10 Things You Need To Know This Morning

Kim Kardashian

Photo: AP

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

  • Asian indices were mostly down in overnight trading with the Bombay Stock Exchange down 0.36%. Major European indices are down and U.S. futures indicate a higher open.
  • Manufacturing in China is deteriorating, as the HSBC Flash PMI for China came in at 48.9, down from 50.1 the previous month. A reading below 50 indicates contraction. The Shanghai Composite fell 1.01% on the news.
  • Ahead of the Brussels summit, European markets were hurt by weak PMI data. France’s reading of 50.1 was below expectations of 52.3, Germany missed estimates too but stayed above 50 indicating growth. For the entire euro area the PMI figure came in at 50.4. Meanwhile, UK retail sales rose in June, with sales including fuel rising 0.7% from May, when they had dropped a revised 1.3%.
  • The European Central Bank will reportedly accept a selective default as part of a plan to resolve the Greek debt crisis. This would involve haircuts for bondholders. Officials would partially fund a buyback of Greek bonds using credit from the European rescue fund. The Euro had tanked, but it rebounded on news that the EFSF could intervene in secondary PIIGS debt markets. Now here is a quick guide to who gets crushed if Greece defaults >
  • Medco Health Solutions Inc is being acquired by Express Scripts Inc. for $29.1 billion in cash and stock. Medco shareholders will receive $28.80 in cash and 0.81 shares for each Medco share they own. Check out the 15 highest grossing prescription drugs in America >
  • Initial jobless claims came in worse than expected at 418K >
  • The Gang of Six debt ceiling plan is losing support as the August 2 deadline approaches. Democrats oppose the cuts to Medicare and social security while the GOP refuses to accept $1 trillion in new revenues. President Obama is also reported to have stepped back from the plan. Don’t miss: The truth about who really owns all of America’s debt >
  • Morgan Stanley posted Q2 net loss of $0.38 per diluted share, which was better than expected, on revenue of $9.3 billion.
  • In earnings news, Intel posted Q2 net income of $3.2 billion or $0.59 a share, on revenue of $13.03 billion. The company’s stock fell however, as it lowered its outlook for the PC market. Meanwhile, EBay posted adjusted earnings of $0.48 per share on revenue of $2.76 billion, beating estimates.
  • The Philadelphia Fed’s business outlook for July came in at 3.2, beating expectations >
  • BONUS – Kim Kardashian is suing Old Navy for using a lookalike model. The complaint alleges that the company is using the model to make people believe she is associated with the brand.

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