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Good morning. Here’s what you need to know.
- Asians markets were down in overnight trading with the Shanghai Composite falling 2.37 per cent after premiere Wen Jiabao spoke of large pressure on the economy. Europe is selling off and U.S. stocks have opened lower.
- Earnings season kicks off this week, with Alcoa reporting quarterly results today. Expectations are for the company to announce an 81 per cent decline in earnings and a profit of $0.06 per share. Here’s what the world’s biggest companies are telling us about the world economy >
- Spanish 10-year yields jumped above 7 per cent ahead of a meeting of European finance ministers. Italian yields are also spiking this morning. Nomura: Italy is quietly getting a whole lot worse >
- Meanwhile, France’s 2-year yields fell to 0.17 per cent today as the country is seeing safe-haven flows. Germany sold 6-month bills at a record low of -0.034 per cent, against +0.007 per cent on June 11.
- China’s inflation rate cooled to a 29-month low. Lower inflation rates give the central bank room to cut interest rates to help support growth in China. Don’t Miss: 10 ways China is changing the world >
- Greek prime minister Antonis Samaras has secured a confidence vote. Samaras is expected to push European policymakers to ease the terms of a Greek bailout at a meeting of eurozone finance ministers today.
- In M&A news, Wellpoint has announced a definitive agreement to buy Amerigroup for $4.9 billion. Meanwhile, Xstrata is delaying a vote on its merger with Glencore International till September.
- German exports beat expectations surging 3.9 per cent month-over-month in May. Imports jumped 6.3 per cent from the previous month. The data shows that trade is helping Germany weather Europe’s debt crisis.
- Consumer credit for May will be released at 3 p.m. ET. Consensus is for the consumer credit outstanding to gain $8.5 billion in May. Follow the release at Money Game >
- Deadly flash floods have killed over 170 people in Russia. The worst affected region is Krasnodar where many are reported to have drowned in their beds.
- Bonus – Sienna Miller and fiance Tom Sturridge just had their first child.