Cameron adds to eurozone warnings. David Cameron will be saying it in a speech today that the single currency unravelling would “carry huge risks for everyone”, reports the FT. Cameron will back Francois Hollande’s proposals to boost European growth – including providing more British capital for infrastructure projects and small business lending – but he insists the eurozone must sort out its own problems. European leaders are pitching the June Greek election as a referendum on eurozone membership, says the FT, in a high stakes gamble. José Manuel Barroso, Angela Merkel and Francois Hollande all stressed on Wednesday that they wanted Greece to remain in the union. Mario Draghi acknowledged for the first time that Greece could leave the monetary union, says Bloomberg, while the ECB temporarily halted regular liquidity operations to some Greek banks.
Japan’s Q1 GDP growth was higher than expected at an annualised rate of 4.1%, but the figure was boosted by reconstruction spending that’s poised to fade just as a worsening in Europe’s crisis threatens to curtail export demand, says Bloomberg.
JPMorgan’s CIO trading loss has surpassed the bank’s initial $2bn estimate by at least $1bn, says NYT DealBook, citing people with knowledge of the losses.
Some of Facebook’s biggest investors plan to cash out as much as half of their stakes in the social network’s initial public offering this week, says the WSJ. Goldman Sachs, Tiger Global Management and Facebook director Peter Thiel, who was one of the social network’s first investors, more than doubled the amount of stock they plan to sell. Several brokers have stopped taking new orders for the shares, says Reuters, citing various official and unnamed sources.
ICAP is in talks to buy Plus Markets Group, the UK exchange for fledgling companies that is planning to close after failing to secure a buyer. Icap is talking with the FSA and with Plus’ board about a deal to preserve the quotations of the 156 companies already on the exchange, and would eventually add other products, says the FT, citing two people familiar with the situation.
China will expand the scope for short selling by starting a trial next week to allow brokerages to borrow stocks for clients, Bloomberg reports, citing China Securities Journal.
The Fed’s minutes published on Wednesday revealed that eurozone fears were partly behind the clash between its forecast of low interest rates through late 2014 with members’ individual predictions that rates will need to rise earlier, says the FT.
Chinese bank lending plunged in April, according to the PBoC, and remained weak in May according to bankers and borrowers, says the WSJ.
COMMENT AND CURIOS
– Only the IMF can break the eurozone logjam, says Charles Goodhart. (Financial Times)
– Editorial: Athens is likely to default, but may leave only if pushed. (Financial Times)
– Countries have defaulted, devalued, withdrawn from a monetary union before. But none has done it all at once. (Wall Street Journal)
– Tracy and Sam explain how the Whale Trade became so big. (Financial Times)
– The LME bid winner will be known soon.. will HK Exchange’s China connections be enough? (Wall Street Journal)
– How Norwegian day traders are beating HFTs. (Financial Times)
– Over the worst? Bidding wars break out for LA luxury homes. (Bloomberg)
OVERNIGHT MARKETS: SLIGHTLY LOWER
Asian stocks swung between gains and losses as faster-than-estimated economic growth in Japan and optimism the Federal Reserve will do more to stimulate the US economy offset concern Greece’s debt crisis is worsening, says Bloomberg. [More]