Markets are lower this morning as investors look braced for a U.S. inflation report that could force another jump in interest rates. The STOXX index of European shares fell 1.3%, with S&P 500 futures down 0.8% and Nasdaq futures off 0.9% as an upbeat U.S. June payroll report raised exceptions of a 75 basis point rate hike. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 1.8%, while Chinese blue chips lost 1.9% after Shanghai discovered a COVID-19 case involving a new sub-variant, Omicron BA.5.2.1.
US Treasury yields are higher as was the strong U.S. dollar which hit a 24-year peak against the yen.
Chinese manufacturers are facing a pullback in demand from U.S. and European consumers, who are struggling with historic levels of inflation. While freight costs, which had surged during the pandemic, are coming down a bit, there’s still potential for a protracted decline in demand. “I would not call this reduction in demand a recession yet, but things seem to be heading towards troubled waters,” Shabsie Levy, founder of digital supply chain platform Shifl, told CNBC.
CANADIAN CHATTER |
NEWS
• Canadians outrage over Rogers outage
Rogers Communications complicated its chances of getting antitrust approval for a C$20 billion telecom merger after Friday’s massive outage highlighted the perils of Canada’s effective telecom monopoly and sparked a backlash against its industry dominance.
Rogers Communications complicated its chances of getting antitrust approval for a C$20 billion telecom merger after Friday’s massive outage highlighted the perils of Canada’s effective telecom monopoly and sparked a backlash against its industry dominance.
• The Ukrainian government expressed “deep
Twitter shares are trading 7% lower in premarket trading as Elon Musk terminates his $44 billion deal to buy the company. Twitter, stated it will pursue legal action to force Musk to complete the deal. It’s been an uneasy pairing since Musk first said he would want to buy the company. |
South Africa’s Gold Fields promised higher dividends and a Toronto Stock Exchange listing to sweeten its proposed takeover of Canada’s Yamana Gold.
• Canada to return repaired Nord Stream 1 turbine, expand sanctions on Russia
Canada will return a repaired turbine to Germany that is needed for the Nord Stream 1 gas pipeline and could help to ensure continued flows of energy until Europe can end its dependency on Russian gas, Canada’s minister of natural resources said.
PRE-OPEN
Futures for Canada’s main stock index were down, weighed by weaker oil prices as markets braced for new mass COVID-19 testing in China, potentially hitting demand. Wall Street futuresslid as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season in which profits will be under pressure. European shares fell, gripped by concerns over energy supply crunch. In Asian markets, Japan’s Nikkei closed in the green after the country’s coalition government boosted its majority in the upper house of parliament in an election on Sunday, while China’s stocks saw the biggest slump in 7 weeks as a rise in domestic cases of COVID-19 and concerns over policymakers exiting monetary easing dented sentiment. Gold prices weakened, while the U.S. dollar gained.
STOCKS
• Cornish Metals Inc. (TSX-V/AIM: CUSN), a dual-listed company focused on advancing its high-grade South Crofty underground tin project through to delivery of a Feasibility Study, as well as exploring its additional mineral rights located in Cornwall, SW England, is pleased to report that it has commenced a minimum 8,000 metre drill programme at South Crofty. The programme is designed to collect samples for metallurgical testwork as part of the Feasibility Study.
• TDG Gold Corp – (TSXV: TDG), reports that on July 8, 2022 the directors of TDG granted a total of 2,990,000 incentive stock options of the capital stock of the Company to directors, officers, employees and consultants exercisable for up to a five-year period at an exercise price of $0.42, pursuant to TDG’s stock option plan. TDG is pleased to announce that diamond drilling has commenced on its 100% owned, resource stage Shasta project. Drilling at Shasta will include up to 5,000 metres of HQ sized oriented core with the focus on testing the extensions of known mineralization. In addition, TDG has begun field mapping and sampling targets along strike with Shasta which share common structural and geological characteristics of Shasta. Exploration is expected to continue until October.
• Thor Explorations Ltd. (TSXV: THX), is pleased to provide an operational update for its Segilola Gold Mine located in Nigeria for the three months to June 30, 2022 (“Q2 2022” or the “Period”).
