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Bitcoin, Ethereum Headline Plunge of Digital Currencies





Bitcoin and ethereum spearheaded the decline of virtual currencies after posting record highs and experiencing a flash crash last week.


Data showed that bitcoin stood at a low of about $2,255.44 in intraday trading, its lowest since June 15. Ethereum traded at $221.45, down 26%. Also, ripple has lost around 13% to about 26 cents.


Ether, a cryptocurrency based on the ethereum blockchain, dropped June 21 following the congestion on its network slowed down deals, prompting digital currency exchange operators such as Bitfinex to stop transactions.


Still, the two largest digital currencies have soared in value this year. Bitcoin has gained around 150% year to date. Ether started 2017 about $8.


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Wall Street Stumbles After Senate Delays Health Vote





U.S. equities faltered with large-cap technology stocks losing over one percent after a healthcare bill was delayed by the U.S. Senate which fueled policy uncertainty. The S&P 500 recorded its largest one-day decline in nearly six weeks and ended at its weakest point since May 31.


The Dow Jones industrial average retreated 0.46 percent to finish at 21,310.6, as Verizon led losses while JPMorgan Chase the best performer. The S&P 500 fell 0.81 percent to close at 2,419.38, with information technology leading ten sectors lower while financials being the only gainer. The Nasdaq composite dropped 1.61 percent to end at 6,146.62.


Major indexes extended declines after U.S. Senate Republican leader Mitch McConnell delayed a planned vote on a bill to take down the Affordable Care Act until after the Senate's July 4 recess.


The tech sector fell 1.7 percent. Google-parent Alphabet lost over two percent. The European Union fined the company a record $2.7 billion, with regulators ruling Google with a violation of antitrust rules.


Shares of Facebook, Netflix and Amazon also retreated, ending nearly 1.5 percent lower.


However, technology stocks continue to be the best-performing major group in 2017 as the sector gained almost 20 percent so far.


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ARGENTINA: Macri Defends Greater Integration With Chile





Argentina's President Mauricio Macri stressed to Chilean lawmakers the importance of an increase in both nations integration and of an improvement in bilateral trade. Macri's made the comments during a speech at Chile's National Congress. Maur?cio Macri also pointed out that Argentina and Chile should agree on "long-term" energy policies that will help to develop both countries soon, according to a statement by the Casa Rosada. Also, Macri called on Chilean lawmakers to help to promote integration between the Mercosur and the Pacific Alliance. Later, in the Audience Hall of the La Moneda's Palace, the Chilean President Michelle Bachelet and Macri held a bilateral meeting aimed to strengthen ties between both nations.


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COLOMBIA:Chile Suspends Beef Imports Due To Foot-and-mouth Disease Outbreak





Chile's Agricultural and Livestock Service (SAG) said in a statement that it would temporarily suspend imports of Colombian meat products after a foot-and-mouth disease outbreak in the department (state) of Arauca.


"The SAG has already contacted the Colombian authorities to monitor the case, and better assess the situation," said the Chilean agency. SAG also noted that just a month ago it had authorized meat imports from Colombia after a thorough evaluation process.


Last Saturday, Colombia's Agricultural and Livestock Institute (ICA) reported the detection of a foot-and-mouth disease outbreak, the first since 2009. Since the news came, Chile, Peru, and Panama have suspended their meat imports, and Ecuador reported that it would strengthen sanitary controls.


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Global Bonds Swivel as Investors Weigh in Central Banks’ Next Move





Government bonds around the world gyrated as investors strived to analyze hints from central banks on when the massive stimulus programs currently in place that have supported markets will reach its end.


Top ECB officials gave investors mixed signals regarding when the European Central Bank would unwind its 2.3 trillion euro bond-purchasing program and the heads of the Bank of England and the Bank of Canada indicated that would begin reducing stimulus.


The euro slid against the dollar then managed to bounce back. Meanwhile, the pound and the Canadian dollar surged. Yields on the U.K. government bonds jumped. Treasuries and other bonds' yields also rallied.


