10 Things You Need To Know This Morning

Heidi Klum

Photo: Vittorio Zunino Celotto

Good morning. Here’s what you need to know.

  • Markets in Asia sold-off in overnight trading, with Japan’s Nikkei off 1.0 per cent. Shares in Europe followed suit and U.S. futures point to a sharply lower open.
  • Nonfarm Payrolls missed estimates sharply, with the country adding 69,000 new positions in May — well below the 150,000 Wall Street was looking for. April figures were also revised substantially lower, to 77,000 from 115,000.
  • Manufacturing in China continued to stumble, with results out of HSBC showing a slight increase to 49.3. A reading below 50 indicates decline. Manufacturing output and new orders both fell at marginal rates, while employment declined at the fasted rate in more than three years. This is what a hard landing in China would look like >
  • Euro-area manufacturing also largely declined at worsening rates than one month ago, with German and Italian PMI readings at 46.2 and 43.8, respectively. France saw a slight gain, to 46.9, although it too remained below the key 50 level.
  • Eurozone unemployment was flat at 11.0 per cent in May after April figures were revised 10 basis points higher. That rate marks the highest level ever recorded. Here’s the eurozone crisis for dummies >
  • Bond yields fell across a number of developed countries, with yields on all U.K. debt under 3 per cent. In Japan, the five-year dropped below 0.2 per cent, the lowest level since 2003, and Germany’s two-year fell negative, at -0.002 per cent.
  • Brent crude fell below $100 a barrel for the first time since October. The decline came mostly on increasing crude supply.
  • The case against John Edwards was declared a mistrial yesterday, after the jury found the former-presidential hopeful not guilty on one count, but was deadlocked on five others. The not guilty verdict came on the count for taking illegal campaign contributions.
  • BP has said it is looking to sell its stake in its Russian joint venture TNK. Alfa Access Renova, a group representing holders of the other half of the TNK stake, say an earlier offer still stands to buy out BP.
  • The probe into JP Morgan’s more-than $2 billion trading loss is ramping up, with investigators within the Commodity Futures Trading Commission issuing subpoenas for emails and other documents, the Wall Street Journal’s Jean Eaglesham and Dan Fitzpatrick report. Some of the inquiry by the CFTC comes from new powers gained under Dodd-Frank.

BONUS: Heidi Klum took her kids out to the movies yesterday.

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