Photo: AP Images
Good morning. Here’s what you need to know.
- Asian markets were mixed in overnight trading with the Hang Seng falling 2.49%. Europe is recovering on talks that Greece may avoid a referendum and U.S. futures are moderately higher ahead of the market open.
- Socialists in the Greek government have revolted against prime minister George Papandreou’s plan for a national referendum. This came after finance minister Evangelos Venizelos released a statement opposing the referendum. Papandreou called an emergency meeting and it is now being reported that he may resign in the next half hour, and withdraw his proposal for the referendum. Meanwhile, European leaders are playing hardball and have asked Greece to decide whether it wants to stay in or get out of the Eurozone. Reminder here’s who’s freaking out now that Greece will default hard >
- The European Central Bank cut interest rates by 25 basis points to 1.25%. This is Mario Draghi’s first meeting as the head of the ECB. Draghi’s press conference will be at 9:30 AM ET.
- Chinese PMI for its non-manufacturing sector fell to 57.7 in October, from 59.3 the previous month. Input prices for the service sector fell to 55.7 in October, from 59.9 the previous month indicating that inflation is cooling.
- Initial jobless claims fell by 9,000 to 397K, against expectations of a drop to 400K. Q3 Non-farm business productivity grew 3.1%, while labour costs unexpectedly fell 2.4% >
- In earnings news Kraft Foods posted a 22% increase in Q3 net income to $922 million or $0.52 per share, on revenue of $13.23 billion. Earnings beat expectations and Kraft raised its full year outlook. Meanwhile, Whole Foods posted Q4 net income of $0.42 per share in line with estimates, but same-store sales missed expectations. Starbucks, Chesapeake Energy, and PG&E also announce earnings today. Don’t Miss: Large corporations reveal what’s really happening to the world economy >
- BNP Paribas posted a 72% drop in Q3 net income to €541 million. The bank took a €2.26 billion pre-tax writedown on Greek sovereign debt. The company however said it was profitable and the stock is up 4.8%.
- Nearly 4,500 people were marching on the Port of Oakland and the Occupy Oakland protests turned violent as many took to vandalism. Dozens have been arrested after protestors started fires and used homemade bomb launchers on the police. Don’t Miss: Images of veterans marching for Occupy Wall Street >
- Indian food inflation is at its highest level in nine months. An index measuring wholesale prices of agricultural products rose to 12.21% in the week ending October 22 from a year earlier. India’s central bank has maintained an anti-inflationary stance since March 2010, and last hiked rates on October 24. Now here are 11 countries that can look forward to blazing hot inflation in 2012 >
- September factory orders grew 0.3% month-over-month against expectations of a 0.2% decline. Meanwhile, ISM non-manufacturing composite index eased to 52.9 >