Walmart is writing a check for $282 million to settle an investigation into its questionable business practices overseas, including bribing Brazilian and Mexican officials for permits, reports AP.
Why it matters: The civil and criminal allegations have negatively impacted Walmart's reputation as the company had to deal with investor lawsuits, and spend millions on compliance, says the New York Times. The U.S. Securities and Exchange Commission and Department of Justice have indicated this has been one of the largest investigations under the Foreign Corrupt Practices Act, which prevents American companies from bribing foreign officials, according to the Times.
The S&P 500 closed nearly 1% higher on Thursday, topping the previous closing record set back in April, while the Dow Jones Industrial Average rose 250 points and the Nasdaq ended 0.80% higher. Bond yields hit multi-year lows as more investors piled into U.S. treasuries.
Why it matters: As far as equities are concerned, the prospect that the Federal Reserve may cut interest rates outweighs any fears about the escalating trade tensions that spooked markets in recent weeks. The bond market, however, is signaling more concern that a Fed cut could indicate problems ahead for the U.S. economy.
Argentina's economy is falling apart, further evidenced by its second straight quarter of negative GDP growth, but no one has bothered to tell its Merval stock index, which has risen almost 18% in June and 32% year to date.
The big picture: The country is firmly in a recession, but analysts say the improved prospects of market-friendly President Mauricio Macri, who has overseen the country's "Macrisis," winning re-election are buoying the market this month.
While China's most well-known equity indexes have underperformed this year, its onshore stocks — so-called A-shares — have driven returns well above the U.S. and index maker MSCI's all-world stock index.
What it means: The A-shares are primarily domestic companies and therefore less exposed to the U.S.-China trade war.
Mexico became the first nation to ratify the U.S.-Mexico-Canada trade deal on Wednesday with little opposition within the Mexican Senate, reports Politico.
Details: The new North American free-trade agreement may not be in its final format as House Democrats demand changes to the deal regarding enforcement, labor, the environment and drug pricing, per Politico. Mexico must sign off on any future changes.
Bahrain has granted journalists from six Israeli media outlets permission to enter the country next week to cover the conference at which the Trump administration will launch the economic portion of its Israeli-Palestinian peace plan.
Why it matters: This is an unprecedented move by Bahrain, which does not have formal diplomatic ties with Israel. It's also a significant achievement for the White House "peace team," led by Jared Kushner, which has been working to gradually normalize relations between Israel and the Gulf states. During preparations for the event, the White House asked Bahrain to allow Israeli reporters to cover it.
Multibillion-dollar stock market debuts from companies like Zoom, Uber and Pinterest have grabbed headlines in 2019 with eye-popping numbers, but new data shows IPO activity actually declined significantly this year, globally and in the U.S.
What's happening: Capital raised for both domestic and cross-border IPOs fell by 37% year-over-year, with volume down 34%, multinational law firm Baker McKenzie reports.
European Central Bank President Mario Draghi signaled that more stimulus is coming for the eurozone in a speech Tuesday morning.
What's next: The new measures are likely to include the central bank lowering interest rates below the current -0.4% interest rate that already means some depositors pay the ECB to loan it money.
