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Senate GOP Blocks Stripped-Down Obamacare Repeal

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Obamacare repeal doesn't survive, second-quarter growth data due, and it's another big session for earnings. Here are some of the things people in markets are talking about today.

Skinny falls flat 

The effort by Senate Republicans to pass a "skinny" repeal of Obamacare collapsed early this morning after Senator John McCain joined two of his GOP colleagues in voting against the bill, seeing it defeated by 49:51. Majority Leader Mitch McConnell said it was a "disappointing moment" as he pulled the bill from the floor. It is unclear what future efforts to overturn the previous administration's health legislation may look like, with President Donald Trump tweeting that he's willing to let Obamacare implode and then deal with the consequences. 

GDP day

Growth in the euro area continues to be strong with French GDP increasing 0.5 percent in the second quarter, adding to the longest expansion there since 2011, while Spain and Austria both grew at 0.9 percent over that period. The solid data added to this morning's surprise growth in sentiment which rose to a decade-high of 111.2 in July, spurring hopes of price-growth momentum. Second quarter GDP for the United States is due to be published at 8:30 a.m. Eastern Time, with analysts expecting a rebound to a 2.7 percent annualized expansion.


Amazon tumbled in late trading after a disappointing set of earnings, with Nasdaq futures being dragged down by the miss. This morning in Europe, some of the biggest banks posted results, with Barclays Plc reporting its first quarterly loss since 2015 due to a 700 million-pound charge ($916 million) for PPI customer compensation. Credit Suisse Group AG reported a 78 percent increase in second-quarter profit, with the results driven by lower costs. UBS Group AG, meanwhile, saw its shares drop as much as 4.3 percent after the bank reported a drop in its core tier one equity ratio. Exxon Mobil Corp., Chevron Corp. and Baker Hughes are all due to report in the U.S. today. 

Markets drop

Overnight, the MSCI Asia Pacific Index dropped 0.7 percent, while Japan's Topix index slipped 0.4 percent as technology firms tracked their U.S. counterparts lower. In Europe, the Stoxx 600 Index was down 1.1 percent at 5:50 a.m. as mixed bank earnings and disappointing results from Renault SA put pressure on the market. S&P 500 futures indicted a lower open

Russia strikes back

Late yesterday, the U.S. Senate voted 98-2 to strengthen existing sanctions on Russia, Iran and North Korea, which will now go to the president for his signature. Russia has not waited to launch its reprisal, announcing this morning that it has ordered the U.S. to cut its diplomatic staff in the country, ousting the mission from properties in Moscow. 

What we've been reading

This is what's caught our eye over the last 24 hours.

    Before it's here, it's on the Bloomberg Terminal.