10 Things You Need To Know This Morning

Beyonce Knowles

Photo: AP

Good morning. Here’s what you need to know.

  • Asian indices were mixed in overnight trading with the Nikkei down 0.85%. Major European indices are up and U.S. futures indicate a positive open.
  • Bank of America reported Q2 earnings of $0.33 a share, on revenue of $13.5 billion. The numbers beat lowered expectations but the bank is still struggling with its mortgage exposure. Meanwhile, Goldman Sachs had an earnings disaster, reporting earnings of $1.85 per share, against expectations of $2.30. Here are the 16 strongest banks in the world >
  • The ZEW Indicator of economic sentiment for Germany fell 6.1 points to -15.1 in July. The indicator is well below the historical average of 26.2, dampened by public debt problems in the eurozone. 
  • While European markets have been rallying today, with yields narrowing in Italy, Greek yields are exploding . Now here’s who gets crushed if Italy goes bust >
  • Spain sold €4.4 billion of 12-month and 18-month treasury bills but borrowing costs surged compared to its previous auction. Yields on the 12-month bill rose to 3.702% from 2.695% last month, while 18-month bills sold at 3.912%, up from 3.26% at the last auction. Click here for a guide to the Spanish debt crisis >
  • Another blow to U.S. unemployment, Cisco confirmed that it will be laying off 6,500 of its employees and cutting its workforce by 15%. This is part of a plan to reduce annual expenses by $1 billion. Meanwhile, bankrupt retailer Borders Group plans to liquidate, and 10,700 employees are set to lose their jobs.
  • News Corp chief Rupert Murdoch is testifying before the U.K parliament today on allegations stemming from a hacking scandal that shuttered his tabloid News of the World. Meanwhile, the media company is considering pushing its chief operating officer Chase Carey, to CEO.
  • Housing starts for June crushed expectations at an annualized 629K pace >
  • IBM and Mosaic reported earnings after bell yesterday. IT giant IBM reported Q2 earnings of $3.09 per share, on revenue of $26.7 billion beating expectations. Significantly it reported full year guidance of $13.25. fertiliser company Mosaic reported sales of $2.86 billion, about $270 million ahead of estimates. Later on tonight, Apple reports earnings. Click here for a guide to how cheap tech stocks have gotten in in the US >
  • In earnings news today, health insurer UnitedHealth Group posted a 13% rise in Q2 profit of $1.27 billion or $1.16 per share. Meanwhile, Midwestern bank KeyCorp beat expectations posting net income of $234 million or $0.25 a share, up from $29 million a year ago. Check out the 19 most hated companies in America >
  • BONUS – Beyonce Knowles made a special wake-up call to astronauts onboard the Atlantis space shuttle.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.