New York morning espresso

** FT News **

* Iraq strikes defiant tone on oil output | Oil minister seeks to play down fears over escalating unrest, telling reporters that Iraq’s facilities in the south of the country are ‘very, very safe’

* MSCI leaves Chinese stocks out of indices | As part of its annual review, the index provider said it would consider including mainland equities in its global benchmarks in 2015

* Emirates cancels $16bn A350 jets order | Airbus hit by fast-growing Gulf airline’s review of its fleet requirements and scraps order for A350, the wide-body competitor to Boeing’s Dreamliner

* India bulls charge ahead on reform hopes | Excitement over the reforms Mr Modi could unveil in July’s budget explains much of the bullish mood, but there are few hints of how bold he plans to be

* Focus on security of Kirkuk-Ceyhan pipeline | Concern is growing that escalating unrest in the region could threaten one of Iraq’s largest oilfields and an important pipeline to a Turkish oil terminal

* Emerging nations eye IMF leadership post | Fund managing director Christine Lagarde has been touted as president of European Commission by leaders opposed to candidacy of Jean-Claude Juncker

* Iraq alliances twisted by Syria conflict | Baghdad’s Shia-dominated government is edging nearer Damascus, as the Sunni opposition now backs rebels trying to overthrow Assad

* Sales of luxury cars boom in Brazil | Sales of some luxury car marques in the country are soaring in a sign of how wealthy are prospering in one of the most unequal countries in the world

* Tanzania faces delays to export gas | Opposition party refuses to take part in talks over rewriting constitution, which is prolonging uncertainty over Zanzibar’s ability to sign gas deals

* China warns Hong Kong over autonomy | Former British colony is growing concerned over the future of democracy in a city that has always prided itself on being freer than mainland China

* Four good reasons to bet against Brazil | A World Cup is so short that luck plays a big role. That often confounds favourites. Also, only one of the last eight tournaments was won by the host

* Price rises pose dilemma for China easing | Beijing’s recent efforts to support flagging growth through looser monetary policy could be complicated if price increases start to accelerate

** FT Opinion **

- Panic pushes Saudis towards Iran detente | Iranians play hard to get with pleas to focus on nuclear talks but for Riyadh U-turns do not come bigger than its shift from obloquy to olive branch

- When big mama comes to the rescue | The Shanghai government is trying to give the neighbourhood committee a makeover by replacing some old biddies with college graduates

- Modi’s dilemma over Vodafone tax case | Moving to solve the disagreement would signal the new Indian prime minister’s enthusiasm for foreign capital and attitude to globalisation

- World Cup: Pitch battle | Far from uniting the country, the football tournament has exposed growing public antipathy.

** BB recent & required reading **

- World Cup and Olympics: bad for Brazil| Excitement may be building among football fans before Thursday’s first kick-off in the World Cup but most Brazilians, it seems, wish it wasn’t happening (at least not in Brazil).

- Guest post: de-dramatising Argentina | By José Barrionuevo of StormHarbour Partners As the US Supreme Court prepares to decide on June 12 whether or not to hear the case of the Argentine “holdouts”, the debate about the country’s debt restructuring has done little to promote understanding of the significance of the Court’s decision – yet it is critical to the future of debt restructuring worldwide.

- Russians line up for cheap flights to Crimea | As international budget airlines begin to make headway in the Russian market, Aeroflot has launched its own version of easyJet. Passengers crammed aboard the maiden flight from Moscow to – guess where? – Crimea on Tuesday were waved off by Dmitry Medvedev, Russia’s prime minister.

** From elsewhere **

Big retail can’t compete with India’s corner shops—but online grocery sites have a chance (Quartz)

Contra a Copa: The Other Side of Brazil’s World Cup (Vice)

** Markets: mostly down **

Emerging Markets
MSCI Emerging Market Index down -0.13% at 1,056

FTSE up -0.50% at 6,839
RTS down -0.06% at 1,368
Warsaw Wig down -0.33% at 53,193
FTSE 300 Eurotop down -0.43% at 1,392

DJIA up +0.02% at 16,946
S&P 500 down -0.02% at 1,951
Bovespa up +0.61% at 54,604

Nikkei 225 up +0.50% at 15,069
Topix up +0.84% at 1,239
Hang Seng down -0.25% at 23,257
Shanghai Composite up +0.12% at 2,055
MSCI Asia ex-Japan down -0.10% at 494.54
CNX Nifty down -0.39% at 7,627

€/$ 1.35 (1.35)
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Brent Crude (ICE) up +0.51 at 110.03
Light Crude (Nymex) up +0.22 at 104.57
100 Oz Gold (Comex) up +4.60 at 1,264