Operational Highlights Period:
23,785 ounces (“oz”) of gold produced
Commissioning of Compressed Natural Gas (“CNG”) generators
Zero Lost Time Injuries
Senior Debt Facility tranche of US$14.5million paid reducing Senior Debt Facility to US$38million
Outlook:
Guidance for Q3 2022 is 23,000 to 25,000 oz of gold
Full year 2022 production guidance narrowed to 85,000 to 100,000 oz of gold
Full year 2022 All In Sustaining Cost (“AISC”) remains at US$850 to US$950 per ounce
• MediPharm Labs Corp. (TSX: LABS), a pharmaceutical company specialized in precision-based cannabinoids, has entered into a Share Purchase Agreement (the “Agreement”) with OneLife Botanicals PTY (“OneLife Botanicals”) for the sale of MediPharm Labs Australia Pty Ltd (“MPLA”), a wholly-owned subsidiary of the Company, for a minimum value of $6.9M AUD ($6.2M CAD). The Agreement is subject to routine conditions and is anticipated to close within 90 days.
• BCE Inc. (TSX: BCE) talks between Canadian clerical workers and the telecom services provider broke down after a week of negotiations, Unifor, the nation’s biggest private-sector labor union, said late on Friday. Unifor ACL, which represents the unionized workers at Bell Canada’s Bell Aliant unit in four Atlantic provinces, declared an impasse on Friday after talks ended in Toronto, Unifor said. “Clerical members set a deadline when they voted to strike, and despite the clarity of workers’ demands, Bell did not seriously consider the issues that matter most to its employees at the table this week,” Chris MacDonald, Unifor assistant to the national president, said in a statement.
• Rogers Communications Inc. (TSX: RCI.B) the telecom company said on Saturday that its services were close to fully operational after a massive outage it blamed on a router malfunction after maintenance work. The outage at one of Canada’s biggest telecom operators shut banking, transport and government access for millions of people. “We now believe we’ve narrowed the cause to a network system failure following a maintenance update in our core network, which caused some of our routers to malfunction early Friday morning,” Rogers’ Chief Executive Officer Tony Staffieri said in a statement. The interruption, Rogers’ second in 15 months, drew fury from Canadians and calls for the government to expand competition in the telecom sector.
• Suncor Energy Inc. (TSX: SU) the company said on Friday its chief executive, Mark Little, has stepped down after a string of fatalities at Canada’s third-largest oil producer. Little was also stepping down as president and resigning from the board effective immediately, the Calgary, Alberta-based company said in a statement. Kris Smith, the company’s executive vice president of downstream will replace Little as interim CEO, while the board launches a search for a permanent replacement. Little’s resignation comes a day after a worker was killed at Suncor’s oil sands base plant in northern Alberta. It was the second fatality at a Suncor site this year and the thirteenth since 2014. “Suncor is committed to achieving safety and operational excellence across our business, and we must acknowledge where we have fallen short and recognize the critical need for change,” board chair Michael Wilson said in a statement.
• Yamana Gold Inc (TSX: YRI), South Africa’s Gold Fields promised higher dividends and a Toronto Stock Exchange listing to sweeten its proposed takeover of Canada’s Yamana Gold. The miner announced plans to acquire Yamana in an all-share deal valuing the Canada-listed miner at $6.7 billion on May 31, but market reaction was largely negative and Gold Fields shares plunged 20% on the day. Gold Fields CEO Chris Griffith told reporters he was “greatly encouraged” by “constructive” discussions with shareholders over the proposed deal, which the company said would create the world’s fourth-largest gold producer by output. “We believe the Yamana acquisition delivers on our strategy to grow the value and quality of our portfolio, by creating a winning combination of excellent assets with complementary operational strengths,” Griffith said.
ECONOMIC EVENTS (Eastern Time)
0600 Leading index mm for June: Prior -0.12%
COMPANIES REPORTING RESULTS
No major companies are scheduled to report.
CORPORATE EVENTS
No events are scheduled for the day.
EX-DIVIDENDS
There are no major ex-dividends for the day.
