10 Things You Need To Know This Morning

Rihanna

Photo: AP

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

  • Asian indices were down in overnight trading with the Nikkei down 1.21%. Europe is in the red and U.S. futures indicate a negative open.
  • The House of Representatives passed a bill to raise the debt limit by $2.1 trillion, and cut federal spending by $2.4 trillion on Monday night by a margin of 269-161. The Senate will take up the legislation at noon today, where it is expected to pass. Don’t miss: Companies that will get crushed when government spending stops >
  • Italian markets continue to tank with the FTSE MIB index falling another 1%. Meanwhile, 2-year yields have surged over 4.78% and Italian 10-year spreads are also rising to record highs. Now here is the sad story of how Italy got to be such a wreck >
  • BNP Paribas’ Q2 profit rose 1.1% as earnings from its consumer banking business, softened the blow from its exposure to Greek sovereign debt. Net income rose to $3.04 billion. Check out the 16 strongest banks in the world >
  • Barclays Capital posted a 27% decline in Q2 pretax profit to $2.31 billion. The bank had put aside $1.63 billion to compensate customers who were sold faulty payment-protection insurance, and it is cutting 3,000 jobs this year. Now here is the carnage taking place on Wall Street >
  • Carlos Slim is looking to consolidate his telecommunications empire. His America Movil SAB offered about $6.5 billion to buy 40.4% of Telefonos de Mexico SAB that it doesn’t already own. It will pay $0.90 a share for Telmex. Meanwhile, a consortium led by Hong Kong billionaire Li Ka-shing, has agreed to buy British Northumbrian Water Group for $3.92 billion.
  • Personal income rose 0.1% and personal spending fell 0.2% in June >
  • Pfizer posted Q2 adjusted diluted earnings of $0.60 per share, against expectations of $0.59 per share, on revenue of $16.98 billion. The company expects to buy back $5 billion – $7 billion of its common stock this year. Now here are the 15 highest grossing prescription drugs in America >
  • MetroPCS posted Q2 profit of $84.3 million, or $0.23 per share on revenue of $1.21 billion, missing estimates. The wireless services provider added 200,000 new customers in the quarter, below analyst expectations. 
  • The annual inflation rate across developed countries eased to 3.1% year-over-year in June, from 3.2% in May, according to OECD data. This was the first drop since November. The fall in inflation rate was put down to a drop in energy prices. Here are 10 hyperinflation horror stories of the 20th century >
  • BONUS – Rihanna was spotted participating in the Kadooment Day parade in Barbados.

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