The movement on global bond markets have been strongly linked, and U.S. government bonds was on the heels of the movements of European bonds.


Yield on the 10-year Treasury note ended at 2.223 percent from 2.198 percent in the previous day. Stronger yields on European bonds make U.S. Treasuries less attractive to foreign investors.


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China Manufacturing Sector Picks Up Steam In June





The manufacturing sector in China continued to expand in June, and at a faster pace, the latest survey from the National Bureau of Statistics showed on Friday with a manufacturing PMI score of 51.7.


That beat forecasts for 51.0, and it's up from 51.2 in May.


It also moves farther above the boom-or-bust line of 50 that separates expansion from contraction.


The bureau also said that its non-manufacturing PMI came in with a score of 54.9, up from 54.5 in the previous month.


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BOE Chief Economist Reiterates Raising Rates Need to be Analyzed





Bank of England's main economist Andy Haldane emphasized the central bank had to study thoroughly the prospect of raising interest rates in order to cap the higher cost of living.


Haldane said Thursday they are satisfied with the current rates, although they need to be mindful for what happens next. He earlier said rate hikes had to be determined in a way that curtailed the threat of high inflation.


Britain's inflation is at 2.9%, its highest in nearly four years. Workers' pay has started to lag behind inflation again following a decade of mostly lower spending power.


The BOE economist mentioned low productivity was one of the biggest contributors to lackluster pay increase, noting that only between 1% and 5% of companies were high-innovation and the primary cause of low productivity and wage is that long lower tail of firms.


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Indonesia Manufacturing Sector Slips To Contraction - Nikkei





The manufacturing sector in Indonesia fell into contraction in June, the latest survey from Nikkei showed on Monday with a manufacturing PMI score of 49.5.


That's down from 50.6 in May, and it falls beneath the boom-or-bust line of 50 that separates expansion from contraction.


Individually, stagnation in order books caused output to fall, while firms lowered their payroll numbers but scaled up buying levels.


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Fairfax Ends Talks as PE Suitors Move On





Australia's oldest newspaper publisher Fairfax Media said it has ended talks with two U.S. private equity suitors, as neither of the two made a binding offer for the company.


The publisher previously took part in bids worth nearly A$2.87 billion ($2.2 billion) from TPG Capital Management LP and Hellman & Friedman, and both companies were granted due diligence.


TPG recently announced that it has pulled out it's A$1.20-per-share bid. A Hellman & Friedman spokesperson was not available for comment.


The Australian company will move on with initial plans to demerge its profitable property classified division, Domain Group, by the end of 2017, according to its statement.


Fairfax said it expects Domain's revenue to increase ten percent for the year to June 30, 2018, and revenues for its newspapers and radio divisions are seen to decline.


The forecast EBITDA range of between A$62 million and A$266 million is in line with the projections of two analysts polled by Thomson Reuters.


Fairfax shares tumbled eight percent in late trade on Friday after The Australian newspaper reported that Hellman & Friedman would unlikely embed a formal bid.


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U.S. Auto Sales Drop in June





Major automakers posted a fourth straight month of lower U.S. new vehicle sales for June, despite substantial consumer discounts and looser loan terms, which provides new evidence that this year will fail to meet 2016's record year for the industry.


Shares of automakers increased, however, retail sales were comparatively stable at the U.S. automakers.


Industry consultant Autodata placed the industry's seasonally adjusted annualized rate of sales at 16.51 million units, its weakest rate since February 2015.


U.S. consumers were in favor of bigger pickup trucks, SUVs and crossovers. Sales of passenger cars were also hurt.


The U.S. auto industry has been preparing for a downturn after touching a record 17.55 million new vehicles sold last year. An oversupply of almost newly used vehicles posed as a threat for new vehicles sales while automakers depended on consumer discounts and loosed lending terms.


Car shopping website Edmunds said the average length of car loans hit a record peak of 69.3 months in June.


General Motors Co said its sales dropped five percent compared with June 2016, however, it believes that the industry will see higher sales by the second half of this year.


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