WORLD MARKETS
(7am EST)
US CHATTER
NEWS
• Twitter slides after Musk’s $44 billion deal falls apart
Shares of Twitter fell in premarket trading as a legal tussle between Elon Musk and the social media company is expected to take center stage after the world’s richest person walked away from the $44 billion deal.
• Big U.S. banks’ second quarter profits to tumble on higher bad loan reserves
Second quarter profits at big U.S. banks are expected to fall sharply from a year earlier on increased loan loss reserves, as the pandemic recovery gives way to a possible recession.
• G20 watchdog to propose first global crypto rules in October
The Financial Stability Board said it would propose “robust” global rules for cryptocurrencies in October, following recent turmoil in markets that has highlighted the need to regulate the “speculative” sector.
• U.S. completes 10 airline refund probes, plans enforcement actions
The U.S. government has completed 10 airline investigations into delayed or withheld passenger refunds during the COVID-19 pandemic and will take enforcement action in coming weeks, a Transportation Department official told Reuters on Sunday.
• Binance served crypto traders in Iran for years despite U.S. sanctions, clients say
The world’s largest crypto exchange, Binance, continued to process trades by clients in Iran despite U.S. sanctions and a company ban on doing business there, a Reuters investigation has found.
• Twitter slides after Musk’s $44 billion deal falls apart
Shares of Twitter fell in premarket trading as a legal tussle between Elon Musk and the social media company is expected to take center stage after the world’s richest person walked away from the $44 billion deal.
• Big U.S. banks’ second quarter profits to tumble on higher bad loan reserves
Second quarter profits at big U.S. banks are expected to fall sharply from a year earlier on increased loan loss reserves, as the pandemic recovery gives way to a possible recession.
• G20 watchdog to propose first global crypto rules in October
The Financial Stability Board said it would propose “robust” global rules for cryptocurrencies in October, following recent turmoil in markets that has highlighted the need to regulate the “speculative” sector.
• U.S. completes 10 airline refund probes, plans enforcement actions
The U.S. government has completed 10 airline investigations into delayed or withheld passenger refunds during the COVID-19 pandemic and will take enforcement action in coming weeks, a Transportation Department official told Reuters on Sunday.
• Binance served crypto traders in Iran for years despite U.S. sanctions, clients say
The world’s largest crypto exchange, Binance, continued to process trades by clients in Iran despite U.S. sanctions and a company ban on doing business there, a Reuters investigation has found.
• Wall Street banks’ Q2 trading revenue likely to surge, softening blow from deal slump
A surge in trading revenue powered by volatile markets should partially offset a slump in M&A and equity and debt deals when Wall Street banks report second-quarter earnings this month.
PRE-OPEN
Wall Street futures slid as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season in which profits will be under pressure. European shares fell, gripped by concerns over energy supply crunch. In Asian markets, Japan’s Nikkei closed in the green after the country’s coalition government boosted its majority in the upper house of parliament in an election on Sunday, while China’s stocks saw the biggest slump in 7 weeks as a rise in domestic cases of COVID-19 and concerns over policymakers exiting monetary easing dented sentiment. Gold prices weakened, while the dollar gained. Oil prices declined as markets braced for new mass COVID-19 testing in China, potentially hitting demand.
STOCKS
• Abbott Laboratories: The company has reopened its Sturgis, Michigan baby formula plant, which was shut last month due to heavy rains, a company spokesperson told Reuters on Saturday. Abbott resumed operations on July 1 and has started producing specialty baby formula EleCare. The company which has been at the center of a baby formula shortage in the United States had shut down the plant in February and recalled its infant formula products, including Similac, after reports of bacterial infections in babies who had consumed products made at the facility. Before the recall, Abbott controlled 40% of the infant formula market. The plant closure led to a country-wide baby formula shortage.
• Aerojet Rocketdyne Holdings Inc: The rocket engine maker has agreed to pay $9 million to resolve allegations it misrepresented its compliance with cybersecurity requirements in federal government contracts, the U.S. Justice Department said on Friday. Aerojet provides propulsion and power systems for launch vehicles, missiles and satellites and other space vehicles to the Pentagon, NASA and other federal agencies, the Justice Department said. The settlement resolves a 2015 lawsuit filed by former Aerojet employee Brian Markus under the whistleblower provisions of the False Claims Act. Markus and Aerojet reached a settlement of the case on the second day of trial in April, the Justice Department said. He will receive $2.61 million as his share of the settlement. The settlement was approved on July 5 by a U.S. District Court in California.
