Here’s what you need to know this morning:
- The unemployment report is out, read it here > Economists expect the unemployment rate to come in at 9.7%, with about 187,000 new jobs created.
- Yesterday’s UK election has resulted in a hung parliament where no party has a clear majority in the House of Commons. Markets are reacting negatively to the uncertainty, pushing the pound and FTSE down in early trading. Check out our guide to playing the election results >
- The Greek crisis continues to grow, reflected in the country’s CDS spread which has now widened beyond 1000 bps. The yield on Greek 10-year bonds has also jumped overnight, and now stands at 12.3%. Check out which countries are now most likely to default >
- China looks set to hold onto its yuan-dollar peg for not as global uncertainty over Greece is making a revaluation less likely. Appreciation in the next 12 months is now predicted at 0.8% in the forwards market, not nearly as much as was previously expected. Check out why China doesn’t need to revalue anyway >
- The Bank of Japan provided $21.6 billion overnight in liquidity to halt the dramatic fall in markets brought on by the Greek crisis. The move was made as global markets are demanding more dollars as more and more investors move out of the euro.
- The fallout from yesterday’s dramatic market action continues, with the NASDAQ set to cancel some trades made yesterday between 2:40 and 3:00 PM. Those individuals who took advantage of stock swings of over 60% will have their trades canceled. Check out the other questions looming for markets this morning >
- Procter and Gamble, one of yesterday’s most dramatic movers, will see many of its trades wiped out as the stock moved $20 in 60 seconds. The CEO of the NYSE plans to remove many of the trades made during that moment of electronic chaos.
- The oil spill off the coast of Louisiana is set to cost BP’s insurers more than any other event in 20 years. Much of BP’s insurance is handled through its own private subsidiary, but Lloyds of London is also expected to take a part in some of the company’s insurance programs. Check out these amazing photos of the oil rig explosion >
- Libor, the interbank lending rate, is starting to rise showing signs that banks are beginning to worry about counter-party positions. European banks are concerned that other banks are too exposed to Greece and other sovereign debt risks.
- The Senate is making progress on financial reform negotiations, pushing through a weak amendment for a look inside the Federal Reserve as well as resisting Republic pressure to weaken the Consumer Financial Protection Agency.
- Bonus: Jessica Simpson was spotted late last night with rumoured new boyfriend Jeremy Renner, sure to make old boyfriends jealous.
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