* US: Dow Futures: 12466.00 (-0.81%), S&P 500 Futures: 1314.80 (-0.90%), NASDAQ Futures: 2554.00 (-0.76%)
* Europe: CAC: 3034.99 (-1.84%), DAX: 6161.02 (-1.66%), FTSE: 5475.72 (-0.69%).
* Asia-Pacific: Australia: 4027.80 (-0.50%), China: 2224.11 (-1.65%), Hong Kong: 18897.45 (-0.52%), India: 5114.65 (-0.61%), Japan: 8734.62 (-0.73%).
* Metals: Gold: 1571.80 (0.30%), Silver: 26.69 (0.11%), Copper: 3.28 (-0.71%)
* Energy: Crude Oil: 78.90 (-1.08%), Natural Gas: 2.71 (3.16%)
* Commodities: Corn: 5.79 (1.05%), Soya Bean: 14.20 (-0.02%), Wheat: 7.26 (1.18%)
* Currency: EUR/USD: 1.2495 (-0.60%), GBP/USD: 1.5563 (-0.16%), USD/JPY: 79.6800 (-0.93%)
* 10 year US Treasury: 1.619% (-0.053)
Financial and Economic News Update
U.S. stock-index futures down:U.S. stock index futures are pointing to a lower open on Monday as worries about Europe, ahead of the European Union summit this week, made investors nervous. The market is also reacting negatively to the Spanish request for the European Union bailout. The Dow futures, the S&P futures and the NASDAQ future were all close to a percent lower.
European markets deep in the red: European markets slumped in trade today, with the German DAX (INDEXDB:DAX) trading 1.7 percent lower at 6161.02, the FTSE 100 (INDEXFTSE:UKX) down 0.7 percent at 5475.72, and the CAC 40 (INDEXEURO:PX1) slid 1.8 percent to 3034.99. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 1.9 percent lower.
Asian markets end lower: Asian markets closed lower on Monday on investor concerns about Europe’s intractable debt crisis. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) dropped 0.7 percent to 8,734.62. The HANG SENG INDEX (INDEXHANGSENG:HSI) lost 0.5 percent to 18897.45, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) dropped 1.6 percent to 2224.11. The S&P/ASX 200 (INDEXASX:XJO) index shed 0.5 percent to end at 4,027.8. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 0.53 percent to 16,882.16 points.
Stocks in Focus
* BlackBerry maker Research In Motion Limited (USA) (NASDAQ:RIMM) is planning to spin-off its struggling handset manufacturing division from its messaging network, the British newspaper Sunday Times reported.
* Quest Software, Inc. (NASDAQ:QSFT) jumped 6 percent after a strategic bidder offered to buy the company for about $2.32 billion in cash.
* Google Inc (NASDAQ:GOOG) chief executive Larry Page reassured employees about the state of his health after speculation grew when he last week missed the company’s annual shareholders meeting.
* Intel Corporation (NASDAQ:INTC) was down 1 percent in New York pre-market trading after an analyst at Evercore Partners Inc. said the company may face weaker demand in the second-half of the year.
* The European Union’s competition regulators are set to approve the sale of diversified U.S. manufacturer SPX Corporation (NYSE:SPW)’s automotive service business to German-based Robert Bosch GmbH for $1.15 billion, Reuters reported.
* The Walt Disney Company (NYSE:DIS)’s animated movie “Brave” dominated the weekend box office with a better than expected North American ticket sales of $66.7 million.
* Thomson Reuters Corporation (USA) (NYSE:TRI) has agreed to acquire privately held Zawya Ltd, an online Middle-east and North African business news service, from the Dubai-based investment group, Saffar. The terms of the deal were not disclosed.
* According to a report by Amir Efrati in The Wall Street Journal, Yahoo! Inc. (NASDAQ:YHOO) is reportedly refocusing on online advertising
* BE Aerospace, Inc. (NASDAQ:BEAV), the world’s largest maker of aircraft cabin interiors, will buy aerospace logistics company Interturbine for about 200 million euros ($251 million) in cash to.
* Dirk Notheis, the head of Morgan Stanley (NYSE:MS)’s German unit, has offered to resign following public criticism over the exchange of emails with a local politician.
* Electric car company Tesla Motors Inc (NASDAQ:TSLA) said the first few units of its premium sedan Model S were delivered a month ahead of schedule.
* Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) said a U.S. federal district judge ruled that drug applications for the multiple sclerosis drug Copaxone infringed on the company’s patent.
* Houston-based marine transportation and services company Kirby Corporation (NYSE:KEX) cut its profit forecasts for the second quarter and fiscal year 2012, amid a lower than expected demand for its hydraulic fracturing equipment.
* The board of Kearny Financial Corp. (NASDAQ:KRNY) has to skip its next scheduled quarterly dividend in July 2012.
