Good morning,
The Federal Open Market Committee begins its two-day meeting; no major policy changes are expected. At 8:30 a.m. ET, housing starts will be released. On Monday, the National Association of Home Builders reported confidence had jumped to 59 in June, up from 54 in May, a sign of improving sales conditions. Donald Trump is expected to throw his hat into the ring, making him the 12th GOP candidate in the presidential race.
Stocks crumble, bonds rally as Greece refuses to present new ideas to resolve crisis. Stock markets globally extended losses and the U.S. looks headed for a third day of declines. German and U.S. bonds rallied, and spreads vs weaker credits widened. The cost of insuring European debt rose 88 basis for banks and insurance companies and climbed to 75 basis points for investment grade debt, the highest since October. Bloomberg
Top Al Qaeda leader killed in a missle strike. The Yemen branch of the terror group confirmed the death of Nasser al-Wuhayshi on Tuesday, a victory for the U.S. In a video statement, the group said: “Let it be known to the enemies of God that their battle is not only with one person or figure, no matter how important.” Al Qaeda has operated in Yemen since 2002 and al-Wuhayshi was the second ranking leader in the terror network. New York Times (paywall)
Merger madness with pharmaceuticals, drug stores. UnitedHealth Group and Anthem Inc have been approaching smaller competitors to streamline costs in the post-Obamacare world. UnitedHealth is wooing Aetna in a deal valued at $42 billion and Anthem is talking to Cigna Corp. about a merger, valued at $45 billion. Meanwhile, CVS Health Corp is buying Target’s pharmacies and clinics in a $1.9 billion deal. Wall Street Journal (paywall), Reuters
Warren Buffett buys stake in Australian insurance company serving Asia. Buffett’s Berkshire Hathaway will acquire an initial 3.7% stake in Insurance Australia Group for 500 million Australian dollars ($388 million) as part of a 10-year partnership. The billionaire investor’s latest move signals his company’s plan to enhance its presence in the Asian region. The Wall Street Journal (paywall)
Coty to acquire three P&G businesses. The U.S. cosmetics group is set to acquire Procter & Gamble’s three businesses – cosmetics, fragrant and hair care – worth $12 billion after winning in auctions. A deal though has yet to be finalized. Reuters
Asia Pacific ex-Japan to overtake North America in terms of private wealth. In 2016, the Asian region will have an estimated $57 trillion in private financial wealth, outstripping North America’s $56 trillion. Last year, Asia Pacific ex-Japan likewise toppled Europe in terms of private financial wealth, thanks to newly-minted millionaires in China who benefitted from the country’s stock market boom. Bloomberg
Photo by Jaafar Alnasser via Flickr.