- Reuters/KCNA KCNA
Here is what you need to know.
It’s a hung parliament in the UK. Theresa May’s Conservative Party won 318 seats in the UK general election, falling short of the 326 necessary to secure a majority government.
CITI: We expect Theresa May to resign. A team of analysts at the investment bank believes “following what is widely regarded as a poor campaign and failure to translate a strong lead in the polls into a larger majority in the Commons, we expect May is likely to resign.”
The British pound is getting smoked. The currency sank as much as 2.5% on word the general election resulted in a hung parliament, but has won back a portion of those losses amid speculation the Conservatives could form a coalition with Northern Ireland’s Democratic Unionist Party.
Comey’s testimony had something for everyone. “Trump will benefit from admission that he was not under investigation and Comey’s revelation that he leaked his own memo to require a special counsel be appointed,” Matt Mackowiak, a Republican strategist and president of the Potomac Strategy Group, told Business Insider in an email. “Trump will be harmed [by] inappropriate comments about Flynn made on the Oval Office, which I do not believe rose to the level of illegality.”
Wall Street got some terrible news from the Comey testimony. “From a markets perspective, my concern remains that this issue is beginning to dominate the congressional bandwidth, which is a headwind for advancing the GOP’s pro-growth agenda,” Isaac Boltansky of the political-research firm Compass Point told Business Insider.
The House passes a bill to rollback many Dodd-Frank regulations.“The CHOICE Act reins in Dodd-Frank and delivers the regulatory relief these banks so desperately need,” House Speaker Paul Ryan said in a speech on the House floor on Thursday. “This will change our communities, because these small banks are the lifeblood of our Main Streets.”
China’s inflation picks up. Consumer prices rose 1.5% year-over-year in May, up from April’s 1.3% advance, data released on Friday by China’s National Bureau of Statistics showed. Producer prices jumped 5.5%, making for a sharp slowdown from April’s 6.4% advance.
JIM ROGERS: The ‘worst’ crash in our lifetime is coming. Speaking with Business Insider’s Henry Blodget on this week’s episode of “The Bottom Line,” legendary investor Jim Rogers said, “Well, it’s been over eight since the last one. This is the longest or second longest in recorded history, so it’s coming.”
Stock markets around the world are higher. Japan’s Nikkei (+0.5%) paced the gains in Asia and Britain’s FTSE (+0.6%) is out front in Europe. The S&P 500 is set to open higher by 0.2% near 2,438.
Earnings reports trickle out. Straight Path Communications releases its quarterly results ahead of the opening bell.