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Good morning. Here’s what you need to know.
- Asian markets were mostly lower in overnight trading with the Shanghai Composite down 0.60 per cent over concerns of a slowdown in China. Europe is selling off and U.S. futures are in the red.
- Eurozone industrial production fell 0.3 per cent month-over-month in March. The decline in industrial production was driven by an 8.5 per cent fall in energy production.
- Scott Thompson has stepped down as Yahoo’s CEO following criticism that he lied on his resume. Ross Levinsohn, head of Yahoo’s media brands is stepping in as interim CEO, and Fred Amoroso is the new Chairman of the board of directors.
- Three JP Morgan executives are expected to leave the bank this week following the bank’s $2 billion trading loss from its chief investment office in London. The executives include Ina Drew, Achilles Macris, and Javier Martin-Artajo. Bloomberg is reporting that the entire London staff at JP Morgan’s chief investment office is at risk of dismissal. Now here’s how Jamie Dimon got to be the most admired banker in the world >
- Greek president Karlos Papoulias failed to form a unity government. He will meet with political party leaders at 7:30 p.m. local time today to form a national unity government. Syriza party head Alexis Tsipras is reportedly not attending the meeting. SOVEREIGN DEBT: A Modern Greek Tragedy >
- Spain’s borrowing costs increased, when the Spanish Treasury raised €2.9 billion through an auction of 12-month and 18-month treasury bills, at a yield of 2.985 per cent and 3.30 per cent respectively.
- Avon is considering a $10.7 billion takeover bid from Coty Inc. and is expected to respond by May 14. Coty raised its bid for Avon to $24.75 per share from $23.25, and revealed Berkshire Hathaway would provide financing for the takeover.
- China announced a 50 basis point reserve requirement ratio cut over the weekend. The third cut in six months came after a slew of weak economic data. Here are 15 American states that would get slammed in a Chinese hard landing >
- Italian borrowing costs increased as its treasury raised €5.25 billion at a bond auction at the top of its range. It sold its three-year benchmark at an average 3.91 per cent yield. and sold €1.75 billion of three bonds due in 2020, 2022, and 2025.
- Indian inflation unexpectedly increased 7.23 per cent year-over-year in April. This is likely to limit the central bank’s ability to cut interest rates and drive economic growth.