Good morning. Here’s what you need to know.
- After the yo-yo in trading yesterday, markets are fairly quiet this morning. Asian markets were up in overnight trading with the Hang Seng gaining 3.12%. after a huge sell-off yesterday. European and U.S. markets are trading lower.
- G20 chiefs expressed annoyance at Europe’s inability to resolve its two-year financial crisis when they met in Cannes, and pushed for European leaders to act immediately to restore faith in global markets. Also, they came to no agreement on IMF aid to the EFSF. Meanwhile, Greek prime minister George Papandreou will face a confidence vote in parliament, a day after he scrapped his proposed national referendum on the EU bailout. Now here’s who gets slammed if Greece doesn’t get aid >
- ISM services data for Europe was released this morning. Italian ISM services fell to 43.9, while it sank to 41.8 in Spain. Readings below 50 indicate a contraction. Meanwhile, German factory orders fell 4.3% month-over-month, against expectations of a 0.1% decline.
- EU officials said that Italy has agreed to allow the IMF and EU to monitor its progress in implementing structural reforms. This comes after Greece scrapped its national referendum, and at a time when loyalists are defecting from Prime minister Silvio Berlusconi’s government. An Italian government official has however denied the reports. Now here’s who gets crushed if Italy defaults >
- Employment data for October was released at 8:30 AM ET. The unemployment rate dipped to 9.0%, while expectations called for it to hold steady at 9.1%. Non-farm payrolls climbed 80k versus the expectation for 105k new jobs. However, prior months were revised higher. Follow the release at Money Game >
- In more jobs news, Canada lost 54,000 jobs in October and its unemployment rate surged to 7.3%. This comes after the country saw a massive jobs gain in September. Now here’s what unemployment is like in the world’s biggest countries >
- In earnings news, AIG, reported a whopping $4.1 billion net loss or $2.16 per share, in the third quarter. Declining equity markets severely impacted the company’s earnings. And German Commerzbank posted Q3 net loss of €687 million, against a profit of €113 million a year ago. The loss was attributed to the bank’s writedown of its Greek debt holdings. The bank also said it will miss its €4 billion operating profit target in 2012. Now check out what large corporations are revealing about the global economy >
- Meanwhile, Linkedin released Q3 results after the bell yesterday. The company posted less-than-expected net loss of $0.02 per share, on revenue of $139.5 million. And Berkshire Hathaway Inc. could post its first quarterly decline in book value in over a year.
- Groupon is pricing at $20 per share, which will allow it to raise $700 million from its IPO today. This is above the initial range of $16 per share – $18 per share and its IPO is heavily oversubscribed. Now check out the 10 worst performing IPOs of the year >
- Bank of America is planning to issue $2.8 billion of new shares in a move that will dilute its shareholder base. The troubled bank could issue up to 400 million new shares that would replace preferred stock and debt. This comes after CEO Brian Moynihan said in August that he could not continue to dilute existing shareholders to raise capital.
- BONUS – Eva Longoria was spotted with Victoria Beckham and baby Harper at David Beckham’s LA Galaxy game against the New York Red Bulls.