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Greece’s creditors rejected its latest attempt at reform. There is beginning to be a sense of urgency as a deal must come to fruition quickly. Peter Spiegel of the Financial Times wrote, “Without a deal by tonight, which would then be endorsed at an EU summit on Thursday, eurozone officials worry there will not be enough time for national parliaments to approve an extension of Greece’s current programme before it expires on Tuesday.” The debt-ridden country needs to unfreeze 7.2 billion euros ($US8.2 billion) in aid in order to meet its June 30 debt obligation to the International Monetary Fund and its July 20 payment to the European Central Bank. While the latest list of reforms was rejected, talks have not broken down. Greece’s 2-year yield is higher by 63 basis points at 21.15%.
Confidence among German businesses fell. Germany’s Ifo Business Climate survey fell to 107.4 in June from 108.5 in May. Wednesday’s reading missed the 108.1 that economists were expecting and was the lowest print in four months. “The outlook for the German economy is overcast,” Ifo president Hans-Werner Sinn announced. The euro is up 0.3% at 1.1196.
Netflix announced a 7-for-1 stock split. The company’s board of directors approved the long-anticipated stock split, which will be payable on July 2. Netflix shareholders will receive seven shares of stock for every share they own, and the price of each share will be divided by seven. Shareholders will maintain their same percentage stake in the company.
Sysco’s takeover of US Foods has been blocked. A federal judge has blocked Sysco’s planned takeover of US Foods due to antitrust concerns. According to the Wall Street Journal, US District Judge Amit Mehta opined,”The FTC has shown that there is a reasonable probability that the proposed merger will substantially impair competition in the national customer and local broadline markets and that the equities weigh in favour of injunctive relief.” The companies argue a merger would improve efficiency and reduce costs.
There is a new CEO at Boeing. Dennis A. Muilenburg has been named CEO, replacing James McNerney who will remain chairman of the board. Muilenburg started his career at Boeing as an intern, spending the last 30 years at the company. Most recently, Muilenburg served as president, COO, and vice chairman. “As CEO, Dennis will bring a rich combination of management skills, customer focus, business and engineering acumen, a can-do spirit and the will to win,” McNerney said in a statement.
Lennar beat on earnings and revenue. The homebuilder announced earnings of $US0.79 per share, easily topping the $US0.64 that was expected. Revenue surged 31.6% versus last year to $US2.39 billion, surpassing the Wall Street estimate of $US2.03 billion. Lennar announced home deliveries jumped 21% to 6,015 while new orders rose 18% to 7,271 homes. The company has a backlog of 8,073 homes, up 18%.
The final street camps for Hong Kong’s ‘Umbrella Revolution’ have been cleared. The closings of the final camps marks the end of nine-months of pro-democracy protests. The protests centered around Hong Kongers wanting to elect their leader, but not from a list of pre-screened candidates picked by Beijing. “The next step for us is to really move into the districts to try to re-awaken the moderate democrats … and to never stop fighting for democracy,” protester Benny Mok told Reuters.
Japan’s Nikkei hit an 18-year high. Today’s gain of 0.3% lifted the Nikkei to its best level since before the 1997 Asian financial crisis. Japanese stocks are up nearly 100% since Shinzo Abe was elected prime minister in December 2012. The Nikkei is barely halfway to its 38,957.44 peak set in 1989.
Global stock markets are mixed. Spain’s IBEX (-1.1%) leads markets lower in Europe after China’s Shanghai Composite (+2.5%) paced the gains in Asia. S&P 500 futures are down 5.25 points at 2111.25.
US economic data is light. GDP-Third Estimate is due out at 8:30 a.m. ET and crude oil inventories will cross the wires at 10:30 a.m. ET. Treasury will auction $US35 billion 5-year notes at 1 p.m. ET. The US 10-year yield is lower by 2 basis points at 2.39%.