WrapManager’s Weekly Summary of Top Economic and Market News United States US Bankruptcy Judge Steven Roberts ruled Wednesday that Detroit could continue bankruptcy proceedings, allowing city officials to move forward in restructuring some $18 billion of debt, which includes $5.7 billion in unfunded liabilities for healthcare and other retiree benefits and a $3.5 billion pension liability. This marks the largest municipal Chapter 9 filing in US historyi. Earnings season continues in full force, with notable technology giants Apple and Facebook reporting this week. Both companies exceeded expectations, with Apple reporting earnings of $7.47 per share on revenues of $35.3 billion, while analysts estimated it would make $7.32 per share on $35.02 billionii. Facebook widely exceeded earnings estimates due to better than expected revenue on mobile ads. The company reported earnings of 19 cents per share on revenues of $1.81 billion, which outstripped estimates of 14 cents per share on revenue of $1.62 billioniii. Of the 104 companies that have reported earnings as of July 19, 72% of them have exceeded expectations. So far, this is slightly better than last year’s average of 70%, and in line the four year average of 73%iv. Japan Prime Minister Shinzo Abe’s ruling coalition (known as the Liberal Democratic Party, LDP) scored a major victory Sunday in winning enough seats to secure a majority in the upper house. The LDP now has a majority in both chambers of parliament, giving the party greater control to potentially continue aggressive monetary policies that have characterized Japanese politics this yearv.
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