior Plus Corp’s acquisition of Canexus Corp after U.S. antitrust authorities launched a legal challenge that could quash the deal. Calgary-based Canexus announced Tuesday that it is still in talks to extend the closing date of the deal, which is set to expire Wednesday. (http://bit.ly/292ceBe)

 

Britain

The Times

The co-chief executive of Goldman Sachs International Richard Gnodde has warned that some of the bank’s 6,500 staff in the UK may be moved to Europe following the referendum result.(http://bit.ly/293r8wP)

Aston Martin is to stick to its plan to build a carmaking plant in south Wales, even arguing that the vote for Brexit has made the project more viable. (http://bit.ly/292LQsQ)

The Guardian

Vodafone, one of Britain’s biggest companies, has warned that it could relocate its head office outside the UK if the negotiations for a post-Brexit Britain do not give it freedom of movement across the EU for people, capital and goods.(http://bit.ly/29mijd4)

Virgin billionaire, Richard Branson, says Chinese business partners are already pulling investment from the UK in the light of the EU referendum vote, and warned that “thousands of jobs will be lost”. (http://bit.ly/291qh9Y)

The Telegraph

The British Government is “committed” to expanding airport capacity in the south east, despite the political turmoil caused by Brexit, the transport secretary Patrick McLoughlin has said, signalling a decision on a controversial £17.6 billion ($23.49 billion) third runway at Heathrow could still be on the cards. (http://bit.ly/292O3of)

Lloyds Banking Group’s boss has bought another 100,000 shares in the bank in a show of confidence that the lender’s share price tumble is a short-term hit rather than a sign of long-term problems. (http://bit.ly/294jQHh)

Sky News

Hundreds of British-based jobs at the credit card giant Visa could be forced to relocate to the Continent in the wake of last week’s EU referendum. (http://bit.ly/29232xB)

Tax rises and spending cuts will be needed within months to deal with economic challenges following the British vote to leave the EU, Chancellor of the Exchequer George Osborne has warned. (http://bit.ly/298ZHzK)

The Independent

Fitch has downgraded the UK’s credit rating to AA negative, after similar moves by Moody’s and S&P, following Britain’s vote to leave the EU. (http://ind.pn/28YYG9E)

The Bank of England has injected £3.1 billion ($4.14 billion) into the UK banking system. The amount released on Tuesday was the last of the extra auctions announced by the Bank of England in March this year. (http://ind.pn/293EhnG)

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