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Oil prices are sliding again. WTI oil prices touched a low of $US41.91 per barrel, the lowest level since March 2009.
China’s currency tumble takes a pause. After three straight days of depreciation, China’s yuan firmed up. The People’s Bank of China fixed the USD/CNY rate at 6.3974 on Friday, which was stronger than the 6.3990 level it closed at on Thursday.
Europe sputters. GDP in the eurozone rose by just 0.3% during Q2, slightly slower than the 0.4% recorded in Q1. Economists had forecast a 0.4% rate of growth. That figure leaves the economy just 1.2% larger than it was one year ago. Germany grew by just 0.4%, Italy climbed by 0.2%, and France showed now growth.
Greece finally passes its bailout bill. Greece’s parliament voted on Friday to approve the country’s bailout agreement after an all-night session, bringing something of an end to the last eight months of political turmoil between Greece and its European lenders. “The deal means Greece has agreed to considerable further austerity measures, as well as painful economic reforms,” Business Insider’s Mike Bird notes. “It remains to be seen whether the radical left-wing Syriza party can survive in government bringing those sort of measures through.”
Goldman Sachs is looking more like a bank for mum and pop. Goldman Sachs is buying GE Capital Bank, which means it will be taking over approximately $US8 billion in online deposit accounts and $US8 billion in brokered certificates of deposit. “This transaction achieves greater funding diversification and strengthens the liquidity profile of Goldman Sachs Bank USA by providing an additional deposit gathering channel,” Goldman Sachs treasurer Liz Beshel Robinson said. “We look forward to welcoming and serving GECB’s online deposit customers at GS Bank with the high standard of service they have come to expect,” GS Bank CEO Esta Stecher said.
Apple’s TV revolution is on hold. “The company wanted to introduce this year a live TV service delivered via the Internet, but is now aiming for 2016, said people familiar with Apple’s plans,” Bloomberg’s Peter Burrows, Lucas Shaw and Gerry Smith report. “Talks to licence programming from TV networks such as those owned by CBS Corp. and 21st Century Fox Inc. are progressing slowly, some of the people said. Apple also doesn’t have the computer network capacity in place to ensure a good viewing experience, said some of the people, who asked not to be identified because the talks are private.”
King Digital is getting slammed. Shares of Candy Crush-maker King are down. King’s monthly unique users (MUUs) fell 1% year-over-year to 340 million in Q2. Sequentially, the number was down 7%. “The sequential decrease in MUUs was reflected in both Web and mobile, but at a greater rate of decline on Web, which we believe is due to a continuing decline in overall Facebook desktop users,” King Digital said.
El Pollo Loco is getting crushed. Chicken chain El Pollo Loco saw shares plunge XXXX% after announcing Q2 financial results. Comparable store sales rose 1.3% but fell short of the forecast for 3.2%. The company’s shares soared 55% at its IPO last July. Shares are down 6% year-to-date, and have cratered 50% over the past 1
Markets are in the red. In Europe, Britain’s FTSE 100 is down 0.2%, Germany’s DAX is down 0.7%, and France’s CAC 40 is down 0.8%. Asia closed lower with Japan’s Nikkei down 0.4%, Hong Kong’s Hang Seng down 0.1%, and Australia’s S&P/ASX down 0.6%. US futures are down with Dow futures down 41 points and S&P futures down 6 points.
Lots of economic data. We get July US producer prices at 8:30 a.m. ET, July industrial production at 9:15 a.m. and U. of Michigan consumer sentiment at 10:00 a.m. Read our complete preview in BI’s Monday Scouting Report.
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