Good morning! Here’s what you need to know in markets today.
Eurozone trade figures are coming. At 10 a.m. London time (5 a.m. New York) the eurozone’s trade balance figures for April will be released. In March, the seasonally adjusted trade surplus ran to €19.7 billion (£14.20 billion, $US22.07 billion).
Presidential front runner Hillary Clinton dropped a massive hint on a controversial trade deal. Democratic presidential front-runner Hillary Clinton said drug companies that would benefit from a Pacific trade pact should sell their products to the US government at a discount in her strongest comments yet on an issue that has divided her party. Clinton’s comments amount to an implicit rebuke of President Barack Obama’s efforts to secure the Trans-Pacific Partnership (TPP).
The Greek government says it’s ready to resume talks after a breakdown. Greece remains open to finding a deal with lenders and is prepared to bridge a budget gap as demanded by lenders but not by cutting pensions or raising taxes, the deputy prime minister said on Sunday after a breakdown in negotiations.
But Greece’s finance minister is still ruling out Grexit. Greece Finance Minister Yanis Varoufakis said he could rule out a ‘Grexit’ because it would not be a sensible solution to the Greek debt crisis and in a German newspaper interview on Monday also said a debt restructuring was the only way forward. “I rule out a ‘Grexit’ as a sensible solution,” Varoufakis told Bild newspaper. “But no one can rule out everything. I can’t even rule it out a comet hitting earth.”
China is going to make a massive investment in Europe’s infrastructure fund. China will pledge a multi-billion dollar investment in Europe’s new infrastructure fund at a summit on June 29 in Brussels, according to a draft communique seen by Reuters – Beijing’s latest round of chequebook diplomacy to win greater influence.
Some South Korean investors are siding with US hedge Elliott fund against Samsung. Small stakeholders have converged on a public web forum in recent days to protest what they say is a low-ball all-stock takeover offer from Cheil Industries, an affiliate of Samsung Group and the conglomerate’s de facto holding company. Heirs of Samsung Group’s founding Lee family want the $US8 billion (£5.15 billion) merger to consolidate holdings of key affiliates including Samsung Electronics into a company under their control.
Analysts and investors are starting to name another Twitter executive as a potential CEO. Twitter Inc’s next chief executive officer faces a crucial challenge as the company seeks to appease Wall Street after this week’s management shakeup – helping disaffected advertisers connect with users. And many advertisers, analysts and investors say Twitter already has the right person for the job: not interim CEO Jack Dorsey but Adam Bain, the company’s president and head of revenue, who has emerged as an early favourite.
Asian stocks are falling. Japan’s Nikkei is down 0.39%, Hong Kong’s Hang Seng is down 1.40% and the Shanghai Composite Index is down by 1.06%.
Gunmaker Colt is filing for bankruptcy. Storied American gunmaker Colt, which has roots stretching back centuries, plans to file for bankruptcy protection, The Wall Street Journal reported. The company, which lost a large US Army contract, is in need of the protection “amid business-execution issues and a heavy debt burden,” the report said.
Hong Kong is bracing for a showdown. Hong Kong is gearing up for a vote this week on a contentious electoral reform package backed by Beijing, with a weekend poll showing public support has shifted against the proposal amid renewed street marches by pro-democracy protesters.