Wry & Dry

Where is Melania? Wall St nightmare. Turkey's upcoming caliphate.

Wry & Dry at first thought that 'Melania' was a country, possibly a part of Melanesia* and probably with athletes competing in the Rio Olympic Games.

But it turns out it is the name of Donald Trump's Slovenian-born third wife.  Who gave a little-reported speech at the Republican Party's Trump-Nomination Convention.  

Malania Trump

But it would seem that Melania's plagiarised speech suggests the deep-end of the political pool is too deep for the shallow expertise of Trump's team.  

And now, the less important news of the week in this week's bumper edition:

The highlight had to be that two top foreign exchange traders employed by HSBC have been charged by the US Department of Justice with making $8m ($3m for themselves and $5m for HSBC) in profits and fees by 'front running' a client’s $3.5bn foreign exchange trade.  

Better get the bespoke tailor to run-up new striped suits, lads.

Newly re-installed PM Turnbull decided that he couldn't decide who should be in his new cabinet.  So he decided to boost it to 23, the largest for 40 years.  Everybody wins a prize!

Of course, Tasmania missed out.  Having lost 100% of its House seats, it would have been hard to reward failure.  But Tasmanian Liberal strong-person, Eric Abetz wasted no time in spitting the dummy.

Small Business also got the DCM** - that portfolio is now one of the few outside cabinet.  It looks like a Big Business/ South Australian/ National Party cabinet. 

And South Australia needs all the help it can get, if it wants to build all of those submarines.  South Australia relies on wind power for a lot of its electricity.  And if the wind doesn't blow... electricity has to be purchased from better baseload suppliers, like Victoria.  Which explains#...

SA

Speaking of wind, Tsar Vlad will not be happy if the IOC give the Russian Olympic Team the DCM.  This week WADA (World Anti-Doping Authority) revealed systematic drug-test fabrication of Russian athletes and the explicit complicity of the Russian Sports Ministry and the FSB, the Russian internal security service (and successor to the KGB).  

W&D this week visits Turkey, where it is purge week.  That crack Turkish despot and wannabee Ottoman caliph, President Recep Erdoğan, has used last weekend's attempted coup as an excuse to suppress dissenters.  He claimed that the 10,000 military personnel, judges, teachers, lecturers, etc (who have been locked-up) and another 50,000 state employees (who have been sacked or suspended) had supported the coup.

W&D has to ask: if there were 60,000 people in the know about the coup why didn't the intelligence services know about it?

All this in a modern democracy that is a member of NATO.  Sigh.

Elsewhere, W&D looks at Wall Street's worst nightmare; a great idea to reduce Australia's budget deficit; and ponders a new UK Labor Party.      

Follow The Money updates the odds on the US presidential race.  And brings readers news of the surprising change.

And, of course, Miscellany, to soothe your troubled mind.

Our sister publication, Investment Matters reviews the start of US company profit reporting 'season'; and announces a new company in client portfolios: Komoona.  Plus the markets and stock news (BHP; South32). 

*Melanesia: A sub-region of Oceania, extending from the western end of the Pacific Ocean to the Arafura Sea, and eastward to Fiji.

** Don't Come Monday.

# Source: Institute of Public Affairs