- Ukraine Declares Cease-Fire After U.S. Expands Sanctions. Ukraine announced a week-long unilateral cease-fire in its easternmost regions after the U.S. imposed sanctions on people linked to the insurgency and accused Russia of providing new military aid to separatists. Ukraine called on all fighters to lay down arms, halting the government offensive against rebels until June 27, the Interior Ministry in Kiev said in a website statement, citing President Petro Poroshenko. “The days ahead will be very decisive for what we can decide” at the summit on June 26-27, Merkel told reporters in Berlin. “We expect Russia to respond in a positive and constructive way.” While Germany wants to see a cease-fire, “there is planning” for other outcomes as well, she said.
- Top Shiite Cleric Adds to U.S. Pressure on Iraqi Leaders. Iraq’s top Shiite cleric added to U.S. pressure on Prime Minister Nouri al-Maliki and his political allies to form a new government that can command support across sectarian lines. Grand Ayatollah Ali al-Sistani, who played a key role in calming sectarian tensions in previous years, today called for the creation of a new “effective” government.
- U.S. Investors in China’s Internet Companies Face Risks. U.S. shareholders face “major risks” from investing in Chinese Internet companies such as Alibaba Group Holding Ltd. that use a variable interest entity, according to a U.S. congressional commission report. Risks are associated with VIEs because the structures create holding companies to link foreign investors to Chinese firms via a set of complex legal contracts, according to the June 18 report by the U.S.-China Economic and Security Review Commission. There is a “high probability” Chinese courts will not uphold those contracts, the report said.
- China Property Failures Seen as $33 Billion in Trusts Due. Chinese property trusts face record repayments next year as the real-estate market cools, fueling speculation among bond funds that more developers will collapse. The trusts, which channel money from wealthy individuals to smaller builders that have trouble obtaining financing elsewhere, must repay 203.5 billion yuan ($32.7 billion) in 2015, according to Use Trust, a Chinese research firm. That’s almost double the 109 billion yuan due this year. New issuance of the products slumped to 40.7 billion yuan this quarter, the least in more than two years, Use Trust data show.
- WTI Advances for Second Day, Narrowing Discount to Brent. Brent for August settlement slipped 42 cents, or 0.4 percent, to $114.64 a barrel on the London-based ICE Futures Europe exchange at 1:50 p.m. in New York. It climbed to $115.06 yesterday, the highest close since Sept.
- ABA’s Keating Says Regulations Throttling Small Banks. Excessive regulation is strangling U.S. community banks, which have closed at the rate of about one per business day since the 2008 financial crisis, said Frank Keating, head of the American Bankers Association. Community banks spend about 15 percent of revenue on compliance even though they weren’t responsible for the credit crisis that spurred new regulations including higher capital requirements, said Keating, the Washington-based trade group’s chief executive officer.
- Gold Options Signal More Gains as Yellen Shakes Up Market. Janet Yellen is breathing life back into the gold market. Trading in bullion options show the biggest rally in nine months has more to run after some contracts betting on higher prices surged by the most since 2012 yesterday. Fed Chair Yellen’s outlook for low U.S. interest rates is bringing investors back to gold after a measure of volatility sank to the lowest since 2010 earlier this week.
- Marijuana Considered for Looser Restrictions by U.S. FDA. U.S. regulators are studying whether restrictions on marijuana should be eased, a step toward decriminalizing the drug at the federal level.
- Iraq's Top Shiite Cleric Calls for New Government. 'Effective' Government Needed That 'Avoids Past Mistakes'.
- The Asset-Rich, Income-Poor Economy by Keven Warsh and Stanley Druckenmiller. The Fed's balance-sheet recovery hasn't stirred business investment, an opportunity killer for workers.
CNBC:
ZeroHedge:
- Iraq Update: Fighting Continues, Battle For Refinery, PM On The Rocks.
- Spot The Oxymoron: "Growth Down, Optimism Up".
- US Accuses Russia Of Sending 10 Tanks Into Ukraine; Russia Responds Merely "Enhancing Border Security".
- Ukraine President Unveils 10Km "No Man's Land" Buffer With Russia; Declares Unilateral Cease-Fire.
- Global Millionaires Increase By Most Since Dot Com Bubble, Control Record $52 Trillion In Wealth.
- Mark Cuban Warns That A Housing Bubble-Like Bust Is Coming To America's Colleges.
- Paul Ryan Erupts At IRS Commissioner Over Missing Emails.
- ISIS Is Spreading These Propaganda Photos All Over Social Media.
- Apple's(AAPL) iWatch Will Come In Multiple Sizes And Have 10 Sensors, Says WSJ.
World Steel Association:
- May 2014 crude steel production. (graph)
Telegraph:
- Interest rates need to be raised – and fast. A normal recovery is kicking in, but the Bank of England still seems oddly bewildered.