While Q2 earnings turn our analysis into a micro, company specific focus, it is the macro view of the world around corporate America that we’ll all be listening for both for the reported Q and the Q ahead. China had a slew of economic data over the weekend and the net market response is the Shanghai index rallied to a 2 week high. June Bank loans rose by 603.4b yuan, about in line with expectations. Housing prices fell m/o/m and the y/o/y gain of 11.4% was the slowest since Feb, the direct intention of recent policy. Lastly, China’s trade surplus rose to the highest since Oct ’09 as exports rose 43.9% and the Yuan is rising to a new high vs the US$ in response. The other story of note is an article in a German newspaper that says the Germans will not stand by and let southern Europe become a perpetual burden on German taxpayers. “The German gov’t is preparing a set of insolvency rules for countries in the euro zone.”

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