• Alibaba Group Holding Ltd: China has imposed fines on technology giants Alibaba and Tencent as well as a range of other firms for failing to comply with anti-monopoly rules on the disclosure of transactions, the country’s market regulator said on Sunday. The State Admnistration for Market Regulation (SAMR) released a list of 28 deals that violated the rules. Five involved units of Alibaba, including a 2021 purchase of equity in its subsidiary, the Youku Tudou streaming platform. Tencent was involved in 12 of the transactions on SAMR’s list.
• Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co & Wells Fargo & Co: Second quarter profits at big U.S. banks are expected to fall sharply from a year earlier on increased loan loss reserves, as the pandemic recovery gives way to a possible recession. Analysts expect JPMorgan Chase will report a 25% drop in profit on Thursday, while Citigroup and Wells Fargo will show 38% and 42% profit declines, respectively on Friday, according to Refinitiv I/B/E/S data. Bank of America, which like its peers has big consumer and business lending franchises, is expected to show a 29% drop in profit when it reports on July 18. “Its going to be a shaky quarter for the sector,” said Jason Ware, chief investment officer for Albion Financial Group, which owns shares of JPMorgan and Morgan Stanley. Investors will want to hear executives’ insights into the health of the economy and if borrowers are “more shaky now,” Ware said. Banks must factor the economic outlook into loan loss reserves under an accounting standard which took effect in January 2020.
• Boeing Co: Japanese airline ANA Holdings said it had finalised an order for 20 Boeing 737 MAX jets first announced in January 2019 that also includes options for another 10 of the narrowbody type. The carrier also said it would switch two of 20 777-9 passenger planes it has on order to the 777-8F freighter model as part of efforts to expand its cargo business. The 737 MAX planes, intended to replace older 737-800 jets on domestic routes, will be delivered from the financial year starting in April 2025, the airline said in a statement. ANA did not provide the value of the deal. The order for 20 737 MAX 8 planes would be worth $2.4 billion based on Boeing’s latest list prices available on its website, but airlines typically receive substantial discounts on orders.
• ConocoPhillips: The Biden administration on Friday unveiled an environmental analysis for the company’s planned $6 billion Willow oil and gas project in Alaska and outlined several options for the development, including not building it at all. The release of the document has been highly anticipated by the oil and gas industry and environmental groups since last year, when a federal judge in Alaska reversed the Trump administration’s approval of the massive project and said federal agencies must reconsider their environmental analysis. In the draft review, the U.S. Bureau of Land Management (BLM) analyzed five potential options for the project, including ConocoPhillips’ proposal to build up to five drill sites, dozens of miles of roads, seven bridges and pipelines. It also considered a scaled down version with fewer drill sites and other infrastructure that would have less of an impact on wildlife such as caribou. BLM said it will also consider not approving the project at all. The bureau will accept public comment on the alternatives for 45 days, which it will consider in its final decision. In a statement, ConocoPhillips spokesperson Dennis Nuss said Willow was “a strong example of environmentally and socially responsible development that offers extensive public benefits.”
• GlobalFoundries Inc & STMicroelectronics NV: The chipmakers announced plans to build a semiconductor factory in France, drawing on funding from the government, the latest move to boost output in the region. This facility, which will be next to STM’s existing plant in Crolles, is targeted to reach full capacity by 2026, with up to 620,000 wafers per year of production at a size of 18-nanometers, the statement said. Those are used in automotive, internet-of-things and mobile applications. The companies did not disclose the amount of investment at the new site near the Italian and Swiss borders or how much funding the French state would provide. A person familiar with the matter said that the total investment would be about $5.7 billion. The new factory would create around 1,000 new jobs and also help STMicro reach its target to boost revenue to above $20 billion.
