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Good morning. Here’s what you need to know:
- Markets sold off in overnight trading in Asia, with Japan’s Nikkei down nearly 2 per cent. European shares also traded lower and U.S. futures point to a negative open.
- The Bank of England voted 8 to 1 to keep its bond-purchase target unchanged at £325 billion, with a lone dissenter hoping to boost easing by £25 billion. The committee voted 9 to 0 to keep interest rates unchanged at 0.5 per cent.
- Germany set record low yields at a two-year bond sale. The country sold some €4.56 billion zero-coupon notes at a yield of 0.07 per cent. Demand remained healthy at 1.7 times the offering, similar to earlier auctions this year. This is why Germany has no interest in fixing the eurozone.
- Italian consumer confidence fell to its lowest level since 1996 this May—registering at 86.5. That was below market expectations for a slight rise to 89.5.
- Morgan Stanley was subpoenaed by the Massachusetts Secretary of Commonwealth over the way it handled analyst disclosure during the Facebook roadshow. Here’s a 60 second guide to Facebook’s IPO fizzle >
- Mazda and Fiat will jointly develop a new sports car to be manufactured in Hiroshima, the first venture between the two automakers. The news comes as Mazda has scaled back its ties to Ford.
- Dell shares sold off in after-hour trading yesterday after the company missed on both the top and bottom lines, reporting EPS of $0.43 on revenue of $14.42 billion. Dell saw sales decline in its computer, software, and mobile segments.
- New home sales in the U.S. blew past expectations, increasing 3.3 per cent to an annualized pace of 343,000 units. Separately, house prices increased 1.8 per cent against expectations for a 0.3 per cent gain.
- Pandora and Hewlett-Packard will report quarterly results after the closing bell today. Wall Street expects the streaming music service to lose $0.17 per share, with HP projected to post earnings of $0.91 per share. These are the 21 most controversial stocks in the world >
- President Barack Obama suffered humiliating close calls in two Democratic primaries last night—although still winning contests in Kentucky and Arkansas. More than 40 per cent of the vote in Kentucky went to “Uncommitted,” while challenger John Wolfe took a share in Arkansas.