Good morning! Here are 10 things you need to know in markets today.
The Fed’s latest rates decision comes just after European markets close today. After watching the US economy contract in the first quarter, central bank officials have signalled they won’t raise rates this week. But they will have to judge whether healthier recent jobs, wage and consumer spending data have put that earlier swoon safely in the past, clearing the way for a rate hike – or hikes – later this year.
UK employment data is coming. Employment figures for April are coming at 9:30 a.m. UK time (4:30 a.m. New York), and analysts are expecting the unemployment rate to stay steady at 5.5%.
The IMF is becoming openly frustrated with Greece and Europe. The crisis lender over the past few days has publicly laid out its demands for Greece in the long-running fight over bailout funding, but also did the same with the Europeans, showing a new frustration with their hard line.
Australia and China signed a major trade deal. Australia and China signed a landmark trade deal Wednesday after a decade of talks, providing a boon for growth and jobs by abolishing tariffs across a raft of sectors.
Nestle is cutting operations in Africa. Swiss food and drinks company Nestle is cutting 15% of its workforce in 21 African countries because it says it overestimated the rise of the middle class, the Financial Times reported.
France’s government pushed through economic reforms. France’s socialist government on Tuesday forced a package of key economic reforms through parliament without a vote, sparking a walk-out from the opposition and a vote of no-confidence. With a left-wing flank of rebel MPs threatening to torpedo the passage into law of the economic reforms, Prime Minister Manuel Valls resorted to a little-used constitutional device to push them through without MPs voting.
Japan’s incoming and outgoing trade data were both weaker than expected. In May, Exports grew by 2.4% from a year earlier, below April’s 8.0% increase and forecasts for growth of 3.0%. On the other side of the ledger imports slid by 8.7%, far below April’s 4.2% contraction and expectations for a decline of 7.5%.
Venezuela is about to get a $US5 billion (£3.20 billion) loan from China for oil. Venezuela will receive a loan of $US5 billion (£3.20 billion) from China in the coming months for crude oil projects, a director at state-owned Petroleos de Venezuela said on Tuesday. China has become Venezuela’s principal financier over the last decade, lending more than $US46 billion (£29.40 billion) to be repaid in oil.
Adobe revenue jumped. Photoshop maker Adobe Systems Inc reported an 8.8% rise in quarterly revenue as more customers subscribed to its Creative Cloud and Document Cloud software suites. The company’s net income rose to $US147.5 million (£94.29 million) in the second quarter ended May 29, from $US88.5 million (£56.57 million) a year earlier.
Asian markets are mixed. Japan’s Nikkei is down, 0.16% lower than Tuesday’s close, while Hong Kong’s Hang Seng is up 0.77% and the Shanghai Composite Index is up 0.22%.