Good morning. Here’s what you need to know.
- Asian indices were mixed in overnight trading with the Nikkei down 0.27%. Major European indices are in the red and U.S. futures are open.
- Italy sold €4.5 billion in long-term debt today. Yields on 5-year debt however rose to 4.93%, while debt set to mature in 2026 saw yields soar to 5.9%. In some positive news for the debt ridden country, Fitch said Italy’s €40 billion austerity plan could successfully control its debt. Click here to see the story of how Italy got to be such a wreck >
- In Europe markets have sell-off on the U.S. credit warning. France is off 0.9% and Spain is down as well. Meanwhile, contagion fears in the eurozone saw Irish 10-year bond yields rise to a euro-era record of 14.11%, while two-year yields soared over 20%. Check out 10 issues that should keep you up at night >
- Moody’s said yesterday that the U.S. could lose its Aaa credit rating and has put it on review for the first time since 1995. The ratings agency warned that any ‘technical’ default would result in a downgrade. It has also been reported that S&P is privately warning of a pre-default downgrade. For more on US debt here is another brilliant Jeff Gundlach presentation on the U.S. economy >
- JP Morgan posted better than expected Q2 earnings of $1.27 per share, against expectations of $1.21, on net income of $5.4 billion. The company posted revenue of $26.7 billion, against estimates of $24.91 billion. Check out the 16 strongest banks in the world >
- PPI fell more-than-expected 0.4%, but PPI ex-food and energy came in higher than expected 0.3%. Meanwhile, retail sales grew 0.1% >
- ConocoPhillips is working on a plan to separate into two companies. One would be a production and exploration company, and one would be a refining and marketing company. The separation is expected to be completed in the first half of 2012.
- Initial jobless claims fell to 407K >
- UK real estate fund manager Hermes Real Estate is expected to begin investing in the U.S. property market as part of expanding its portfolio. Hermes will enter into a joint venture with Hampshire Real Estate to launch a close-end fund.
- The impasse on debt talks continued after it was reported that President Obama walked out of debt talks last evening, according to House Majority Leader Eric Cantor. Democratic aides meanwhile asserted that Cantor was rude at the end of the meeting prompting the President to leave. Click here to see 14 scary facts about the debt >
- BONUS – Elizabeth Hurley was spotted filming an episode of Gossip Girl in New York.