Good morning. Here’s what you need to know.
- Asian indices were mostly up in overnight trading with the Hang Seng up 1.25%. Europe is lower, as is the US.
- Last night in Primetime, President Obama delivered a speech calling for both parties to compromise to raise the debt ceiling through the end of 2012. House Speaker John Boehner however pushed for the GOP plan and blamed the President for the current stalemate. Now here is the truth about who really owns American debt >
- It has been reported that S&P favours Senate Majority leader Harry Reid’s plan, and believes House Speaker John Boehner’s plan would not be sufficient to avert a downgrade from the current AAA credit rating. In a further sign of sentiment tilting against the GOP, even Larry Kudlow was badgering Eric Cantor last night.
- The Indian central bank raised its interest rates by 0.5%, bringing the country’s benchmark interest rate to 8% as the country struggles to curb inflation. The Bombay Stock Exchange fell 1.87% on the news. Now here are 10 hyperinflation horror stories of the 20th century >
- UK second-quarter GDP rose 0.2% from the previous quarter. Year-over-year, GDP grew 0.7%. Budget cuts and inflation have caused consumers to spend less, but the pound surged against the dollar after the report.
- George Soros is returning client money after 38 years, and will shut down his hedge fund. He is however expected to continue to invest his own money. CIO Keith Anderson will leave the firm. Click here to see other hedge fund managers likely to retire >
- S&P/Case-Shiller home price index showed that home prices fell 0.05% in May and were down 4.5% from a year ago >
- Ford reported Q2 adjusted EPS of $0.65 per share, on revenue of $35.5 billion beating expectations. Meanwhile Netflix posted Q2 earnings of $1.26 per share, on revenue of $789 million.
- In more earnings news, Swiss financial group UBS posted a 49% drop in Q2 net profit to 1 billion Swiss francs, on operating income of 7.17 billion Swiss Francs. The bank has said it expects to cut costs by 1.5 – 2 billion Swiss Francs. Meanwhile, BP posted Q2 profits of $5.6 billion. The company saw a drop in oil and gas production after it was forced to sell off some oil fields and CEO Bob Dudley has said a spin-off of its refining unit is an option.
- The consumer confidence index for July, came in higher than expected at 59.5, while new home sales fell to 312K >
- BONUS – Blake Lively and rumoured boyfriend Leonardo DiCaprio were spotted at a Stevie Wonder concert last night.