Good morning. Here’s what you need to know.
- Markets in Asia were higher in overnight trading. The Japanese Nikkei 225 rose 2.7% and the Hong Kong Hang Seng advanced 1.2%. European markets are higher across the board, led by France, up 1.7%. In the United States, futures point to a positive open.
- The big story for markets this week will be the Federal Reserve’s FOMC monetary policy meeting, which concludes Wednesday and is followed by an afternoon press conference with Chairman Ben Bernanke. Many expect the FOMC to strike a dovish tone after bonds have sold off aggressively due to fears over tapering back of monetary stimulus.
- Heads of state are gathered at a G8 summit in Northern Ireland today to discuss, among other things, a transatlantic trade deal between the U.S. and the E.U. Negotiations are expected to launch this afternoon with a press conference, but the mood is tense after France won an exclusion for the French film industry from the deal on Friday, despite the objection of the U.S.
- According to new data from Eurostat, the E.U. trade surplus narrowed to 9.2 billion euros in April from 15.9 billion euros in March. The E.U. trade surplus with the U.S. rose to 22.3 billion euros in the first quarter, while its trade deficit with China declined to 33.6 billion euros.
- Credit rating agency Fitch is out with a report calling China’s credit bubble unprecedented in modern world history. “The credit-driven growth model is clearly falling apart. This could feed into a massive over-capacity problem, and potentially into a Japanese-style deflation,” said Fitch’s Charlene Chu.
- Protesters took to the streets in Indonesia and engaged with police ahead of a parliamentary vote to slash government fuel subsidies, forcing a hike in gasoline prices. More than 18,000 police officers were deployed in Jakarta to curb the protests.
- WSJ reports that Starboard Value LP, an investment fund that holds a 5.7% stake in Smithfield Foods, will deliver a letter Monday urging the board of directors to split up the company as opposed to accepting an offer from Chinese firm Shuanghui International Holdings. The $4.7 billion deal, if it goes through, would be the biggest ever takeover of a U.S. company by a Chinese company.
- Apple disclosed that it received requests for data on around 10,000 user accounts from the U.S. government. The company said in a statement that it had asked the government if it could disclose the number and said it was “providing it here in the interest of transparency.”
- Out at 8:30 AM ET are the results of the New York Fed’s June Empire State Manufacturing Survey. Economists predict the survey’s headline index rose to 0 in June from -1.43 in May, indicating neither improving nor worsening conditions in regional manufacturing.
- NAHB’s monthly gauge of homebuilder sentiment is released at 10 AM. Economists expect the index will advance to 45 from last month’s 44 reading. Follow all of the data LIVE on Business Insider >
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