Good morning,
Markets are looking up as optimism on Greece outweighs the very real possibility that a proposed deal in Europe could fall apart. And we think we have volatility in the U.S.? Compared to the price swings in China, the markets are tame. The Shanghai market erased a 5% drop to end up more than 2%. Economic news overnight was mixed: The Markit PMI, a monthly survey of purchasing managers, was a robust 54.1 in Europe — a sign of expansion. The news wasn’t nearly as good in China and Japan, where the index stood below 50, a sign of contraction.
Greeks react angrily to proposed deal with European creditors. Lawmakers in Athens weren’t happy with the proposal Prime Minister Alexis Tsipras offered — which included higher taxes, less welfare, and an end to early retirement. If the opposition is strong enough, Tsipras may be forced to call for a public referendum. Meanwhile, the European Central Bank has reportedly increased emergency loans to Greece. Reuters
Lynn Tilton may get a reprieve as SEC administrative court system under fire. The flamboyant founder of Patriarch Partners is one of many defendants pushing back at a system that they claim is biased against them. Last week, U.S. district judge Leigh Martin May ruled that the SEC’s courts are unconstitutional. The SEC has been relying on administrative judges to handle cases more than ever in recent years, a direct result of changes in law contained in the Dodd-Frank Act. New York Times (paywall)
U.K. unloads shares in Lloyds Banking Group. The government raised around 639 million pounds ($1 billion) from the sale. It has been gradually reducing its stake in the lender and after the most recent sale, its ownership in the bank fell to less than 17% from the original 41%. Bloomberg/BBC
Cybersecurity foremost in the U.S.-China dialogue this week. At its annual talks, Washington would raise the issue after a massive computer attack and data theft at the Office of Personnel Management. While Washington has not formally accused Beijing on the attacks, U.S. investigators believed it came from China. The Wall Street Journal (paywall)
Pakistan deaths rise from heat wave and the country declares a state of emergency as the death toll hits 450. BBC
Governor Nikki Haley of South Carolina calls for state house to remove confederate flag. “Today, we are here in a moment of unity in our state, without ill will, to say it is time to move the flag from the Capitol grounds,” Haley said. “One hundred fifty years after the end of the Civil War … the time has come.” The Post and Courier
Photo by Christian Weidinger via Flickr.