The daily business briefing: June 27, 2022
Russia defaults on foreign debt for 1st time since 1918, G7 leaders discuss more economic measures against Russia, and more
Russia defaults on foreign debt for 1st time since 1918
Russia missed two payments on its foreign-currency sovereign debt late Sunday, triggering its first foreign debt default since 1918. Russia fell into delinquency not because it ran out of money, but because Western sanctions imposed in response to its invasion of Ukraine prevented it from getting the equivalent of $100 million payable in dollars and euros to bondholders, The Wall Street Journal reported. Sanctions made the default inevitable because they disconnected Russia from the global financial system. The missed payments weren't expected immediately to damage Russia's markets or its economy, partly because Russian bonds already have been trading for pennies on the dollar since shortly after the invasion started in late February, as investors braced for a default.
G7 leaders discuss more economic measures against Russia
Group of Seven leaders met with Ukrainian President Volodymyr Zelensky via video link on Monday as they discussed new economic measures to punish Russia for invading Ukraine. The plans include a price cap on Russian oil, higher tariffs on Russian goods, and more economic sanctions. The leaders are working to finalize plans for the oil price cap during their three-day summit in the German Alps, with G7 finance ministers then working out the details in the coming weeks. The United States also plans to announce it has purchased an advanced surface-to-air missile system for Ukraine, to help it resist Russia's invasion. Zelensky has expressed concerns that Western support is fraying as the war pushes up prices of fuel and other goods.
Stock futures rise following 1st positive week since May
U.S. stock futures rose early Monday, putting Wall Street on track to continue last week's rebound from recent heavy losses. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3 percent and 0.4 percent, respectively, at 6:30 a.m. ET. Nasdaq futures were up 0.6 percent. The three main U.S. indexes last week posted their first positive week since May, rising from their bear-market lows. The Dow jumped 2.7 percent on Friday to finish last week up 5.4 percent. The S&P 500 and the tech-heavy Nasdaq gained 3.1 percent and 3.3 percent, respectively, on Friday. The S&P 500 finished the week up 6.5 percent, while the Nasdaq surged 7.5 percent.
Regulators announce recall of solar patio umbrellas sold at Costco
The U.S. Consumer Product Safety Commission urged people who bought solar-powered patio umbrellas sold exclusively at Costco to "immediately stop using them" and return the umbrellas after numerous units caught fire. The recall applies to about 400,000 SunVilla 10 foot Solar LED Market Umbrellas sold in the United States and Canada. "The lithium-ion batteries in the umbrella's solar panels can overheat, posing fire and burn hazards," the CPSC said. The umbrellas, which feature LED lights on their inside arms and a solar panel on top, were produced by California-based SunVilla Corp. and sold at Costco for $130 to $160 between December 2020 and May 2022.
'Elvis,' 'Top Gun: Maverick' post rare box-office tie
Elvis and Top Gun: Maverick finished the weekend neck-and-neck atop the domestic box office, with both films bringing in roughly $30.5 million in ticket sales. Elvis led on Friday but came in second on Saturday, leaving the movies essentially tied before official tallies are released Monday. Elvis' debut was unusually strong for a film targeting older audiences, and Maverick's weekend haul was a rare windfall for a film in its fifth weekend. Maverick has now topped $1 billion worldwide in just 31 days. Jurassic World Dominion and Universal's Blumhouse Productions thriller The Black Phone both made more than $20 million.