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Good morning. Here’s what you need to know.
- Markets soared in overnight trade in Asia, with Japan’s Nikkei up more than 1.7 per cent. Shares in Europe are mixed while U.S. futures point to a slightly negative open.
- A coalition between two pro-bailout Greek parties, New Democracy and Pasok, won a majority of parliamentary seats in elections held on Sunday. The government projects the two parties secured 161 seats. Reminder: This is what happens if Greece exits the euro >
- The French socialist party secured a majority of seats in parliamentary elections, complementing President François Hollande’s win earlier this year. The win aids Hollande’s ability to pass reform to reinvigorate the French economy, including the expansion of the government.
- Spanish yields hit a new euro-area high, with the 10-year topping seven per cent for the first time. Borrowing costs shot up nearly four per cent to 7.1270 per cent. Meanwhile, British borrowing costs continued to decline, as investors flock to the safe-haven in Europe. The two-year note hit a record low of 0.1820 per cent. These are the six reasons why Spain’s bank bailout is awesome.
- Leaders of the group of 20 countries are meeting in Los Cabos, Mexico, today. The leaders are expected to announce a mix of measures, including both deficit reduction targets for some states as it boosts stimulus packages to others.
- Fitch lowered India’s outlook to negative this morning, but did not downgrade the country’s debt into junk status. Fitch re-affirmed India’s long-term rate at BBB-. Separately, the Reserve Bank of India kept its repo rate unchanged at 8.0 per cent, against expectations for a cut.
- Microsoft is expected to announce a new tablet in partnership with Barnes and Noble today. Earlier this year, the two companies announced a $300 million joint venture. Follow updates on SAI >
- Morgan Stanley exerted unusual control over Facebook’s initial public offering, a new report out of the Wall Street Journal shows. Morgan shut out key executives from J.P. Morgan and Goldman Sachs in meetings with Facebook, and also argued for a higher share price and number of shares, even as a banker from Goldman expressed concerns. Click here to see two gigantic IPOs that did worst than Facebook’s >
- The key U.S. economic data point of the day is the National Association of Home Builders housing market index. Economists polled by Bloomberg forecast the index will decline one point to 28 in June. Follow it live on Money Game >
- Webb Simpson won the U.S. Open this weekend, after 2010 champion Graeme McDowell missed a shot that would have forced a playoff. Simpson shot 2-under in the final round, including 4-under on the last 13 holes.
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