Early Headlines

JPMORGAN

Has taken $2bn in trading losses in the past six weeks and could face an additional $1bn in Q2 losses due to market volatility. (WSJ)

JPMORGAN

The event highlights how difficult managing big banks is, and that even though JPM says proprietary trading had nothing to do with the losses, the hand of those advocating the Volcker rule has been strengthened. (WSJ Heard on the Street)

ASIA

Markets trade mostly lower, with Chinese inflation data adding no cheer. Only Japan flirts with gains, as earnings reports help support Tokyo. China’s consumer inflation slowed in April while wholesale prices headed lower, likely providing policy makers leeway needed for an easing in monetary conditions. The CPI rose 3.4% from a year earlier. the result matched expectations from a DJ survey and was just above a 3.3% gain tipped in a Reuters survey. (MarketWatch)

INFLATION

Bundesbank President Jens Weidmann hit back at FT report that the bank is prepared to accept higher inflation rates. Reports are “absurd discussion,”while German inflation may be higher than in the past, there is no danger as long as the ECB keeps euro-area avg. at just below 2%. (SZ)

EUROZONE

Has lost a crucial lifeline as China's biggest sovereign wealth fund said it no longer wanted to buy European government debt. (The Telegraph)

GREECE

The EU’s top officials have told Greek party leaders in recent days that if Greece wants to stay in the euro it must abide by the terms of the bailout. (CNBC)
Greek political parties were engaged in a last-gasp attempt to form a government and avoid new elections after voters rejected an international bailout and plunged the debt-ridden country into crisis. (Reuters)

SPAIN

Will be offered more time to hit the budget deficit targets it agreed with the EU but only if Madrid meets new conditions, including an independent audit of the restructuring plan for its troubled banks. (FT)

BANKS

MOODY's has warned that the tendency of global banks to avoid new capital requirement rules and load up on debt will continue to put pressure on their creditworthiness. The credit rating agency announced it was placing 17 banks on review for a downgrade earlier this year, citing vulnerabilities in the companies’ vast and volatile capital markets businesses. (FT)

SBERBANK

Russia's central bank likely to list Sberbank in London this year. A $6bn share sale may come this year when the central bank attempts to cut its 60% holding in Sberbank. (BB)

E.ON

A consortium led by GDF Suez SA has made a bid of around €3bn for the gas-pipeline network put up for sale by EON. The consortium includes CNP Assurances SA and the IFM Australian Infrastructure Fund. Three other groups are also in the running. (Les Echos)

XSTRATA

Qatar sovereign wealth fund to build stake to at least 10% in Xstrata. (FT)

VIVENDI

Plans to reduce operating expenses at its SFR mobile-phone unit by as much as €450m this year through firings, cutbacks in marketing spending and renegotiating contracts with call centers. (BB)