- Reuters/Alaa Al-Marjani
Here is what you need to know.
German unemployment is at a record low. The unemployment rate in Germany fell to 6% in May, down from 6.3% in April. According to the BBC, there remains a division between what was East Germany and West Germany. West Germany has an unemployment rate of 5.5%, while East Germany has an unemployment rate of 8.4%. The unemployment rate for the eurozone as a whole fell to 10.2%, down from 11% a year ago.
The eurozone is still in deflation. Consumer prices in the eurozone fell 0.1% year-over-year in May, according to the latest Eurostat data. The reading matched economist expectations, and it marked a slight uptick from the 0.2% decline experienced in April. Stripping out the volatility from food and energy prices, the core reading climbed 0.8% YoY, in-line with estimates. The euro is up 0.2% at 1.1155.
Remain is leading in the Brexit polls. An ORB poll conducted by The Telegraph showed that 51% of respondents supported Remain while 46% supported Leave. The referendum on whether Britain will leave the European Union is set to take place June 23. The British pound is little changed near 1.4625.
Investors are pulling their money out of Asia. HSBC data showed that Asian equity markets saw a net outflow of $3.2 billion from May 1 to May 24. Additionally, bond markets in places like Indonesia and South Korea have begun to see steady outflows over the past couple of months. Currencies in the region have also come under pressure amid talk of Fed rate hikes, Reuters says.
Jazz Pharmaceuticals is buying Celator. Jazz Pharmaceuticals says it will buy Celator Pharmaceuticals for $1.5 billion, or $30.25 a share. According to Reuters, the deal represents a 72.6% premium over Friday’s closing price, and it should add to Jazz’s non-GAAP earnings starting in 2018. “As Celator is currently preparing a regulatory submission in the US for Vyxeos, this acquisition would add a new orphan product with the potential for short- and long-term revenue generation and expansion of our international commercial platform,” Jazz CEO Bruce Cozadd said in a statement.
The Verizon strike might be over. Verizon and the Communications Workers of America have reached a tentative deal that would end the nearly seven-week strike. The four-year agreement will give 40,000 network technicians and customer-service representatives a pay raise of at least 10.5% over the next four years and add 1,400 new jobs, Reuters says. Striking workers are set to return to work on Wednesday.
The former CEO of Zurich Insurance dies. Martin Senn killed himself six months after stepping down as CEO of Zurich Insurance “following a series of profit warnings and a botched takeover of British rival RSA,” according to Reuters. Senn’s death comes three years after Zurich’s former CFO, Pierre Wauthier, took his own life. Senn was 59.
Stock markets around the world are mixed. China’s Shanghai Composite (+3.3%) led the gains in Asia, and France’s CAC (-0.3%) paces the decline in Europe. S&P 500 futures are up 1.00 point at 2,098.25.
Earnings reports trickle out. Medtronic will report ahead of the opening bell.
US economic data picks up. Personal income and spending and core PCE prices will all be released at 8:30 a.m. ET before the Case Shiller 20-city Index crosses the wires at 9 a.m. ET. Chicago PMI and consumer confidence will cross the wires at 9:45 a.m. ET and 10 a.m. ET, respectively. The US 10-year yield is up 3 basis points at 1.88%.