>>> US Early premarket gappers

Early premarket gappers
Gapping up: IDXG +37%, EGLT +27.3%, VIVE +19.2%, RAX +18.6%, PACB +15%, AAOI +9.2%, KTOS +8.8%, OSIR +8.5%, ONVO +8.5%, OSIR +8.5%, ICON+7.9%, LOCO +7.8%, LGF +7.7%, RPTP +7.5%, PETX +6.6%, UBNT +6.5%, PCLN +6%, MTZ +5.8%, CTRL +5.7%, GSAT +5%, KHC +4.4%, SYMC +4.1%, AHS +4%,PTCT +3.8%, VVUS +3.8%, MELI +3.8%, LDOS +3.4%, MDRX +3.4%, EOG +3.2%, TRUE +3.1%, LNTH +3.1%, MGA +3.1%, AVP +2.8%, BHP +2.8%, APRI +2.8%,SAUC +2.7%, TRXC +2.7%, RVNC +2.5%, SSNI +2.5%, ATVI +2.4%, CTSH +2.4%, ASYS +2%, GFI +1.9%, OAS +1.9%, ECYT +1.9%, TASR +1.8%, ABTL +1.8%,IVR +1.7%, MNST +1.6%, IMPV +1.6%, BP +1.5%, TOT +1.5%, IBP +1.5%, AMRS +1.3%, IRWD +1.3%, HMSY +1.3%, ESPR +1.2%, JUNO +1%, BBVA +0.9%, BMRN+0.9%, SEM +0.9%

Gapping down: HDP -27.2%, SWIR -18.8%, PDLI -17.5%, FEYE -15.2%, AQXP -14.7%, CPSI -13%, NOG -12.1%, TWOU -12%, ZNGA -9.1%, NVO -8.8%, FLR-7.9%, OLED -7.8%, WTW -7.5%, INAP -6.4%, RBS -6.1%, CARA -5.7%, ZG -4.6%, LADR -4.4%, NDLS -3.7%, ACAD -3.4%, TCRD -3.4%, OTIC -3.1%, GST -3.1%,SYRG -2.8%, CERS -2.6%, CERS -2.6%, NRP -2.6%, DMRC -2.4%, MACK -2%, RATE -1.7%, FDUS -1.6%, BBG -1.4%, SNY -1.3%, INGN -1.3%, AES -1.3%, VER-1.2%, WING -1.2%, ATRC -1.1%, EMKR -1.1%, AZN -0.9%, FPRX -0.9%, CLX -0.8%, GSK -0.8%, MMI -0.8%, FFG -0.8%

Fast FT : HSBC to pass BoE rate cut on to mortgage customers

Bank of England governor Mark Carney has said there is “no excuse” for high street lenders not to pass yesterday’s cut in interest rates on to customers – and at least some of the major lenders are heeding his warning.
HSBC has said it will pass the 25 basis point cut on to all of its customers with tracker mortgages that shadow moves in the BoE base rate. Meanwhile, customers with its standard variable rate mortgage will see their interest rate reduced from 3.94 per cent to 3.69 per cent at the start of next month. That is, of course, still far above the new BoE base rate of 0.25 per cent.
HSBC said on Friday:
Following the Base Rate announcement yesterday we have passed on the full reduction to customers with tracker mortgages today. We will also be passing on the reduction to mortgage customers on our Standard Variable Rate, which is already one of the lowest in the market and will reduce from 3.94% to 3.69% with effect from 1st September.
Santander UK and Barclays immediately announced cuts to their standard variable rate mortgages yesterday.
Determined to enhance the transmission of it monetary policy moves to the real economy, the BoE also unveiled a new “term funding scheme” – a £100bn facility to provide cheap loans to commercial lenders to help them lend to households and businesses at low rates.

>>> PBoC: Reiterates to pursue prudent monetary policy, to adjust monetary polic

PBoC: Reiterates to pursue prudent monetary policy, to adjust monetary policy stance when appropriate, to fend off systemic and regional risks - press 
- Intend to shape neutral and appropriate environment for monetary policy and the financial system
- To keep CNY stable, continue interst rate and exchange rate reform
- Frequent RRR cuts to add to CNY currency pressure
- To support a reasonable level of credit and financing growth
- Inflation likely to remain steady at low levels; rising property prices and flood might have impact on inflation

(MS) Strategy Chart Wall : No Growth in the us, UK Consumers bearish, Gold,

This Week’s Key Observations

Lead indicators point to no growth in the US… The Conference Board Lead Indicator is now up just 0.7% year on year, yet excluding the artificially distortive influence of yield curves, it is already in decline. So too is the Duncan Lead Indicator, which compares the consistently cyclical components of the economy in relation to overall real economic growth. It declined for the third straight quarter, which has historically been an indicator of a US recession. One of the few times when the DLI has declined for three consecutive quarters without a subsequent recession was 1986, when the US saw a similar drag from declining investment. Our economists see fading headwinds from energy and the dollar as likely to mean the US economy will avoid a recession, like in 1986, but these indicators do appear consistent with their heightened 40% recession probability.

