Frontrunning: June 29

  • China’s Stocks Enter Bear Market as Rate Cut Fails to Stop Rout (BBG)
  • Stocks Tumble Around the World on Greek Crisis (WSJ)
  • Some say back to the drachma for a Greek reboot (Reuters)
  • Greece Imposes Capital Controls as Fears of Grexit Grow (BBG)
  • Panic Sets in Among Hardy Hedge Fund Investors Remaining in Greece (NYT)
  • Euro off Greece-driven lows after SNB intervenes (Reuters)
  • Western Union to close in Greece for rest of week (Reuters)
  • European banks, bonds shaken by Greek turmoil (Reuters)
  • Greece Tries to Defy History of Capital Controls Doomed to Fail (BBG)
  • Bunds Surge Most Since 2012 as Greek Crisis Escalates (BBG)
  • Supreme Court Term to End With 3 Rulings (WSJ)
  • Texas attorney general says county clerks can refuse gay couples (Reuters)
  • Gross Gets Personal: ‘I Just Wanted to Run Money and Be Famous’ (BBG)
  • Musk’s Space-Taxi Vision Sustains Blow as SpaceX Rocket Blows Up (BBG)
  • FBI Joins Local Investigations As Black Church Fires Spread Across 5 U.S. States (IBT)
  • Iran Wish List Led Nuclear Deal Talks With U.S. (WSJ)
  • Donald Trump Once Got Fleeced in Mexico, and He’s Still Very Angry (BBG)
  • U.S. Panel Aims to Shield Planes From Cyberattack (WSJ)
  • How a Bet on Rare Earths Flopped as Scarcity Was a Mirage (BBG)
  • Unused Borders Gift Cards Spur Fight (WSJ)
  • High-Profile Study Turns Up the Antitrust Heat on Google (BBG)

 

Overnight Media Digest

WSJ

* Greece shut down its banking system, ordering lenders to stay closed for six days starting Monday, and its central bank moved to impose controls to prevent money from flooding out of the country. (http://on.wsj.com/1dqzlXr)

* U.S. intelligence agencies believe there is a strong possibility the Assad regime will use chemical weapons on a large scale if Islamist fighters threaten Syrian government strongholds. (http://on.wsj.com/1drvcT7)

* After years of ratcheting back trading operations in favor of more stable businesses, Morgan Stanley is quietly plotting a comeback, pushing for more fixed-income trading business. (http://on.wsj.com/1g0kPYz)

* The new nationwide right to same-sex marriage resounded across the country Sunday, with the Supreme Court ruling fueling joyous gay-pride celebrations and denunciations from some pulpits, but also conflicting feelings for some about a rapid societal and now legal change. (http://on.wsj.com/1KoI5My)

* Iran secretly passed to the White House beginning in late 2009 the names of prisoners it wanted released from U.S. custody, part of a wish list to test President Barack Obama's commitment to improving ties and a move that set off years of clandestine dispatches that helped open the door to nuclear negotiations. (http://on.wsj.com/1NoFD6W)

* The Justice Department is gearing up for an exacting look at any proposed mergers among the nation's top health-insurance companies, amid questions inside and outside the department about whether industry consolidation could suppress competition. The five biggest health insurers have been circling one another for potential deals. Anthem Inc has made public a $47.5 billion bid for Cigna Corp, which Cigna has so far rejected. Aetna Inc, meanwhile, has made a takeover proposal for Humana Inc. (http://on.wsj.com/1CD4f5L)

 

FT

Italy's Masi Agricola, a company which produces wines from vineyards owned by the descendants of poet Dante Alighieri, will debut on the Milan exchange on June 30 with its shares priced at 4.60 euros ($5.05) apiece.

Credit Suisse Group and ING Group have indicated to Britain's Treasury that they are considering exiting some of their operations out of London.

Greece's financial stability council imposed capital controls on Sunday night to avoid financial chaos after bailout talks with its international creditors broke down. This means that Greek banks will now be shut for several days.

Activist investor Elliott has built up a stake equal to about 1.3 per cent of Alcatel-Lucent SA shares via equity swaps, according to a disclosure made to the French market regulator.