• Shell Plc: The oil major said it has invested $38.07 million into a Brazilian preservation-focused company. Carbon credit developer Carbonext runs preservation projects across more than 4.9 million acres of the Amazon Forest that are owned by companies seeking to capitalize on the carbon market. Carbonext then generates carbon credits that can be sold. Shell will now have preferential access to the company’s carbon market, although will not receive discounted prices. “Associating our company with Carbonext is an important step towards our goal of offsetting 120 million tonnes of CO2 a year by 2030,” Andre Araujo, Shell Brasil’s president said in a note, with the company also backing a global initiative to hit net zero in emissions by 2050.
• Telefonaktiebolaget LM Ericsson & Qualcomm Inc: The Swedish telecom equipment maker Ericsson, French aerospace group Thales and U.S. chipmaker Qualcomm plan to work jointly to develop a satellite-driven 5G network to improve terrestrial connectivity. A 5G mobile device that can connect with satellites would make communication possible from remote corners of the planet and provide a challenge to expensive satellite phones and rival broadband internet services provided by Elon Musk’s Starlink. The companies will first do simulations on the ground before carrying out tests in space, Hakan Djuphammar, head of Special Projects at Ericsson’s technology arm, said in an interview. “Discussions are on for testing on the International Space Station and with a few satellites,” he said.
• Twitter Inc: Shares of Twitter fell in premarket trading as a legal tussle between Elon Musk and the social media company is expected to take center stage after the world’s richest person walked away from the $44 billion deal. Musk, the chief executive officer of Tesla, said on Friday he was terminating his deal to buy Twitter because the company had breached multiple provisions of the merger agreement. Twitter is planning to sue Musk as early as this week and force him to complete the acquisition, people familiar with the matter told Reuters. Musk took a jab at Twitter’s stance, tweeting that the legal battle would lead to the company disclosing information on bots and spam accounts in court. The series of tweets was Musk’s first public response since the Friday announcement. “We believe that Elon Musk’s intentions to terminate the merger are more based on the recent market sell-off than… Twitter’s ‘failure’ to comply with his requests,” Jefferies analyst Brent Thill said in a note. “In the absence of a deal, we would not be surprised to see the stock find a floor at $23.5.”
ECONOMIC EVENTS (Eastern Time)
1000 Employment Trends for June: Prior 119.77
COMPANIES REPORTING
No major S&P 500 companies are scheduled to report for the day.
A surge in trading revenue powered by volatile markets should partially offset a slump in M&A and equity and debt deals when Wall Street banks report second-quarter earnings this month.
PRE-OPEN
Wall Street futures slid as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season in which profits will be under pressure. European shares fell, gripped by concerns over energy supply crunch. In Asian markets, Japan’s Nikkei closed in the green after the country’s coalition government boosted its majority in the upper house of parliament in an election on Sunday, while China’s stocks saw the biggest slump in 7 weeks as a rise in domestic cases of COVID-19 and concerns over policymakers exiting monetary easing dented sentiment. Gold prices weakened, while the dollar gained. Oil prices declined as markets braced for new mass COVID-19 testing in China, potentially hitting demand.
STOCKS
• Abbott Laboratories: The company has reopened its Sturgis, Michigan baby formula plant, which was shut last month due to heavy rains, a company spokesperson told Reuters on Saturday. Abbott resumed operations on July 1 and has started producing specialty baby formula EleCare. The company which has been at the center of a baby formula shortage in the United States had shut down the plant in February and recalled its infant formula products, including Similac, after reports of bacterial infections in babies who had consumed products made at the facility. Before the recall, Abbott controlled 40% of the infant formula market. The plant closure led to a country-wide baby formula shortage.
• Aerojet Rocketdyne Holdings Inc: The rocket engine maker has agreed to pay $9 million to resolve allegations it misrepresented its compliance with cybersecurity requirements in federal government contracts, the U.S. Justice Department said on Friday. Aerojet provides propulsion and power systems for launch vehicles, missiles and satellites and other space vehicles to the Pentagon, NASA and other federal agencies, the Justice Department said. The settlement resolves a 2015 lawsuit filed by former Aerojet employee Brian Markus under the whistleblower provisions of the False Claims Act. Markus and Aerojet reached a settlement of the case on the second day of trial in April, the Justice Department said. He will receive $2.61 million as his share of the settlement. The settlement was approved on July 5 by a U.S. District Court in California.
