U.S. Federal Reserve Chairman Ben Bernanke takes questions during a news conference following the Fed’s two-day policy meeting at the Federal Reserve in Washington, June 19, 2013.
Good morning. Here’s what you need to know.
- Markets in Asia were mixed in overnight trading. The Japanese Nikkei 225 rose 0.1%, the Hong Kong Hang Seng advanced 0.3%, and the Shanghai Composite fell 1.0%. European markets are in the red, with Spain down 1.0%. In the United States, futures point to a negative open.
- At $0.35 per share, Yahoo! second quarter earnings came in ahead of estimates (analysts were looking for $0.30), but the company reported revenues of $1.07 billion, below the $1.08 billion expected by analysts, and lowered full-year revenue guidance to $4.45-4.55 billion from a previous range of $4.5-4.6 billion. Shares fell marginally in after-hours trading following the announcement.
- The minutes from the Bank of Japan’s latest monetary policy meeting showed that the central bank was confident in the Japanese economic recovery. However, the minutes also revealed disagreement inside the central bank over measures related to the extension of its long-term fixed rate lending program. Though designed to curb volatility, members asserted that extending the program would send the wrong message to market participants that the BoJ was revising its monetary policy framework.
- Foreign direct investment in China rose at the fastest pace in two years in June, advancing 20.1% year over year. Economists had only expected a 0.7% increase after FDI rose 0.3% in May. Investment from the United States rose 12.3%, while investment from Europe rose 14.7%.
- The minutes from Governor Mark Carney’s first monetary policy meeting at the helm of the Bank of England revealed that the Monetary Policy Committee voted 9-0 against increasing quantitative easing. The minutes said that although “an expansion of the asset purchase programme remained one means of injecting stimulus … the Committee would be investigating other options during the month, and it was therefore sensible not to initiate an expansion at this meeting.” The British pound is strengthening against the dollar on the news this morning.
- The U.S. has levied a $435 million fine against Barclays for alleged energy price manipulation in California and other parts of the western U.S. between 2006 and 2008. The four traders named in the case are responsible for $18 million in fines.
- BofA Merrill Lynch reports second quarter financial results at 7 AM ET. Analysts expect the bank to announce earnings of $0.25 per share on revenues of $22.79 billion, up from $0.19 and $21.97 billion a year ago, respectively. Citi, Goldman Sachs, and Wells Fargo have all beat estimates so far this reporting season.
- Today, Federal Reserve Chairman Ben Bernanke delivers his semi-annual Humphrey Hawkins testimony on Fed policy before Congress. His prepared remarks will be released at 8:30 AM ET, though the testimony does not start until 11 AM. Market participants will be closely watching the Q&A following Bernanke’s prepared remarks.
- Also out at 8:30 AM are June housing starts and building permits data. Economists predict starts rose 5.o% in June to an annualized rate of 960,000 units after rising 6.8% to 914,000 units annualized in May. Permits are expected to have increased 1.5% to 1 million annualized in June after falling 2.0% to 985,000 annualized in May.
- At 2 PM ET, the Federal Reserve will release the latest Beige Book, a collection of anecdotal updates on business conditions in the 12 regions around the United States. Follow all of the releases LIVE on Business Insider >
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