Good morning. Here’s what you need to know.
- Asian indices were mixed in overnight trading with the Nikkei up 0.39%. Major European indices are down and U.S. markets are higher.
- Last night, S&P came out with the most severe warning yet regarding US sovereign debt. It said the US has a 50/50 chance of losing its AAA rating in the next 90 days, and that a debt deal that removed less than $4 trillion in spending may not be enough to preserve that rating.
- The European Banking Authority is expected to announce the results of its second round of stress tests today at 12:00 PM ET. 10 – 15 banks are expected to fail the tests according to Eurozone sources. Here’s everything you need to know about today’s big EU stress tests >
- The Empire State Manufacturing survey declined to 3.76 for July. Core CPI for June came in higher than expected at 0.3% >
- Google posted better than expected Q2 earnings of $8.74 a share from $6.45 a year ago. Net income surged 36% to $2.51 billion. Google’s GAAP earnings were of $7.68 per share, and the company’s sales made up for the rise in operating expenses.
- Reports suggest that consensus is forming around a ‘last-ditch’ debt ceiling plan proposed by Senate Minority Leader Mitch McConnell. The plan is expected to allow President Obama to raise the debt ceiling by $2.5 trillion in three tranches. Congress would be allowed to vote to disapprove the increase at each stage.
- U.S. Department of Justice has targeted Credit Suisse Group’s offshore business with American clients as part of a larger tax evasion probe. Four bankers who worked at Credit Suisse were charged with helping American clients evade taxes.
- Industrial production increased 0.2% in June, while capacity utilization of 76.7% missed expectations. Consumer sentiment plunged to 63.8, missing expectations >
- News Corp executive Rebekah Brooks has stepped down following the phone-hacking scandal that has plagued Rupert Murdoch. Meanwhile, Murdoch is reported to be starting a new Sunday tabloid to replace News of the World, and is expected to offer huge advertising discounts.
- In industries news, Billionaire investor Carl Icahn has made a $12.6 billion bid for Clorox Co. Icahn is the company’s largest investor with a 9.4% stake and has offered to pay $76.50 a share. Meanwhile, mining giant BHP Billiton will acquire Petrohawk Energy Corp. for $12.1 billion in cash on expectations of increased natural gas demand in the U.S. Check out the 10 countries sitting on the most natural gas >
- BONUS – Eva Longoria has reportedly lost her Las Vegas nightclub Beso to bankruptcy.