Good morning. Here’s what you need to know.
- Asian indices were down in overnight trading with the Nikkei falling 1.45%. Europe is sharply lower, while US markets are flat.
- The debt ceiling fight goes on. House speaker John Boehner introduced a revised debt ceiling plan which will be voted on today. It’s expected to be a close vote, but the odds are likely that it passes. However, all Senate Democrats have said that it’s DOA in The Senate. Don’t miss: 9 safe-haven investments in case politicians destroy the U.S. economy >
- Credit Suisse is out with a report that says a U.S. default would cause stocks to plummet 30% and GDP to shrink by 5%. Even if there were no default, but a payment prioritization by the Treasury, each month of no increase in the debt ceiling could shave 0.5% – 1% off GDP. Now here is the truth about who really owns American debt >
- European markets are down on contagion fears. Germany is down about 1.5% 2%.. France is off over 1.1% and Italy is off 1.3% 1.9%. Meanwhile, Italy raised €7.97 billion at its bond auction against a target of €8.5 billion, the country’s borrowing costs soared, with yields on the 10-year bond rising to 5.77%. Now here is the sad story of how Italy got to be such a wreck >
- Credit Suisse posted a 52% loss in Q2 net income to 768 million Swiss francs, on revenue of 6.32 billion Swiss francs. The bank announced that it would shed 2,000 jobs, or 4% of its global workforce.
- Initial jobless claims fell to 398K, the first sub-400K reading in a while >
- Philip Falcone’s Lightsquared wireless startup, and Sprint Nextel reached a $9 billion networking agreement spanning 11 years, that would allow them to share network construction and operating costs. Meanwhile, Sprint posted Q2 net loss of $847 million, and a diluted loss per share of $0.28 cents.
- Norwegian oil and gas giant Statoil ASA posted a larger that expected Q2 profit of 27.1 billion kroner ($5 billion), or 8.44 kroner a share. Earnings were pushed up by rising oil prices, but Statoil’s output dropped 8.5%, a concern for investors.
- Pending home sales index for June will be released at 10 AM ET. Consensus is for 2% month-over-month decline in the index. Follow the release at Money Game >
- Sony reported April-June profit of 27.5 billion yen, down from 67 billion yen last year. The company stuck with its full-year profit forecast, despite cutting its outlook for television sales. Meanwhile, Japanese electronics maker Panasonic reported a $389 million loss in the wake of the earthquake in Japan. The company also announced the sale of part of its refrigerator and washing machine business to Chinese rival Haier. Click here to see the 15 fastest growing retailers in America >
- BONUS – Rachel Weisz who recently wed co-star Daniel Craig was spotted in New York yesterday.