Opening Bell: 6.22.16

Puerto Rico vs bondholders; Brexit, Brexit, Brexit; Man creates smoothie made of McDonald's burgers; and more.
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By M.Minderhoud (Own work) [GFDL or CC-BY-SA-3.0], via Wikimedia Commons

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Puerto Rico, Bondholders Remain at Odds (WSJ)
Puerto Rico drew back the curtain on its talks with bondholders, underscoring how far apart the sides remain in a fight over the restructuring of $70 billion of municipal debt. Puerto Rico’s Government Development Bank on Tuesday disclosed terms of various restructuring proposals discussed in negotiations that have ended. The talks included a committee representing investors in the commonwealth’s general obligation bonds, a group holding senior sales-tax-backed, or “Cofina,” bonds, and a single investor with large holdings of general obligation bonds and junior Cofina bonds, according to the disclosure.

U.S. banks tell trading clients to brace for UK vote (Reuters)
U.S. banks including Bank of America Corp (BAC.N) and Morgan Stanley (MS.N) are warning clients about the potential for extreme price moves as Britain prepares to vote on its membership of the European Union (EU). A vote to leave the EU in Thursday's referendum could unleash turmoil on foreign exchange, equity and bond markets, causing trading volumes to spike and testing the ability of banks' systems to process trades.

Buy everything U.S. if Britain leaves EU: Prudential's Peters (Reuters)
"I think it is a bullish U.S. asset story period, if this thing does happen," Peters said. "I think it will be a great buying opportunity for U.S. assets, from Treasuries to high-yield 'junk' bonds. It may not be an immediate response of a U.S. rally, but I do believe it will be a buying opportunity which will unfold in the medium/long term."

Yellen: Recession Unlikely, but Growth Could Be Slow (WSJ)
Federal Reserve Chairwoman Janet Yellen said the chances of recession this year are “quite low” despite mounting worries that the U.S. could be heading toward a downturn after seven years of tepid economic expansion. “The U.S. economy is doing well,” she said Tuesday, kicking off two days of testimony to Congress on the economic outlook and monetary policy. “My expectation is that the U.S. economy will continue to grow.”

Man creates smoothie made of McDonald's burgers (UPI)
The smoothie -- which he calls "Junk Juice" -- consists of nine McDonald's cheeseburgers, a bagful of french fries and a soda. The burgers and fries came together to create a meaty brown paste before the soda was added to the mixture providing a more liquid texture. A man can be seen drinking an entire glass of the mixture at the end of the video next to a trashcan, to contain portions of the smoothie that he spit out.

Elon Musk Aims to Shore Up SolarCity by Having Tesla Buy It (Dealbook)
His Tesla Motors said on Tuesday that it had offered to buy SolarCity in an all-stock deal, one that could value the latter at as much as $2.8 billion. The aim, Mr. Musk argues, is to create a renewable-energy giant, collecting clean electricity and putting it to work propelling cars. But the transaction highlights the unusual moves that Mr. Musk continues to make to support the various arms of his empire, where he is the largest shareholder of each company. He has taken out loans to buy up shares in Tesla and SolarCity, some backed by his personal stock holdings in both companies — a risky move that leaves him exposed to margin calls if their stock prices slide too far. He has defended the practice as low-risk to other shareholders, given the sheer size of his personal net worth of more than $10 billion.

At Facebook, it's Zuckerberg's way or the highway, experts say (CNBC)
Some investors are concerned about the future of Facebook after shareholders approved a new class of nonvoting Class C shares on Monday. "You're basically placing all of your trust into the genius of one person, and even a great genius sometimes makes mistakes," Charles Elson, director of the University of Delaware's John L. Weinberg Center for Corporate Governance, told CNBC's "Closing Bell." In April, CEO Mark Zuckerberg said that the new stock structure would enable him to help Facebook "continue to build for the long term," while allowing him and his wife to pursue their philanthropic efforts. The structure allows the Facebook founder to sell his nonvoting shares, while retaining Class A and B shares, allowing Zuckerberg to retain control of the company.

Say Goodbye to the Annual Pay Raise (Bloomberg)
GE Company, which recently moved away from the annual review, is considering scrapping annual compensation hikes. "We uncovered an opportunity to improve the way we reward people for their contributions," Janice Semper, GE’s head of executive development, told Bloomberg. GE declined to elaborate on what its new system might look like, but Semper cited the vague goals of "being flexible and rethinking how we define rewards."

It’s All Fun And Games Until A Bounce House Flies Into A Power Line (HP)
A bounce house crashed into a power line after it was swept up into the sky from a birthday party in western New York. Fortunately, no children were in the inflatable attraction when it became unhinged on Saturday, WABC reports. “Oh my god, the bounce house,” a lady is heard screaming in video shared on Twitter by the Niagara County Fire Wire. Sparks fly when the bounce house collides with the electrical tower, the footage shows. “Ohhhh, shit!” she exclaims on impact.

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