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Good morning. Here’s what you need to know.
- Markets were mixed in overnight trade in Asia, with Hong Kong’s Hang Seng falling 0.8 per cent. Shares in Europe are sharply in the red while U.S. futures point to a negative open.
- All 27 European Union heads of state are gathering in Brussels today for their latest informal EU summit, a highly anticipated meeting to address the ills of the euro crisis. It remains unclear if they will accomplish anything. These 15 maps explain the entire world >
- The Supreme Court will rule on the constitutionality of the Affordable Care Act this morning. Legal scholars are split on the likely outcome for the Obama Administration’s hallmark legislation. Here’s the ultimate guide to how Wall Street is positioned for today >
- J.P. Morgan’s trading loss could top $9 billion, The New York Time’s Jessica Silver-Greenberg and Susanne Craig report. Sources tell The Times that losses have been mounting as J.P. Morgan unwinds the trade. Shares are down nearly six per cent in pre-market trade.
- Italy issued €5.423 billion in medium- and long-term debt this morning, slightly below its maximum target for the auction. Yields on the 2017 and 2022 due bonds increased to 5.84 and 6.19 per cent, respectively.
- Yields on Spanish debt surged this morning, ahead of the EU summit. The country’s 10-year yield increased eight basis points to 7.01 per cent, nearing the euro-era record it set at 7.29 per cent this month.
- German unemployment increased to 6.8 per cent as the number of Germans without jobs increased by 7,000 to 2.88 million. At the same time, the country revised its May reading up 10 basis points to 6.8 per cent.
- News Corp.’s board of directors approved plans to break the company in two, the Wall Street Journal reports. The plan would split the firm’s assets into a new entertainment business and one focused on publishing. Both J.P. Morgan and Goldman Sachs are expected to advise on the transaction.
- Google unveiled new tablet and home entertainment devices yesterday at its annual developers conference. The Nexus 7, which boasts a seven-inch screen, is priced at $199 to compete with the Amazon Kindle Fire. Photos: The made-in-America Google Nexus Q >
- Initial jobless claims and first quarter GDP both came in relatively in line today. First time unemployment claims dropped to 386,000, from a revised 392,000 a week earlier, while GDP remained at a 1.9 per cent annualized pace of growth. Still to come: The Kansas City Fed will release its June manufacturing survey at 11 a.m., with expectations for the key index to decline five points to 4. Follow it live on Money Game >
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