Tim Travis'  Instablog

Europe needs to come together to understand that austerity without growth is not enough. While peripheral Europe cannot afford to increase their government spending, Germany as the leading nation must come forward to aid growth. This means providing more flexibility for the ECB to issue bonds assisting in the financing of EU nations, which would likely result in a depreciation of the Euro, ultimately boosting competitiveness for European multinationals companies. This assumption of other member debts is very similar to what the United States did under the leadership of Alexander Hamilton and George Washington. To be clear, no country has benefited from EU membership more than Germany, therefore the costs of maintaining those benefits is for them to get off their high horse, and realize that they must help the peripheral countries recover. It should be conditional that the countries which Germany would be helping give their best efforts in fiscal prudence, but this is the only rationale way to preserve the EU.

http://www.bloomberg.com/news/2012-04-23/europe-s-austerity-backlash-gains-steam-in-challenge-to-merkel.html

When investors are paying $600 billion for a consumer electronics company, they are forecasting ample growth prospects and stable margins. Apple (AAPL) has played by its own rules which has worked out wonderfully for the company. But by making the carriers subsidize the company's gross margins through reducing the phone costs to consumers, the carriers are experiencing margin contraction. It makes sense for the carriers to want to promote other phones and operating systems because that would pressure AAPL to reduce prices to the carriers, thereby reducing the subsidy and helping margins. The worst case scenario would be if AAPL phones were the only game in town, because they have shown that they are looking out for their own interests far more than their business partners. To me this looks like a long-term margin contraction story, and is a primary reason why I'm not comfortable investing in the company at the current price.

http://online.wsj.com/article/SB10001424052702304331204577356292511990210.html?mod=markets_newsreel

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Banco Santander (SAN.MC) is in the process of monetizing some of their international assets to meet Basel III requirements, which seems to include looking at an IPO of their Mexican operations. It will be interesting to see how much they sell, and at what multiple to earnings and book value the stock will be valued at. Citigroup (C) has a very strong presence in Mexico so this could serve as a good proxy for their Banamex business as well.

http://online.wsj.com/article/SB10001424052702303592404577361542344088140.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Disclosure: I am long C.