“Know What Kind of Investor You Are” — Benjamin Graham

1. Chinese Q2 GDP grows 7.5% — China’s economy matched forecasts and expanded 7.5% on year in Q2, although that was down from 7.7% in Q1.
2. Restaurants, bars act to avoid cost of Obamacare — the WSJ has found anecdotal evidence that restaurants and bars have been converting much of their staff to part-time from full time so that they don’t have to provide health insurance as mandated by the Affordable Care Act.
3. Mexico unveils $316B infrastructure plan — Mexican President Enrique Pena Nieto has announced a “transformational” plan for 4T peso ($316B) of government and private infrastructure investments from 2013 to 2018, including in roads, railways, telecom, ports and energy. The spending could add up to 5% of GDP. Companies that could benefit include cement maker Cemex (CX) and construction firm Empresas (ICA).
4. U.S. Shale Boom Threatens Australian Gas Projects — WSJ, the surge in natural gas output in North America has reduced the appeal of projects in Australia, where major international companies such as Chevron (CVX), Exxon Mobil (XOM) and Shell (RDS.A) are investing over $160B. With U.S. prices low and the country beginning to increase exports, another $100B of spending in Australia is at risk, especially as the high Aussie dollar and labor shortages have helped cause costs to balloon.
5. Greece approves scheme to fire thousands of public workers — Reuters, Greece’s parliament has narrowly approved the latest set of Troika-mandated austerity plans, paving the way for the country to receive the next tranche of its bailout. The bill includes deeply divisive plans for a transfer and layoff scheme for 25,000 public workers – mainly teachers and municipal police – that had triggered a week of almost daily marches, rallies and strikes in protest.
6. U.K. offers tax breaks to boost shale-gas industry — the U.K. government has introduced a tax break for shale-gas producers, to attract investment into what it hopes will be a major new industry for Britain. Taxes on fracking profits will be lowered to 30%, compared with a top rate of 62% on new North Sea oil operations and up to 81% for older offshore oilfields, according to media reports.
7. Detroit files for record bankruptcy — Detroit filed the largest municipal bankruptcy in U.S. history late last week, setting the stage for a costly court battle with creditors and opening a new chapter in the long struggle to revive the city that was the cradle of the American auto industry. Detroit’s creditors are expected to face huge losses, and the future of retiree pension and health benefits for thousands of city workers hangs in the balance.