Live news: China Evergrande files for bankruptcy in New York

Summit: U.S. President Joe Biden hosted Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk-yeol at Camp David on Friday. Biden will announce a landmark trilateral agreement that will help Washington and its Asian allies strengthen their deterrence against North Korea and China.

Economic data: Malaysia releases second-quarter gross domestic product data on Friday. Economists expect the data to show slower growth in the quarter ended June. Meanwhile, Japan released its consumer price index data for July.

market: Stock futures in Japan and Hong Kong fell on Friday. U.S. sovereign bond yields rose, trading near their highest level since 2007 on Thursday, weighing on the country’s stock market, with the Nasdaq Composite down 1.2% and the S&P 500 closing down 0.8%.

Singapore: About 10 days before the National Day holiday on August 8, Prime Minister Lee Hsien Loong will deliver a speech at the National Day Rally on Sunday. The speech is considered one of the island nation’s most important political speeches of the year.

Embattled real estate group China Evergrande has filed for bankruptcy protection in New York federal court for so-called Chapter 15 proceedings seeking recognition of foreign companies it has restructured in the United States.

Evergrande is also pursuing a parallel “scheme of arrangement” in the Cayman Islands, as well as restructuring proceedings pending in Hong Kong’s High Court, the petition said.

The petition was signed by Jimmy Fang, who described himself as a “foreign representative” of China Evergrande. A meeting of “scheme creditors” is scheduled for August 23 at the Hong Kong office of Sidley Austin LLP, the US law firm representing Evergrande.

Shares of CVS Health fell more than 8.1% at market close on Thursday, their biggest one-day drop since October, after one of California’s largest health insurers decided to abandon the company’s Caremark unit as its primary pharmacy benefits manager.

Blue Shield of California said it would partner with Amazon and other companies including Mark Cuban Cost Plus Pharmaceuticals to supply its 4.8 million customers.

The insurer said the U.S. drug procurement system, dominated by PBMs (essentially drug middlemen), has “collapsed” and expected to save $500 million a year in drug costs through the new model.

Shares of Cigna and UnitedHealth, which own PBM units, fell 6.4 percent and 2 percent, respectively.

The U.S. government’s escalating trade dispute with Mexico over a ban on genetically modified corn reflects the political power of the U.S. corn belt states ahead of the 2024 presidential election.

Washington on Thursday called for the formation of a dispute settlement panel that would make binding decisions under the U.S.-Mexico-Canada trade pact.

The trade dispute also involves reputation, with the US claiming that GM corn is harmless to humans.

The government of Mexican President Andrés Manuel Lopez Obrador said the measures to limit the genetically modified corn were to protect the health of the people. The U.S. claims the rules violate trilateral trade agreements, and there is no scientific evidence for them.

The Citadel credit fund, which recently secured an existing $500 million loan held by Apollo Global Management, has agreed to provide much of the costly financing for bankrupt trucking company Yellow.

Yellow has secured a $142.5 million bankruptcy loan and reached an agreement to sell its real estate for $1.3 billion, lawyers for Yellow told federal bankruptcy court on Thursday.

The deal will see Citadel Fund provide $100 million of so-called debtor-in-possession financing, while Yellow’s largest shareholder, MFN Partners, will provide the remaining $42.5 million.

Estes Express Lines has made a $1.3 billion bid for Yellow’s terminals, which will cover all of the group’s existing secured debt. Yellow, which filed for Chapter 11 bankruptcy earlier this month, is also seeking to sell its remaining assets, including trucks and trailers.