Post by huh on Jun 29, 2015 7:21:51 GMT -5
10 things you need to know before the opening bell
Greece will hold a referendum on Sunday. The Greek people will decide whether the country will accept an accord with its creditors. As things stand right now, the government seems likely to fail to make its 1.5 billion euro ($1.67 billion) June 30 payment to the International Monetary Fund. The government's attempt at seeking a one-month extension of the bailout program was shot down by its creditors.
Capital controls have been implemented in Greece. Greek banks will be closed until at least next Monday in an effort to prevent capital from rushing out of the system. In the meantime, ATM withdrawals will be limited to 60 euros a day. Greece's two-year yield is sharply higher, up 1,270 basis points at 33.39%.
China cut rates. On Saturday, the People's Bank of China cut its key lending rate 25 basis points to 4.85%. The rate cut was the fourth since November as China's central bank tries to combat a slowing economy. China's key lending rate was at 6.00% before the rate cuts began in November.
Chinese stocks entered a bear market. Monday's 3.3% slide has pushed China's Shanghai Composite into bear-market territory. The index has lost an astounding 22% since the June 12 peak.
Stock markets around the world are clawing back their early losses. Spain's IBEX (-3.8%) paces the decline in Europe. Overnight in Asia, China's Shanghai Composite (-3.3%) crashed 7.5% before trimming its losses. S&P 500 futures are down 21.50 points at 2,074.25.
Puerto Rico cannot pay its debts. Puerto Rico's governor, Alejandro García Padilla, conceded the island would have trouble paying off its $72 billion in debt. Padilla said Puerto Rico would "probably seek significant concessions from as many as all of the island's creditors, which could include deferring some debt payments for as long as five years or extending the timetable for repayment." According to The New York Times, Puerto Rico cannot enter bankruptcy, and its inability to pay its debts could leave it in financial limbo for years.
GE is selling its fleet assets. The Wall Street Journal reports, "General Electric Co. has agreed to sell its US, Mexico, Australia, and New Zealand fleet businesses for $6.9 billion" to Canada's Element Financial Corp. The deal raises Element Financial's asset value to more than 21 billion Canadian dollars. GE is said to be seeking a smaller deal to get its European fleet assets off its books.
Apple suppliers have begun production of iPhones with Force Touch. The new phone will pick up how hard users are pressing the screen. According to Bloomberg, the feature, "lets users adjust the strength of their screen taps to bring up different functions." A release date has not yet been announced.
The breakdown of the Asian Infrastructure Investment Bank has been announced. Reuters reports, "Countries defined as "within the region" will hold a combined 75% stake in the bank. China's share includes a 30.34% stake, with 26.06% of the voting rights.
US economic data is light. Pending home sales are due out at 10 a.m. ET.
Read more: www.businessinsider.com/opening-bell-june-29-2015-2015-6#ixzz3eS9igJ8F
Greece will hold a referendum on Sunday. The Greek people will decide whether the country will accept an accord with its creditors. As things stand right now, the government seems likely to fail to make its 1.5 billion euro ($1.67 billion) June 30 payment to the International Monetary Fund. The government's attempt at seeking a one-month extension of the bailout program was shot down by its creditors.
Capital controls have been implemented in Greece. Greek banks will be closed until at least next Monday in an effort to prevent capital from rushing out of the system. In the meantime, ATM withdrawals will be limited to 60 euros a day. Greece's two-year yield is sharply higher, up 1,270 basis points at 33.39%.
China cut rates. On Saturday, the People's Bank of China cut its key lending rate 25 basis points to 4.85%. The rate cut was the fourth since November as China's central bank tries to combat a slowing economy. China's key lending rate was at 6.00% before the rate cuts began in November.
Chinese stocks entered a bear market. Monday's 3.3% slide has pushed China's Shanghai Composite into bear-market territory. The index has lost an astounding 22% since the June 12 peak.
Stock markets around the world are clawing back their early losses. Spain's IBEX (-3.8%) paces the decline in Europe. Overnight in Asia, China's Shanghai Composite (-3.3%) crashed 7.5% before trimming its losses. S&P 500 futures are down 21.50 points at 2,074.25.
Puerto Rico cannot pay its debts. Puerto Rico's governor, Alejandro García Padilla, conceded the island would have trouble paying off its $72 billion in debt. Padilla said Puerto Rico would "probably seek significant concessions from as many as all of the island's creditors, which could include deferring some debt payments for as long as five years or extending the timetable for repayment." According to The New York Times, Puerto Rico cannot enter bankruptcy, and its inability to pay its debts could leave it in financial limbo for years.
GE is selling its fleet assets. The Wall Street Journal reports, "General Electric Co. has agreed to sell its US, Mexico, Australia, and New Zealand fleet businesses for $6.9 billion" to Canada's Element Financial Corp. The deal raises Element Financial's asset value to more than 21 billion Canadian dollars. GE is said to be seeking a smaller deal to get its European fleet assets off its books.
Apple suppliers have begun production of iPhones with Force Touch. The new phone will pick up how hard users are pressing the screen. According to Bloomberg, the feature, "lets users adjust the strength of their screen taps to bring up different functions." A release date has not yet been announced.
The breakdown of the Asian Infrastructure Investment Bank has been announced. Reuters reports, "Countries defined as "within the region" will hold a combined 75% stake in the bank. China's share includes a 30.34% stake, with 26.06% of the voting rights.
US economic data is light. Pending home sales are due out at 10 a.m. ET.
Read more: www.businessinsider.com/opening-bell-june-29-2015-2015-6#ixzz3eS9igJ8F
first