- Ukraine Optimism Wavers on Peace as Cease-Fire Winds Down. Ukraine isn’t “too optimistic” it will soon clinch a peace deal with separatist rebels in the east, a minister said, as the U.S. and the European Union raised pressure on Russia to ease violence that’s left hundreds dead. With Ukraine’s government saying the pro-Russian militants have repeatedly flouted a cease-fire due to expire at 10 a.m. tomorrow, Economy Minister Pavlo Sheremeta said the conflict may drag on even as peace talks continue. “We are not too optimistic,” he told a conference in Kiev today. “Developments are moving in the right direction, but the situation is quite volatile.”
- Looted Banks Fund Iraq Fighters Eyeing Wealth Al-Qaeda Never Had. The extremist militants battling government forces in Iraq know it takes more than guns and ammunition to carve out their Islamic state. As the violence escalates outside Iraq’s largest northern oil refinery in Baiji, fighters from the Islamic State in Iraq and the Levant are trying to add to the oil fields and mini-refineries the group already controls in Syria and are also eyeing factories and power plants. With assets and territory, ISIL’s leader, Abu Bakr al-Baghdadi, has financial strength that al-Qaeda never managed to have under Osama bin Laden, who relied mainly on donations from Sunni Muslim backers living in the Gulf Cooperation Council nations.
- China Finds $15 Billion of Loans Backed by Fake Gold Trades. China’s chief auditor discovered 94.4 billion yuan ($15.2 billion) of loans backed by falsified gold transactions, adding to signs of possible fraud in commodities financing deals. Twenty-five bullion processors in China, the biggest producer and consumer of gold, made a combined profit of more than 900 million yuan from the loans, according to a report on the National Audit Office’s website.
- Carney at Tolerance Limit as BOE Acts to Curb Housing Risks. Mark Carney said the biggest risks to Britain’s recovery stem from the housing market as he introduced measures to limit riskier mortgages and prevent an unsustainable buildup of consumer debt. The unprecedented action was prompted by booming demand for real estate and an increase in high loan-to-income mortgages, with the Bank of England governor saying debt levels put the economy in a vulnerable position. Today’s announcement is the biggest recent effort by a major central bank to tackle the threat of an asset bubble and avoid a repeat of the 2008 financial crisis.
- Record-Low Borrowing Costs Leave Euro-Area Bondholders on Edge. After a six-month rally sent borrowing costs in the euro-area government bonds to an all-time low, investors say they are wary about boosting their holdings at the current level. Euro-region bonds rose today, set for the longest run of monthly advances since the end of 2012, after the European Central Bank unveiled an unprecedented package of stimulus measures designed to boost the economy. That’s sent yields from the Netherlands to Ireland to record lows this month, while German 10-year borrowing costs are falling toward levels plumbed only at the height of the region’s debt crisis.
- European Stocks Are Little Changed After Four-Day Decline. European stocks were little changed, following a four-day decline, as concern that U.S. interest rates may rise early next year offset a rally in London Stock Exchange Group Plc. Barclays Plc, which was sued in New York over its private trading venue, dropped the most in two years. LSE rose 6.1 percent after agreeing to buy Frank Russell Co. for $2.7 billion. Bwin.Party Digital Entertainment Plc advanced 3.6 percent after denying a report that it is considering selling some or all of itself as part of a strategic review. The Stoxx Europe 600 Index slipped less than 0.1 percent to 341.86 at the close in London.
- Bullard Predicts Fed Rate Increase in First Quarter of 2015. Federal Reserve Bank of St. Louis President James Bullard predicted the central bank will raise interest rates starting in the first quarter of 2015, sooner than most of his colleagues think, as unemployment falls and inflation quickens. Asked about his forecast for the timing of the first interest-rate increase since 2006, he said: “I’ve left mine at the end of the first quarter of next year.” “The Fed (FDTR) is closer to its goal than many people appreciate,” Bullard said today in an interview with Fox Business Network. “We’re really pretty close to normal.”
- Treasuries Gain as Consumer Spending Rises Less Than Forecast. Treasuries rose for a third day as reports showing consumer spending in the U.S. grew less than forecast in May and weekly jobless claims declined less than projected suggested interest rates will remain lower for longer. Yields on benchmark 10-year (USGG10YR) bonds reached the lowest level in more than three weeks even as the Federal Reserve’s preferred measure of inflation gains rose to the highest since October 2012. The $29 billion in U.S. seven-year notes to be sold today yielded 2.13 percent in pre-auction trading, compared with 2.01 percent at a previous auction May 29.
- Aspirin Cuts Pancreatic Cancer Risk by Half, Study Finds. Regular aspirin use cut the risk of pancreatic cancer by half, according to a finding that adds one of the most lethal malignancies to the list of diseases the inexpensive pill may help fight. Men and women who took low-dose, about 75 to 325 milligrams, of aspirin daily, usually to prevent heart disease, had a 48 percent lower risk of pancreatic cancer, according to research published today in Cancer Epidemiology, Biomarkers & Prevention, a journal of the American Association for Cancer Research. Taking aspirin regularly for a decade cut the risk by 60 percent. Studies have found that regular aspirin use reduces the risk for colon, esophageal, lung and prostate cancers, and the pill is often prescribed to lessen heart attack and stroke risk. About one in 60 adults will develop pancreatic cancer, which has a five-year survival rate of less than 5 percent, so finding ways to prevent the disease is “crucial,” said senior study author Harvey Risch.
- Supreme Court Invalidates State Law on Abortion Clinic Buffer Zones. Justices Say Massachusetts Law Burdens Free-Speech Rights.
CNBC:
- Why semiconductor stocks may be ready for a fall. Analysts at Goldman Sachs wrote: "In our view, semi stocks have clearly reached problematic territory not just in the levels but more importantly in the markets' willingness to overemphasize good news and ignore bad news." Semiconductor stocks are the most overbought they've been since the tech bubble in 2000, said Jonathan Krinsky, MKM Partners Chief Market Technician.
Business Insider:
Threat Matrix:
- ISIS advances on oil fields in Salahaddin, Diyala. While the blitzkrieg of the Islamic State of Iraq and the Sham and its allies that saw the groups take control of Mosul on June 10 and quickly approach the outskirts of Samarra has slowed considerably, the advance has not stopped. ISIS continues to attack in Diyala and Salahaddin provinces, and has set its sights on oil infrastructure.
- Brazil's Vale joins rivals with China iron ore discounts - sources. Brazil's Vale, the world's biggest iron ore miner, is starting to offer discounts on shipments of the steelmaking raw material to top consumer China, joining Australian rivals in cutting prices following a global surge in production. The move follows deeper price cuts by Rio Tinto and Australia's Fortescue Metals Group for lower-grade iron ore, and indicates China is winning more say over pricing after years of complaining that costs were too high. Vale is offering some Chinese customers a discount of $2.50 a tonne, including cost and freight, for 62-63 percent grade standard sinter feed Guaiba (SSFG) for third-quarter contracts, three mill sources with direct knowledge of the matter said.
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