Good morning. Here’s what you need to know.
- Asian indices were mixed in overnight trading with the Shanghai Composite down 0.1%. Europe and the US are nicely higher again.
- European officials are reportedly in talks to use the €440 billion rescue fund, for emergency credit. The option to recapitalize banks as a precautionary measure against the spread of the debt crisis was previously rejected by Germany. The decision is expected to be made at tomorrow’s Brussels summit. Here’s a quick guide to everyone who matters in the European crisis >
- French President Nicolas Sarkozy is expected to be in Berlin today to meet with German chancellor Angela Merkel in an attempt to finalise a deal on a new Greek bail-out ahead of tomorrow’s Brussels summit. European markets are rallying ahead of the meeting tomorrow, with Italy surging over 2%, France up 1.7% and Germany up 0.4%. Now here’s a quick guide to who gets crushed if Greece defaults >
- The House of Representatives voted 234-190 to pass the “Cut, Cap, and Balance” deficit reduction plan yesterday. President Obama had previously said he would veto the proposal and as the debt impasse continues, the “Gang of Six” debt ceiling plan looks more likely to pass. Here’s what you need to know about the debt ceiling deal >
- Yahoo reported earnings of $0.19 against expectations of $0.18 after the bell yesterday. The company also posted revenue of $1.076 billion, missing estimates of $1.11 billion. CEO Carol Bartz blamed the disappointing figures on ad sales.
- Chipotle posted lower than expected earnings of $1.59 per share against estimates of $1.67. The company blamed higher food prices and announced that it would hike prices at 80% of its restaurants. Meanwhile, Apple had a monster second quarter, posting net profit of $7.31 billion, on revenue of $28.57 billion because of a huge boost in iPhone and iPad sales. It looks like 2011 may no longer be the year of big tech stocks getting crushed >
- Existing home sales fell 0.8% in June to 4.77 million >
- American Airlines announced an order of 400 jets from Boeing Co. and Airbus SAS. This is the biggest order in aviation history.
- Cleaning products maker Ecolab Inc. has announced a deal to buy chemicals firm Nalco Holding Co for about $5.4 billion. Each Nalco share will get $38.80 in cash or 0.7005 share of Ecolab common stock.
- China’s biggest offshore oil producer Cnooc Ltd. is set to acquire bankrupt Opti Canadian Inc. for $2.1 billion in cash and debt. Cnooc will take on $825 million of Opti Canada’s debt as it seeks to increase its oil sands assets. Click here to see 15 facts about China that will blow your mind >
- BONUS – Miranda Kerr was spotted meeting with Hollywood producer Harvey Weinstein amidst rumours that she plans to start a movie career.