UK consumers are very bearish on the economy, but less so on their own financial situation. Based on GFK data, UK consumer confidence saw the biggest ever monthly decline in July, falling to the lowest level in almost three years. However, the survey showed a wide gap between consumers’ opinions on the likely state of the economy of the coming 12 months, where expectations fell to the lowest level in over four years, and confidence in their own personal financial situation, which only fell to neutral levels.

Our economists’ Eurozone Consumer Spending Indicator points to a further slowdown in 3Q. Eurozone retail sales remained steady in June, up 1.6% versus last year, with monthly declines in both Germany and France offset by strength in Spain. While eurozone macro data have generally surprised on the upside in recent weeks, there are some warning signs of a less robust growth environment in the second half of the year. Consumer confidence declined in July for the second consecutive month, albeit remaining 0.6 standard deviations above the long-term average, and our economists’ Eurozone Consumer Spending Indicator points to a further slowdown in consumer spending in 3Q.


Cyclicals earnings revisions have fallen to their lowest levels relative to Defensives since 2009. Europe’s earnings season has delivered reasonably healthy 2Q results, with 10% more companies beating expectations than missing. In part because of decent results, earnings revisions haven’t, in aggregate, declined significantly post the UK referendum. However, European earnings revisions have been supported by Defensives and Commodities, where revisions remain positive, but dragged lower by both Financials and Cyclicals, where revisions remain deeply negative. The gap between Cyclicals and Defensives earnings revisions ratio has now fallen to its lowest level since 2009.

>>> BPost may launch another bid to acquire PostNL (+0.32%)

BPost may launch another bid to acquire PostNL

BPost, the Belgian postal service, may launch another bid to acquire its Dutch competitor PostNL, Dutch-language Het Financieele Dagblad reported, citing analyst Marc Zwartsenburg of ING Bank.

According to Zwartsenburg, the strategic reasons for a deal remain the same, while there would be more clarity on several key issues in about 6 months to a year from now, he said in the report.

However, not all analysts agree. Marcel Achterberg of Degroof Petercam considers a second attempt at a deal unlikely, the item added, especially as politicians in Belgium are less likely to favor a deal.

A key uncertainty is Dutch market regulator ACM's investigation into the package delivery market, with a ruling expected this year, the report noted.

PostNL's current share price stands at EUR 3.45 per share, significantly below the EUR 5 to EUR 6 per share Bpost was reported to be willing to pay for a deal, the item added. This share price seems to indicate shareholders don't expected a renewed takeover attempt, the report noted.

Het Financieele Dagblad

(BofA-ML) Flow Show : Still outflow from Europe & US (equity)

>>> Asset Class Flows
- Equities: $4.6bn outflows (3 straight weeks) (note divergence between $2.1bn ETF inflows & $6.8bn mutual fund outflows)
- Bonds: big $10.2bn inflows (largest since Feb’15) (inflows in 16 of past 18 weeks)
- Precious metals: $1.8bn inflows (inflows in 9 of past 10 weeks)

>>> Equity Flows
- Europe: $3.9bn outflows (26 straight weeks of outflows)
- EM: $1.4bn inflows (5 straight weeks = longest inflow streak since Sep’14)
- US: $3.0bn outflows (3 straight weeks)
- Japan: $0.1bn inflows
- By sector: largest inflows to REITs in 8 weeks ($0.7bn) (5 straight weeks)

>>> Fixed Income Flows
- $2.2bn inflows to EM debt funds ($16.6bn inflows past 5 weeks = largest on record)
- Chunky $3.3bn outflows from HY bond funds (first outflows in 5 weeks)
- $9.2bn inflows to IG bond funds (largest since Oct’14) (inflows in 21 of past 22 weeks)
- 46 straight weeks of inflows to Munis ($1.0bn)
- Largest inflows to TIPS in 13 weeks ($0.4bn) (8 straight weeks)
- Small $0.1bn outflows from Govt/Treasury funds (4 straight weeks)