What to watch for today
GM discusses a slowing China. The company’s performance in the world’s biggest car market will be at the center of its quarterly results. Car sales in China have slowed along with the rest of the economy, posing a challenge to foreign automakers counting on them to offset slow growth elsewhere.
Amazon investors are primed for a cloud burst. The online giant’s quarterly results will provide new insight into Amazon Web Services. The retailer’s cloud-computing arm is expected to return to higher profit margins after a price cut last year.
Donald Trump visits the US-Mexico border. The divisive Republican presidential candidate will visit Laredo, Texas, where he is certain to expand on his controversial views on immigration. Polls show him far ahead of rivals.
There’s even more earnings. Unilever, Syngenta, Visa, McDonald’s, 3M, Comcast, Eli Lilly, Starbucks, United Continental, Under Armour, Dunkin Brands, and Pandora all report quarterly results.
While you were sleeping
Alexis Tsipras contained a rebellion. The Greek prime minister relied on pro-EU opposition parties to pass another austerity bill dictated by the country’s creditors, despite a quarter of his Syriza party voting against the bill or abstaining. That opens the door for negotiations with the IMF and the euro zone over a €86-billion ($94.1-billion) bailout package.
Credit Suisse beat estimates. The wealth management division helped the bank report second-quarter profits of 1.1 billion Swiss francs ($1.1 billion), up from a 700-million-franc loss a year earlier. There were few clues as to the strategy of new CEO Tidjane Thiam, who is under pressure to reduce the bank’s exposure to investments, in favor of more wealth management.
Apple cut $1 billion from its spending plans. The iPhone maker will spend $12 billion in the financial year ending in September, down from an earlier plan to spend $13 billion, Apple divulged in a regulatory filing. The reduction is likely a move to placate investors, after Apple’s fiscal third-quarter earnings missed expectations.
Japan’s export data wobbled… The value of shipments from Japan rose 9.5% in June from a year earlier, marking the largest rise in five months but slightly below expectations nevertheless. The central bank is betting the economy will pick up after a dreary second quarter, but the export data doesn’t bode well so far.
…and South Korea’s GDP growth stalled. The country’s second-quarter economic growth dropped to just 0.3%, down from a first-quarter rise of 0.8%. The export-oriented economy is struggling with lower global demand, while the MERS crisis halted tourism.
Spain’s jobless rate fell to the lowest in three years. Unemployment fell to 22.4% in the second quarter from 23.8% in the first three months of the year. That’s the lowest since 2011, and offers prime minister Mariano Rajoy a chance to claim he has succeeded in his goal of lowering unemployment ahead of an election this year.
Quartz obsession interlude
Marc Bain on how much fakes are costing the European fashion industry. “Counterfeits cost European brands the value of 9.7% of their total sales every year, or a staggering €26.3 billion ($28.7 billion), according to a new report by Europe’s Office for Harmonization in the Internal Market. Those lost sales ripple outward, resulting in approximately 363,000 lost jobs across the manufacturing, retail, and wholesale sectors of Europe’s fashion industries.” Read more here.
Matters of debate
Europeans need to stop saying the US uses too much air conditioning. It’s not all that bad for the environment, anyway.
“I don’t regret my Ashley Madison affair.” One user explains how the site helped him live again.
The US and Canada might one day go to war. The flashpoint could be two disputed islands between Maine and New Brunswick.
US incarceration has caused more crime than it has prevented. The system turns small-time offenders into career criminals.
CrossFit’s true strength is its business plan. Affiliates shoulder the capital costs but the parent company maintains a tight grip.
There could soon be a pill to solve gluten intolerance. It’s derived from eggs.
Florida is suffering an outbreak of leprosy. Nine people were infected after coming in close contact with armadillos.
Moscow launched an outdoor cinema for its homeless. The audience voted for Soviet slapstick for opening night.
A butt-dial can now get you in trouble. A US court ruled accidental calls are not protected by the right to privacy.
Sony Pictures is making a movie about emojis. ¯_(ツ)_/¯
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