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Good morning. Here’s what you need to know.
- Asian markets were up in overnight trading with the Bombay Stock Exchange up 1.46%. Europe is lower as Greek debt swap talks reach an impasse, and U.S. futures are moderately lower.
- Late yesterday, Eurozone finance ministers rejected a deal reached by the Greek government and its private creditors, to extend maturities on Greek debt. A formal offer on the conditions of the voluntary debt swap is due by February 13. Meanwhile, Greek Finance Minister Evangelos Venizelos said the government expects to wrap up debt talks by February 1. Don’t Miss: Here’s who gets crushed if Greece defaults >
- Some economic data out of Europe today. Germany’s service sector PMI climbed to 54.5 in January, and manufacturing PMI of 50.9 for the same period. This helped push the Eurozone composite index, which combines both the manufacturing and service sector, rise to 50.4 in January, from its previous contractionary level of 48.3. Don’t Miss: 6 top economists’ tell us whether the euro crisis is over >
- The Federal Open Market Committee (FOMC) begins its two-day meeting today. This is the first of eight annual meetings and the Fed Reserve is expected to keep its interest rates at record lows. The Fed is now expected to provide clearer guidance on interest rates as part of its new communications policy.
- In earnings news, major blue chips report earnings before the closing bell. DuPont reported Q4 operating earnings of $0.35 per share, on revenue of $8.5 billion. McDonald’s just announced earnings of $1.33 per share, on revenue of $6.8 billion, and Johnson & Johnson reported Q4 earnings of $1.13 per share, on revenue of $16.26 billion.
- Meanwhile, tech giant Apple is expected to report Q4 earnings of $10.07 per share after the closing bell. Yahoo! Inc. is expected to post earnings of $0.24 per share.
- S&P downgraded three French banks late yesterday. Crédit Agricole and Société Générale were downgrade to A from A+. Caisse des Depots et Consignations was downgraded to AA+ from AAA. Meanwhile, BNP Paribas escaped a hard cut, but saw its outlook changed to negative. This comes after S&P cut France’s AAA rating earlier this month. Now check out 29 massive banks that could take down the global economy >
- The Bank of Japan cut its growth outlook for the year starting in April, while maintaining its zero-interest rate policy. 2012 GDP growth is now projected at 2%, down from earlier estimates of 2.2% growth. The Bank of Japan expects that exports will be hurt by the European debt crisis and the yen will be at a record high.
- India’s central bank unexpectedly cut its cash reserve ratio to 5.5%, from 6%, the first cut since 2009. The Bombay Stock Exchange rallied on the news, as the move signaled future interest-rate cuts. The bank in its statement said that the growth-inflation balance of its monetary policy stance, had now shifted to growth. Don’t Miss: This is what emerging markets will do in 2012 >
- UK budget deficit narrowed more than expected, to £13.7 billion in December. The government’s debt has however surpassed the £1 trillion mark. Chancellor George Osborne is still on track to the £127 billion borrowing target set by the Office for Budget Responsibility. Now check out the real state of government deficits in the eurozone >
- BONUS – Kim Kardashian is surprised at the backlash she got over her marriage and has said her wedding was not a business decision.