ECB cuts rates to 0.75 percent, deposit rate to zero (Reuters)
The ECB cut the interest rate on its deposit facility to 0.0 percent, effectively encouraging banks to lend their funds in the market to other banks overnight, where they receive a higher interest rate, currently about 0.3 percent.
Bank of England hold rates and raises stimulus by £50bn (Telegraph)
Neil Bentley, CBI deputy director-general, said: “Over the past month, it became increasingly clear that a further round of asset purchases was imminent. Inflation has fallen faster than expected, economic momentum appears to have slowed both in the UK and globally, and the MPC had done little to dampen expectations.
China Cuts Key Interest Rates (WSJ)
China's central bank on Thursday lowered interest rates for the second time in less than a month, a surprising move that signals alarm by authorities in Beijing at the state of the world's second-largest economy. The People's Bank of China said in a statement it will cut the one-year yuan lending rate by 0.31 percentage point and the one-year deposit rate by 0.25 percentage point. In addition, lending rates will be allowed to fall to 70% of the benchmark rate, down from 80% currently.
Rate Scandal Set to Spread (WSJ)
With British politicians on all sides calling for further investigations, Mr. Diamond faced hostile questions from a parliamentary committee. Lawmakers expressed skepticism about his claim that he wasn't aware until recently of his subordinates' improprieties. "Either you were complicit, grossly negligent or incompetent," John Mann, a Labour lawmaker, told Mr. Diamond. After a pause, Mr. Diamond asked, "Is there a question?"
Joey Chestnut Downs 68 Hot Dogs To Win Sixth Straight Nathan’s Hot Dog Eating Contest (Deadspin)
And you can't eat half a vending machine in eight hours.
Einhorn Finishes Third in Poker Tournament, With $4.35 Million (DealBook)
Wearing a bright red jacket and mirrored sunglasses, Mr. Einhorn went bust on Tuesday evening after beating all of the amateur poker players and all but two of the professionals in the no-limit Texas hold ‘em tournament, which drew 48 players and required a $1 million buy-in. ... “It was fun,” Mr. Einhorn said after he was eliminated, according to an interview transcript provided by the World Series of Poker. Many of the players, he said, “have lots and lots of experience, and then they invited a few guys like me in, and said ‘let’s have a poker party.’ And I honestly think this is almost designed to have a great summer vacation.”
Corzine is having no fun in the shun (NYP)
Friends said Corzine looks like a shell of the man who seven months ago sat before a Senate subcommittee and said, “I simply do not know where the money is.” When he’s not wallowing in misery, Corzine has been making the Hamptons rounds. Residents have spotted him in his favorite haunts, such as Nick and Toni’s restaurant in East Hampton and the American Hotel restaurant in Sag Harbor. But he is far less visible these days than he was, say, four years ago, when he was working the cocktail parties raising money for Obama, still holding on to the prospect of a federal post as budget director or treasury secretary.
Hedge Fund Files for Bankruptcy (WSJ)
A hedge fund managed by the investment firm of Alphonse "Buddy" Fletcher Jr. has filed for bankruptcy protection in Manhattan, as the firm faces a mounting legal challenge. ... The litigation represents a reversal of fortune for the Fletcher firm. In the early 1990s, Mr. Fletcher made a splash on Wall Street, reporting 300%-a-year returns at his firm. In 2003, he was profiled in the book "Stock Market Wizards."
Big Banks’ ‘Living Wills’ Aiming For Bankruptcy Not Bailouts (Bloomberg)
The Federal Deposit Insurance Corp. and Federal Reserve posted the public portions of so-called living wills on websites today as required by the 2010 Dodd-Frank Act. The documents outline more detailed proposals submitted privately describing how regulators could dismantle the companies if they fail. ... The public summaries of the wind-down plans reveal few details. For instance, Bank of America’s summary says that assets sold off during a resolution could go to a “range of buyers including, but not limited to, national, international and regional financial institutions; private equity and hedge funds; and other financial asset buyers such as insurance companies.”
Spain Meets Target At First Bond Auction Since EU Summit (Bloomberg)
Spain sold its benchmark July 2015 bond to yield 5.086 percent, compared with 5.457 percent on June 21. It also sold its 10-year benchmark bond at an average yield of 6.43 percent, compared with 6.044 percent when the securities were last sold on June 7, and bonds maturing in 2016 yielded an average 5.536 percent, compared with 5.353 percent. The Spanish auction signaled easing concern about the government’s ability to finance the euro region’s third-biggest budget deficit. Demand for the three-year benchmark was 2.28 times the amount sold, compared with 3.18 in June, and the ratio for the 2016 bonds was 2.56, the same as last month. The bid-to-cover for the 10-year security was 3.18 times the amount sold, compared with 3.29 at the last auction.
Spain’s Banking Crisis Moves Into the Courtroom (NYT)
“We are entering a new phase in this banking crisis, adding to the questions of solvency the need to establish accountability for past mistakes,” said José Luis de la Calle Sánchez, an independent lawyer who specializes in banking matters. The Bankia case in particular is highly politicized. Bankia has longstanding ties to the governing Popular Party, and the case against it was brought by one of Spain’s opposition parties, Union, Progress and Democracy.
Singapore's Temasek seeks investment in Europe, commodities (Reuters)
Singapore state investor Temasek Holdings, whose portfolio swelled to a record in the last fiscal year, is looking to acquire assets in Europe and plough more money into energy and commodities after doubling its exposure to the sector. ... Temasek's portfolio grew around 2.6 percent in the year ended March to S$198 billion ($156.37 billion).
San Diego Bay fireworks ignite all at once, botching show (LAT)
A glitch caused the fireworks at San Diego's biggest fireworks show to ignite all at once, botching the Fourth of July pyrotechnic show for hundreds of thousands of spectators. ... "I've never seen so many fireworks go off at one time," Rich Dann, a Coast Guard search-and-rescue controller, told the newspaper.
Higgs boson and Comic Sans: the perfect fusion (Guardian)
Scientists announcing the discovery of this Higgs boson thing had written up their complex findings in the childish font everyone loves to hate. ... Predictably, Twitter was outraged. "Dear @CERN," wrote one science buff with a taste for typography. "Every time you use Comic Sans on a powerpoint, God kills the Schrödinger's cat. Please think of the cat." Another groaned: "They used Comic Sans on the Higgs boson powerpoint presentation ... Nope there is no hope for mankind."