• Alibaba Group Holding Ltd: China has imposed fines on technology giants Alibaba and Tencent as well as a range of other firms for failing to comply with anti-monopoly rules on the disclosure of transactions, the country’s market regulator said on Sunday. The State Admnistration for Market Regulation (SAMR) released a list of 28 deals that violated the rules. Five involved units of Alibaba, including a 2021 purchase of equity in its subsidiary, the Youku Tudou streaming platform. Tencent was involved in 12 of the transactions on SAMR’s list.
• Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co & Wells Fargo & Co: Second quarter profits at big U.S. banks are expected to fall sharply from a year earlier on increased loan loss reserves, as the pandemic recovery gives way to a possible recession. Analysts expect JPMorgan Chase will report a 25% drop in profit on Thursday, while Citigroup and Wells Fargo will show 38% and 42% profit declines, respectively on Friday, according to Refinitiv I/B/E/S data. Bank of America, which like its peers has big consumer and business lending franchises, is expected to show a 29% drop in profit when it reports on July 18. “Its going to be a shaky quarter for the sector,” said Jason Ware, chief investment officer for Albion Financial Group, which owns shares of JPMorgan and Morgan Stanley. Investors will want to hear executives’ insights into the health of the economy and if borrowers are “more shaky now,” Ware said. Banks must factor the economic outlook into loan loss reserves under an accounting standard which took effect in January 2020.
• Boeing Co: Japanese airline ANA Holdings said it had finalised an order for 20 Boeing 737 MAX jets first announced in January 2019 that also includes options for another 10 of the narrowbody type. The carrier also said it would switch two of 20 777-9 passenger planes it has on order to the 777-8F freighter model as part of efforts to expand its cargo business. The 737 MAX planes, intended to replace older 737-800 jets on domestic routes, will be delivered from the financial year starting in April 2025, the airline said in a statement. ANA did not provide the value of the deal. The order for 20 737 MAX 8 planes would be worth $2.4 billion based on Boeing’s latest list prices available on its website, but airlines typically receive substantial discounts on orders.
• ConocoPhillips: The Biden administration on Friday unveiled an environmental analysis for the company’s planned $6 billion Willow oil and gas project in Alaska and outlined several options for the development, including not building it at all. The release of the document has been highly anticipated by the oil and gas industry and environmental groups since last year, when a federal judge in Alaska reversed the Trump administration’s approval of the massive project and said federal agencies must reconsider their environmental analysis. In the draft review, the U.S. Bureau of Land Management (BLM) analyzed five potential options for the project, including ConocoPhillips’ proposal to build up to five drill sites, dozens of miles of roads, seven bridges and pipelines. It also considered a scaled down version with fewer drill sites and other infrastructure that would have less of an impact on wildlife such as caribou. BLM said it will also consider not approving the project at all. The bureau will accept public comment on the alternatives for 45 days, which it will consider in its final decision. In a statement, ConocoPhillips spokesperson Dennis Nuss said Willow was “a strong example of environmentally and socially responsible development that offers extensive public benefits.”
• GlobalFoundries Inc & STMicroelectronics NV: The chipmakers announced plans to build a semiconductor factory in France, drawing on funding from the government, the latest move to boost output in the region. This facility, which will be next to STM’s existing plant in Crolles, is targeted to reach full capacity by 2026, with up to 620,000 wafers per year of production at a size of 18-nanometers, the statement said. Those are used in automotive, internet-of-things and mobile applications. The companies did not disclose the amount of investment at the new site near the Italian and Swiss borders or how much funding the French state would provide. A person familiar with the matter said that the total investment would be about $5.7 billion. The new factory would create around 1,000 new jobs and also help STMicro reach its target to boost revenue to above $20 billion.
