Good morning! Here’s what you need to know in markets today.
European PMIs are coming. Between 8 and 9 a.m. London time (3 and 4 a.m. New York time) we’ll get the first figures for French, German and Europe-wide business surveys. Analysts are expecting things to stay roughly stable in June, with very little change from May’s figures.
It looks like the Greek government has crossed some of its “red lines” to get a bailout deal. According to the Wall Street Journal, the mooted proposals from Greece include major concessions on pension cuts, which the government was previously unwilling to consider. A meeting of European leaders ended last night on a positive tone.
And Prime Minister Alexis Tsipras is hopeful. AFP reports that Greece has agreed in principle to extend its existing bailout deal and PM Alexis Tsipras has told EU leaders a deal will be done in 48 hours.
Lufthansa crews are threatening a strike. A German cabin crew union gave the country’s largest airline Lufthansa a June 30 ultimatum to make concessions in a row over pay and pensions, threatening intermittent strikes until mid-September that could compound a costly labour dispute with its pilots.
HSBC’s PMI business survey was in negative territory for China in June. The bank’s preliminary Purchasing Managers’ Index (PMI) came in at 49.6 in June, the highest in three months but still below the break-even point of 50, HSBC said in a statement.
And Japan’s PMI was also very slightly below 50. Japanese manufacturing activity contracted slightly in June as new orders fell and output growth slowed in a sign the economy may have lost some momentum. The Markit/JMMA flash Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 49.9 in June from a final 50.9 in May.
Alibaba is making a major investment in local Chinese services. Alibaba Group Holding Ltd and its affiliate Ant Financial will invest nearly $US1 billion (£633.86 million) in a joint venture that they hope can tap China’s fast-growing local services market, focusing at first on food delivery.
Nissan revealed CEO Carlos Ghosn’s pay packet. Nissan, Japan’s second-biggest automaker, said on Tuesday it paid Chief Executive Carlos Ghosn 1.035 billion yen ($US8.39 million, £5.3 million) last business year, up 4% from the previous year.
The US-Pacific trade deal is going back through the Senate. US President Barack Obama’s signature Pacific trade pact faces another test in the Senate on Tuesday as legislation needed to close the deal returns for a second run through the chamber. The legislation has already endured six weeks of congressional wrangling and two close brushes with failure after revolts by Obama’s own Democrats.
Asian markets are mixed. Japan’s Nikkei is up 1.57%, followed by Hong Kong’s Hang Seng, up 0.25% on Monday’s close, while the Shanghai Composite Index is down 0.11%.