10 Things You Need To Know This Morning

Keira Knightley

Photo: Gareth Cattermole/Getty Images

Good morning. Here’s what you need to know.

  • Asian markets were mixed in overnight trading with the Nikkei down 0.61 per cent ending a 4-day rally. Europe is mixed and U.S. markets opened higher.
  • Chinese official PMI continued to decline falling to an 8-month low of 50.1. Meanwhile, the unofficial HSBC PMI climbed to 49.3. Don’t Miss: China is experiencing a profitless growth >
  • The manufacturing scenario in Europe is dismal. German manufacturing PMI fell to 43.0 in July. Meanwhile, UK, French, and Italian PMI declined, and Spanish PMI increased, but were all under the contractionary reading of 50. Irish PMI did however rise to 53.9.
  • The Federal Open Market Committee’s announcement for its July 31 – August 1 meeting will take place at 2:15 p.m. ET. Investors are watching for signs of  QE3, though consensus is building that the Fed will only extend low rates to 2015. Now here is every tool in the Fed’s Arsenal >
  • The ADP employment report for July saw private payrolls rise by 163,000, beating expectations >
  • In earnings news, In earnings news, Time Warner Inc. became the latest company to miss sales expectations when it reported revenue of $6.7 billion. Meanwhile Societe Generale’s profits plunged 42 per cent in the second quarter after write-downs on its Russian unit and U.S. asset manager. Check out Doug Kass’ favourite short for the next decade >
  • South Korean exports tumbled 8.8 per cent in July, and the country’s trade surplus narrowed to $2.7 billion.
  • ISM manufacturing for July and construction spending for June will be released at 10 a.m. ET. Expectations are for the ISM manufacturing index level to rise to 50.1 and for a 0.5 per cent month-over-month rise in construction spending. Follow the release at Money Game >
  • Australian home prices unexpectedly climbed 0.5 per cent in the three months to June. This comes after 5 consecutive quarters of declines. Dylan Grice warns Australia’s credit bubble is built on an even bigger Chinese bubble >
  • S&P affirmed Spain’s ratings at BBB+/A-2 but maintained its negative outlook.
  • Bonus – In an interview with Harper’s Bazaar Keira Knightley said she tries to avoid having her picture taken.

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