U.S. President Barack Obama is shown on a screen as he speaks during the White House Correspondents' Association Dinner in Washington on May 3, 2014.
Good morning! Here's what you need to know.
Chinese manufacturing is contracting. HSBC's China manufacturing PMI climbed to 48.3 in April from 48.0 in March. However, any reading below 50 signals contraction in the industry. "These indicate that the manufacturing sector, and the broader economy as a whole, continues to lose momentum," said HSBC's Hongbin Qu. "Over the past few days, Beijing has introduced more reform measures which could support growth by inducing more private sector investment. We think bolder actions will be required to ensure the economy regains its momentum."
Warren Buffett isn't interested in war. Berkshire Hathaway held its annual shareholder meeting this weekend. Buffett reminded shareholders that there was "no guarantee" Berkshire would outperform the S&P 500 in every cycle. Regarding his role in Coca-Cola's controversial equity plan, he said it wouldn't have been productive to "go to war" with the board. "I think the best result for the Coca-Cola Company was achieved by our abstention, and we will see what happens in terms of compensation between now and the next meeting of Coke," he said.
Apple wins $120 million from Samsung. Apple won a patent lawsuit against Samsung. However, Samsung will only be paying Apple $120 million, which is far less than the $2.2 billion the company was hoping for. " Today’s ruling reinforces what courts around the world have already found: that Samsung willfully stole our ideas and copied our products," said Apple in a statement.
Euro zone inflation is staying low. The European Commission reduced its 2015 GDP growth forecast for the euro zone to 1.7% from February's prediction of 1.8%. It also forecasted that the inflation rate would be 0.8% this year and just 1.2% next year.
JP Morgan's 'challenging environment.' On Friday afternoon, JP Morgan Chase filed its latest 10-Q, and in it the bank warned its Q2 markets revenue wasn't looking great. "Based on Markets revenue results to date, which reflect a continued challenging environment and lower client activity levels, expect 2Q14 Markets revenue to be down approximately 20%+/- versus 2Q13," said the company. "The Markets revenue actual results will depend heavily on performance throughout the remainder of the quarter, which can be volatile."
Another GM recall. GM is recalling 51,640 SUVs. The recall include 2014 models of the Buick Enclave, the Chevy traverse, and the GMC Acadia. "An inaccurate fuel gauge may result in the vehicle unexpectedly running out of fuel and stalling, increasing the risk of a crash," said the National Highway Traffic Safety Administration.
Economist Gary Becker has died. Becker won the Nobel prize in economics in 1992. "The 82-year old Becker was a pioneer in using the tools of economics to analyze things that are frequently thought to be outside the realm of economics," noted BI's Joe Weisenthal. "This idea of using economics to analyze non-market things seems normal these days (the book "Freakonomics" was all about this, and was a huge blockbuster). But when Gary Becker started doing this it was novel. And he truly taught people to see the world in new ways."
India makes the cover of Barron's. As 800 million Indians head to the polls in history's largest-ever election, Barron's Jonathan Laing offers a bullish picture assuming Gujarat's Narendra Modi wins. "Modi's governance style flies in the face of Indian tradition, which has featured backroom business deals in exchange for kickbacks to circumvent the prospect of endless bureaucratic delays," wrote Laing. "Bidding on government contracts in Gujarat is done on the Internet, not over tea. Modi also has embraced privatization of key sectors like ports, water, and power, which is unusual in most of India's 28 state governments and in Delhi, where a dreamy Congress Party's predilection for socialism still holds sway despite the ideology's many failures in India since independence in 1947."
Pfizer earnings beat. Pfizer said its Q1 revenue fell 9% year-over-year to $11.35 billion. Adjusted earnings came in at $0.57, which was a bit higher than the $0.55 expected by analysts.
An update on American services. Later this morning, we'll get two U.S. services industry reports. First, we get Markit's services PMI report at 9:45 a.m ET; economists estimate the headline fell to 54.5 in April from 55.3 in March. At 10:00 a.m. ET comes the ISM non-manufacturing index; economists estimate ISM's index increased to 54.0 in April from 53.1 in March. "Early readings on the service sector for April, including the Richmond Fed survey and the flash reading of the Markit services PMI, pulled back slightly for April, but remained in positive territory," noted Wells Fargo's John Silvia.
Markets around the world are in the red. Asian market closed lower. European markets are in the red. And U.S. futures are predicting a down day.
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