Here is what you need to know.
14 high-ranking FIFA officials were arrested for corruption. Authorities raided FIFA’s offices in Zurich, Switzerland, arresting 14 officials on corruption racketeering, money-laundering and conspiracy charges. Reports suggest Swiss authorities are looking into the selection process for the 2018 World Cup in Russia and the 2022 World Cup in Qatar. Meanwhile, the US Department of Justice alleges a “24-year scheme to enrich themselves through the corruption of international soccer.” The FIFA officials are likely to be extradited to the United States to face their charges.
Fed Chair Yellen plans to skip Jackson Hole. Yellen’s absence marks the second time in three years the top US Federal Reserve official will miss the event. Former chairman Ben Bernanke was absent in 2013. The 2015 conference, hosted by the Kansas City Fed, will focus on “Inflation Dynamics and Monetary Policy”from August 27-29.
Ben Bernanke doesn’t think US markets are ‘extreme.’ The former chairman of the US Federal Reserve suggested, “As long as the financial system is healthy, even if there’s movement in prices that’s OK. I don’t see anything that’s extreme.” He continued, “I don’t know when (the rate hike will come), but when that begins, that’s good news, not bad news because it means the U.S. economy is strong enough.” Bernanke made the comments while speaking at a private-sector forum in Seoul, South Korea.
Reynolds acquisition of Lorillard has been approved. Reynolds must first sell its Winston, Kool, Salem and Maverick brands, which are said to be going to Imperial Tobacco Group. The deal combines the second and third largest cigarette makers in the United States.
Toll Brothers posted a mixed quarter.The homebuilder earned $US0.37 per share, which was better than the $US0.35 that was expected. Revenue slipped 0.9% from the prior year to $US852.60 million, missing the $US861.22 million that analysts had anticipated. According to Reuters, “The number of homes finished fell 2 per cent to 1,195 units, while the average selling price rose 1 per cent to $US713,000.”
Jimmy John’s has filed for an IPO.The gourmet sandwich maker is readying an initial public offering that would value the company at more than $US2 billion, including debt. Reuters reports, Jimmy John’s is “interviewing investment banks to serve as underwriters for an IPO that could come later this year.” The announcement follows the success of recent restaurant IPOs Shake Shack and Bojangles, and the upcoming IPO of Wingstop.
Snapchat’s CEO wants to IPO. Speaking at Re/code’s Code Conference Tuesday evening,CEO Evan Spiegel says he has no plans on being acquired, and that “We need to IPO. We have a plan to do that.” Currently, the social media company has a valuation of $US15 billion. Snapchat rejected a $US3 billion offer from Facebook in 2013.
German consumer confidence is at a 14-year high.GfK German Consumer Climate edged up to 10.2 for June, its strongest since 2001. The reading marked an uptick from May’s 10.1, and was better than the 10.0 that was anticipated. “Very strong domestic demand in Germany and the low rate of inflation are fuelling economic expectations and consumers’ willingness to spend,”noted GfK in a statement. The euro is higher by 0.1% at 1.0885.
Stock markets around the world are mixed. China’s Shanghai Composite (+0.6%) led the way in Asia and Germany’s DAX (-0.2%) lags in Europe. S&P 500 futures are little changed near 2106.00.
US economic data is absent. US Treasury will auction $US35 billion 5-year notes at 1 p.m. ET. The US 10-year yield is up 2 basis points at 2.16%.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.