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Good morning. Here’s what you need to know.
- Asian markets were higher in overnight trading with the Nikkei up 1.04 per cent bouncing back from four consecutive session losses. Europe is modestly higher and U.S. futures are modestly lower.
- Spain has made its first plea for EU aid to help battle the financial crisis. Spanish budget minister Cristobal Montoro asked for foreign funds to help shore up the nation’s biggest lenders and this is in contrast with prime minister Rajoy’s position that the banks don’t need a rescue. Now here are 14 reasons Spain is turning into a disaster >
- The G7 is holding an emergency phone call on Europe today. The call is expected to focus on Spain and is scheduled for 11 a.m. GMT.
- China’s May HSBC composite output climbed to 51.9 in May. This was the greatest jump in seven months, but the sub-index measuring the service industry came in at 54.7, below the long-run trend of 56.7.
- Goldman Sachs cut under 50 jobs last week in an effort to reduce costs as its revenue prospects worsen. The reductions targeted some managing directors. Wall Street thinks these are the 10 cheapest stocks in the world >
- In M&A news, Google will buy startup Meebo in a deal worth about $100 million. Meebo provides software that lets users share pages on social networking sites. Meanwhile, Starbucks will buy San Francisco-based Bay Bread for $100 million in cash.
- Euro area composite PMI fell to 46 in May, from 46.7 the previous month, but beat expectations of a decline to 45.9. But services and manufacturing output declined at the fastest pace in nearly three years adding to signs that the economy is struggling under the region’s debt crisis. Don’t Miss: Jim O’Neill’s presentation on the global economic outlook >
- German manufacturing orders declined 1.9 per cent month-over-month and 3.8 per cent year-over-year in April. Manufacturing fell more than expected and is viewed as a technical correction after the 3.2 per cent increase the previous month.
- ISM Non-manufacturing index for May will be released at 10 a.m. ET. Consensus is for the composite index level to hold steady at 53.5. Follow the release at Money Game >
- Australia’s central bank cut interest rates by 25 basis points to 3.5 per cent, the lowest level since 2009. The rate cut was prompted by modest domestic growth, Europe’s debt crisis, and China’s slowdown.
- Bonus – Angelina Jolie just turned 37.