Stock Futures Rally U.S. futures surged, as a debt deal reached by Congressional leaders sparked a global relief rally in equities.
Plan Leaves Out Hard Issues After weeks of partisan wrangling, Obama and congressional leaders reached a deal to raise the debt ceiling while cutting spending by about $2.4 trillion, avoiding default but setting up debates over how Washington taxes and spends.
US deficit: dodging the fundamentals Debt deal avoids default, but is a failure by any other measure
HSBC to Cut Jobs HSBC said it will cut around 5,000 jobs as part of its plan to cut costs, as the bank reported flat first-half revenue of $35.7 billion. CEO Stuart Gulliver also said the bank could reduce head count in its retail division by 25,000.
German Plant Orders Edge Up New orders in June for Germany’s plant and machinery industry rose 1% year-to-year in real terms, the industry group VDMA said.
U.K. Growth Forecast to Slow The U.K. economy will grow significantly more slowly this year than previously forecast because companies have curbed their activity following a series of shocks around the world. The Confederation of British Industry cut its forecast for U.K. economic growth this year to 1.3% from the 1.7% that it predicted in May, citing the continuing sovereign-debt drama in the euro zone, the U.S. government’s wrangling over its debt problems, and the March tsunami in Japan as factors that have weakened business sentiment and stifled growth.
India Panel Cuts Growth Estimate An influential advisory panel cut India’s economic growth estimate to 8.2% due to global economic uncertainty and prolonged monetary tightening that has crimped industrial activity and also warned that the central bank will continue raising rates until inflation shows definite signs of trending down.
RBI: Need to Raise Rates to Tame Inflation India needs to raise interest rates to control inflation, its central bank governor said, firming expectations of continued monetary tightening as authorities grapple with uncomfortably high prices.
Apple more than doubled its share of the global mobile-phone market last quarter to 5.6%, reports IDC, while Nokia, Samsung and LG Electronics all saw their market share shrink (to 24.2%, 19.2%, and 6.8%, respectively). Overall handset shipments rose 11.3% in the quarter to 365.4M.
Barron’s Alan Abelson: Mr. Obama suffers from one serious flaw as a negotiator — a tendency to shout “let’s compromise” before he learns what the other side is proposing or, for that matter, whether it’s proposing anything. Had he been president in the early 19th century, in all likelihood, Florida would still be part of Spain (although to be fair, Americans, thanks to his hard bargaining, probably would enjoy beach privileges).