Good morning! Let’s get to it…
1. Das whupping. Germany has bundled host nation Brazil out of the World Cup in – let’s face it – humiliating fashion. Brazil, the red-hot favourite to win the tournament from the start, was 5-0 down after 30 minutes; Germany scored four goals in a six-minute period, and it finished 7-1. There were a lot of tears, and Brazilian players had some pretty interesting, tetchy-looking exchanges after the final whistle. The insult to the injury is German football is known for a clinical approach that doesn’t often result in big scorelines. The Germans will play the winner of tomorrow’s Argentina v The Netherlands game in the final.
2. To the markets and it was once again a bad day for “momentum” technology stocks in the US session, with the Nasdaq finishing down 1.3%. The Dow and the S&P were both off 0.7%. It follows a bit of a nothing day in the Asia session yesterday, where the ASX was off just over 0.1%. The futures contract is down 24 points heading into the start of trade in Australia.
3. It’s a big day on the data front, with China CPI out at 11.30am AEST, expecting to show a little bit of price heat coming out of the Chinese economy. “High-frequency data suggested that food prices may have expanded by 0.2% mom in June, which equates to a 4.3% yoy increase, slightly higher than the 4.1% in May,” Soc Gen wrote in their Asia Morning Call note. “However, at the same time, nationwide average housing prices were reported to have declined for a second consecutive month in June. Thus, balancing these factors, the CPI is expected to have declined slightly by -0.1% mom in June, suggesting a yoy rate of 2.4% yoy after the 2.5% in May.” Also this morning in Australia there’s an important update to the Westpac-MI consumer sentiment survey, which everyone – not least Joe Hockey – will be looking at for signs of an uplift following the budget-induced funk. On balance, the Aussie data has been good this with, with the PCI surging on Monday and the NAB business survey showing a surprise lift yesterday. More here.
4. The FoFA debate sometimes seems to rely on arcane and impenetrable arguments only understood by insiders. Yesterday Finance Minister Mathias Cormann targeted fees associated with “intra-fund advice” which appears to hit the industry super sector most but was not easily understood. So we did some digging and it seems he’s right – the exemption might just be unfair.
5. Fire danger in the middle of winter. Because of continuing dry conditions around Sydney in recent months, and high winds expected today, the NSW Rural Fire Service warns there’s an increased fire danger for the state today for a vast area stretching from the Queensland border down to the South Coast, some 800km away as the crow flies.
6. Not so fast, Nathan Tinkler. The former Newcastle mining magnate’s much-heralded return to the resources sector might be on hold. The AFR reports this morning that he’s missed a crucial payment on the acquisition of the Wilkie Creek mine from Peabody Energy.
7. Indonesia’s presidential election is held today, though with the polls tight the result may not be known for some time yet. Markets are pricing in a win for Joko “Jokowi” Widodo, a former furniture entrepreneur seen as more business friendly, over Prabowo Subianto, a former military general.
8. Future North Korea. What happens when you get a group of North Korean architects a brief to design what sustainable tourism in their future will look like? This:
That’s one of many paintings commissioned by tour operators Koryo Group, who organise trips into the republic out of Beijing. “There is very little exposure to contemporary architecture in North Korea,” a Koryo spokesman told CNN. The paintings are on show in Vienna, but you can see all the good ones here at news.com.au.
9. J.K. Rowling has published a new Harry Potter story. The characters are in their 30s and it’s set in the Quidditch World Cup. Harry is greying. Apparently there’s not a spell for that. Rowling wrote it for gaming website Pottermore to conincide with the FIFA World Cup. There’s more details here.
10. Smallpox is not dead yet. This is crazy – pretty much the whole world stopped getting vaccinated for smallpox when it was declared eradicated in 1979. Now a vial of it has turned up in a cold store in Maryland, US. There’s two other doses – one in the US and one in Russia. According to Wiki, it killed 300–500 million in the 20th Century and two million as recently as 1967. There’s two other controlled doses – another in the US and one in Russia, that guard against it being used for biological warfare.
BONUS ITEM: Even more sharks in tornadoes. Sharknado was as surprisingly entertaining as it was mad when it became an obvious hit for SyFy last year. Now, the only disappointing thing about the sequel, due for release on July 30, is that isn’t isn’t called “Sharknado 2: The Sharkening”. But we think “Sharknado 2: The Second One” is just as good. Here’s the official trailer:
Have a great day. I’m on Twitter: @colgo
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