Iran clinches a deal with world powers, Carney sends the pound soaring and Tsipras faces a revolt in Athens. Here are some of the things that people are talking about in markets this morning.
Iran clinches a deal
After 18 days of non-stop talks between Iran and six world powers, diplomats managed to seal a historic accord to curb the energy-rich country's nuclear program. The agreement will relieve Iran of economic sanctions, giving the country access to global markets and in return provide a guarantee that the Islamic Republic can't develop nuclear weapons. Brent dropped the most in a week following the news, as the agreement raises the prospect that the country will increase crude exports into an already oversupplied market.
Carney surprises the market
On the same morning that data showed Britain's inflation rate fell back to zero in June, Bank of England Governor Mark Carney signaled that the central bank was getting closer to hiking interest rates from an all-time low. Carney told U.K. officials in London that “the point at which interest rates may begin to rise is moving closer.” Sterling rallied and Gilts dropped following his comments.
Tsipras faces a revolt
Yesterday, Prime Minister Tsipras totally capitulated to the demands of creditors in Brussels. Today, he returns to Athens to contain a revolt within his own party and beyond. Tsipras will submit a bill to parliament today containing some of the measures agreed with creditors: Dozens of lawmakers making up Tsipras's coalition are likely to vote against it. The prime minister will be relying on opposition support to get the measures signed into law.
Greece makes a bond payment
After falling into arrears with the International Monetary Fund, Greece chose to pay private investors today. The Greek government repaid $95 million worth of yen denominated debt, known as Samurai bonds. If the Athens government had defaulted on private investors today it could have triggered cross default clauses on other privately held bonds: A problem Greece chose to avoid.
We will get earnings from some of the biggest banks in the America: JPMorgan Chase reports at 07:00 ET and Wells Fargo reports an hour later. We'll also get insight into the health of the U.S. consumer: U.S. retail sales data comes out at 08:30 ET.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Here's what Iran's nuclear deal means for the oil market.
- The search for Pluto turns 100 in spectacular fashion.
- Here's what we learned from the official report on the U.S. treasury 'Flash Crash.'
- The man who saved Microsoft's Xbox. Twice.
- So you’re a leveraged stock market investor with poor timing in China?
- Puerto Rico should get Chapter 9 bankruptcy protection.
- This shale gas drill rig can self-assemble and walk from hole to hole.
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