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.