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Good morning. Here’s what you need to know,
- After the massive sell-off yesterday, Asian markets were mixed in overnight trading but the Nikkei was down 2.21%. Europe is somewhat higher, and U.S. markets have opened up.
- Greek prime minister George Papandreou’s cabinet agreed to endorse his plan for a national referendum on Europe’s rescue package. The referendum is expected to take place before Christmas. EU chiefs are meeting with Papandreou today to tell him that there is no alternative to budget cuts. Now here’s who will get crushed when Greece defaults >
- The pre-market rally faded after the European Financial Stability Facility held a conference call with its investors this morning. The EFSF delayed its first bond sale in four months, meant to raise funding for the next Irish aid disbursement.
- German unemployment rose for the first time in two years, with the number of unemployed people rising a seasonally adjusted 10,000 to 2.94 million. Expectations were for a decline of 10,000. The jobless rate climbed to 7%, meanwhile German PMI came in at 49.1, against expectations of 48 but indicating contraction and reflecting a slowdown in the economy.
- Eurozone manufacturing is in worse shape than thought according to latest data. Eurozone PMI fell to 47.1 in October, from 48.5 the previous month, and below estimates of 47.3. A reading below 50 indicates contraction. Italian PMI fell 5 points to 43.3, its lowest level since June 2009, Spain inched up to 43.9 and French PMI came in at 48.5. Don’t Miss: The 15 most bizarre economic indicators in the world >
- Fed officials are expected to debate a third round of asset purchases but are unlikely to make an announcement on QE3 or any other major policy change today. The FOMC will release a policy statement at 12:30 pm ET, forecasts will be released at 2 PM ET, followed by a press conference at 2:15 PM ET. Now here is what analysts expect from the FOMC meeting >
- Time Warner posted Q3 adjusted income of $0.79 per share against estimates of $0.75 per share. Meanwhile, Comcast posted Q3 revenue of $14.3 billion, beating estimates of $14.26 billion. Check out all the fascinating things we learned from earnings announcements >
- In more earnings news, Chemicals maker Huntsman Corp posted Q3 net loss of $34 million or $0.14 per share. Revenue rose 24% to $2.98 billion, beating expectations because of higher selling prices. Meanwhile, pharmaceutical company Teva Pharmaceutical Industries Ltd. posted a 6% drop in Q3 earnings to $1.11 billion or $1.25 per share. Mastercard beat expectations this morning, posting earnings of $5.63 per share, beating guidance by $0.81. Kraft Foods and News Corp will announce quarterly results after the bell.
- The Japanese government could face $512 billion in losses from intervening in the currency market according to JP Morgan Chase. On October 31, Japan intervened in the foreign-exchange markets for the third time this year, to weaken the yen.
- The ADP employment report beat expectations adding 110,000 jobs in October >
- BONUS – Anne Hathaway spent time with Princess Charlene of Monaco at the Princess Grace Awards Gala in New York.