The bipartisan agreement will suspend the U.S. debt ceiling until the middle of 2021, eliminating the risk that the government could miss payments as early as September, a move that would have severe economic ramifications. It will also likely push the annual budget deficit for the U.S. above $1T next year, while Congress agrees on the details of the annual budget in separate appropriations bills to avert the possibility of a U.S. government shutdown.
Lawmakers further decided that no “poison pills” could be attached to that legislation, such as funding for a border wall with Mexico, or a demand for President Trump’s tax returns. (SA)
Apple is in advanced talks to buy Intel’s smartphone modem-chip business, in what could be a major push toward developing the critical components powering its devices. An agreement could value a portfolio of patents and staff at $1B or more and could come in the next week. For Intel’s part, the deal would allow the company to shed its smartphone operation, which has been losing about $1B annually and has generally failed to live up to expectations. (WSJ)
Coca-Cola reported quarterly earnings and revenue this morning that beat analysts’ expectations, driven by sales of its namesake soda brand. Net sales rose 6% to $10.00 billion for the quarter. The company attributed its strong performance during the quarter to 4% volume and transaction growth in Coke’s namesake brand. Its Zero Sugar line once again saw double-digit volume growth across the globe. (CNBC)