Here’s what you need to know before markets open.
1. Wirecard is set to miss the very first payment on $561 million worth of debt and join the notorious ‘no coupon’ club. The fintech group is due to make an interest payment of 0.5% on the bond in September.
2. ‘This is what a kleptocracy looks like’: Billionaire investor Chamath Palihapitiya blasted the Fed for buying foreign companies’ bonds. The Fed has bought debt issued by more than 85 companies as of June 16.
3. Apple’s developer war reignites after a yoga app says it was rejected from the App Store for refusing to auto-bill users. Following the backlash, Apple said it would allow app developers to challenge its decisions.
4. Tesla paid Elon Musk almost $1 million to insure its board against lawsuits, just as shareholders are being urged to oust him over his $56 billion bonus. Musk only qualifies for the full $55.8 billion bonus if Tesla hits certain financial milestones over a decade.
5. JPMorgan breaks down how COVID-19 nearly destroyed one of the market’s safest trades — and lays out 3 lessons to help investors tackle future crises. Strategists explained how the Fed intervened to prevent a wider liquidity crisis.
6. Goldman Sachs has formulated a strategy that could triple the market’s return within a year as volatility remains higher than normal — including 11 new stock picks for the months ahead. The implication is that returns adjusted for the risk and volatility investors tolerate will be lower.
7. Bank of America lists 8 retail stocks to buy as they rake in revenues from an unprecedented surge in home-improvement spending. Americans are likely to keep spending on DIY home projects and new home furnishings, the bank said.
8. European and US stocks are down. In Europe, Germany’s DAX fell 1.4%, Britain’s FTSE 100 fell 1.1%, and the Euro Stoxx 50 fell 1.3%. In Asia, China’s Shanghai Composite rose 1.4%, Hong Kong’s Hang Seng rose 0.5%, and Japan’s Nikkei fell 0.7% at the close. In the US, futures underlying the Dow Jones Industrial Average, the S&P 500, and the Nasdaq fell between 0.4% and 0.8%.
9. Earnings expected. Macy’s, Constellation Brands, and General Mills are highlights.
10. Economic docket today. MBA Mortgage Applications and IHS Markit Purchasing Managers Index are scheduled for release.