Good morning! Here’s what you need to know in markets today.
Greece’s 11th hour just got a little longer, with more emergency meetings scheduled for Saturday. The leaders of Germany and France warned Greece that it must reach a debt deal with its creditors at “decisive” talks on Saturday to avert default and a possible euro exit.
Eurozone money supply figures are coming. At 9 a.m. London time (4 a.m. New York time), the eurozone will release its M3 figures (a measure of the money supply) for May. Analysts expect M3 to have risen 5.4% year on-year, the strongest since early 2009.
The US Export-Import Bank is going to shut down. Ex-Im’s authority to make new loans or write new credit and trade guarantees will expire at midnight on June 30, leaving many US exporters scrambling to find alternative financing or withdraw from proposed deals. Lawmakers left Washington on Thursday for an 11-day break without renewing the trade lender’s charter.
Asian markets are getting hit. Japan’s Nikkei is down by just 0.11%, but Hong Kong’s Hang Seng is currently down 1.52%, and the Shanghai Composite is recording another massive day of losses, down 5.62%.
Japanese household spending surged in May. Spending jumped 4.8%, up from a decline of 1.3% in April, with the increase topping forecasts for growth of 3.4%. It was also the first time since March 2014, right before the government’s sales tax increase, that a positive reading had been recorded.
The IMF attacked the “dots” used by the Fed to suggest a future path for interest rates. “It is not straightforward to connect the dots to get a coherent vision of the path ahead,” a team of IMF researchers wrote. The dots “do not provide a clear picture of the Federal Open Market Committee’s majority view.”
Sony’s CEO was re-elected to the board. Sony Corp CEO Kazuo Hirai was re-elected with 88% support of shareholders at an annual general meeting earlier this week, the company said, showing investors maintained their confidence in him despite low return on equity (ROE).
Nike’s earnings crushed expectations. Diluted earnings per share came in at $US0.98, up 26%, and more than analysts’ expectations for $US0.86 according to Bloomberg. Sales came in at $US7.8 billion, up 5%, versus estimates for $US7.7 billion.
Japan thinks the Pacific trade deal can be completed by July. Japan and the United States are likely to resolve outstanding bilateral issues so that a 12-nation Trans-Pacific Partnership (TPP) deal can be struck at a multilateral ministerial meeting expected in July, a senior Japanese official said on Friday.
Bidding for GE’s healthcare lender has attracted a lot of interest. Capital One Financial Corp and Apollo Global Management have bid for General Electric’s health-care finance unit, which could fetch more than $US11 billion (£6.99 billion), Bloomberg reported.