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Pre-Market Primer: Futures Fall Ahead of Home Sales Report; Beer Market Consolidates


Anheuser-Busch InBev, the global conglomerate that owns nearly every beer available to you, is trying to snatch up Mexico's Grupo Modelo, makers of Corona.

MINYANVILLE ORIGINAL Spanish finance minister Luis de Guindos officially requested a bailout from the country's eurozone partners to recapitalize Spain's banks, which are still hobbled by bad debts hanging over from Spain's property bubble. No exact amount was cited in de Guindos' letter, but recent reports suggest that the initial quote of 120 billion euros might not be enough. At the eurozone summit later this week, officials might discuss the bailout in more detail.

Spain's bond yields rose 14 basis points this morning to 6.52%. Meanwhile, Denmark's two-year borrowing costs and Switzerland's 10-year yields have fallen below zero, benefitting from the flight to safety. German debt has fallen out of favor since the government there began to discuss the possibility of shared borrowing for the eurozone. Switzerland and Denmark are outside of the currency union.

George Soros is urging the eurozone to start a fund to buy Italian and Spanish debt to ease the interest rates in those countries.

A report today is expected to show that new home sales in the US rose 0.7% in May to an annualized rate of 350,000, up from April's 343,000. The Dallas Fed will also publish its June manufacturing survey, which is forecast to rise to zero from -5.1, showing that Texas manufacturers see activity to be flat for the coming months.

US futures are down this morning ahead of the data releases. Dow (^DJI) futures are down 0.65%to 12,486.00. S&P 500 (SPY) futures dropped 0.72% to 1,317.20 and Nasdaq (^IXIC) fell 0.56% to 2,559.00.

Anheuser-Busch InBev (BUD), the Belgian brewing conglomerate that produces many popular beers such as Budweiser, is closing in on an acquisition of Mexico's Grupo Modelo, which produces Modelo, Corona, and Pacifico. The deal is said to be valued at as much as $10 billion. Modelo opposed InBev's 2008 acquisition of Anheuser-Busch.

There has been speculation about Google (GOOG) CEO Larry Page's health as Page plans to sit out next month's earnings call, and the I/O developer conference this week. (His Google+ page went silent for about a month until Saturday.) Page sent a letter to employees assuring them that he is okay and he is only sitting out events because he has lost his voice.

Samsung (SSNLF) is predicting that sales of the Galaxy S III Android smartphone could pass 10 million in July, defying concerns about the company's ability to meet demand for the device. Samsung's share of the smartphone market has surpassed that of Nokia (NOK) and Apple (AAPL) but a new iPhone, which is hoped for but still not announced, could take the wind out of the S III's sales.

The Supreme Court will issue a ruling on the Affordable Care Act this week, possibly as early as today. Health care companies will lose an enormous number of customers, who will be again left without the means to pay for care, if the court rules that Congress overstepped its bounds with the individual mandate.

Twitter: @vincent_trivett
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