Good morning! Here is what you need to know about in markets today:
1. The world’s biggest hedge fund says do NOT invest in China. The Wall Street Journal reports that Bridgewater Associates founder
Raymond Dalio wrote in a note to his investors earlier this week, “Our views about China have changed … There are now no safe places to invest.” Bridgewater has $US169 billion under management.
2. Chinese electricity consumption slows down. The People’s Daily, citing a release by the China Electricity Council, reports that power consumption across China slowed to just 1.3% in the year to June, the slowest expansion recorded in the past 30 years.
3. In the US stocks closed down for a second day. Tech stocks were to blame. Dow: 17,851.04, -68.25, (-0.38%). S&P 500: 2,114.15, -5.06, (-0.24%). Nasdaq: 5,171.77, -36.35, (-0.7%). But in Japan, the Nikkei 225 rose 0.4 per cent. In Australia, Sydney’s S&P/ASX 200 fell 0.1 per cent, a second fall after a six-day winning streak.
4. Bank of America lost its CFO. Bruce Thompson, who had been at the company five and a half years, will be replaced by Paul Donofrio, currently the bank’s strategic finance executive. The Wall Street Journal reported that the once-close relationship between Thompson and Bank of America CEO Brian Moynihan “deteriorated in recent months.”
5. Global steel production is down. Overnight the World Steel Association released its June crude steel production report with volumes declining to 136 million tonnes, a drop of 2.4% compared to a year earlier. In China — again! — volumes fell 0.8% to 69 million tonnes, compared to June 2014.
6. Apple has cut $US1 billion from its capital expenditures plan. It now plans to spend only $US12 billion on capex, according to Dow Jones. “There are no changes in our product plans,” a company spokesperson said.
7. Analysts are expecting another great quarter of Amazon earnings, which will be reported today. Revenues are expected at $US22.4 billion up from $US19.3 billion last year. And no, it won’t turn a profit.
8. General Motors will report earnings amid worries about a slowdown in China: But North America sales are expected to have performed well.
9. Greek Prime Minister Alexis Tsipras contained a rebellion yesterday and got more reforms passed. The new bill covers rules for failed banks and speeding up the justice system – conditions required before the 86 billion euro bailout can be applied, Reuters reports.
10. These companies will also report earnings today: Unilever, Syngenta, Visa, McDonald’s, 3M, Comcast, Eli Lilly, Starbucks, United Continental, Under Armour, Dunkin Brands, and Pandora.
Bonus … Uber has won in New York. Mayor Bill de Blasio dropped his proposed bill to limit the growth of for-hire vehicle companies such as Uber, The New York Times reported.
Business Insider Emails & Alerts
Site highlights each day to your inbox.