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Ranges (Up till 11.

30am HKT)
Currency

Currency

EURUSD

1.0912-63

EURJPY

135.15-86

USDJPY

123.74-97

EURGBP

0.6990-0.7008

GBPUSD

1.5609-41

USDSGD

1.3649-83

USDCHF
AUDUSD

0.9517-40
0.7354-90

USDTHB
USDKRW

34.17-23
1145.9-1150.0

NZDUSD

0.6535-0.6604

USDTWD

31.07-30

USDCAD

1.2911-42

USDCNH

6.2136-67

AUDNZD

1.1182-1.1261

XAU

1146.5-1149.0

Key Headlines
Greek parliament voted in favour of the third bailout;
final tally was 299-Yes, 64-No, 6-Present. The deal was
backed by two thirds of the parliament but PM Alexis
Tsipras has suffered heavy losses (40 MPs) in his own
Syriza party.
So what next? Greek MPs need to approve measures to
unlock the third bailout worth 86bn over three years.
Today July 16, Eurogroup teleconference at 10.00am
CET. Also Dutch parliament will be addressing Greece,
Estonian Parliament will vote on third bailout for
Greece. Tomorrow, July 17, German Bundestag, Finnish
and Austrian parliaments are to vote on Greek bailout.
Other Eurozone members do not need parliament
approval.
Taken off The Guardian: A government spokesman has
said that the priority is to complete the bailout, rather
than worry about internal divisions. This explains why
initially Greek vote was about approving the third
bailout. Now that is out of the way, they will push for
reforms and fight internal resistances.

FX Flows
While market paid attention to the voting in Greece, New
Zealand released its Q2 inflation data. Quarter CPI came
out at 0.4%, which was better than previous quarters
-0.3% but versus expectations of 0.5%. Year-on-year was
in line at 0.3% from 0.1%. Kiwi fell from 0.6590 to
0.6560. Bounce was limited; the pair later trotted down
to 0.6535.
Euro had a brief moment of optimism. When the initial
tally of Greek Yes vote came though, Euro jumped to
1.0963 from 1.0947. EurJpy was then sold as we
approached the Tokyo open, sending EurUsd into the
thirties. Selling of Euros continued into Tokyo open and
Im told they came leveraged names. Euro got to 1.0912,
there are stops mentioned within 1.0900-10 but bids
below 1.0885. There should be some momentum sellers
into 1.0940 and talk of Euro offers above 1.1000
belonging macro names.

UsdJpy tested 123.97 again in Asia and its clear sellers


amassed at and beyond 124.00. Besides Japanese names
selling, there are some offers linked to a 124.00 option
expiry NY cut. Japanese sold EurJpy and UsdJpy backed
off, just a little. Bids are reported at 123.50-60.
Aussie has been side lined today. Move in Euro and Aud
have failed to may an impact on AudUsd. Am told that
some speculative trades have been put into long AudNzd
and short EurAud.
According to The Guardian, Greek government
spokesman said that the priority is to complete the
bailout, rather than worry about internal divisions. This
explains why initially Greek vote was about approving
the third bailout. Now that is out of the way, they will
push for reforms and fight internal resistances.
Now these Greek MPs needed to approve measures
including:
The ratification of the Eurozone summit
statement
VAT changes including a top rate of 23% to take
in processed food and restaurants and; a 13%
rate to cover fresh food, energy bills, water and
hotel stays; and a 6% rate for medicines and
books
The abolition of the VAT discount of 30% for
Greek islands
A corporation tax rise from 26% to 29% for small
companies
A luxury tax rise on big cars, boats and
swimming pools
And end to early retirement by 2022 and a
retirement age increase to 67

Asians
Usd/Asia, with exception of UsdMyr, opened up bid.
UsdKrw at 1147.5, UsdSgd at 1.3660, UsdThb at 34.18.
Only UsdMyr stayed at 3.8050/80. We suspect the
agents are on the offer.
Key Singapore data released this morning. The June
NODE rose more than expected, electronic exports
jumped 7.6% from -2.5%. All good for Singapore but
UsdSgd managed to hold well due to softer Euro. Market
talked about good buying by both macro and technical
names lined up below 1.3640. Most speculators are
targeting UsdSgd 1.38-1.39.
Ringgit agents have been persistent capping onshore
spot UsdMyr at 3.8080. NDF market eased on back of
this and the 1-month points between NDF and spot
settling around 90-120.