 

NYT

* Puerto Rico's governor, saying he needs to pull the island out of a "death spiral," has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions. (http://nyti.ms/1C0gSgr)

* Greece's Prime Minister Alexis Tsipras announced Sunday night that Greece's banks would be closed as of Monday, as the fallout from ruptured debt negotiations with the nation's creditors began inflicting pain on ordinary people while raising alarm in Washington, Brussels and Berlin. The emergency measures escalated the confused and unpredictable state of a crisis that some analysts say could ripple through global financial markets and undercut European unity. (http://nyti.ms/1RKejRk)

* China's central bank cut interest rates on Saturday and reduced the reserves that certain banks must hold. The two measures send a signal that the government may not be eager to see an abrupt end to a stock market rally that has seen prices more than double in the last 12 months. (http://nyti.ms/1edJnvM)

* Fiat Chrysler is telling the owners of about five dozen Jeep Grand Cherokees and Dodge Durango sport utility vehicles to immediately stop driving them. The vehicles, from the 2015 model year, have a suspension component that could fail, causing rear-end instability and possibly reduced braking power. (http://nyti.ms/1HqOLct)

* Asian stock markets slumped on Monday morning as Greece's temporary closing of its banking system and controls on money withdrawn from the country triggered worries of possible broader harm to the global financial system and economy. (http://nyti.ms/1GGKoDs)

 

Canada

THE GLOBE AND MAIL

** Ontario's manufacturing-led economy has slipped into a productivity funk, caused by slumping exports and lost market share in the United States, concludes a new study being released on Monday by the Ottawa-based Center for the Study of Living Standards. (http://bit.ly/1JiSUfU)

** Canada will get more power to accredit its own medical schools, under an agreement that took years to negotiate and reduces the U.S. influence on the criteria used to review schools. Medical schools at the University of British Columbia and the University of Calgary will be the first up to be re-accredited under the new criteria. (http://bit.ly/1GKAjGv)

NATIONAL POST

** The second of two convicted murderers that had escaped from a New York State jail nearly a month ago was shot and wounded near the Canadian border on Sunday and is now in custody. A state police sergeant shot David Sweat near Constable, New York roughly 63 kilometers from the Clinton prison. (http://bit.ly/1InnDtI)

** Canadian author and environmentalist Naomi Klein, known for her opposition to capitalism and corporate globalization, is scheduled to join a Vatican committee that was formed to draw attention to a conference on the environment being held in Rome this week. (http://bit.ly/1HrO82q)

 

Britain

The Times

Britain's Bank for International Settlements says that central banks should use low inflation as an opportunity to raise interest rates as part of a radical overhaul of their policymaking. (http://thetim.es/1NrieBo)

The Financial Conduct Authority is preparing to crack down on complex credit card offers, threatening challenger banks such as Virgin Money and tarnishing their customer-friendly image. (http://thetim.es/1Jsjk1J)

The Guardian

The British foreign office has updated its advice for those travelling to Greece with a warning that access to banking services in the country may become limited at short notice. The change in advice comes as Greece teeters on the brink of defaulting on its debts, which could trigger an exit from the euro or the closure of the banking system. (http://bit.ly/1NrjsfP)

Barclays, which launched payment wristbands last year, is launching key fobs, an updated wristband and stickers, as contactless payment moves into newer wearable devices. The bPay devices can be bought online or in high street stores from next month. (http://bit.ly/1QXKem6)

The Telegraph

The finance director of Tesco has insisted that Britain's biggest retailer does not need to make an "immediate decision" about asset sales despite sitting on a debt mountain of 22 billion pounds ($34.55 billion). Tesco insists it does not face a liquidity crunch, which would force it to sell off assets. (http://bit.ly/1KokdIS)

A resilient health and beauty market has driven a sharp increase in profits for A S Watson <IPO-ASWN.HK> , the owner of Superdrug, Savers, and The Perfume Shop in the UK. Sales rose 7 percent to 1.6 billion pounds while pre-tax profits surged from 44.7 million pounds to 64.4 million pounds according to 2014 accounts filed at Companies House for AS Watson (Health and Beauty UK). (http://bit.ly/1LD9haF)

Sky News

Britain's most influential business lobbying group the Confederation of British Industry(CBI) is poised to announce the appointment of its next director-general, whose term will be shaped by the looming referendum on the UK's European Union membership. CBI will say this week that its deputy director-general, Katja Hall, has not landed its top executive. (http://bit.ly/1LD7LFl)