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Good morning. Here’s what you need to know.
- Asian markets were lower in overnight trading with the Nikkei down 1.71 per cent on concerns over the global economy. Europe is mixed and U.S. stock markets opened modestly higher.
- There are reports that Germany would consider a banking union and Eurobonds if other member states give up more sovereign rights. But German Chancellor Angela Merkel has for now rejected plans for debt sharing in Europe. Meanwhile, European leaders are working on a “grand plan” as proposed during the EU summit in May.
- Chinese PMI fell to 55.2 in May, from 56.1 the previous month. Its non-manufacturing industries grew at the slowest pace in over a year led by a decline in export orders and weakness in real estate. Now here are 15 American states that would get slammed in a Chinese slowdown >
- The Portuguese government said today that it will inject up to €6.65 billion into three of its biggest banks, in an effort to strengthen its banking sector. Most of the funds will come from the bailout the country received about a year ago. Don’t Miss: The 20 most miserable countries in the world >
- Facebook is looking to develop technology that would allow pre-teens to use the networking site under parental supervision. Some mechanisms include connecting children’s accounts to their parents’ and controls that allow parents to decide who they can friend.
- In M&A news, health insurer WellPoint plans to acquire eyewear retailer 1-800 Contacts Inc in a deal valued close to $900 million according to the Wall Street Journal. Meanwhile, BP is trying to sell a stake in its Russian venture TNK-BP.
- Japan’s Topix entered a bear market as it fell 1.9 per cent, the lowest level since 1983. Investors sold heavily on weak U.S. jobs report, concerns about Europe’s debt crisis and slowdown in China. Meanwhile, 10-year yields dropped below 0.8 per cent for the first time since July 2003.
- Eurozone PPI was flat month-over-month in April and up 2.6 per cent from a year ago. The decline in inflation was led by a energy prices and it gives the ECB room to help support growth.
- Spanish unemployment declined for a second consecutive month, easing by 30,113 to 4.71 million in May. But the number of Spaniards without a job was 12.52 per cent higher than a year ago. Check out the eurozone crisis for dummies >
- Factory orders for April will be released at 10 a.m. ET. Consensus is for a 0.1 per cent month-over-month increase in factory orders. Follow the release at Money Game >
- Bonus – Drew Barrymore wed Will Kopelman over the weekend.
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