These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.

Broad Usd strength provided UsdKrw firm tone. Share


price of Daewoo Shipbuilding continue to slide (fell 7.7%
on open).
Another day of stable fixing and USDCNH remains
within this 6.21-handle. Shanghai Composite Index
opened at -1.24%, extended to -3% then recovered into
positive territory. One note from Twitter said Chinese
authority found evidence of foreign trading firms have
transferred money illegally from trading accounts to
capital market to short stocks and futures.

Who said what


Greece Tsipras: I am not resigning, this government is
not resigning
Greece Tsipras: Vows to battle oligarchs, tax evasion
and corruption
Greece Tsipras: Will take responsibility for mistakes
committed in this fight
Greece Tsipras: Greece needs debt restructuring to exit
the crisis.
German Bild: German government still holds to
possible Greek exit from Euro
South Korea Finance Minister Choi: Domestic demand
declining fast in Korea
From Guardian: Greece State TV reports that a cabinet
reshuffle is just hours away.

News & Data


New Zealand June BusinessNZ manufacturing PMI at
55.2 from 51.5 (revised 52.0)
New Zealand Q2 CPI Q/Q rose to 0.4% from -0.3%
(exp. +0.5%)
New Zealand Q2 CPI Y/Y at 0.3% vs +0.1% (exp. 0.3%)
Singapore June Non-Oil Domestic Exports M/M fells
2.4% from -3.1%
Singapore June Non-Oil Domestic Exports Y/Y rose
4.7% from -0.2%
Singapore June Electronic Exports Y/Y jumped 7.6%
from -2.5%
Greg Ip in WSJ: Greeces Lessons for an
Indebted World
Sovereign defaults are like cockroaches: Theres seldom
just one. Greeces debts are so high, its recession so deep
and its economy so uncompetitive, its easy to play down
the lessons it offers to the rest of the world. But while
Greece is exceptional, the entire world is suffering from
an overhang of debt. Since 2007, public debt in advanced
economies (including national, state and local
governments) has risen by 35 percentage points of total
economic output, according to the McKinsey Global
Institute. In many countries it has risen by far more: 47
points in Italy, 50 in Britain, 63 in Japan, 83 in Portugal.
http://www.wsj.com/articles/greeces-lessons-for-anindebted-world-1436982341?mod=wsj_nview_latest

FT: Tsipras wins Greek vote backing bailout


Greeces parliament on Thursday backed a slew of fresh
austerity measures demanded by the countrys creditors,
clearing the way for talks to begin on a fresh 86bn
bailout package to prevent the country crashing out of
the eurozone. But a rebellion inside the ruling coalition
that saw 38 government MPs not back the measures
raises fears that prime minister Alexis Tsipras may
struggle to retain control of the government and his
ruling Syriza party. The fierce backlash from senior
members of his leftwing, anti-austerity party suggest Mr
Tsipras will have to reshuffle his cabinet to keep Syriza
together.
http://www.ft.com/intl/cms/s/0/db4d2f04-2b05-11e58613-e7aedbb7bdb7.html#axzz3fixAwELL
WSJ: Greeces Parliament Passes Austerity
Measures Required for Bailout
Greeces Parliament passed early Thursday a crucial set
of austerity measures required for a eurozone bailout
package. The measures were supported by 229
lawmakers in the nations 300-seat Parliament. From a
total of 149 Syriza members, 32 voted against the deal,
six abstained and one was absent from the vote on
measures that would result in 9 billion ($9.9 billion) in
spending cuts and tax increases over the next three
years.
http://www.wsj.com/articles/greeces-parliamentpasses-austerity-measures-required-for-bailout1437002734?mod=e2tw
CNA: Eurogroup to hold conference call on
Thursday on Greek bailout
Euro zone finance ministers will hold a conference call to
discuss Greece on Thursday at 1000am CET, the
spokesman for Jeroen Dijsselbloem, the chairman of the
finance ministers, said on Wednesday. "Confirmation
just went out: Eurogroup teleconference tomorrow 10
AM Greece," Dijsselbloem's spokesman Michel Reijns
said on Twitter.
http://www.channelnewsasia.com/news/world/eurogro
up-to-hold-confere/1987600.html
Ambrose Evans-Pritchard in Telegraph: EMU
brutality in Greece has destroyed the trust of
Europe's Left
The EU establishment henceforth faces what it has
always feared: a political war on two fronts at once.
It is long been fighting an expanding coaltion of free
marketeers, parliamentary "souverainistes", antiimmigrant populists on the Right. Its has now lost its
remaining emotional hold on the Left after the scorchedearth treatment of Greece over the past five months culminating in the vindictive decision to impose yet

