Good morning. Here’s what you need to know.
- Asian indices were down in overnight trading, with the Nikkei falling 0.69%. Europe is in the red and U.S. futures have opened negative.
- The debt ceiling crisis continued, after the House of Representatives postponed a vote on Speaker of the House John Boehner’s plan to raise the debt limit because Tea partiers revolted. Boehner is expected to revise the bill. Now here are 9 safe haven investments in case politicians destroy the U.S. economy >
- In the absence of a debt deal, the Treasury department has pushed back its payment prioritization plan. Meanwhile markets have opened lower, and the dollar is falling against the yen. Check out the truth about who really owns American debt >
- It has been reported that the European Financial Stability Fund may not be ready to loan Greece its next bailout tranche, in part because weaker European contributors like Italy and Spain may not be able to afford their payments into it. Click here to see the 20 banks praying for the bailouts to work >
- Euro-region inflation declined to 2.5%, from 2.7% the last month. In Germany, retail sales surged 6.3% in June, from May, when they fell 2.5%. Meanwhile, unemployment fell for the 25th consecutive month in July, as the country posted a 7% jobless rate.
- Q2 GDP missed expectations, coming in at 1.3%. Moreover, Q1 GDP was revised down from 1.9% to 0.4% >
- As contagion fears persist in the eurozone, Italian stocks have fallen about 1.4% and yields on two-year notes have surged to nearly 4.4%. Italian finance minister Giulio Tremonti has denied that he is resigning amidst reports that he lived in a flat belonging to a former aide under investigation for corruption. Now here’s who gets crushed if Italy goes bust >
- Moody’s put the Spanish government’s bond ratings on review for a possible downgrade attributing the move to funding pressures and the precedent set by the Greek bailout. And Spanish prime minister Jose Luis Rodriguez Zapatero has called for early elections in November. Check out the 15 countries most buried under debt >
- Chicago PMI for July will be released at 9:45 AM ET. Consensus is for a reading of 61.1, in line with June. Consumer sentiment index for July will be released at 9:55 AM ET, and expectations are for a slight rise in reading to 64. Follow the release at Money Game >
- Satellite broadcaster BSkyB will return $1.6 billion to investors with a share buy-back, after its board unanimously voted to keep James Murdoch as its chairman. Meanwhile, BSkyB reported a 16% rise in full-year revenue and 23% increase in operating profit.
- BONUS – Cameron Diaz was spotted celebrating boyfriend Alex Rodriguez’s birthday with a steak dinner in Miami.