Good morning! Here’s what you need to know in markets on Friday.
The Fed could delay a rate hike until after Britain votes on Brexit. The U.S. Federal Reserve may be forced to delay a rate hike at its June meeting because of mounting concern over the economic fallout from Britain’s vote on whether to leave the European Union. The US central bank’s FOMC will meet on June 14-15.
BP is paying $175 million back to shareholders. BP agreed on Thursday to pay $175 million to shareholders who brought a class-action lawsuit that accused the oil company of misleading them by understating the severity of the 2010 oil spill in the Gulf of Mexico. The claims will be paid during 2016-2017.
Citigroup looks set for a horrible Q2. Citigroup CEO Mike Corbat indicated on Wednesday that the company’s second-quarter net income will be roughly 25% lower than the same period a year earlier.
Investors are pulling money out of Pimco. Investors pulled approximately $1 billion from the Pimco Total Return Fund, one of the world’s largest bond funds, in May following cash withdrawals of the same amount the previous month, the firm said on Thursday.
David Cameron has denied ‘scaremongering’ ahead of Britain’s EU referendum. In a debate on Sky News, the prime minister vehemently denied that his campaign amounted to scaremongering and said he had genuine fears about the consequences of the UK leaving the EU, whether economically or geopolitically.
Twitter and Yahoo have reportedly held merger talks. Twitter has been in talks with Yahoo about a possible merger, according to a report in The New York Post. The social media company, whose user growth has plateaued, held a management-level meeting with Yahoo CEO Marissa Mayer in recent weeks, according to the report.
BHS is officially shutting down. The high street chain is being closed after administrators couldn’t find a buyer for the insolvent department store. 11,000 jobs are likely to be lost across the country.
It’s PMI day in Europe. Markit’s latest Purchasing Managers Index is out on Friday, detailing the state of the services sector in all of the eurozone’s biggest economies. France, Germany, Italy, and Spain will all get an individual reading, while there’s also a eurozone-wide figure released.
China’s service sector is stuttering. Growth in the sector, tasked with powering economic growth in the decades ahead, slowed to a crawl last month. The Caixin-Markit services purchasing managers’ index (PMI) fell by 0.8 points to 51.2 in May, leaving the index at the equal lowest level seen since December 2015.
Starbucks took a huge step to take over the tea business. The coffee giant is partnering with Anheuser-Busch InBev to launch a Teavana ready-to-drink tea in the US.