“The four most expensive words in the English language, “This time it’s different”” – Sir John Templeton.

1. The Reserve Bank of India Cut Interest Rates — the Reserve Bank of India cut interest rates for the third time this year, lowering its key repo rate by 25 bps to 7.25%, in a move that appears at odds with recent data showing the country’s economy has become one of the fastest-growing in the world. Data on Friday showed India’s output expansion accelerated to 7.5% last quarter, outpacing China in terms of growth.
2. HP sets November 1 spinoff date, partners with Arista — Hewlett-Packard (NYSE:HPQ) co-chief executive Meg Whitman said the separation of HP and Hewlett-Packard Enterprise would be effective November 1. Last October, HP announced it would split into two listed companies, separating its printer unit from its hardware and services operations. HP has also announced a partnership with fast-growing data center switch vendor Arista (NYSE:ANET).
3. Global Bond Yields Fly Higher — bond yields across global markets continued their sell-off into last week as a six-week-long bond rout rumbled on. ECB President Mario Draghi said asset prices tend to be more volatile in a low interest rate environment and policymakers were prepared to look through the sharp rise in yields. With the ECB seeing no reason to adjust its stance on monetary policy, German 10-year Bund yields rose to fresh 2015 highs today at 0.95% (up from near zero in mid-April). U.S. 10-year yield +3 bps to 2.4%.
4. Greece Delays $339 mil Debt Payment — Greece formally requested a deferral of June 5 ‘s payment due to the IMF after insisting it would make the payment. All parties in the negotiations continued to express optimism, but leftist members of the ruling Greek party were indignant at concessions.
5. Bullish Sentiment Increases Slightly — courtesy of BIG, bullish sentiment increased from 27.0% up to 27.34%. This represents the 13th straight week where bullish sentiment has come in below its bull market average of 38.5%. That is the longest streak of below average bullish sentiment since August 2012 when bullish sentiment was below average for 20 consecutive weeks.

The week ahead — Economic data from Econoday.com:

Tags: ECB

This entry was posted on Monday, June 8th, 2015 at 5:15 pm and is filed under Weekly Summary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.