Global Markets Roiled by Nikkei’s 7.3% Slide (AP)
Several reasons have been blamed for the 7.3 percent fall in the Nikkei index to 14,483.98, including a spike in Japanese government bond yields and unexpectedly weak Chinese manufacturing figures.
Euro-Zone Business Activity Falls Again (WSJ)
Markit Economics said its composite purchasing managers’ index for the euro zone—a measure of activity in the services and manufacturing sectors—rose to 47.7 from 46.9 in April, a stronger outcome than that forecast by economists but still below the level of 50 that separates growth from contraction. Speaking after the surveys were released, a member of the European Central Bank’s governing council said he didn’t expect the euro zone’s economy to pick up in the near future. “From my personal view, I don’t see at the moment any indication of a significant improvement in the economic situation for the immediate future,” said Ewald Nowotny, who is also governor of the Austrian central bank.
Wall Street Seeks Dodd-Frank Changes Through Trade Talks (Bloomberg)
U.S. bankers and insurers are trying to use trade deals, which can trump existing legislation, to weaken parts of the Dodd-Frank Act designed to prevent a repeat of the 2008 financial crisis. While the companies say they are seeking agreements that preserve strong regulations and encourage economic growth, their effort is drawing fire from groups who argue that Wall Street wants to make the trade negotiations a new front in its three-year campaign to stop or alter the law.
In a Plus for Electrics, Tesla Repays a Big Federal Loan Early (DealBook)
“Today’s repayment is the latest indication that the Energy Department’s portfolio of more than 30 loans is delivering big results for the American economy while costing far less than anticipated,” Ernest Moniz, the energy secretary, said in a statement. … The Energy Department on Wednesday said that losses on its loans were equivalent to 2 percent of its $34 billion portfolio.
Rating agencies under fire again (FT)
… for not upgrading RMBS fast enough.
For Philadelphia Bicyclist, a Cat Is His Co-Pilot (AP)
“People are thrilled to see the guy with the cat ride his bike down the street,” Saldia said. But online commenters have been less kind, questioning whether the unharnessed cat is safe. Saldia noted he is equally vulnerable while riding in the city and takes necessary precautions. “I’m very confident that the cat would be better off in an accident than I would be, so I’m not worried about taking her out,” he said.
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