Good morning everyone. While you were sleeping, Yellen & Co. left interest rates unchanged, and just as expected, they left nary a clue as to their rate hike timing, though a September lift-off still seems to be on the table. On the Asian markets, Hang Seng Index futures point to a 1.2% climb in Hong Kong while contracts on the China A50 signal an over 2% climb in the mainland. Nikkei 225 futures meanwhile are indicating a slight decline in Japan at the open.
Here’s what else you need to know:
Toshiba slashes interim CEO pay by 90%. Masashi Muromachi, Toshiba’s interim CEO, will be seeing his pay along with those of several senior executives, cut 50% on top of the 40% slash already in place. Whether or not it will be cut any further will be discussed during the company’s September shareholder meeting. Reuters
Europe is a mess. Disgusted with Germany’s handling of Greece, high-level Italian politicians are calling for a “controlled disintegration of the eurozone” while over in Spain, the Podemos party is accusing Berlin of punishing Greece for calling a referendum, alluding to “taking power in the fullest sense” should they be elected. The Telegraph
Europe is a mess, part deux. After feasting on the temporarily lower borrowing costs associated with joining the Euro, unchecked debt has led the founding members of the Eurozone to drift further and further apart economically, a phenomenon the ECB called “disappointing.” Reuters
Apollo hit with profit losses. Apollo Global Management reported a 21% drop in profits Wednesday, hitting $56.4 million, or 30 cents a Class A share. Profits were $71.7 million, or 33 cents a share, this time last year. Wall Street Journal
Carlyle Group reports profit jump. Carlyle reported a 55% profit increase in the second quarter, jumping to $31 million or 34 cents a share from $20 million or 27 cents a share last year. Assets under management for the firm were down to $192.8 billion from $202.7 billion a year before. The report comes just after Cliffwater advised its clients to pull out of Carlyle’s hedge fund.
Pieces of missing flight may have been found. Wreckage of a plane washed ashore the island of Reunion in the Indian Ocean. While not yet confirmed, an expert thinks it’s likely the wreckage could be that of MH370, the Malaysia Airlines flight that disappeared in March 2014. The Telegraph
Photo: Esparta Palma