GLOBAL MARKETS-World stocks slip with euro on Greece turmoil

* Euro at four-month low vs dollar

* World stocks edge down on Greece political problems

* Greek euro exit fears weigh on markets

By Caroline Valetkevitch

NEW YORK, May 15 (Reuters) - World stocks declined and the euro fell to a four-month low against the dollar on Tuesday after Greece said it would hold new elections and worries increased about its possible exit from theeuro zone.

Gold touched a 4-1/2-month low as the euro's weakness unnerved investors over the profitability of holding euro-denominated assets.

The turmoil in Greece kept pressure on markets. Investors have been concerned that long-lasting problems in the euro zone and a likely recession in Europe will hit global growth.

Greek politicians again failed to agree on a new government, nine days after an inconclusive election. After Greece's president said the country will hold new elections, the euro slumped and investors fled to the safe-haven dollar.

The Greek news "triggered the fall through $1.2800 and it looks like they can't compromise so they will have to hold elections," said Boris Schlossberg, director of FX Research at GFT in Jersey City, New Jersey.

"They are running out of money ahead of elections, so expect European leaders in the next few days to put enormous pressure on them to come up with a workable government along with some sort of extended schedule for the bailout."

The euro was last down 0.3 percent at $1.2786 with the session trough of $1.2769, the lowest since Jan. 18.

The MSCI world equity index fell 0.3 percent, while the FTSE Eurofirst index of top European shares was down 0.7 percent.

U.S. stocks were little changed after a slight bounce early in the session from recent losses after positive economic data on regional manufacturing and national homebuilder sentiment.

A gauge of homebuilder sentiment rose to the highest in five years this month. Separately, the pace of growth in New York state manufacturing rebounded, the New York Federal Reserve said.

Data also showed U.S. retail sales rose 0.1 percent in April, coming in under expectations.

http://www.reuters.com/article/2012/05/15/markets-global-idUSL1E8GF8KI20120515

JPMorgan’s Dimon Confronts Angry Shareholders

The CEO of JPMorgan Chase won a shareholder endorsement of his pay package Tuesday and kept his title of chairman of the board, five days after disclosing a $2 billion trading loss at the bank. Most ballots were cast before CEO Jamie Dimon revealed the loss.

Getty Images Jamie Dimon

The vote on Dimon's pay package from last year — $23 million, according to an Associated Press analysis — was non-binding. It passed with 91 percent of the vote. A vote to strip Dimon of the chairman's title won only 40 percent.

Speaking with reporters after the meeting, Dimon said: "The buck always stops with me." Earlier, he told shareholders that the company's mistakes were "self-inflicted."

The U.S. Justice Department has opened an inquiry into JPMorgan's multibillion-dollar trading loss, the Wall Street Journal reported on Tuesday, citing a person familiar with the matter.

The report said the inquiry was at an early stage and that it was not clear what sort of legal violation the U.S. government may be looking at.

In addition, the New York office of the FBI has opened an investigation, a source familiar with the probe told Reuters. The source, who requested anonymity because the investigation is ongoing, said the probe was in a "preliminary" stage.

http://www.cnbc.com/id/47425210