The Greek credit crisis continues, though German chancellor Angela Merkel took the edge off, saying she would do all she can to keep Greece in the euro. European markets were mostly lower but U.S. markets were headed higher. The Federal Reserve two-day policy meeting concludes Wednesday and Chair Janet Yellen will hold a press conference. Markets don’t expect any major policy changes from the current meeting, with most prognasticators betting on a September rate hike.
Private pension plans raise investments in hedge funds, miss benefits of rally. In the past five years, major retirement plans from Ford Motor to Kroger’s have poured money into alternative investments, becoming the second largest group behind public pensions. Before the financial crisis they ranked fifth. As a result, returns have lagged during the bull market rally. In 2014, private pensions returned 9.7% vs 13.7% for the S&P. Wall Street Journal (paywall)
Hong Kong protesters gathered outside government offices. The legislature is debating whether Hong Kong citizens can vote for their chief executive. The one condition: China gets to vet the candidates. BBC
China, Australia sign free trade agreement. The countries negotiated for decades to conclude the pact. Prime Minister Tony Abbott said: “”This agreement will give our nations unprecedented access to each other’s markets.” ABC
Starbucks bids La Boulange and juices adieu. The firm is closing all of its 23 La Boulange stores in San Francisco in September. It acquired the bakery cafés in 2012 for $100 million. While it didn’t elaborate on why it was shutting the chain, it said “La Boulange stores are not sustainable for the company’s long-term growth.” It is also closing its Evolution Fresh juice brand. Financial Times (paywall)
Old Mutual prices shares at $17.50 apiece. The insurer and investment group will offer 13.3 million shares in its asset management unit to raise funds for “general corporate purposes.” Financial Times (paywall)
Photo by Day Donaldson via Flickr.