Good morning everyone. In case you missed it, U.S. GDP came in at 2.3% last night, versus a 2.6% expected rise. It was good enough to send the dollar and treasury yields up though, with the greenback rising 0.5% against the loonie, 0.2% against the yen, 0.1% against the aussie, and 0.9% against the kiwi. It also climbed 0.5% versus the euro. Over in the Asian futures markets, contracts on the HSI, the Nikkei, and the China A50 all signal losses at the open, with Hang Seng Index futures falling 0.5%, the Nikkei dropping 0.07%, while the China A50 slipped over 2.6%.
Here’s what else you need to know:
Communist party ejects high-ranking General. The ruling Politburo issued a statement that it has expelled Guo Boxiong – one of the Chinese military’s most senior commanders – and has handed him off to prosecutors for allegedly accepting bribes and abusing his power. His son, General Guo Zhenggang, is also under investigation for corruption. WSJ (paywall)
Deutsche Bank says it might not hit 2020 performance targets as legal costs eat into profits. In a blistering memo, the new CEO John Cryan declared “The status quo is not an option.” The bank has set aside 1.2 billion euros for fines and settlements. Second quarter pre-tax earnings fell to 1.34 billion euros from 1.36 billion a year earlier. Reuters
Mexican peso rockets off record lows. In non-G8 currency news, the Mexican peso broke out like El Chapo today after the Mexican central bank stepped in to counter a massive sell-off. MXN gained as much as 1.2% against the dollar, exactly how much it fell earlier in the day. WSJ (paywall)
Divorce, Euro style. Italy, not Greece, is apparently the most likely nation to divorce the Euro. Well, with a handful of high-powered politicos asking for a “controlled disintegration of the eurozone” or an outright return to the Lira, that shouldn’t be too surprising. Washington Post
Photo: chutam