Good morning. Here’s what you need to know.
- Asian markets were down in overnight trading, with the Nikkei plunging nearly 3 per cent on concerns about Spanish banks. Europe is mixed and U.S. stock markets opened higher.
- Facebook is set to start trading today and is valued at $104 billion. In terms of money raised, it will be the third-biggest U.S. IPO in history. Meanwhile, its underwriters are set to split $176 million in fees. Don’t Miss: Mark Zuckerberg’s secret IM’s from college >
- Chinese home prices fell in a record 46 of 70 cities in April. Wenzhou led the decline with a 12.3 per cent drop in prices from a year ago. The Housing Ministry has said that it will continue its curbs on the housing market.
- Bad debts held by Spanish banks hit a 17-year high in March. The central bank said that 8.37 per cent of the loans held by banks or €147.97 billion were overdue for more than three months. Now here are 5 reasons why everyone is panicking about Spain >
- Meanwhile, Moody’s cut the ratings of 16 Spanish banks by one to three notches. The ratings agency cited the bad loans on their books and the deteriorating domestic economy as key reasons for the downgrade. Meanwhile, Bankia’s stock is surging today, and the government has tapped Goldman Sachs to advise it on recapitalizing the bank.
- A bombshell report from the Wall Street Journal says Jamie Dimon personally approved the concept behind the disastrous trades that cost JP Morgan $3 billion and counting. Dimon however did not monitor how they were executed. Meanwhile, the bank’s CIO at the centre of the trading loss has built up $100 billion of risky bonds.
- G8 leaders are meeting at Camp David this weekend to tackle the European crisis and the growing concerns over a Greek exit from the eurozone. No major policy decisions are expected from the talks, but Obama is looking to push a more comprehensive approach to resolving the crisis. Get Ready: This is what happens if Greece exits the euro >
- Yields on 10-year Spanish and Italian bonds are falling today. The spread between yields on these bonds and German bunds of the same maturity has fallen 15 bps today for both securities.
- German PPI rose 0.2 per cent in April from the previous month, below expectations. Meanwhile, PPI climbed 2.4 per cent year-over-year (YoY), against expectations of a 2.6 per cent rise.
- Italian industrial orders climbed 3.5 per cent month-over-month in March, but were down an unadjusted 14.3 per cent YoY. On an annualized basis this was the biggest fall since August 2009.
- Bonus – Lea Michelle was seen kissing rumoured boyfriend Cory Monteith during a hockey match at Madison Square Garden.
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