European governments must step up efforts to overhaul their economies, the European Central Bank’s President Mario Draghi said today, calling on economic flexibility in the eurozone. ‘Structural reforms that reverse the downward drift in potential growth are now vital for the euro area’ Mr. Draghi said in a speech to the ECB's annual conference in Sintra, Portugal.
Hewlett-Packard Co. will sell a controlling 51% stake in its China-based data-networking business to China's Tsinghua Unigroup for at least $2.3 billion, in a deal that will form a partnership designed to create a Chinese technology powerhouse.
The IFO measure of German business confidence slipped for the 1st time in 7 months in May, as companies scaled back their business outlook, in a sign that German growth is losing momentum. The IFO business climate gauge fell to 108.5 points from 108.6 in April, its first drop since October 2014. Economists expected the indicator to drop to 108.3 points. ‘The German economy remains on track,’ although manufactures curtailed their export expectations in May, IFO President said.
British stocks advanced today, with gains for the shares of Vodafone PLC helping to push the benchmark FTSE 100 index toward a weekly gain. The mobile services company’s shares saw a rise of more than 10% this week to as high as 2.54 a share after a Bloomberg report quoted Liberty Global PLC Chairman John Malone as saying the Vodafone would be a “great fit” for his cable company’s operations in Western Europe. The FTSE 100 rose as high as 7,037.4, on track for a fifth consecutive advance.
McDonald's Corp. shareholders defied senior managers at its annual meeting held yesterday, approving a proposal to make it easier to nominate directors to the board. Despite opposition from McDonald's, 61% of the voting shareholders supported a proposal that would make it easier for long-term investors to nominate director candidates. The CEO Steve Easterbrook, who took the helm on 1 March, faced criticism on numerous fronts as he works to turn around the company, which saw profit and revenue drop in 2014.
May IFO (Ifo Institute for Economic Research) Current Assessment index is 114.3 points, it was expected to be 113.5 points versus 113.9 points previously.
May IFO (Ifo Institute for Economic Research) Expectations index is 103.0 points, it was expected to be 103.0 points versus 103.5 points previously.
May IFO (Ifo Institute for Economic Research) Business Climate index is 108.5 points, it was expected to be 108.3 points versus 108.6 points previously.
Walt Disney Co. decided to expand in other theme parks a mobile technology adopted in its flagship resort in Florida, which successfully helps customers beat lines and make purchases. The MyMagic+ program includes wristbands and a mobile application that let visitors unlock hotel room doors, make payments and book rides.
The efforts of oil companies and tanker operators to lobby for a removal of the 40-year ban on US oil exports are seen futile as there was not enough support in the US Congress to allow shipments of shale oil abroad. A major Greek tanker owner said there is no chance that the President Barack Obama would lift the 40-year ban anytime soon on worries this would boost gasoline prices.
Japan's Mazda Motor Corp, Fuji Heavy Industries Ltd and Mitsubishi Motors Corp announced today they would recall about 720,000 more cars equipped with air bags made by Takata Corp, following similar moves last week by other Japanese automakers. Regulators have linked 6 deaths worldwide to defective and lethal Takata air bag inflators.
Japan’s industrial conglomerate Toshiba Corp. said today it would investigate accounting practices in three more of its business units – the TV, computer and chip divisions. The company is extending an on-going investigation into irregularities that led to overstated profits in recent years. Toshiba last week set up a 3rd-party committee to conduct an independent inquiry. The shares of Toshiba closed up 0.4% at JPY 410.10 a share.
Confidence in France's manufacturing sector advanced in May to the highest level in nearly 4 years as business managers improved their assessment of recent activity. Confidence in the manufacturing sector increased further to 103 in May, the highest level since August 2011. The April figure was revised up to 102 from 101 previously.
Greece expects to reach a deal with its creditors in the next 10 days and intends to meet all its payments in June, the government's spokesman Gabriel Sakellaridis said today. German Chancellor Angela Merkel and French President Francois Hollande met late yesterday with Greek Prime Minister Alexis Tsipras, hoping to accelerate the resolution of the Greek debt crisis on the side-lines of an EU summit in Riga.
Hewlett-Packard Co.’s shares climbed in the extended trading after the computer and printer maker beat analyst estimates for its fiscal second quarter. HP reported earnings of 87 cents a share in the period on revenue of $25.45 billion, while analysts expected 86 cents a share on revenue of $25.68 billion. HP offered, however, a cautious guidance of 83 cents to 87 cents a share for the next quarter, and $3.53 to $3.73 a share for the year.
The Bank of Japan (BOJ) today kept its policy unchanged, saying the country's economy is improving moderately. The central bank maintained its massive monetary stimulus and offered a slightly more upbeat view of the economy, unimpressed by first-quarter GDP data that offered mixed signs on the strength of the recovery. The bank last expanded its easing measures in October. The USD/JPY pair was down 0.3% to 120.66 in today’s trade.
• Today, at 8:00 GMT, the IFO Business Climate Index for Germany will be released. The median forecast is for a decrease to 108.1 points in May from 108.6 in the previous month. This is an important indicator of the economic health in Germany, providing guidelines for its development in the coming months. Values above 100 points indicate a positive business outlook. Better data would support the euro.
• At the same time, the President of the European Central Bank (ECB) Mario Draghi will hold a speech at ECB Forum on Central Banking “Inflation and Unemployment in Europe” in Sintra, Portugal. Usually euro volatility is higher during Draghi's speeches.
• At 11:00 GMT, the Bank of England's Governor Mark Carney will hold a speech at the same economic event in Portugal. Usually the GBP volatility is higher during his statements.
• At 12:30 GMT, the Canadian inflation data will be released. The Consumer Price Index is expected to rise 0.1% in April from the previous month when it rose 0.7%. Usually higher inflation leads to an appreciation of the national currency.
• At the same time, 12:30 GMT, the Canadian Retail Sales will be announced. They are expected to rise 0.3% in March from the previous month, when they jumped 1.7%. An increase in the total value of the retail sales would support the Canadian dollar.
• Again at 12:30 GMT, the US consumer inflation data will be released as well. The Consumer Price Index (CPI) is expected to rise 0.1% in April from the previous month, when it increased 0.2%.
• A number of central bankers' statements are scheduled later in the day and the markets will probably be dynamic.
Final estimate of Gross Domestic Product (GDP) for the first quarter is 1.0% on a yearly base, it was expected to be 1.0% versus 1.0% previously.
Final estimate of Gross Domestic Product (GDP) for the first quarter is 0.3% on a quarterly base, it was expected to be 0.3% versus 0.3% previously.
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