We’ve got a trifecta of negative stories weighing on stocks. An ongoing stock market correction in China, a possible default by Greece as the country endures a bank run, and a huge default by Puerto Rico. It’s going to be ugly on Wall Street today.
Greece has closed its banks six business days and is severely restricting the withdrawal of cash from ATM’s as lawmakers called for a nationwide vote on an austerity package demanded by the EU in exchange for another huge bailout. If Greece doesn’t get a massive infusion of funds by tomorrow, it could go bust and end up exiting the EU currency zone.
European stocks are down 2-10% today.. and the Euro is slipping against the U.S. dollar.
Puerto Rico acknowledging it can’t pay back some $72 billion in public debt. That could lead it to default. That will shake the bond market here at home. Bonds have traditionally been seen as a safe investment, but bond owners in the U.S. territory could lose all their money.
And a sell-off in China continues today. Chinese stocks fell almost 8% Friday. Stocks there down another 3% today. Many analysts have been warning for months that Chinese stocks are in a bubble.
President Obama signs a big trade bill today at 2pm. It’s been a bloody political battle to get it to his desk.
Convicted killer David Sweat is in critical condition right now after being shot by police Sunday after being on the run for nearly 3 weeks. His partner in crime and fellow-escapee Richard Matt escaped from an upstate New York prison. Richard Matt was tracked down and killed by police on Friday. There’s a status hearing for Sweat today at 4pm. Peter Doocy, Laura Ingle, and Rick Leventhal reporting.
A fast moving fire in Washington state has forced the evacuation of at least 1000 people, and burned 9 buildings.
A plane crashed into a home in Massachusetts killing 3 people.
A big setback to report to the quest for space. A Space X rocket delivering supplies to the Space Station blew up two minutes after liftoff from Florida. The 3rd rocket failure this year.
Is there a serial killer on the loose in Ohio? Six women have disappeared from the small town of Chillicothe since May of 2014, and 4 of them have been found murdered.
California moving closer to mandatory vaccinations today. There’s a final vote in Sacramento, and Governor Jerry Brown is expected to sign the legislation which requires vaccinations for most children in public schools. California vaccination rates have plummeted setting off fears of epidemics.
Six party talks that are supposed to lead to a deal to curb Iran’s nuclear program back underway in Vienna. The much-delayed deadline is supposed to be Tuesday.