Good morning. Here’s what you need to know.
- Asian indices were up in overnight trading with the Shanghai Composite up 1.48%. Major European indices are up and U.S. futures indicate a positive open. Gold has hit a new record this morning.
- Positive economic data from China among concerns of an economic slowdown. The country’s annual GDP increased 9.5% in the second quarter, beating expectations, with retail sales growing 16.8% in the six months ending in June. Check out 18 facts about China that will blow your mind >
- Moody’s has said that Italy’s debt is sustainable because of its relatively long average debt maturity of 7.09 years. Meanwhile the focus has shifted to Ireland which was downgraded to junk status by Moody’s yesterday. Ireland’s bonds ratings were cut by one notch to Ba1 from Baa3 with a negative outlook. Now here are 10 things you need to know about Italy >
- UK unemployment fell by 26,000 to 2.45 million in the quarter through May, but the drop was attributed to young people heading to school. Jobless benefit claims however rose by 24,500 to 1.52 million in June. Don’t miss: 15 rich countries facing a huge youth unemployment problem >
- U.S. import prices fell 0.5% in June and export prices rose 0.1% >
- Global medical technology company Kinetic Concepts will be acquired by a consortium that includes private equity group Apax Partners for $6.3 billion, including the company’s debt. The consortium will acquire Kinetics Concept at $68.50 per share in cash.
- Video game maker Electronic Arts Inc. is set to buy PopCap Games for $1.3 billion as it aims to compete with Zynga on social games. Electronic Arts is investing in digital content as it reports that fewer customers are buying games on discs.
- Federal Reserve Chairman Ben Bernanke is expected to provide his Humphrey-Hawkins testimony during his semi-annual monetary policy report to Congress at 10 EM ET. Now here are 16 reasons to feel depressed about the economy >
- The U.S. treasury budget posted a $43.1 billion deficit for the month of June >
- Luxury goods brand Burberry reported a 30% increase in Q1 sales to $585 million. Retail sales rose 44% while wholesale and licensing revenues increased 10%. The brand derived most of its growth from expansion in the Asia Pacific region, especially in China.
- BONUS – Brazilian supermodel Gisele Bundchen has launched her second clothing line for retailer C&A.