• Shell Plc: The oil major said it has invested $38.07 million into a Brazilian preservation-focused company. Carbon credit developer Carbonext runs preservation projects across more than 4.9 million acres of the Amazon Forest that are owned by companies seeking to capitalize on the carbon market. Carbonext then generates carbon credits that can be sold. Shell will now have preferential access to the company’s carbon market, although will not receive discounted prices. “Associating our company with Carbonext is an important step towards our goal of offsetting 120 million tonnes of CO2 a year by 2030,” Andre Araujo, Shell Brasil’s president said in a note, with the company also backing a global initiative to hit net zero in emissions by 2050.
• Telefonaktiebolaget LM Ericsson & Qualcomm Inc: The Swedish telecom equipment maker Ericsson, French aerospace group Thales and U.S. chipmaker Qualcomm plan to work jointly to develop a satellite-driven 5G network to improve terrestrial connectivity. A 5G mobile device that can connect with satellites would make communication possible from remote corners of the planet and provide a challenge to expensive satellite phones and rival broadband internet services provided by Elon Musk’s Starlink. The companies will first do simulations on the ground before carrying out tests in space, Hakan Djuphammar, head of Special Projects at Ericsson’s technology arm, said in an interview. “Discussions are on for testing on the International Space Station and with a few satellites,” he said.
• Twitter Inc: Shares of Twitter fell in premarket trading as a legal tussle between Elon Musk and the social media company is expected to take center stage after the world’s richest person walked away from the $44 billion deal. Musk, the chief executive officer of Tesla, said on Friday he was terminating his deal to buy Twitter because the company had breached multiple provisions of the merger agreement. Twitter is planning to sue Musk as early as this week and force him to complete the acquisition, people familiar with the matter told Reuters. Musk took a jab at Twitter’s stance, tweeting that the legal battle would lead to the company disclosing information on bots and spam accounts in court. The series of tweets was Musk’s first public response since the Friday announcement. “We believe that Elon Musk’s intentions to terminate the merger are more based on the recent market sell-off than… Twitter’s ‘failure’ to comply with his requests,” Jefferies analyst Brent Thill said in a note. “In the absence of a deal, we would not be surprised to see the stock find a floor at $23.5.”
ECONOMIC EVENTS (Eastern Time)
1000 Employment Trends for June: Prior 119.77
COMPANIES REPORTING
No major S&P 500 companies are scheduled to report for the day.
EUROPEAN CHATTER
MARKET VIEW
Euro STOXX 50 futures were down 42 points at 3,455, FTSE futures lost 67 points to 7,085.5, and German DAX futures were 132 points lower at 12,856, by 0430 GMT.
Asian shares were mostly under water as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season in which profits could be under pressure.
Oil prices fell in volatile trade, reversing some gains from the previous session, as worries about a recession and China’s COVID-19 curbs hitting demand outweighed ongoing concerns about tight supply.
MARKET SNAPSHOT AS OF 0430 GMT
S&P 500 Index Mini Futures: 3,879.25; down 0.56%; 22 points
DJIA Mini Futures: 31,180.00; down 0.42%; 130 points
Nikkei: 26,840.21; up 1.22%; 323.02 points
MSCI Asia, Ex-JP: 517.43; down 1.52%; 7.97 points
EUR/USD: $1.0152; down 0.33%; 0.0033 point
GBP/USD: $1.1990; down 0.33%; 0.0040 point
USD/JPY: 136.94 yen; up 0.61%; 0.84 point
Spot Gold: $1,741.85; up 0.00%; $0.03
U.S. Crude: $103.99; down 0.76%; $0.80
Brent Crude: $106.54; down 0.45%; $0.48
10-Yr U.S. Treasury Yield: 3.0869%; down 0.013 point
10-Yr Bund Yield: 1.3335%; down 0.004 point
GLOBAL NEWS
Foreign Secretary Liz Truss has launched her leadership bid to serve as Britain’s next prime minister, replacing Prime Minister Boris Johnson, according to an op-ed in The Telegraph on Sunday.
Japan’s conservative coalition government increased its majority in the upper house of parliament in an election on Sunday, two days after the assassination of dominant politician and power broker Shinzo Abe.
