Good morning. Here’s what you need to know.
- Markets sold-off in overnight trade in Asia, with Hong Kong’s Hang Seng off 1.6 per cent. Europe is largely in the red, while U.S. futures point to a positive open.
- 15 major U.S., Canadian, and European banks were downgraded by Moody’s yesterday. Of the 15 firms downgraded, none were hit more than Moody’s originally said was possible when it placed them on review in February. Four firms were lowered one notch, 10 were lowered by two notches, and one was cut three levels. This is what the Moody’s downgrades mean to the world’s largest banks >
- Shares in Morgan Stanley rallied in after hours trading after Moody’s downgraded its debt less than it originally said it could, rating it Baa1. The company could have been forced to post more than $5 billion in collateral against trades held on its books had it been lowered to Baa2.
- Business confidence in Germany declined greater-than-anticipated in June, with the Ifo survey falling to 105.3 from 106.9. Economists had expected a drop to 105.6.
- Italian consumer confidence hit a record low this morning, declining to 85.3 in June from 86.3 a month earlier. Confidence fell as a new tax in the country came into effect.
- China and Brazil have agreed to a currency swap deal letting each access as much as $30 billion, MarketWatch reports. The program is meant to insure both against a possible tightening credit market. Albert Edwards: Here’s why a Chinese hard landing could have a silver lining.
- A current Goldman Sachs executive under investigation in connection with Galleon founder Raj Rajaratnam, had closer ties to the man recently found guilty of insider trading, the Wall Street Journal’s Reed Albergotti reports.
- Monster Beverages will replace Sara Lee in the S&P 500, S&P Indices disclosed yesterday. Monster will begin trading in the index on June 28, following Sara Lee’s spinoff of its coffee and tea business.
- 20 people were killed in an Afghanistan lakeside resort after seven Taliban members attacked the site.
- The Miami Heat beat the Oklahoma City Thunder 121-106 to win the NBA title yesterday. The Heat hit 14 of 25 three-point shots. Here’s why the LeBron James narrative is finally dead.