Economy
With China's manufacturing sector presenting a mixed picture in May, analysts are betting on even more stimulus from Beijing to spur momentum in the world's second largest economy. China's official manufacturing PMI, which surveys large companies, rose to 50.2 from 50.1 in April, in line with expectations. However, the final reading from a private survey compiled by HSBC/Markit, which focuses on small and medium sized enterprises, stayed in contraction for a third month at 49.2, but beat the 49.1 figure in April. Shanghai closed +4.7%; Shenzhen +5.1%.

Beijing officials emphasized that there will be no concessions over electoral reform in Hong Kong during a meeting with pro-democracy lawmakers on Sunday, insisting that candidates running in the election must be prescreened by a nominating committee. The move effectively quashes any possibility of a compromise between the two sides just weeks ahead of an electoral-reform package vote for the 2017 chief executive election. The proposal will require a two-thirds majority in the legislature to pass.

Euro zone factory growth was weaker than previously thought last month as the bloc's core countries continued to struggle as prices deteriorated. Markit's final May manufacturing PMI was 52.2, below a preliminary flash reading of 52.3 but just ahead of April's 52.0. "The rate of growth is modest rather than spectacular," said Markit's Chief Economist Chris Williamson. "There are clearly countries which continue to struggle."

The euro tumbled today after Greece missed a self-imposed Sunday deadline for reaching an agreement with its lenders to unlock aid, keeping alive fears of a debt default and exit from the euro zone. The chances for a deal aren't looking any better after Alexis Tsipras' comments on Sunday. Yesterday, the prime minister accused bailout monitors of making "absurd" demands and seeking to impose "harsh punishment" on Athens. Greece is due to repay a €300M loan to the IMF on Friday and three additional payments, totaling about €1.25B, later in June. The euro is -0.7% to $1.0911.

Europe's six largest oil and gas groups have united together in seeking help from the United Nations to stop global warming and create a global carbon pricing system. "We owe it to future generations to seek realistic, workable solutions to the challenge of providing more energy while tackling climate change," the companies' executives said in a letter to the FT. The step comes as nearly 200 countries prepare to sign a global climate pact at a U.N. conference in December. Companies involved: Shell (RDS.A, RDS.B), Total (NYSE:TOT), BP (NYSE:BP), BG Group (OTCQX:BRGYY), Statoil (NYSE:STO) and Eni (NYSE:E).

Crude prices dipped on Monday on expectations OPEC output would remain high after rising in May, stoking worries of oversupply despite declining U.S. rig operations. On Friday, the 12-country group is expected to keep its current production ceiling of 30M barrels a day in place for the seventh meeting in more than three years. Crude futures -1.3% to 59.54/bbl.

Stocks
Following more than two months of drama, Intel (NASDAQ:INTC) will announce it's buying FPGA vendor Altera (NASDAQ:ALTR) today for $54/share, WSJ reports. The price translates to a $16.2B valuation, or $13.2B after factoring net cash/investments. It also represents an 11% premium to Altera's Friday close, and a 56% premium to where it traded before reports of a deal on March 27. ALTR +5.9%; INTC +0.4% premarket.

Microsoft has finally revealed an exact date for the release of its new operating system, stating that Windows 10 will become available on July 29th. The OS will see the return of the Start menu, a new browser called Microsoft (NASDAQ:MSFT) Edge, and the inclusion of voice-controlled assistant Cortana. Windows 7 and Windows 8.1 users will be able to download the new operating system as a free upgrade on both PCs and tablets, while Windows 10 for other devices will be released later this year.

Snapchat has raised less than the $650M CNBC reported the company would be adding to its coffers, however, the WSJ has joined CNBC in reporting the valuation is $16B, or 60% higher than what Snapchat was valued at just 6 months ago. As expected, Alibaba (NYSE:BABA) is an investor, and so are hedge funds Glade Brook Capital and York Capital. The firms have reportedly agreed to receive common stock rather than the preferred stock VCs typically receive when making investments.

PartnerRe and Axis Capital are embarking on a public campaign this week to convince shareholders of the merits of their $13B merger, and have asked shareholders to vote on the deal on July 24, Reuters reports. Exor (OTCPK:EXOSF) has attempted to derail the merger by offering $6.8B for PartnerRe (NYSE:PRE), however, the latter still maintains that Axis' (NYSE:AXS) offer is superior.

U.S. fund managers have launched a new attack on the Financial Stability Board, fighting possible rules that would treat groups such as Fidelity, BlackRock (NYSE:BLK) and Vanguard as threats to the financial system. The FSB could have asset managers next in its sights, after designating 30 banks and 9 insurers as SIFIs. Fund managers argue that they do not pose systemic dangers to financial stability because they do not take deposits, guarantee returns or face the risk of sudden failure like a bank.

Meanwhile, General Electric has launched the bidding process for a $40B portion of its U.S. commercial lending assets, as a key step toward escaping a SIFI designation from the Fed. The chunk of the operation represents more than half of GE's $74B U.S. commercial lending and leasing portfolio that includes loans for equipment purchases, financing and leases for midsize firms.

Harley-Davidson's LiveWire battery-powered motorcycle, announced a year ago and demonstrated across the U.S. and in Europe, is unlikely to hit the market "in the next couple years, but it’s not past 2020 either," CEO Matt Levatich said in an interview. While the electric bikes are a big part of Harley's (NYSE:HOG) effort to engage young adults and reduce reliance on aging baby boomers, potential buyers have already expressed several concerns. Among them: Cost, driving speed and the motorcycle's current 50 mile range.

The USPTO has suspended the trademark application covering the Chevrolet Bolt due to a Yamaha (OTCQX:YAMCY) trademark on the same name dating back to 2012. General Motors (NYSE:GM) will need to change the name for its new mass-market electric vehicle or wait for Yamaha to abandon its claim.

The U.K. government has extended a plan to drip-feed its shares in Lloyds (NYSE:LYG) to institutional investors from the end of June until December 31, allowing the Treasury to sell a further £9B of shares in 2015-16. Lloyds was bailed out at a cost of £20B ($30.6B) to taxpayers during the financial crisis, leaving the government holding a 41% stake in the bank. It now owns 18.99% following a series of share sales.

Global bank card operators including Visa (NYSE:V) and MasterCard (NYSE:MA) will be allowed to clear domestic Chinese payments starting today, following a long-running effort to enter the market dominated by state-backed UnionPay. Last fall, China's cabinet announced it would allow foreign companies to access the $73T-a-year market. The government then followed up with the official rules in April.

Today's Markets:

In Asia, Japan +0.03% at 20570. Hong Kong +0.6% to 27597. China +4.7% to 4829. India +0.1% to 27849.
In Europe, at midday, London -0.2%. Paris +0.1%. Frankfurt -0.1%.
Futures at 6:20: Dow flat. S&P flat. Nasdaq flat. Crude -1.3% to $59.54. Gold -0.3% to $1186.40.
Ten-year Treasury Yield -3 bps to 2.1%

Today's economic calendar:

8:30 Chicago Fed National Activity Index
10:00 Existing Home Sales

Notable earnings before today's open: PVH, QUNR