(Reuters) - Intel Corp agreed to buy Altera Corp for $16.7 billion as the world's biggest chipmaker seeks to make up for slowing demand from the PC industry by expanding its line-up of higher-margin chips used in data centers.
BERLIN (Reuters) - A phone call on Sunday between German Chancellor Angela Merkel, French President Francois Hollande and Greek Prime Minister Alexis Tsipras took place in a "constructive" atmosphere, the German government said on Monday.
LONDON/SYDNEY (Reuters) - Manufacturing activity showed scant sign of picking up across Europe and Asia in May as demand stayed stubbornly weak, highlighting the need for central banks to continue supporting growth.
(Reuters) - U.S. stock index futures were higher on Monday, after closing down the previous week, as investors focused on the bright spots in China's factory activity data and ahead of a string of domestic economic data.
Over the past several days it's become increasingly clear that the endgame in Greece will involve some manner of political shakeup in Athens.
As we've said all along, the troika wants â€" no, needs â€" to force Greek PM Alexis Tsipras into conceding Syriza's election mandate or risk emboldening leftist movements across the periphery. The necessity of remaining resolute when it comes to demanding complete surrender from Athens was made all too clear when recent regional and local elections in Spain showed a groundswell of support for Podemos and many progressive, anti-austerity candidates (we'll leave aside the fact there was never any real â€'austerity' in the first place).
Greece and creditors missed a self-imposed Sunday deal deadline and, in what seemed like an admission that discussions have become intractable, Tsipras penned a lengthy statement over the weekend which blamed creditors for the stalemate and warned that democracy in Europe was threatened by those who wish to create a two-tiered EMU wherein weaker nations are essentially governed from on high by the institutions and EU paymaster Germany. Additionally, Syriza's far-left radicals look set to split with Tsipras, forcing a government reshuffle in order to get a deal passed through parliament.
Today, Goldman is out reinforcing all of the above noting that in the end, it simply is not possible for Syriza to keep its election promises and secure a deal with the troika.
Via Goldman (on the political aspect):
On the one hand, the European authorities are committed to a framework based on three key principles:
BEIJING (Reuters) - Growth in China's giant factory sector edged up to a six-month high in May but export demand shrank again, prompting companies to shed jobs and keeping alive worries about a protracted economic slowdown, a government survey showed on Monday.
Remember China's 6% crash last week? It is now a distant memory made even more remote thanks to the latest batch of ugly data out of China, coupled with hints of even more liquidity injections, which led to the latest surge in the Shcomp, an index that has put most pennystocks to shame.
Indeed, while the Hang Seng was up a modest +0.6% overnight, the Shanghai Comp soared higher +4.7% amid further easing expectations, underlined by a disappointing HSBC Mfg PMI print (49.2 vs. Prev. 49.1), which marked the third consecutive contraction as reported earlier. Prices were also supported by reports that China are said to consider doubling its CNY 1 trillion local debt swap program, with the program allowing regional authorities to convert high yielding debts into municipal bonds and effectively lowers financing costs. JGBs softened after shrugging Friday's gains across German Bunds and USTs as investors were reluctant to chase prices higher ahead of tomorrow's JPY 2.4trl 10yr auction.
In Europe, the big story remains Greece, and as everyone expected, the doomed country and its creditors failed to make a deal on Sunday. This is after Greek Officials were said to have prepared a draft agreement, which was expected to be announced on Sunday. Not helping things, Greek PM Tsipras came out in fully defiant mode and accused bailout monitors of making "absurd" demands and seeking to impose "harsh punishment" on Athens.
Separately according to Greek Economy Minister Stathakis, Greece
envisages that they will rep ...
LONDON (Reuters) - Crude oil prices dropped on Monday as the dollar rose and on expectations that OPEC production would remain high, stoking worries of oversupply despite declining U.S. rig operations.
KUALA LUMPUR (Reuters) - The newly appointed chief executive of loss-making Malaysia Airlines said on Monday the carrier is "technically bankrupt", underlining the case for a restructuring to cut a third of jobs, scrap some international routes and review its long-haul fleet.
LONDON (Reuters) - Standard Chartered's incoming Chief Executive Bill Winters is expected to raise capital and cut the bank's dividend later this year, potentially forced to act by a tough stress test of its Asian loans, investors and analysts said.
LONDON (Reuters) - Britain said it will launch a sale of shares in Lloyds to private retail investors in the next 12 months and has extended a facility enabling it to sell more shares in the bank to financial institutions.
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