The U.S. employment report is expected to show the number of employed people increased by 200,000 in June, a smaller number than the previous month. Bitcoin (BTCUSD) and other cryptocurrencies fell under selling pressure after the collapsed cryptocurrency exchange Mt. Gox began paying out $9 billion. The European Union reportedly plans to warn social media platform X over content violations, in the latest move against U.S. tech companies. Disney (DIS), Netflix (NFLX) and other streaming services have asked a Canadian court to cancel content fees. Shell (SHEL) is expected to take an impairment loss of up to $2 billion after halting work on a biofuel plant. U.S. stock futures were little changed after the Independence Day holiday. Here’s what investors need to know today.
1. The employment report is expected to show a slowdown in hiring
Following yesterday’s holiday, investors will begin Friday trading with the latest data on the labor market as the Bureau of Labor Statistics releases its monthly employment report at 8:30 a.m. ET. Economists expect employment to increase by 200,000 in June, down from 272,000 in May. Meanwhile, the unemployment rate is expected to remain at 4%, and hourly earnings are expected to fall to 0.3%, down from 0.4% last month. In minutes from the Federal Reserve’s June meeting released on Wednesday, some officials said they were watching the jobs data more closely as inflation falls, and that unexpected weakness in the labor market could prompt the Fed to cut interest rates more quickly.
2. Bitcoin and Ether fall as Mt. Gox begins payments
The value of cryptocurrencies has plummeted after the collapsed crypto exchange Mt. Gox began making payments to former customers, totalling an estimated $9 billion, sparking selling pressure from holders hoping to make a profit. Bitcoin (BTCUSD) is down about 3% to around $55,000, while Ether is down 3.5%, part of a sell-off worth $170 billion in market capitalization in the past 24 hours. The Mt. Gox payment could inject between 65,000 and 140,000 new Bitcoin into the market, while customers will also receive payments in Bitcoin Cash.
3. The EU is reportedly planning to warn Company X for failing to take measures against dangerous content
The European Union is preparing to issue a formal warning to Elon Musk’s social media platform X over its failure to combat dangerous content, the latest in a series of actions it has taken against big tech companies under recently enacted laws. Bloomberg report. According to the report, X could be fined up to 6% of its turnover if it violates the Digital Services Act (DSA). The EU is also using the new Digital Markets Act (DMA) to sue other tech giants, including Apple (AAPL) for unfairly restricting how developers can ask for payment, and Facebook parent Meta Platforms (META) for preventing users from opting out of data collection.
4. Disney, Netflix, and other streamers try to block Canadian content fees
Walt Disney (DIS), Netflix (NFLX) and other streaming companies have asked a Canadian court to halt plans to impose a 5% fee on sales in the country to help fund domestic content. The lawsuit filed by the Motion Picture Association of Canada in the Federal Court of Appeal seeks to put an end to payments proposed by the Canadian Broadcasting and Communications Commission that could cost streaming companies as much as C$200 million ($147 million) a year. The Wall Street Journal report. Other streaming services targeted in the lawsuit include those from Warner Bros. Discovery (WBD) and Paramount Global (PARA).
5. Shell reports $2 billion loss due to halted construction of Dutch biofuel plant
British energy giant Shell (SHEL) said it will take an impairment charge of between $1.5 billion and $2 billion after pausing construction of a major biofuel plant in the Netherlands. Europe’s largest energy company said on Friday it plans to take a tax hit after weak market conditions forced it to suspend construction of a biofuel facility in Rotterdam and sell a chemical refinery in Singapore. The company also said it expects first-quarter revenue at its integrated gas division to decline due to seasonality.
