Morning Briefing

Morning Briefing

Morning Briefing Wall Street closed flat Tuesday; bonds markets watched
The rising yields in the government bonds markets continues to subdue the equity markets and Wall Street closed flat Tuesday. Futures indicate that the main US indexes will pick up in early trading Wednesday. Around the world, Asian markets are mixed with Australia the best performer while China’s markets were hit by more disappointing economic reports. European markets are trading in positive territory despite ongoing concern over a Greek debt deal and the downgrading by Standard & Poor’s of some of the region’s major banks. The rating agency is less certain that governments would act to bail out banks in a crisis.

US stock futures are trending higher. Oil is trending higher (Brent $65.99, WTI $61.38 at 6.10am ET) Gold is trending higher.
 
Today’s data
MBA mortgage applications at 7am ET
Quarterly services survey at 10am ET
EIA petroleum status report at 10.30am ET
Treasury budget at 2pm ET
Box Inc, Krispy Crème and Men’s Wearhouse are among the companies reporting earnings today.
 
US Anti-trust probe for Apple
Just two days after announcing its plans for a music streaming service Apple is facing an anti-trust investigation over the plan. The investigation by attorneys general in New York and Connecticut surround the tech giant’s deals with music companies as to whether the labels were pressured by Apple or whether they conspired with it against offer music streaming services such as Spotify. CNBC reports that Universal Music has denied any agreement that would impede other services and that it is cooperating with investigators.
 
Intel wants to help fund start-ups
Technology firm Intel announced Tuesday that it has created a $125 million fund to help start-ups led by minorities. The Intel Capital Diversity Fund will help start-ups led by women and minorities over the next five years. The tech sector’s biggest players are all boosting efforts to encourage more diversity in the industry. Intel capital’s managing director Lisa Lambert told CNN: “"It's not a social cause, this isn't charity," said Lambert: "This is real business and we believe in it."
 
Target to boost dividend, double shares buyback
Target will double the buyback of its shares to $10 billion according to Reuters. The retailer will also increase its quarterly dividend by 7.7 per cent to 56 cents per share.
 
Bayer to sell diabetes unit
Pharma company Bayer AG will sell its diabetes devices business to Panasonic Healthcare for $1.15 billion, Bloomberg reports. The firm wants to exit “a business hobbled by ageing products and price pressure” the report says. The deal will be backed by venture capital firm KKR.