Good morning,
Global markets rallied as the two major crises plaguing markets appear headed for a resolution. Europe STOXX 600 is up more than 1.5% after Greece acceded to what many are calling draconian measures in order to snag a bailout that will keep it from falling into an economic abyss. Shanghai rallied 2.4% and Hong Kong’s Hang Seng ended 1.3% higher as government efforts to support the market took hold. … More to celebrate the film “Minions” raked in more than $115 million in the U.S., one of the highest ever for an animated movie. And Comcast is planning a web-based offering for just $15/month and will feature premium cable network HBO. If the news is depressing, you’ll find more inexpensive entertainment in your future.
Greece agrees to Europe’s terms for a third bailout. After 17 hours of fractious meeting, the Euro Summit agreed to a $100 billion bailout. But first Greece must pass new laws within three days, including reform of taxes, pensions, and spending cuts. From there, the country has another week to get major programs in motion before moving on to a major set of initiatives, including privatizing the electricity network. Euro Summit
Iran, U.S. could announce deal on Monday. The negotiators reached an agreement to end a United Nations arms embargo as negotiators break through their logjam on talks to manage Iran’s nuclear ambitions. The draft on the deal is getting longer and longer, now 100 pages up from 80 pages, according to an unnamed source. Bloomberg
Chinese shares gained for a third day Monday. Greece doesn’t get any credit. Economic news couldn’t have hurt. Exports rose 2.1% in June, the best in four months. Imports, on the other hand, continued their decline, losing 6.7%, much slower than May’s 18.1% drop. Perhaps, then, investors finally responded to the full-on press by the government’s to stop short sellers, “stock market manipulators” and other measures (including a rate cut and a reduction in banks’ reserve requirement ratio) to prop up the market. The Shanghai Composite Index ended the day up 2.4%, according to The Wall Street Journal (paywall), though a number of firms are still suspended.
Presidential candidate Hillary Clinton to stake out economic philosophy Monday in speech at New School. Clinton will focus on the middle class and weak wage growth. She also plans to criticize the “sharing economy,” which hurts the bottom line of the average worker. Politico
Scott Walker becomes GOP presidential candidate No. 15. The Wisconsin governor announced his plans on Twitter. NBC
IPOs are back. China International Capital Corp plans $1 billion HK IPO. The firm, which advised several Chinese state-owned companies during their initial share sale in Hong Kong, is planning to do its own IPO as early as October. CICC will be the latest Chinese broker to list in the former British colony this year after Guolian Securities and Huatai Securities. The Wall Street Journal (paywall)
High-ranking official at China’s highest court was detained on corruption allegations. Xi Xiaoming, vice president of the Supreme People’s Court, was detained for alleged “serious violations of discipline and laws.” The Wall Street Journal (paywall)
Chinese P2P firm exits margin lending business after renewed government crackdown. Miniu98.com said it would stop its margin lending business right after the country’s securities regulator asked brokers not to open their trading system to companies engaged in illegal businesses. Reuters
Novak Djokovic defeats Roger Federer for third Wimbeldon tennis title in five years. Djokovic defeated Federer for the second year in a row, denying Federer a record 8th win on the grass. CNN
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