… “in the Chinese language the word “crisis” is composed of two characters, one stands for danger and the other opportunity.” — unknown

1. Puerto Rico’s ‘Death Spiral’ Gets a Reprieve — Puerto Rico’s governor announced earlier in the week that the small U.S. territory cannot pay its roughly $72 billion in debt. However, $1.9 billion in debt payments that were due were paid. Padilla then appealed to Washington to make unprecedented, “concrete” changes in bankruptcy rules to help rescue the island’s finances. Although U.S. cities and municipalities are eligible to file for bankruptcy, states and Puerto Rico are barred from seeking protection.
2. Eurogroup Said ‘No grounds for further talks’ on Greece — Eurogroup chairman Jeroen Dijsellbloem said after a conference call with fellow ministers that the Eurozone finance ministers see “no grounds for further talks” with Greece ahead of the country’s Sunday bailout referendum. Greece also became the first advanced economy to default on a payment to the International Monetary Fund. That, plus the expiry of Greece’s bailout package, brings the debt-burdened country to the brink of financial collapse and raises the chances it could eventually leave the European Union — a “Grexit”.
3. U.S. Adds 223,000 Jobs in June As Unemployment Falls to 7-year Low — MarketWatch, the U.S. created 223,000 new jobs in June and also offered evidence the U.S. is not expanding quite as fast as it was in the middle of 2014. Employment gains for May and April were reduced, the wages of U.S. workers were disappointingly flat and the percentage of Americans in the labor force fell to the lowest level in 38 years, the government reported.

4. DOJ Probing Price Collusion on Airlines — the Justice Department announced a probe whether airlines were colluding to grow at a slower pace as part of an effort to keep airfares high. Airline stocks sold off in response to the antitrust investigation. Those effected are: UAL , AAL, LUV, DAL, ALK, HA, JBLU, SAVE, SKYW, VA.
5. China Stock Rout Worsens as Watchdog Opens Probe — the bloodbath in Chinese equities extended into last Friday, with the benchmark Shanghai Composite plunging as much as 7 percent amid reports that the securities market regulator has launched a probe into suspected market manipulation. China Securities Regulatory Commission (CSRC) spokesman had set up a team to look at “clues of illegal manipulation across markets,”.
6. American Association of Individual Investors (AAII) Bullish Sentiment — the index Bullish Sentiment dropped last week from 35.6% down to 22.61%. This was the largest one-week decline in bullish sentiment since May 2013 and represents the 14th straight week where bullish sentiment has been below its long-term average.
Tags: June Job Rpt
Posted in Weekly Summary | No Comments »