Most provisions of the U.S. health care law, backed by President Barack Obama, can be implemented after the Supreme Court voted 5-4 to largely uphold the constitutionality of the Patient Protection and Affordable Care Act. The court struck down a measure that would have allowed the federal government to withhold funding from states that refuse to participate in a Medicaid expansion. Medicaid benefits can be broadened in all states that support the change.

Process for setting Libor heads toward shake-up

The British Bankers' Association, which supervises the the London Interbank Offered Rate, expressed "shock" that false submissions were made to manipulate the benchmark. The association requested the government's help to avoid future problems. "It's all about evolution, confidence and no fireworks," BBA CEO Angela Knight said. "If you went for a big bang change, you have big market instability." Meanwhile, U.K. Chancellor George Osborne said the Financial Services Authority is considering criminal charges regarding attempts to manipulate Libor. 

EU leaders relax bailout rules for Spain and Italy

Leaders at an EU summit agreed to ease conditions for emergency loans to Spanish banks and for a possible financial rescue of Italy. German Chancellor Angela Merkel made major concessions, clearing the way for the eurozone to take a wide range of measures to end the debt crisis. The news sent the euro soaring on currency markets. 

IMF and others will discus altering loan terms with Greece

Representatives from the International Monetary Fund, the European Central Bank and the European Commission will head to Greece next week to begin discussing changing terms of the country's loan. The gathering is described as a fact-finding mission and will feature an assessment of recent economic developments and a chance for the troika to meet Greece's new leaders. 

Germany denies report that it backs sooner action on eurobonds

Germany denied a report by The Wall Street Journal that Finance Minister Wolfgang Schaeuble backed a more rapid implementation of shared eurozone debt liability through issuance of eurobonds than he previously supported. A Finance Ministry spokesman said Schaeuble merely repeated Germany's long-held position that debt mutualization might be possible after further integration of the eurozone. 

SEC might force Nasdaq to upgrade trading systems

The U.S. Securities and Exchange Commission is looking into the cause of problems during Facebook's initial public offering and might force Nasdaq OMX Group to upgrade its trading systems. The agency is considering requiring Nasdaq to overhaul its IPO processes, sources said, but hasn't decided whether to take enforcement action against the exchange operator.

Market Activity
Actions at EU summit send Asian-Pacific markets soaring

Asian-Pacific share markets surged Friday after EU leaders at a summit in Brussels took a variety of actions to deal with the eurozone's debt crisis. Hong Kong's Hang Seng Index added 2.2%. Japan's Nikkei 225 rose 1.5%. China's Shanghai Composite advanced 1.4%. South Korea's Kospi gained 1.9%. Australia's S&P/ASX 200 added 1.2%. Taiwan's Taiex climbed 1.8%. India's Sensex was up 2% shortly before midday. 

U.S. health care ruling's effect on investors likely will be mixed

For investors, the Supreme Court's decision to uphold the law that overhauls the U.S. health care system isn't all good news or bad. New restrictions may cut into insurance companies' profits, but hospitals will get millions of patients who can pay their bills. Most health care companies have long anticipated the coming changes. 

Economics

Automakers add jobs in U.S. to boost production

Automakers are ramping up hiring in the U.S. to keep up with demand for their most popular models. Nissan Motor said it will hire 1,000 workers at its plant in Canton, Miss., and begin assembling its Sentra sedan there. 

Politicians put London's future as financial hub at risk

Over time, a shift of global wealth and trade to emerging economies could undercut London's position as a major financial center, according to The Economist. "Yet London is not entirely at the mercy of external forces," the magazine notes. "Policies matter. Just as the British government unwittingly accelerated London's decline after the second world war, so politicians today risk driving away some of the people on whom this city, and this country, depend for their future prosperity." 

Initial unemployment claims close in on highest rate this year

First-time jobless claims last week neared the highest level this year, the U.S. Labor Department said. Applications declined 6,000, to 386,000, short of the year's peak of 392,000. 

U.S. economic growth held at 1.9% in Q1; corporate profit fell

Expansion of the U.S. economy maintained at 1.9% in the first quarter, but corporate profit decreased for the first time in four years, the Commerce Department said. Meanwhile, an increase in exports was much smaller than previously estimated. 

Brazil launches $57B loan program for agricultural sector

Brazilian President Dilma Rousseff said the nation will loan $57 billion to agricultural businesses to create jobs and counteract a global economic slowdown. "This plan will show that Brazil is one of the few countries that can create new jobs amid the very serious sovereign-debt crisis affecting the world," she said. 

Japan's factory output posts sharpest drop since 2011 earthquake

Japanese industrial production fell 3.1% from April to May, the biggest decline since the March 2011 earthquake, the Ministry of Economy, Trade and Industry said. Weak auto exports to Europe were a major factor. 

Women's top wish from advisers is investment performance

Women's top priority in terms of financial advisers is steady earnings on their investment, according to a survey by Koski Research. Fifty-eight percent of respondents said continuous good performance is most important from an adviser. A long-term financial plan is the top priority for 40%. 

Geopolitical/Regulatory
Can EBA fill the role of a single EU regulator?

The idea of a European banking union has come up many times as a solution to the debt crisis, but for a union to be truly effective, it needs a single regulator, according to this Reuters analysis. Many, however, do not think the 7-month-old European Banking Authority, a supranational watchdog, has the ability to get the job done, even though it comprises central bankers and supervisors from all EU states. 

Germany aims to regulate ultra-fast trading

Germany's ruling coalition is moving forward with rules to govern high-frequency trading. The government is working to give financial regulator BaFin authority to supervise high-frequency traders, sources said. "We are on the right path -- the Finance Ministry has made convincing suggestions," said Klaus-Peter Flosbach, a finance expert for Chancellor Angela Merkel's party.