Here is what you need to know this morning:
- JP Morgan Chase’s earnings have beaten street estimates by 10 cents per share, due to a 55% increase in profits from its trading division, according to Bloomberg
- The yield on Greek 10-year bonds is beginning to widen again, rising to near 7% as a result of doubts over yesterday’s short term bond auction. That auction saw short term 1-year rates at 4.85%.
- Industrial production numbers have raised further doubts over Greece’s ability to ride out this economic storm, with the country’s production figures falling -10.4% year over year in February. This is in stark contrast to most of the euro zone area, which saw a combined 0.9% improvement over last year’s industrial production numbers.
- Germany is about to face a legal challenge over whether or not its government can participate in the Greek bailout, according to Reuters. Its constitutional court will have to decide whether or not the euro zone bailout provisions are legal under German federal code.
- China has been hit by an 7.1 magnitude earthquake, striking the north west province of Qinghai. The death toll currently stands at 400 in what is the latest of a string of earthquakes.
- Chinese credit growth appears to be tapering off as year to year loan numbers show a significant decline in lending. March of 2010 had only 510.7 billion yuan in new loans, 1.38 trillion yuan less than a year ago.
- While China may be talking sanctions with the U.S. for Iran, it is shipping gasoline products to the country. A Reuters report found that China state owned company Chinaoil has sent at least two gasoline cargoes to the ostracized country.
- China’s looming revaluation of the yuan could drive gold prices higher, according to UBS. A yuan revaluation would make gold prices more competitive to Chinese consumers and signal that inflation might be an issue for the economy, both factors UBS believes will drive gold sales. Gold futures are up 0.55% in overnight trading.
- Thai protesters have escalated their campaign against the military backed government, with 20,000 protesters camped out in central Bangkok in an attempt to remove the prime minister, according to Reuters. The protesters largely hail from rural areas, and support the deposed prime minister, Thaksin Shinawatra.
- Morgan Stanley looks set to lose at least $5.4 billion of a $8.8 billion real estate fund due to bad property investments, according to the Wall Street Journal. This loss would potentially be the biggest ever in private equity real estate investment.
- Bonus: Desperate Housewives stars have said they knew nothing of the show’s creator’s accused assault on actress Nicollette Sheridan and, instead, characterised the environment as positive.
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