* SanDisk Corporation (NASDAQ:SNDK) was upgraded from “neutral” to “buy” at Goldman Sachs, while Watson Pharmaceuticals, Inc. (NYSE:WPI) was raised to “outperform” from “market perform” at Bernstein. The Boeing Company (NYSE:BA) was lifted to “outperform” from “perform” at Oppenheimer.
* Anheuser-Busch InBev NV (ADR) (NYSE:BUD), the maker of Budweiser and Stella Artois beers, is close to buying the 50 percent of Mexican brewer Grupo Modelo that it does not already own, in a deal that could be worth more than $12 billion.
* European banks are down in trade today ahead of a much anticipated European Union summit at the end of the week. Barclays PLC (ADR) (NYSE:BCS) was down 1.4 percent, Deutsche Bank AG (USA) (NYSE:DB) was trading 2.6 percent lower, Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) shed 1.2 percent, and BNP Paribas SA (EPA:BNP) slumped 3.2 percent.
* British biopharmaceutical company Shire Plc. (ADR) (NASDAQ:SHPGY) tumbled more than 10 percent in London trading after the U.S. Food and Drug Administration approved a rival’s generic version of its second-biggest selling drug Adderall XR. Watson Pharmaceuticals, Inc. (NYSE:WPI) owned Actavis Group Hf will produce a cut-price version of the hyperactivity drug.
* Fabrice Bregier, the new chief executive of European aircraft maker Airbus said that the A350 wide-body passenger jet will not be delayed despite the acute production problems. Bregier made the announcement to reassure investors of EADS NV (EPA:EAD), Airbus’ parent company, who are worried that the super-jumbo program could suffer the same fate as The Boeing Company (NYSE:BA)’s 787 Dreamliner.
* German utilities, E.ON AG (ETR:EOAN) and RWE AG (ETR:RWE), may outsource nuclear disposals to French nuclear engineering company Areva SA (EPA:AREVA), business newspaper Handelsblatt reported.
* Europe’s largest sugar producer, Suedzucker Mannheim Ochsenfurt AG (ETR:SZU) said first-quarter operating profit jumped to 263 million euros ($328 million), from 184 million euros in the same period last year.
* British food retailer Wm. Morrison Supermarkets plc (LON:MRW) said group Finance Director Richard Pennycook will leave the company at the end of June 2013.
* Deutsche Bank AG (USA) (NYSE:DB) was cut to “sector perform”, the equivalent of hold, from “outperform” at RBC Capital Markets, while SABMiller plc (LON:SAB) was downgraded to “sell” at Liberum Capital. ABB Ltd (ADR) (NYSE:ABB), the world’s largest power-grid maker, was reduced to “underweight” from “neutral” at JPMorgan Chase & Co.
* Japanese television makers Sony Corporation (ADR) (NYSE:SNE) and Panasonic Corporation (ADR) (NYSE:PC) today agreed to jointly develop mass production technology for next generation organic light-emitting diode displays, in a bid to claw back market share from Korean rivals Samsung Electronics and LG Electronics.
* UBS AG downgraded the earnings estimates for global mining giants BHP Billiton Limited (ADR) (NYSE:BHP) and Rio Tinto plc (ADR) (NYSE:RIO) by 4 percent, citing the impact of Australia’s new mining and carbon taxes, which take effect on July 1.
* Several brokerages cut the second quarter profit estimates for Samsung Electronics; even as the tech giant said it expects sales of its new Galaxy S III, launched in the U.S. last Thursday, to top 10 million during July.
* Japanese drugmaker Astellas Pharma Inc (TYO:4503) jumped 1.5 percent in Tokyo trading after receiving approval for additional use of its adult bronchial asthma treatment Symbicort Trubuhaler, in Japan.
* Australia’s largest surf-wear maker Billabong International Limited (ASX:BBG) plunged 48 percent in Sydney after selling 155 million Australian dollars ($155 million) of new shares last week. The stock was reduced to “sell” by analysts at Citigroup and UBS, following the announcement of the share sale.
* Fairfax Media Limited (ASX:FXJ)’s flagship newspapers, The Sydney Morning Herald and The Age, announced the departure of their editors, after Fairfax last week announced a big organizational shake-up.
* Japan’s National Tax Agency has accused electronics maker NEC Corp (TYO:6701) of hiding more than 10 billion yen ($125 million) in income over three years to March 2010, the Kyodo News reported.
* Japanese social gaming companies Gree,Inc. (TYO:3632) and DeNA Co., Ltd. (TYO:2432) ended higher in Tokyo after Nomura Securities reaffirmed its “buy” rating on the stocks.
Economic Calendar for Monday, June 25, 2012:
08:30 A.M. ET: Chicago Fed National Activity Index (May)
10:00 A.M. ET: New Home Sales (MoM) (May)
10:00 A.M. ET: New Home Sales Change (MoM) (May)
10:30 A.M. ET: Dallas Fed Manufacturing Business Index (June)
11:00 A.M. ET: 4-Week Bill Announcement
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 4-Week Bill Auction
11:30 A.M. ET: 6-Month Bill Auction