Market Snapshot

Asia: : Japan -0.1% to 20388. Hong Kong -1.5% to 26861. China -2% to 5063. India +0.6% to 26587.
Europe: London -0.8%. Paris -1.2%. Frankfurt -1.5%.
Futures: Dow -0.4%. S&P -0.4%. Nasdaq -0.5%. Crude -1.3% to $59.20. Gold -0.4% to $1174.30.
Ten-year Treasury Yield -2 bps to 2.36%

Economic News

8:30 Empire State Mfg
9:15 Industrial Production
10:00 NAHB Housing Market Index

Key earnings before the open


Key earnings after the close



U.S. stock futures are down this morning, as a collapse in bailout talks between Greece and its European creditors weighed on global markets. European officials dismissed the Greek government’s latest proposals on Sunday after just 45 minutes, calling them “vague and repetitive.” Another attempt at hammering out a bailout deal will come later this. Meanwhile, a New York -area manufacturing survey and a home builders’ index are on tap for later in the day, and investors are gearing up for a policy statement from the Federal Open Market Committee midweek.

The Greek situation will also take center stage at Mario Draghi’s quarterly update to the European parliament today. The head of the ECB will give an update on the bank’s quantitative-easing efforts three months after beginning a trillion-euro stimulus program, and will likely face questions regarding falling bond prices, after recently announcing that investors must get used to more volatility.

Saudi Arabia’s $560B stock market opened to foreigners today, giving international investors direct access to the Middle East’s largest economy for the first time. The move comes as Gulf leaders look to diversify their economies away from a dependence on oil by boosting the private sector. Some restrictions on trading will still apply: Foreign investors must have a minimum of $5B in AUM, at least five years of trading experience, and will only be able to own 49% of a single stock.

The raging battle over the Trans-Pacific Partnership is expected to resume this week after President Obama’s request for “fast-track” authority was rejected in the House of Representatives. The bill would have granted the necessary rights to complete negotiations for the TPP, restricting lawmakers to a yes-or-no vote on the finished agreement. House Republican leaders say they will try to hold another vote on the trade legislation by Tuesday.

The World Health Organization said on Saturday South Korea’s MERS outbreak was “large and complex” and more cases should be anticipated, but it saw no sign the disease is spreading in the community. On June 11, the Bank of Korea lowered its key rate to a record 1.5%, calling MERS “an imminent risk to consumption.” Two days earlier, Goldman Sachs cut its 2015 growth forecast for South Korea to 2.8% from 3.3%, partly because of the potential impact of the virus. MERS has infected 150 people in South Korea and killed 16 of them since it was first diagnosed on May 20.

Hong Kong is gearing up for a vote this week on a contentious electoral reform package backed by Beijing, with a weekend poll showing public support has shifted against the proposal. Police are not taking any chances this time around, setting up patrols and barriers, following the sometimes violent clashes during demonstrations last year against the package. More than 100,000 people took to the streets during the height of the protests, bringing key areas of the city to a standstill and taking a heavy toll on GDP.

According to data compiled by Bloomberg, stocks with primary listings in China are now valued at $10.05T, an increase of $6.7T in the past 12 months. Many consider the heavy expansion as worrisome. No other stock market has grown as much in dollar terms over a 12-month period, valuations are now their greatest in five years and margin debt has climbed to record highs, all while the economy is mired in its weakest expansion since 1990.

Fracking is likely coming to the U.K. after Lancashire County Council planners recommended the approval of gas exploration company Cuadrilla’s application to frack at a site in north England. The step comes as the U.K. moves from being a net exporter of oil and gas to a net importer, as supply in the North Sea dwindles. A final decision on whether the controversial gas extraction method will be permitted will conclude on Friday.


Alibaba (BABA) is planning to build China’s version of Netflix (NFLX) and HBO (TWX) via a new service called Tmall Box Office. “We want to create a whole new family entertainment experience,” Alibaba’s Liu Chunning told reporters in Shanghai. TBO will launch in about two months, with content bought from China and other countries, as well as in-house productions. NFLX -0.6% premarket.

The record $9B fine levied against BNP Paribas (BNPQF) is presenting U.S. authorities with novel legal questions, after morphing into a fight over whether terrorism victims should get any of the money. BNP pleaded guilty to violating sanctions in June 2014 by funneling billions of dollars through the U.S. financial system for clients in Sudan, Iran and Cuba. Now, a group of terrorism victims is asking the DOJ to compensate them with funds from the BNP settlement, attempting to draw a connection between the French bank’s misconduct and terrorist acts overseas.

Boeing (BA) and Airbus (EADSY)are poised to win at least 220 orders for competing narrow-body jets at the Paris Air Show, a haul of at least $23B, Bloomberg reports. Press conferences to unveil their orders will begin today, when the event formally opens. The Max is the latest version of Boeing’s top-selling 737 and is due to enter service in 2017. Airbus has scheduled the A320neo’s debut for later this year.

General Motors is re-entering the growing U.S. market for medium-duty work trucks, an area it abandoned during its restructuring last decade. Under a new joint venture, GM (GM) will team up with Japan’s Isuzu Motors (ISUZY) to procure the trucks, which will be sold in the U.S. under the Chevrolet brand.

IBM (IBM) has announced several initiatives related to its free big data/analytics software platform named Spark. At the core of the commitment, IBM will offer Spark as a service on IBM Cloud and will donate its SystemML software to the Spark open source ecosystem.

U.S. authorities are also examining payments made by Nike (NKE) under a 1996 soccer sponsorship with Brazil for possible evidence of wrongdoing by the company or others, WSJ reports. Nike has not yet been formally named or charged with any wrongdoing, but allegations of corruption around its $160M deal are discussed in barely veiled terms in the Justice Department’s 161-page indictment of FIFA officials.

California-based homebuilders Standard Pacific (SPF) and Ryland Group (RYL) have announced plans to merge, creating the fourth-largest U.S. home builder with a market cap of $5.2B. Upon closing of the deal, Standard Pacific stockholders will own about 59% of the combined company, while Ryland shareholders will own the remaining 41%. Standard Pacific CEO Scott Stowell will become executive chairman of the firm, while Ryland’s Chief Executive, Larry Nicholson, will be its CEO.

Putting a timeline on its helicopter exit, United Technologies (UTX) has announced it will decide on spinning off or selling its Sikorsky Aircraft business by the end of the third quarter. “Separation of Sikorsky from the portfolio will allow both United Technologies and Sikorsky to better focus on their core businesses,” said CEO Gregory Hayes.

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