Good morning. Here’s what you need to know.
- Asian markets were higher in overnight trading with the Nikkei up 2.3%, ending above 15,000. Europe is mixed and U.S. futures are flat.
- Q1 eurozone GDP fell 0.2% from the previous quarter. This is the sixth straight quarterly decline, making it the longest recession on record. GDP growth in Italy and Spain was down 0.5%. Meanwhile, Germany, often considered the strong man of Europe posted a modest 0.1% growth. Germany is different from everywhere else in Europe >
- In earnings news, Deere & Co. beat expectations when it reported earnings of $2.76 per share, on revenue of $10.9 billion. The agriculture equipment maker lowered its full-year equipment sales to 5%, from 6%. The stock is down 2.8% in pre-market trading. Retail giant Macy’s is expected to report Q1 earnings of $0.53 per share.
- The Empire State manufacturing survey for May and PPI for April are out at 8:30 a.m. ET. Consensus is for the general business conditions index to rise to 3.75, and for PPI to fall 0.7% on the month. Follow the release at Business Insider >
- Bank of England governor Mervyn King has said the UK GDP could rise 0.5% in the second quarter, from 0.3% in Q1. He said the recovery is now “in sight,” according to Bloomberg.
- The NAHB housing market index for May and industrial production for April are out at 10 a.m. ET. Consensus is for homebuilder confidence to rise to 44, and for industrial production to fall 0.2% on the month.Follow the release at Business Insider >
- Google’s annual developer conference I/O begins today and runs through Friday. Google is expected to introduce its new Nexus 7 tablet at I/O. Meanwhile Google is preparing a music streaming service to compete with Spotify.
- HSBC has said it is trying to achieve an additional $2 – $3 billion in additional annual cost cuts. This could cause between 4,000 – 14,000 job losses.
- Early votes among shareholders at JP Morgan on separating the role of chairman and CEO, are below 50%, according to the Financial Times. Jamie Dimon has threatened to leave if they split the position. Some of the investors backing Dimon are against the re-election of other board members.
- The number of jobless people in the UK increased by 15,000 to 2.52 million. The unemployment rate stayed at 7.8% and average earnings grew a modest 0.4%. The biggest economic experiment of the last five years has ended in disaster >
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