These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.

harsher terms on this crushed nation just days after its


cri de coeur in a landslide referendum.
http://www.telegraph.co.uk/finance/comment/ambrose
evans_pritchard/11742624/EMU-brutality-in-Greecehas-destroyed-the-trust-of-Europes-Left.html
Telegraph: Alexis Tsipras prepared to step down
as parliament set to pass punishing austerity
measures
Greece's lawmakers gathered for a midnight vote on
reforms that would raise VAT, cut pensions spending
and reform the country's statistics body. The measures
were set to pass on the support of Greece's main
opposition parties, but be rejected by around 30 to 50 of
the ruling Syriza government's MPs. I am prime
minister because I have a parliamentary group that
supports me. If I do not have its support, it will be
difficult to be prime minister the day after, the Greek
premier reportedly told his party members.
http://www.telegraph.co.uk/finance/economics/1174212
7/Greek-parliament-bail-out-vote-Tsipras-resigns.html
WSJ - IMF Chief: Greek Bailout Talks a Colossal
Challenge Going Forward
International Monetary Fund chief Christine Lagarde
said she still had hope the eurozone would provide
Greece with a substantial restructuring of the countrys
debt, but warned of difficult negotiations as officials seek
to complete a bailout deal in the weeks ahead. Ms.
Lagardes comments come a day after the fund warned in
a report that Greece needed much more debt relief than
European officials have so far consideredan apparent
effort to pressure Germany into concrete commitments
on debt restructuring.
http://www.wsj.com/articles/imf-chief-greek-bailouttalks-a-colossal-challenge-going-forward-1436997435

Commission presidents controversial plan to revive a


mothballed bailout programme that draws in the entire
EU, in exchange for guarantees that British liabilities will
be underwritten to protect UK taxpayers.
http://www.telegraph.co.uk/finance/economics/1174277
3/British-taxpayers-protected-as-Osborne-strikes-dealon-Greek-loans.html
WSJ: Chinas Uneasy Economy
Beijing announced Wednesday that Chinas economy
grew 7% in the second quarter, beating expectations and
matching official targets for the year. The apparent
boosters of second-quarter growth were housing sales,
which rose from their low base last year, and the bull
market, which delivered huge fees to brokerages and
other financial firms. But those fees wont last, and most
indicators were predictably down: Industrial output
grew at the slowest pace on record and retail sales
slowed, as did investment in fixed assets such as
factories.
http://www.wsj.com/articles/chinas-uneasy-economy1437002595?mod=wsj_nview_latest
WSJ: China Market a Bad Casino, Hedge Fund
Managers Say
Hedge fund managers took a gloomy view on China
Wednesday despite new assurances from Beijing about
the stability of the worlds second-largest economy. It
looks worse to me than 2007 in the United States, said
William Ackman, founder of Pershing Square Capital
Management L.P. Much worse. Mr. Ackman was
among a cluster of investors, including Jeffrey Gundlach
of mutual fund giant DoubleLine Capital LP, to flash
warning signs on China during the annual Delivering
Alpha conference in New York.
http://www.wsj.com/articles/china-market-a-badcasino-hedge-fund-managers-say-1436993911

MarketWatch: Violent clashes erupt with Greek


Parliament set to vote on bailout
Anti-austerity clashes erupted on the streets of Athens as
the Greek Parliament prepared to vote late Wednesday
on a bailout agreement struck early Monday with the
country's international creditors. The conflict comes as
Parliament is expected to approve a deal, which goes far
beyond conditions rejected by Greek voters in a July 5
referendum.
http://www.marketwatch.com/story/violent-clasheserupt-as-greece-parliament-set-to-vote-on-bailout-201507-15?dist=afterbell
Telegraph: British taxpayers 'protected' as
Osborne strikes deal on Greek loans
British taxpayers will not be left exposed for another
Greek bailout, George Osborne hopes, under a
compromise struck with Jean-Claude Juncker. The
Chancellor is prepared to back the European
These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.