Good morning. Here’s what you need to know.
- Asian indices were mostly down in overnight trading with the Bombay Stock Exchange falling 2.04%. Major European indices are in the red and U.S. markets are now in the green.
- Eurozone finance ministers have delayed €12 billion in loans to Greece without which the country will default on its sovereign debt in mid-July. The move is expected to pressure the Greek government to pass €28 billion in spending cuts and tax increases. Meanwhile Greek prime minister George Papandreou is set to face a confidence vote in Parliament tomorrow. Refresher: Here’s who gets slammed if Greece restructures >
- Moody’s threatened to downgrade Italy’s Aa2 credit rating in next 3 months, on concerns that the Greek crisis may push up interest rates in the eurozone and hurt Italy’s recovery. Don’t miss: The 21 countries most likely to default >
- Wages and salaries in the Eurozone were up 2.3% in Q1 2011 from a year ago, but the wage increase was lower than the 2.7% increase in consumer prices, which showed that real wages in the region continued to stay low.
- Moody’s has pushed Tepco’s credit rating to junk status. Tepco’s long-term issuer rating was cut to B1 from Baa3, and its senior secured rating was lowered to Ba2 from Baa2 on account of rising costs from the nuclear disaster at its Fukushima Daiichi plant. Now here are images of devastation in Japan a month after the earthquake >
- PNC Financial Services Group Inc has agreed to buy Royal Bank of Canada’s U.S. retail bank operations for $3.45 billion. The deal would add about 420 branches to PNC’s operations and help it expands its presence in the Southeast of the country. Check out the 16 strongest banks in the world >
- Brazilian airline TAM is buying engines worth $2.2 billion from Rolls Royce for Airbus A350s. Rolls Royce has also signed a 12-year agreement to provide the airline operator with its service support.
- Boeing has secured a $1.7 billion deal to provide Qatar with six 777 jets. Rival Airbus however is expected to announce a bigger $2.4 billion deal for 30 A320neo planes to Scandinavian airline SAS at the Paris Air Show today.
- Bankrupt bookstore chain Borders Group Inc. is expected to name its bidder on July 1st. The bankruptcy court is expected to hold an auction on July 19 and a sale hearing by July 22. It has however reached a deal with GE Capital to keep 51 of its stores open.
- Goldman Sachs cut its Q2 GDP growth outlook to 2%, from 3%, on weak manufacturing data and high unemployment. The news was a blow to the U.S. economy which was expected to be on its way to a recovery.
- BONUS: Megan Fox is reported to have offended Steven Spielberg when she said director Michael Bay wanted to be like Adolf Hitler. The comment got her fired from Transformers 3.
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