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Good morning. Here’s what you need to know.
- Markets traded higher in overnight trade in Asia, with Hong Kong’s Hang Seng up 1 per cent. Shares in Europe are also advancing, while U.S. futures point to a slightly positive open.
- German Chancellor Merkel has said euro bonds are the ‘wrong way’ to fix the crisis and that German strength is not unlimited, ahead of the EU Summit tomorrow. Her remarks follow Spain Prime Minister Mariano Rajoy’s comments that the country could not finance itself for long at current rates. Jim O’Neill reveals 7 contradictions in the euro crisis >
- Italian business confidence surged unexpectedly in June, jumping to 88.9 from 86.6 in May. Expectations for new orders and production increased after hitting lows a month earlier.
- Russia’s short-term credit rating was upgraded to ‘A-2’ by Standard & Poor’s, while its long-term rating was affirmed at ‘BBB’. The ratings agency cited the weak economy and the country’s dependence on commodities for not boosting Russia’s long-term rating.
- Boeing named a new head of its commercial aeroplane business, replacing long-time veteran Jim Albaugh. The company said Raymond Conner, head of sales, would lead its largest division as it competes with Airbus in the $100 billion aircraft market.
- Underwriters of Facebook released their first research reports on the firm this morning, with buy ratings nearly across the board, although price targets point to a somewhat mixed picture. Goldman Sachs and Morgan Stanley both issued buy ratings, while giving the company $42 and $38 price targets, respectively. Click here to see the two massive IPOs that performed worse than Facebook >
- Apple won an injunction against Samsung’s Galaxy Tab 10.1 tablet, dealing a serious blow to the South Korean technology giant. A judgement bars Samsung from selling or making the devices, with a court saying it had violated Apple patents.
- Glencore and Xstrata are trying to salvage their already announced merger in the face of substantive shareholder opposition over executive compensation and the price of the deal, the Wall Street Journal’s Dana Cimilluca and John Miller report. Xstrata shareholders will vote on the measure on July 12. The ‘Energy Cliff’ is the surest sign that central banks are keeping money too tight.
- President Obama continues to outpace Mitt Romney in a Wall Street Journal/NBC poll, leading 47 per cent to 44 per cent. Obama suffered some loss among white-collar workers, while more people viewed Romney unfavorably.
- U.S. economic announcements kick off at 8:30 a.m. with the Durable Goods report. Economists forecast orders accelerated 0.4 per cent sequentially in May. Following at 10:00 a.m. is pending home sales, which are seen advancing 1.5 per cent month-on-month in May. Follow both on Money Game >