10 Things You Need To Know This Morning

Denise richards

Photo: AP

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

  • Following the failure to get a debt deal, Asian indices were down in overnight trading with the Shanghai Composite down 2.96%. Europe is down, and US futures have opened lower.
  • Debt talks between congressional leaders broke down over the weekend. Lawmakers said the deadline for a deal is Monday, after which Senate and House rules would make it difficult to pass a debt limit increase, before the August 2 deadline. Don’t miss: The truth about who really owns American debt >
  • Moody’s cut Greece’s credit rating by three notches to C, a rating just above default. The agency said Greece set a precedent for bailouts in the future and that the rating would be reassessed after the bond exchange is completed. Here’s a quick guide to who gets crushed if Greece defaults >
  • Italian and Spanish securities fell on fears of contagion. Italian two-year yields climbed to 3.84%, while 10-year yields were up to 5.48%. Spanish 10-year yields rose to 5.86%, meanwhile yields on German bonds fell as investors looked for safer European assets. Check out 15 countries most buried under debt >
  • Italian banks are all seeing major sell-off after the Greek bailout. Banca Popolare di Milano Scari is off over 4%, UniCredit is down 2.5%.
  • Bank of China, General Electric and a private equity firm are reported to be bidding for RBS Aviation Capital, the Royal Bank of Scotland’s aircraft leasing business. This is the second time RBS has tried to sell its aircraft leasing unit.
  • Iran and China are reportedly working on a barter system to exchange Iranian oil for Chinese goods and services. This comes after the U.S. imposed financial sanctions that prevented China from paying at least $20 billion for oil imports. See also: 18 facts about China that will blow your mind >
  • Blackberry maker Research in Motion has announced that it is cutting 2,000 jobs. The company has been struggling against competitors like Apple.
  • ING is selling its Latin America insurance business to Colombian company EuroapSur for €2.68 billion. Under EU regulations, the bank was required to split its banking and insurance operations in exchange for Dutch state aid. ING is reportedly working on IPOs for its American and Eurasian insurance businesses.
  • After failing to start merger talks with Transatlantic Holdings, reinsurer Validus Holdings Ltd. took its $3.2 billion offer directly to Transatlantic’s shareholders. Meanwhile, Transatlantic’s board said Allied World Holdings’ rival bid was a better deal.
  • BONUS – Denise Richards threw a celebratory shower for her adopted baby daughter  at Beverly Hills’ Montage Hotel.

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