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Jul 22, 2015

Bloomberg Markets - July 22, 2015: Apple earnings shake tech, commodities slide, and Greece

Bloomberg Markets

Apple's results jolt the technology world, it's another big day for Greece, and the temporary relief in the commodities world proved short-lived. Here are some of the things that people in markets are talking about this morning.

Apple rips through global tech shares

Apple's iPhone shipments and sales forecast missed estimates, sparking a 5.2 percent plunge in early market trading. Suppliers followed suit: Sharp, Dialog Semiconductor, ARM Holdings and Skyworks were among the dozens of other Apple supplier stocks that tumbled globally. If continued to the U.S. trading day, Apple’s drop could erase more than $35 billion in market value. That would drag the Nasdaq 100 down from a record reached Monday. Microsoft reported the company’s biggest ever net loss, while Yahoo's sales forecast missed projections. Both companies' stocks also dropped in premarket.

Tsipras faces parliament -- again

The European Central Bank will decide today whether to raise the cap on Greece's Emergency Liquidity Assistance from the current 89.5 billion euros, and for how long. Meanwhile, Greek Prime Minister Alexis Tsipras returns to parliament to seek opposition support to help overcome his own party’s rebellion against the terms of a third bailout.

Commodities resume slide

Oil and gold resumed declines, sending the Bloomberg Commodity Index back down to a 13-year low. The rout has affected BHP Billiton, the world’s biggest miner, which today said it will cut production of petroleum, copper and coal next year. That sent the stock down 3 percent. Copper and lead fell to the lowest level in two weeks.

Britain braces for higher rates

The Bank of England said a growing number of policy makers have become concerned about rising inflation pressures, indicating that momentum is building toward the first rate increase in eight years.  Pound bulls found enough to keep them happy in the minutes of the BOE's July meeting -- sterling climbed against all but one of its 16 major peers.

U.S. housing

The economic data calendar has been light in the U.S. this week. But today we get two measures of the housing market, which has been one of the bright spots.  The FHFA House Price Index comes out at 9 a.m. ET, and is expected to show an advance of 0.4 percent for May. Then at 10 a.m., existing home sales come out, and is expected to show a 0.9 percent gain for June.

Here's what you should read today

A construction boom -- in Brooklyn?
The botched block trade that spoiled Mother's Day for bankers
In defense of the 2010 Greek bailout
Russia is bracing for its longest slump in a decade
Tony Blair warns against Labour moving back left
Argentina's black market peso is tumbling
China’s foreign-exchange reserves are turning against the euro

And finally, here’s what Joe’s excited about today

A recent survey of Bloomberg economists found that a majority expect that sometime next year we'll all be talking about "Grexit" risk again. In fact, it's hard to find anyone who's particularly optimistic about the current bailout deal and the government's ability to stick to it. In light of that, it's interesting to read a new report from Greek newspaper Kathimerini about how in private Prime Minister Alexis Tsipras is blasting the members of his own party who are against the agreement. If Greece is going to stick to the deal, Tsipras needs to be committed to executing it. Stories like this hint that he might be.

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