Good morning. Here’s what you need to know:
- Asian markets are all up in overnight trading with the Nikkei up a notable 2.28%. European indices are mixed in early trading and U.S. futures suggest a higher open.
- The President of the ECB Jean-Claude Trichet has called on the world to institute tightening measures if Europe’s recovery turns out to be healthy. Trichet feels other world leaders are overestimating the role of tightening on GDP growth. Here are the Fed charts that show the true nightmare of our economy >
- The Australian economy continues to be buoyed by strong demand for metals and coal from China. The export price index for Australia soared to its highest level ever, 16.1% for the June quarter.
- German business confidence has risen to its highest level in three years, and rose by the largest amount since German reunification. The increase is a product of increasing exports and other positive economic signs.
- The UK unexpectedly beat GDP estimates this morning, notching 1.1% growth rather than the 0.6% expected. The pound is rallying on the news.
- Hungary may be downgraded by Moody’s after the collapse of talks between the country and the IMF. The end of talks signal doubts over the country’s ability to access further tranches of an IMF-EU loan. Here are the countries and banks most exposed to the emerging crisis in Hungary >
- Update: Europe is claiming the stress tests are more difficult than the U.S., with economic scenarios more dramatic. Details that would suggest otherwise are a lack of serious cuts to sovereign debt on banks’ books. The announcement will come around noon Eastern U.S. time. We’re looking to see how many banks fail as a sign of the strength of the tests, but others are looking for a robust data set to conclude whether the tests are meaningful.
- rumours this morning are suggesting that several Spanish cajas, or regional savings banks, have failed a portion of the test. Other reports, from Goldman Sachs, suggest 10 banks have failed. Follow up to the minute coverage of the stress test results at Money Game >
- At 10 AM EDT, the White House’s pay czar Ken Feinberg is set to announce that 17 banks made “ill advised” payments to executives. Follow our coverage live at Clusterstock >
- Tropical Storm Bonnie is set to enter the Gulf of Mexico endangering oil drilling operations and the cleanup of the BP spill. Follow our coverage of its impact on the BP cleanup at Business Insider >
- Bonus: Lindsay Lohan’s ex-girlfriend Sam Ronson visited her in jail yesterday.
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