Hello friends and Coins2Day readers.
Wall Street stock futures are higher this morning on hopes that the default in Greece still won’t lead to a truly catastrophic bust-up.
Today’s must-read story is by Coins2Day’s Tory Newmyer, exploring the fate of the Export-Import Bank after its charter expires at the end of Tuesday. Tea Party lawmakers have been pushing for the closure of the New Deal-era agency, but politicians from both sides of the aisle are likely to bring it back to life. Here’s why.
Here’s what else you need to know to start your day.
1. An update on the U.S. Job market.
ADP (ADP) will release its monthly private payrolls report for June this morning at 8:15 a.m. ET. Economists estimate U.S. Companies added 215,000 private jobs last month. The release is a sneak peak into the government’s jobs update, which will come out on Thursday ahead of the Fourth of July holiday weekend. A string of good job reports over the summer could be enough for the Federal Reserve to raise interest rates as soon as September.
2. Greece’s government is backing down over debt talks
Greek Prime Minister Alexis Tsipras keeps on writing to his lenders, promising his willingness to accept some of their key demands. But Greece is in default after missing a payment to the IMF yesterday and the offer he is referring to has lapsed, as has the bailout agreement in general. Meanwhile, an opinion poll shows a nine-point lead for those who want to reject the creditors demands in a referendum Sunday, an event that could lead to Greece leaving the Eurozone. Meanwhile in Germany, Angela Merkel will share her thoughts on the issue with lawmakers in the Bundestag.
3. Are people still eating their Cheerios?
General Mills (GIS), the maker of Lucky Charms and Betty Crocker mixes, reports its fiscal fourth-quarter results today. The company has been making major moves to attract customers that have become enamored by natural and less processed foods, including its recent decision to remove all artificial colors and flavors from its cereals. General Mills has also been aggressively cutting costs. It will cut as many as 725 jobs in its international business and will shutter plants in Massachusetts and California, cutting another 680 jobs.
4. Constellation Brands updates investors on its beer expansion.
Constellation Brands (STZ), the maker of Corona and Modelo Especial beers, reports its fiscal first-quarter results today. The company said in April that it plans to invest more than $1 billion this year to expand its beer business around the world. It will also put up another $2 billion to expand its Mexican beer plant as demand for those brews grows due to a growing Hispanic population in the U.S. Once the new facility is finished next June, the margins on its beer business will likely improve. Analysts expect the company to report 10% sales growth in beer for the quarter.
5. The SEC delves into executive pay.
The U.S. Securities and Exchange Commission holds a public hearing today to get feedback on a set of rules around incentive-based compensation. The Dodd-Frank Wall Street reform law requires the group to set standards that would reclaim a portion of an executive’s incentive-based payments if the company had to restate its financial results.