The biggest single pipeline carrying Russian gas to Germany starts annual maintenance on Monday, with flows expected to stop for ten days, but governments, markets and companies are worried the shut-down might be extended due to war in Ukraine.
COMPANY NEWS
A dispute between Germany and Finland
The planned nationalisation of French power utility EDF will not result in an increase in the electricity bills of French households, government spokesman Olivier Veran said on Sunday.
Danske Bank on Sunday reduced its full-year net profit outlook, hurt by rapidly rising interest rates and unfavorable financial market conditions.
COMPANY ANNOUNCEMENTS
Kinnevik AB Q2 2022 Earnings Release
National Grid PLC Annual Shareholders Meeting
Wihlborgs Fastigheter AB Q2 2022 Earnings Release
ECONOMIC EVENTS (All times GMT)
0800 Italy Retail Sales SA mm for May: Prior 0.00%
0800 Italy Retail Sales NSA yy for May: Prior 8.40%
1000 Portugal Global Trade Balance for May: Prior -7.126 bln EUR
1000 Portugal Trade Balance 1-Month for May: Prior -2.445 bln EUR
2301 United Kingdom BRC Retail Sales yy for June: Prior -1.5%
Euro STOXX 50 futures were down 42 points at 3,455, FTSE futures lost 67 points to 7,085.5, and German DAX futures were 132 points lower at 12,856, by 0430 GMT.
Asian shares were mostly under water as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season in which profits could be under pressure.
Oil prices fell in volatile trade, reversing some gains from the previous session, as worries about a recession and China’s COVID-19 curbs hitting demand outweighed ongoing concerns about tight supply.
MARKET SNAPSHOT AS OF 0430 GMT
S&P 500 Index Mini Futures: 3,879.25; down 0.56%; 22 points
DJIA Mini Futures: 31,180.00; down 0.42%; 130 points
Nikkei: 26,840.21; up 1.22%; 323.02 points
MSCI Asia, Ex-JP: 517.43; down 1.52%; 7.97 points
EUR/USD: $1.0152; down 0.33%; 0.0033 point
GBP/USD: $1.1990; down 0.33%; 0.0040 point
USD/JPY: 136.94 yen; up 0.61%; 0.84 point
Spot Gold: $1,741.85; up 0.00%; $0.03
U.S. Crude: $103.99; down 0.76%; $0.80
Brent Crude: $106.54; down 0.45%; $0.48
10-Yr U.S. Treasury Yield: 3.0869%; down 0.013 point
10-Yr Bund Yield: 1.3335%; down 0.004 point
GLOBAL NEWS
Foreign Secretary Liz Truss has launched her leadership bid to serve as Britain’s next prime minister, replacing Prime Minister Boris Johnson, according to an op-ed in The Telegraph on Sunday.
Japan’s conservative coalition government increased its majority in the upper house of parliament in an election on Sunday, two days after the assassination of dominant politician and power broker Shinzo Abe.
The biggest single pipeline carrying Russian gas to Germany starts annual maintenance on Monday, with flows expected to stop for ten days, but governments, markets and companies are worried the shut-down might be extended due to war in Ukraine.
COMPANY NEWS
A dispute between Germany and Finland
The planned nationalisation of French power utility EDF will not result in an increase in the electricity bills of French households, government spokesman Olivier Veran said on Sunday.
Danske Bank on Sunday reduced its full-year net profit outlook, hurt by rapidly rising interest rates and unfavorable financial market conditions.
COMPANY ANNOUNCEMENTS
Kinnevik AB Q2 2022 Earnings Release
National Grid PLC Annual Shareholders Meeting
Wihlborgs Fastigheter AB Q2 2022 Earnings Release
ECONOMIC EVENTS (All times GMT)
0800 Italy Retail Sales SA mm for May: Prior 0.00%
0800 Italy Retail Sales NSA yy for May: Prior 8.40%
1000 Portugal Global Trade Balance for May: Prior -7.126 bln EUR
1000 Portugal Trade Balance 1-Month for May: Prior -2.445 bln EUR
2301 United Kingdom BRC Retail Sales yy for June: Prior -1.5%
Source (not limited too) Reuters, Globe & Mail, CNBC, Eikon, Refinitiv
