Since 2008, we have been treated to high drama from the actors on the world stage. Remember the Republicans in the summer of 2011 with their threat to shut down the US government over the debt ceiling? They took that right to the last minute. Man that was dramatic and man did the market panic.
Now we have Greece and the EU. It appears this drama is going right down to the last minute, as well.
- Prime Minister Alexis Tsipras told opposition leaders on Tuesday that disagreements among international lenders were to blame for an impasse in negotiations, sticking to a hard line that has brought Greece to the brink of default.
This is just how it works. The side that knows it has not got much room to maneuver tries to get its audience involved with its creative acting, hoping that this will somehow move the opposing party to a different position. Tsipras is doing this now by painting the EU as the bad guy trying to force Greece to its knees with austerity.
In reality, though, the EU is the good guy trying to find a way to save Greece from itself, its internal politics, the force driving the drama, the entity that will keep the drama going right up to the last minute, more than likely …
- Trans-fats are unsafe to eat and must be banned from the food supply within three years, US regulators have said. The FDA said a 2016 ban would save lives by preventing fatal heart attacks.
America, for all of its goodness is an overweight country because we are fed processed foods that have bad stuff in them. Thank the Millenials again for their influence, which, as it turns out, just might be saving the rest of us.
And, as it turns out, Boeing is having a good time at the Paris Air Show, the market showcase for buyers of big planes and jets. It seems Boeing is having a good time because orders for big planes and jets are soaring (pun intended).
- Ireland-based leasing company SMBC Aviation Capital ordered 10 of the 737MAX-8 jets, worth up to $1 billion.
- Indonesian domestic airline Sriwijaya Air ordered two 737-900 jets, for up to $198 million.
- Chinese low-cost carrier Rulli Airlines made a commitment to buy 30 planes from the 737 MAX range.
- Chinese leasing company Minsheng Financial signed a preliminary 737 deal for 30 planes.
This is good news for Boeing, and it is good news for the US economy, which means it is good news for the market.
Speaking of good news for the market, we have another leading indicator that suggests life in the market lane just might be good heading into the future.
- U.S. housing starts fell in May after a hefty increase the prior month, but a surge in permits for future construction to a near eight-year high suggested the pullback was temporary and pointed to underlying strength in housing.
Home construction and its ancillary retail effect are big generators of jobs in the US economy and the fact that people are signing up to get homes built says 1) people are optimistic, 2) people have jobs to pay for the homes being built and the appliances to fill them, and 3) there are more jobs to come as building projects get off the ground.
Given the news out of Greece and Europe today, it seems, at least for this morning, the market favors the news about US building permits more than it dislikes the drama Greece is creating. So, it seems …
Trade in the day; invest in your life …
