July 10, 2015
Greece offers fresh compromises in a bid to secure a third bailout. Greek Prime Minister Alexis Tsipras
has submitted a bundle of what some eurozone members have hailed as credible reform proposals including tax increases, economic liberalization schemes and pension savings - in return for a €53.5bn
bailout over three years. The French government, who helped compile the 12-page list of specific
reforms, praised the measures as “serious” and “credible” while the German administration withheld
judgment. However, there remain notable hurdles to a resolution. Tsipras still needs the garner support
within the Greek parliament, which will need to sign off on the reforms, which must be implemented
before receiving aid funding. The proposals must also earn endorsement from crucial eurozone officials
in the EU summits this weekend, when a final decision will be made. -PAG
The IMF released the latest forecast for global growth, falling to 3.3% in 2015, just shy of prior forecasts
for 2014’s output of 3.4%. Forecasts for 2016 were increased to growth of 3.8%. The agency predicts
Canada will see growth of 1.5% this year, down 0.7% from earlier estimates, and 2.1% in 2016. While the
IMF left its 2015 projections for China and the euro area unchanged from April, it singled out both
economies as areas sources of potential risk. -LB
http://www.reuters.com/article/2015/07/09/us-imf-economy-idUSKCN0PJ1N720150709
Chinese stock market steadies in a boost to global risk sentiment. Global financial markets are cheering
the revival in Chinese equities, which rose for a second straight session, as Beijing’s drastic actions over
the past week seem to have at last convinced investors to wade back into the markets. The Shanghai
Composite closed up 4.5% overnight to mark its largest two-session advance - 10.6% - since 2008.
However, the headline gains are far less inspiring when one considers that more than 1,400 stocks, or
half of the all-listed companies, remain halted. Despite their recent intense volatility, exchange traded
funds tracking Chinese stocks drew record inflows of $13.5bn over the past week, according to EPFR.-PAG
http://www.bloomberg.com/news/articles/2015-07-09/who-blew-up-china-s-stock-bubble-
July 10, 2015
BOB DICKEY – Back to Abnormal
The market volatility has been increasing over the past two weeks, and with the daily directional
changes, it is hard to get a handle on what is going on. But for the past month, there has been a pattern
developing of lower highs and lower lows that we believe could continue for another month or two.
Some indexes, like the transports, utilities, energy stocks, and many foreign markets have had this
choppy and lower trend going on for several months, and now it appears to us that the Dow Industrials
and the S&P are starting to catch up to the corrections that are common in other places. We believe the
heavy doses of the daily news are serving as some confusing noise to keep the focus off the general
deterioration taking place across a broad swath of the market.
Dan Osachoff
Associate Portfolio Manager, Investment Advisor
www.rbcds.com/daniel.osachoff | [email protected]
(604) 257-7011|1-866-876-8973
960 Quayside Drive, Suite 201 New Westminster, BC V3M 6G2
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