What to watch for today
Facebook tries to keep its outperformance streak alive. The world’s largest social network has topped analyst estimates ever since it began seeing major growth from mobile advertising. The company’s new CFO, David Wehner, is expected to report a 68% boost in revenue and a 55% rise in earnings per share.
GlaxoSmithKline gets a health check. The pharmaceutical firm’s second-quarter profit is expected to fall about 17% to £1.4 billion ($2.39 billion). Investors will be looking for updates on its respiratory drug Advair and an ongoing bribery scandal in China. Quarterly results are also due from AT&T, Boeing, Delta, and PepsiCo.
Another major storm hits China. Typhoon Matmo is bringing winds of 140 kph (87 mph) towards Fujian, a heavily-populated coastal province. It knocked out power to over 30,000 homes as it passed Taiwan overnight.
While you were sleeping
John Kerry landed in Tel Aviv. The US secretary of state defied the FAA flight ban to meet Israeli prime minister Benjamin Netanyahu, Palestinian president Mahmoud Abbas, and UN secretary-general Ban Ki-moon to discuss a ceasefire.
Espírito Santo’s Rioforte hit the rocks. The holding company for Espírito Santo Group’s non-financial assets filed for creditor protection (paywall), a week after it failed to repay Portugal Telecom €847 million. Its parent company, Espírito Santo International, did the same last week. Investors remain nervous about the impact of these firms’ troubles on Banco Espírito Santo, part-owned by the cash-strapped holding companies.
China detained five executives in a food safety scandal. The head of Shanghai Husi Food Co and four others were questioned by authorities, who also seized more than 1,000 tonnes (1102 tons) of suspect meat from the US-owned processor. Employees of the company said that reprocessing expired meat was approved by senior management.
A Chinese construction firm dodged default. Huatong Road & Bridge repaid its maturing bond, narrowly avoiding becoming the first-ever Chinese firm to default on both a principal and interest repayment. The firm warned of a possible default last week.
Indonesia’s president-elect set a target of 7% GDP growth. Joko Widodo said infrastructure and manufacturing should be the top priority, followed by human capital. The country’s first-quarter growth was 5.21%. Here are four things Widodo has promised so far.
A tough quarter for LG. Quarterly profit fell by more than half for the second time in less than a year. Poor sales of PCs and tablets hit the Korean company and a strong won added further pressure on its bottom line.
Quartz obsession interlude
Jason Karaian analyzes Vladimir Putin’s phone records. “No leader has had more contact with Putin than German chancellor Angela Merkel. Over the past six months she has spoken with the Russian president about Ukraine more than twice as many times as any other world leader. In their most recent conversation, the German chancellor “urged the Russian President strongly to use his influence over the separatists,” according to her office. This account fits Merkel’s cautious, deliberate approach to diplomacy with Russia, which has nonetheless hardened since the annexation of Crimea in March.” Read more here.
Matters of debate
Beware of “chief happiness officers.” They represent the slow erosion of privacy at work.
Sex in marriage is too much to hope for. There are too many other things going on.
Drone sales should be regulated, lest they fall into the hands of terrorists.
Eat these fish and save the planet. Wild Alaskan salmon and Pacific sardines are among the few species that aren’t chronically overfished.
Bad highways are a threat to North America. Funding shortages have left US-Canadian transport systems in poor shape.
Sweden really wants dads to take paternity leave. They get a free bonus month for taking the leave they’re entitled to.
Louisiana is the happiest state in America. But happiness isn’t everything.
A tree memorializing George Harrison died an ironic death. It was killed by beetles.
One in every 25 New Yorkers is a millionaire. The percentage is even higher in Monaco, Zurich, and Geneva.
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