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Debt ceiling deal, new Conservative leader announced, and tech CEOs in Washington. Here are some of the things people in markets are talking about today.
President Donald Trump announced a bipartisan agreement to suspend the debt ceiling and boost spending for the next two years, averting the risk of a payments default in September. The House has to approve the deal this week before members leave for a six-week recess. Both Senate Minority Leader Chuck Schumer and Speaker of the House Nancy Pelosi welcomed the deal. New spending and limited savings in the plan will likely push the annual budget deficit over $1 trillion next year.
Barring a massive upset, Boris Johnson will be announced as the new leader of Britain’s Conservative Party at around 6:45 a.m. Eastern Time this morning. Prime Minister Theresa May is due to step down tomorrow, with the winner today taking up the position of prime minister. The new leader will assume the leadership with no clear parliamentary majority, an economy which may already be in recession and their own party in almost open revolt over the Brexit issue.
Facebook Inc. and Amazon.com Inc. set records for lobbying in the second quarter as scrutiny over their practices increased. Facebook has sought to influence blockchain policy as the company seeks to launch its own cryptocurrency. The Trump administration met with the CEOs of many of the U.S.’s biggest tech companies yesterday as they sought an easing of the ban on doing business with Huawei Technologies Co. In earnings today, Snap Inc. will let stock bulls know whether they have been right to push the company’s share price more than 150% higher this year.
Overnight the MSCI Asia Pacific Index added 0.2% while Japan’s Topix index closed 0.8% higher as a rally in U.S. tech stocks boosted electronics makers on the gauge. China’s new Star market was unable to reproduce its first-day performance. In Europe the Stoxx 600 Index had gained 0.6% by 5:50 a.m. Eastern Time amid positive earnings and reduced macro risks. S&P futures pointed to green at the open, the 10-year Treasury yield was at 2.057% and gold slipped.
At 9:00 a.m. the Federal Housing Finance Agency publishes home price data for May, with existing home sales numbers for June coming at 10:00 a.m. The IMF is due to update its World Economic Outlook, as European Finance Ministers continue to argue over who should lead the organization. Coca-Cola Co., Harley-Davidson Inc., Visa Inc. and Chipotle Mexican Grill Inc. are among the companies reporting earnings.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Trump administration moves to end food stamps for 3 million people.
- Goldman says the yen offers a more attractive hedge than gold.
- Return to easy money poised to slam bank profits in U.S. and Europe.
- Mueller testimony should stick to public report, DOJ tells him.
- Have an idea for Danske Bank? Email the CEO. Seriously.
- Putin told a jailed French banker to buy a home. It didn’t help.
- How to stroke a cat, according to science.
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