Written by Gary
US main stock market indexes fought today for gains amid spikes in coronavirus cases (SPY -0.4%). There’s a one-in-three chance of a ‘massive’ disaster that could be worse than COVID-19, says Deutsche Bank.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | U.S. trade chief vows to push for ‘broad reset’ at WTOThe Trump administration will push for a broad reset of “outdated tariff determinations” at the World Trade Organization to fix what it sees as years of unfair treatment of the United States, a top trade official told U.S. lawmakers on Wednesday. |
| U.S. government proposes rolling back protections for big techThe U.S. Justice Department proposed on Wednesday that Congress take up legislation to curb protections big tech platforms like Alphabet’s Google and Facebook have had for decades, a senior official said, following through on U.S. President Donald Trump’s bid to crack down on tech giants. |
| Hertz suspends share sale after U.S. SEC raises objectionsBankrupt Hertz Global Holdings Inc on Wednesday suspended its plan to sell up to $500 million in new shares after the U.S. Securities and Exchange Commission (SEC) raised objections to the sale, the car rental firm said on Wednesday. |
| Citing racial stereotype, PepsiCo drops Aunt Jemima; Uncle Ben’s, Mrs. Butterworth’s under reviewPepsiCo Inc said on Wednesday it will change the name and brand image of its Aunt Jemima pancake mix and syrup, dropping a mascot that has been criticized for a racist history, amid a national debate over racial inequality in the United States. |
| Oil slides on fresh COVID-19 outbreaks, bump in crude stocksOil prices settled lower on Wednesday on fuel demand worries due to an uptick in coronavirus cases, with emerging hotspots in China and the United States, and as U.S. crude stocks grew again, taking commercial inventories to another all-time high. |
| Amazon launches Saudi Arabia shopping site despite CEO’s dispute with kingdomAmazon.com Inc on Wednesday launched a website for shoppers in Saudi Arabia, showing its continued business interests there despite a public dispute between Riyadh and the company’s chief executive, Jeff Bezos. |
| Stocks gain on recovery hopes, dollar on safe-haven bidA gauge of global equities edged higher on Wednesday, adding to the prior day’s rally on economic and vaccine hopes, while fresh coronavirus outbreaks and rising geopolitical tensions in Asia boosted demand for the dollar and safe-haven debt. |
| Fed’s Powell beats drum for more government aid to bolster economyThe U.S. economy is beginning to recover from the worst of the coronavirus crisis, but with some 25 million Americans displaced from work and the pandemic ongoing, it will need more help, Federal Reserve Chair Jerome Powell told lawmakers on Wednesday. |
| Americans face new coranavirus challenge: a shortage of coinsBanks across the United States are facing a shortage of coins during coronavirus crisis, prompting the U.S. Federal Reserve to ration distribution and work with the U.S. Mint to boost supply. |
| Bankrupt-Hertz Hit & Bolton-Book Headlines Hammer ‘Homegamers’, Bonds BidBankrupt-Hertz Hit & Bolton-Book Headlines Hammer ‘Homegamers’, Bonds Bid Tyler Durden Wed, 06/17/2020 – 16:00 More concerns at home and abroad on a second-wave of the pandemic and mixed housing data (mortgage apps up, starts and permits disappoint) were not enough to shake the unwavering confidence that everything will be fine. Nasdaq outperformed again (of course), Small Caps sank as Dow and S&P held the flat line for most of the day. However, markets came a little unglued around 1500ET on the Bolton book headlines… and then when the party ended in HTZ, it seems the market lost it’s momo-mojo… |
| Trump Signs Bill Punishing Chinese Officials Over Uighur Internment CampsTrump Signs Bill Punishing Chinese Officials Over Uighur Internment Camps Tyler Durden Wed, 06/17/2020 – 15:58 Just moments after excerpts of John Bolton’s book were leaked to several media outlets such as the WaPo and the NYT, in which the apparent punchline was Bolton’s allegation that Trump was cozying to China, the president – perhaps in direct response to the book leak – signed a measure punishing Chinese officials for imprisoning more than one million Muslims in internment camps. What makes the timing of Trump’s Bill delightfully amusing, is that just an hour earlier we reported that According to Bolton, Xi “explained to Trump why he was basically building concentration camps in Xinjiang. … Trump said that Xi should go ahead with building the camps, which Trump thought was exactly the right thing to do.” Yes, according to Bolton Trump told Xi to “go ahead” and build concentration camps in China, and he did so in public.
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| US Suddenly Suspends Talks With Europe On Digital Tax, Threatens TariffsÂUS Suddenly Suspends Talks With Europe On Digital Tax, Threatens Tariffs Tyler Durden Wed, 06/17/2020 – 15:55 The U.S. suspended talks with European countries for a new global tax framework for tech companies such as Alphabet Inc.’s Google and Facebook Inc, reported Financial Times. U.S. Treasury Secretary Steven Mnuchin wrote a letter to four European finance ministers warning them that discussions had reached an “impasse.” He said the U.S. couldn’t agree on interim basis changes to the global taxation law that would affect big tech companies. Mnuchin warned if European nations attempted to implement their own digital tax against U.S. tech companies – it would pave the way for fresh tariffs. |
| Atlanta PD Officer Charged With Murder After Fatally Shooting Rayshard BrooksAtlanta PD Officer Charged With Murder After Fatally Shooting Rayshard Brooks Tyler Durden Wed, 06/17/2020 – 15:54 The Atlanta PD officer who shot Rayshard Brooks in the back and killed him during a confrontation at a downtown Wendy’s,will be charged with murder, ABC News reports.
The news that Fulton County DA is planning to charge Garrett Rolfe, the officer who shot Brooks (Rolfe has already been fired), was broken by ABC News. He will face a murder charge, along with 10 other charges.
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| India all set to make an economic counter-attack against ChinaIndia all set to make an economic counter-attack against ChinaIndia will bar Chinese firms from providing telecom equipment to state-run telcos. |
| No cars, new interiors: PSBs told to cut costsNo cars, new interiors: PSBs told to cut costsThe finance ministry has issued a stern diktat to PSBs to defer ‘avoidable’ expenditure until next fiscal. |
| WHO sees ‘green shoots’ of hope in pandemicWHO sees ‘green shoots’ of hope in pandemicWhile cases are still rapidly rising there are green shoots of hope the WHO Director General said. |
| The owner of the U.K.’s Daily Telegraph set to cut up to 100 staff despite big jump in subscribersThe Telegraph Media Group, owner of some of Britain’s most prestigious newspapers including the Daily Telegraph, has told up to 100 staff that their jobs might be cut. |
| The Wall Street Journal: Justice Department proposes limiting internet companies’ protectionsThe Justice Department proposed a rollback of legal protections that online platforms have enjoyed for more than two decades, in an effort to make tech companies more responsible in how they police their content. |
| The Fed: Fed’s Mester backs keeping interest rates at zero until 2023Cleveland Fed President Loretta Mester on Wednesday said ‘very accommodative’ monetary policy will be needed to return the economy to full employment. |
Summary of Economic Releases this Week
Earnings Summary for Today
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