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Good morning. Here’s what you need to know.
- Asian markets were mostly higher in overnight trading with the Hang Seng up 1.51 per cent ending at a seven-week high tracking gains in international markets. Europe is higher and U.S. stock markets have opened slightly lower.
- Bob Diamond, CEO of Barclays, has stepped down. Chairman Marcus Agius who was expected to step down will return to lead the CEO search for the new CEO. Pressure had been building for Diamond to resign after the bank was fined $453 million over its manipulation of LIBOR rates.
- Chinese services PMI climbed to 56.7 in June, from 55.2 in May, rising to a three-month high. This comes after manufacturing PMI ticked lower to 50.2. Now here are the 29 most bizarre economic indicators in the world >
- Microsoft is taking a $6.2 billion non-cash write down for its acquisition of digital marketing company aQuantitative. The acquisition did not provide the growth it was expected to.
- China has begun the historic process of a leadership handover, with Guo Jinlong being appointed the new Beijing party boss. Don’t Miss: 13 mysterious politicians rising to power in China >
- Factory orders for May will be released at 10 a.m. ET. Consensus is for a 0.1 per cent month-over-month increase in factory orders. Motor vehicle sales for June will also be out today and expectations are for 10 million domestic vehicle sales. Follow the release at Money Game >
- GlaxoSmithKline pleaded guilty to marketing prescription antidepressants for uses never approved by federal regulators. Glaxo is paying $3 billion to the government in the biggest health-care fraud settlement in history. Now here are the 10 best selling prescription drugs in the United States >
- Boeing projects a $4.5 trillion jetliner market for 34,000 new aeroplanes over the next 20 years.
- Australia’s central bank kept its interest rates unchanged. The overnight cash-rate target was maintained at a 2.5 year low of 3.5 per cent. Now here’s what to expect from major central banks this week >
- A new poll by PSO, a union at the European Central Bank, showed that 80.1 per cent of employees complained of a “heavy workload” at the moment and 74.4 per cent of them said it was a “permanent” situation.