Good morning. Here’s what you need to know.
- Markets in Asia largely sold off in overnight trading, with Hong Kong’s Hang Seng off 0.5 per cent. Shares in Europe bucked that trend, heading higher, and U.S. futures point to a positive open.
- Chinese manufacturing continued to decline in May, flash estimates out of HSBC shows. The headline number fell to 48.7 during the month from 49.3 in April. A reading below 50 indicates contraction. Albert Edwards: A Chinese hard landing could be good for the eurozone >
- The U.K. economy contracted at a greater rate than earlier estimates, falling 0.3 per cent in the first quarter. An initial reading from the Office of National Statistics showed a 0.2 per cent drop.
- A key index measuring Germany’s business climate fell to 106.9 from 109.9 a month earlier. Economists expected a decline to 109.4. Guess how bad manufacturing has turned in Germany >
- The New York Stock Exchange has made a pitch to Facebook to switch stock exchanges after the Nasdaq poorly executed the IPO, Fox Business News’ Charles Gasparino reports. The NYSE has denied the reports. Here’s a tale of two exchanges >
- The Royal Bank of Canada missed earnings expectations this morning, posting EPS of C$1.17 on weak M&A activity. Better news out of TD Bank, which posted earnings of C$1.82, four cents ahead of forecasts.
- The parent company of T-Mobile USA does not believe a sale of the wireless company is likely after AT&T’s purchase-attempt failed. Deutsche Telekom CEO Rene Obermann said the firm would look for long-term solutions for the fourth-place carrier.
- Hewlett-Packard announced some 27,000 job cuts, or 8 per cent of its workforce, after the closing bell yesterday. The news came at the same time the company beat earnings expectations, posting earnings per share of $0.98 against forecasts for $0.91.
- Both early U.S. economic announcements were right in line with expectations, with initial jobless claims at 370,000, while durable goods orders picked up 0.2 per cent in April. The first ever flash U.S. PMI for May showed a slight decline from April, to 53.9.
- Costco beat earnings expectations this morning as membership fees increased 9.2 per cent. The retail giant reported earnings of $0.88 per share, a penny ahead of estimates. Luxury jeweler Tiffany missed forecasts and cut guidance, reporting earnings per share of $0.64, a nickle below consensus. These are the 21 most controversial stocks >