Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

A roundup of what The Globe and Mail's market strategist Scott Barlow is reading this morning on the World Wide Web.

Portugal's Espirito Santo International, holding company for the country's largest bank, has missed payments on a debt issue, sending regional equity markets into a tailspin. The publicly traded bank stock, Banco Espirito Santo SA, was halted after falling more than 20 per cent and the primary Portuguese equity benchmark stands lower by four per cent.

The ripple effects were felt throughout the EU – Spanish bank Banco Popular Español was forced to withdraw a debt issue due to market turmoil.

Story continues below advertisement

The news is a sign that the European financial system remains fragile but recent history suggests that all central banks in Europe will be stepping in to avert any credit market-related contagion, providing ample liquidity to keep the interbank lending market functioning.

"Espirito Santo creditors doubt containment on missed payment" – Bloomberg

"Portuguese rout in one chart" – FastFT (subscription req)

Crude oil futures are on a sustained losing streak approaching 20 days long, but spot prices, while weaker, haven't fallen all that much. Finance blog Sober Look notes that speculative crude buyers indicate a bit of a frenzy and oil prices are likely to fall back, but how far is anyone's guess.

In related news, Reuters reports that Chinese oil imports have declined significantly. The Chinese are notoriously price-sensitive buyers – avoiding high prices and buying on pullbacks no matter what national inventory levels look like.

"Speculative Activity in WTI" – Sober Look

"China June daily crude oil imports down 7.8 pct on month" – Reuters

Story continues below advertisement

London School of Economics professor Carlota Perez has developed a fascinating theory regarding the interplay of technology and developed world economic reform, one with potentially huge implications for the Canadian economy.

In simple terms, Ms. Perez believes the financial crisis heralds a New Golden Age of technological advancement, similar to the industrial revolution, that will increase the standards of living for everyone. The catch is that old economy industries – autos is an excellent example – and financial services have to be de-emphasized to allow the transition to occur.

Ms. Perez and University of Sussex professor Mariana Mazzucatto released a recent paper arguing:

"The challenge today is not to 'fix' finance while leaving the economy sick, but rather to change the way that the real economy works, we then identify the solution: a policy direction that is smart, inclusive and takes advantage of 'green' as the next big technological and market opportunity."

"Innovation as growth policy" – Carlota Perez, Mariana Mazzucato

Tweet of the Day: @levie "In 1995, the average cost per gigabyte was $1,120. Last year it was $.05. 22,000X+ improvement in 2 decades will change a lot of things."

Story continues below advertisement

Diversion: "Meet the couple who could be the first humans to travel to Mars" – Wired

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies