GLOBAL OVERVIEW July 21, 2011

GLOBAL OVERVIEW: The most important day for Europe has arrived. Futures in Wall Street are up by an average of 0.1% while in Europe bourses lose an average of -0.2%.
 
The Eurozone authorities are meeting in Brussels to discuss the economic troubles that have been lingering over the region for more than a year now. One of the main issues on the table is a second aid package for Greece.

The President of the Eurozone Finance Ministers, Mr. Jean Claude Juncker has indicated that despite a new rescue plan for Greece, a default cannot be discarded although great effort will be done in order to avoid this.

Mr. Juncker also indicated that he does not believe an agreement will be reached for new taxes for banks within the region. Furthermore, Presidents Sarkozy (France) and Merkel (Germany) are ready to allow a temporary default by Greece as part of a repurchase plan of bonds that would prevent the crisis from spreading to other countries. They also are opposed to the proposal of new bank taxes.

The corporate results of S&P 500 companies have become a driver for investors. For today we expect to get results from Microsoft (MSFT) and Philip Morris (PM).

Currencies:

The Euro is down at EURUSD 1.4170 while the British Pound is at GBPUSD 1.6170. The Yen remains stable at USDJPY 78.70.

International Indicators:

For today we should get the reports on Unemployment requests, the FHFA in the Real Estate sector and the Philadelphia Fed report.

Commodities:

The main commodities are in opposite direction, Gold gaining 0.2% and Oil losing -0.8%

Corporate News

Intel (INTC):  The Company reported better than expected positive results due to better sales within emerging markets. However price of shares were down after the announcement that the company expects lower sales of PC for the rest of the year. Earnings reached $0.59 per share versus estimates of $0.51.

LATIN AMERICA: Indicators and News

Brazil. In an effort to control inflation, the central bank indicated it will halt its rigid monetary policy after it raised interest rates for the fifth consecutive time this year.

The Monetary Policy Committee (COPOM) of the Central Bank unanimously vote to raise the Selic interest rate by 25 bases points to 12.5%, a move expected by the markets.