Good morning. Here’s what you need to know.
- Asian indices were down in overnight trading with the Shanghai Composite down 0.12%. Major European indices are in the red and U.S. futures indicate a negative open.
- Europe is a wreck. Yields are surging all over the place, with new highs in Spain, Italy and Greece. Don’t miss: The 15 countries most buried under debt >
- New home prices were up in 67 Chinese cities in June. In Shanghai, prices soared 2.2% in June from a year ago, compared with 1.4% in May, while in Beijing, prices rose 2.2%, compared with 2.1% in May. Existing home prices in both cities were up on a year-over-year basis as well. Now here are satellite images of China’s ghost cities >
- News Corp. is down 13% since the hacking scandal around its tabloid News of the World surfaced. Meanwhile former News Corp. exec Rebekah Brooks was arrested over the weekend and released on bail today.
- Energy giant Halliburton posted Q2 net income of $739 million $0.80 per diluted share. This compares with net income of $511 million or $0.56 per diluted share in the first quarter. Halliburton also posted consolidated revenue of $5.9 billion for the quarter.
- Republicans are taking up the “cut, cap and balance” legislation this week. House speaker John Boehner and House Majority Leader Eric Cantor have said it is a prerequisite to passing a debt ceiling increase. Moody’s meanwhile has recommended doing away with the limit on the debt ceiling to reduce uncertainty among bond holders. Check out the companies that could get crushed if the government goes into austerity mode >
- The National Association of Home Builders housing market index rose two points to 15 in July.
- Philips posted a €1.3 billion loss in the second quarter. The company’s healthcare and lighting division took a €1.4 billion impairment, and sales were down to 2.5% year-over-year to €5.2 billion. It is now set to launch a €2 billion share buy-back program.
- In industries news, business development company Sierra Income Corp filed its IPO with the SEC today. The company hopes to raise $1.5 billion and expects to sell up to 150 million shares at $10 per share.
- Bankrupt book store retailer Borders Group is closer to being liquidated after its Sunday bidding deadline went by without any offers. Najafi Cos. was expected to make an offer that kept some of the retailers stores open, but the deal fell apart after Najafi declined to abandon the option to liquidate stores. Click here to meet the 15 biggest retails in America >
- BONUS – Jennifer Lopez and Marc Anthony have split up and are rumoured to be sparring over who leaves their reality show (though they publicly stated it would go ahead as planned).