Greek drama, U.S. data and another leg up in China. Here are some of the things people will be talking about today.
Did you think it was going to be easy for Greece and its creditors to close a deal? Please. The Eurogroup is meeting in Brussels today in hopes of finally locking down a Greek aid deal. But already there are signs of trouble. In a statement, the Greek government said that creditors haven't accepted the proposals that Greece made earlier this week. Markets across Europe instantly fell on the headlines, while the yield on safe-haven German government bonds dropped. Time is running extremely short for Greece now. Settle in, because it looks like we'll have a long day (or days) ahead.
China bounces back again
Last week the story was all about whether the air was coming out of a China bubble. But this week has seen the reverse. The Shanghai Composite rallied nearly 2.5 percent today. That follows the 2.2 percent gain on Tuesday. Even with the bounceback, concerns over the stability of Chinese financial markets aren't going anywhere. There are already signs that the big, margin-driven trades are starting to buckle.
Today we get yet another revision to first-quarter GDP data. Economists predict the number will be revised from -0.7 percent to -0.2 percent. There are two things to bear in mind ahead of the report. One is that Q1 data is by this point quite backwards looking. The other thing to consider is that the Q1 data has become quite controversial, with economists wondering if poor seasonal adjustments have rendered the numbers to be wholly damaged.
Greece taking its toll
Does Greece really matter to the rest of Europe? There are some who argue that it's contained and that the other economies are off to the races. The results of today's IFO survey out of Germany suggest that the ongoing Greece troubles are having an effect. The business climate index declined to 107.4 from 108.5 in the previous month. That drop was more than the forecasters had expected.
A weather event for the world
A storm is coming that could literally impact the entire world. Late Wednesday (East Coast Time), the Earth is forecast to be hit by a geomagnetic storm caused by a solar flare. The storm has the potential to knock out power and disrupt global positioning systems. A similar storm hit the earth on Monday, and appeared not to cause any damage.
What we're reading
Here's what caught our eye over the past 24 hours.
- Krugman battles the Austerians (just click).
- Is Europe just trolling Greece now?
- This German sociologist is essential for understanding "Jurassic World."
- U.S. subprime auto loans continue to boom.
- Marine Le Pen, Madame "Frexit.
- Where’s my hoverboard? It’s here.
- Gmail gives you an extra few seconds to call that email back.