Good morning. Here’s what you need to know.
- Asian indices were mixed in overnight trading with the Nikkei up 1.34%. Europe is up and U.S. futures are rallying.
- President Barack Obama and congressional leaders announced a ‘historic bipartisan compromise’ to raise the debt limit and lower the deficit. The debt ceiling will be hiked in two stages, with the first cuts agreed to now, and the second round agreed to by a “Super Committee” of congressmen. Markets are rallying on the news, but the plan has yet to be voted through. Now here are the companies that will get crushed when the government stops spending money >
- The Bank of Cyprus has announced that it will need a bailout from the EU. The country has been hit by its exposure to Greece and the island nation’s cabinet has resigned amidst the deepening economic crisis. Check out the 15 countries that are most buried under debt >
- UK manufacturing slowed to 49.1 in July, despite a jump in new export orders to 53.73, up from 51.02 in June. A reading below 50 indicates contraction.
- HSBC posted pre-tax profits of $11.5 billion, beating estimates, but announced that it had cut 5,000 jobs after restructuring operations in Latin America, Britain, the U.S., France and the Middle East. The bank expects to cut another 25,000 jobs by the end of 2013. Now here is the carnage taking place on wall street >
- Insurer Allstate posted a Q2 loss of $620 million, or $1.19 a share. The hit stemmed from $2.3 billion in catastrophe losses, that included five tornadoes and three wildfires.
- ISM manufacturing index for July came in at 50.9 against estimates of 54.5 >
- EU and IMF officials will launch their first review of Portugal’s bailout today. Lisbon’s second tranche of loans hinge on the government’s ability to meet its fiscal targets. The review is expected to last two weeks. Now here is a quick guide to who gets crushed if Greece defaults >
- Peabody Energy and ArcelorMittal have reportedly launched a hostile $5.2 billion bid for Macathur Coal directly to its shareholders. The move comes after the Australian company rejected the deal saying it undervalued the company and said that it would work on attracting a rival offer.
- Chinese manufacturing growth came in a higher than expected 50.7, but lower than 50.9 in June. Analysts had expected manufacturing to slow after tighter credit and weak export demand hurt smaller businesses. Click here to see 18 facts about China that will blow your mind >
- BONUS – Kristen Stewart was spotted in London and is reported to be shooting scenes for upcoming project Snow White & The Huntsman.