Forget Greece, China is the big worry
While Greek debt continues to be an issue as European leaders await a new proposal for reform, it is China’s economy that is causing greater concern. The world’s second largest economy is currently in the midst of a persistent sell-off on its equity market with the main Shanghai index down more than 30 per cent in a month. Wednesday’s trade saw a 6 per cent drop at the end of the day. Other Asian markets closed with losses. In Europe sentiment is higher for a change with major indexes all in positive territory in early trading. Greece should make its new proposals this week. Meanwhile the UK chancellor will set out a new budget to include welfare changes.
US stock futures are trending lower. Oil is trending higher (Brent $57.40, WTI $52.82 at 6.20am ET). Gold is trending higher.
MBA mortgage applications at 7am ET
EIA petroleum status report at 10.30am ET
FOMC minutes at 2pm ET
Consumer credit at 3pm ET
Alcoa, Invisa and WD-40 are among the companies reporting earnings today.
Microsoft to announce job cuts
Employees at Microsoft will be heading into work nervously Wednesday as the company could announce job cuts as it seeks to cut costs. A year ago the company announced that 18,000 roles were to go and the latest round of losses will be additional. The firm’s hardware group including the smartphone business it bought from Nokia are likely to be targets according to CNBC.
Disney gets extended tax break in return for investment
Disney’s Anaheim theme park will get $1 billion of new investment from the company as part of an extension of a tax break agreement. The deal means that if the city introduces an ‘entertainment tax’ in the future Disney would receive a rebate on the tax on ticket sales for 30 years if it makes the proposed level of investment in its Californian park.
Cruise firm to start Cuban route
US authorities have given Carnival Corp approval to begin cruises to Cuba the firm has announced. A formal restoration of diplomatic relations between the US and Cuba takes effect from July 20 and Carnival says the new route could begin in May 2016. NBC reports that although a ban on Americans visiting the country as tourists still exists Carnival will focus on the educational aspect of its new route, which is allowable under the existing legislation. The plan is subject to approval from Cuban regulators.
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