Good morning! Here’s what you need to know.
German Chancellor Angela Merkel is leading a business delegation to India. She’s expected to push for closer trade ties in her first official trip to India since the right-wing Bharatiya Janata Party stormed to power last year.
Volkswagen’s supervisory board will hold an extraordinary meeting this week. Finance chief Hans Dieter Poetsch is expected to be appointed as new head of the 20-member controlling panel on Wednesday, according to a Reuters report.
France is considering raising taxes on diesel over the next five years. The policy shift is aimed at ending an advantage over gasoline and encouraging drivers to choose cleaner cars, Environment Minister Segolene Royal said.
Extreme poverty will fall to less than 10 per cent of the global population for the first time. Despite the good news, there is still “great concern” for millions in Africa, according to a World Bank report.
It’s a big morning for European economic data. The Markit services purchasing managing index figures for Spain, Germany, Italy and France are all published before 8 a.m. UK time (3 a.m. ET), while the EU’s year-on-year and month-on-month retail sales data is published at 9 a.am. UK time (4 a.m. ET).
Asian stocks are rising. Japan was up 0.7 per cent. South Korea’s Kospi rose 0.6 per cent and Australian shares gained 1.9 per cent. Markets were buoyed by the decreasing likelihood of a near-term interest rate hike by the Federal Reserve after Friday’s weaker-than-expected U.S. employment data.
Diplomatic talks to create the world’s largest free trade zone, the Trans-Pacific Partnership, are coming to a head. Officials could announce a deal “in principle” after five days of negotiations, Japan’s Economy Minister Akira Amari said. The talks between representatives of 12 countries comprising 40 per cent of the global economy — including Canada, New Zealand, Mexico and others — have gone three days past the scheduled ending.
About 630,000 people have entered the EU illegally so far this year. The figure came from the head of the bloc’s border agency, Frontex executive director Fabrice Leggeri, in an interview with French media.
The U.S. Non-Manufacturing Index is coming. The Institute for Supply Management publishes data on business conditions at 2 p.m. UK time (9 a.m. ET). Anything above 50 is considered bullish and the analyst consensus sees a read of 58.
Clothing retailer American Apparel Inc has filed for bankruptcy. The company said it had reached a restructuring support agreement with 95 per cent of its secured lenders. “This restructuring will enable American Apparel to become a stronger, more vibrant company,” Chief Executive Paula Schneider said in a statement.