Good morning. Here’s what you need to know.
- Asian indices were mostly up in overnight trading with the Hang Seng up 1.71%. Markets rallied after Italian prime minister Silvio Berlusconi pledged to resign, but Europe has since plummeted, and U.S. futures opened lower.
- Italian prime minister Silvio Berlusconi said yesterday that he would resign after its parliament passes crucial measures and approves the 2012 budget. But the news has done little to restore market faith, the 10-year government bond yield has skyrocketed to 7.34% and the FTSE MIB is down 3.78%. Refresher: Here’s who will get crushed if Italy goes bust >
- Greece’s meetings to resolve a deal for a new national unity government has been dragged into a third day, and leaders are expected to announce the new prime minister today. Meanwhile, IMF managing director Christine Lagarde has warned of the risk of a ‘lost decade’ for the global economy unless countries act together to prevent risks to growth. Don’t Miss: The countries with the worst national balance sheets >
- Chinese CPI was up 5.5% in October from a year ago, but down from September’s 6.1%. Food prices which make up a large part of China’s inflation basket were up 11.9% year-over-year, but down from 13.4% the previous month. Now check out the prophetic presentation that predicted the slowdown in China >
- Wholesale trade data for September will be released at 10 AM ET. Consensus is for a 0.6% month-over-month change in inventories. Follow the release at Money Game >
- Goldman Sachs is looking to raise $1.54 billion by selling 2.4 billion shares in Industrial and Commercial Bank of China Ltd (ICBC). Goldman is offering the shares at a discount of 3.7% – 6% to the last traded price. It first bought 4.9% of ICBC before its IPO in 2006. Now here are nine things you should know if you’re investing these days >
- HSBC Holdings posted Q3 net income of $5.2 billion, up from $3.2 billion a year ago, driven by accounting gains. The bank said U.S. homeowners missing mortgage payments in September and a decrease in its investment banking unit, fuelled the 36% decline in pre-tax profit.
- Troubled Franco-Belgian bank Dexia posted one-off losses of €6.3 billion in the third quarter and said its shareholder equity fell 84%. The bank attributed the losses to the nationalization of its Belgian unit and the drop in value of its holdings of eurozone sovereign bonds.
- In more earnings news, General Motors reported Q3 earnings of $1.03 per share, on revenue of $36.72 billion, beating estimates. Retail giant Macy’s posted Q3 earnings of $0.32 per diluted share, on revenue of $5.85 billion. The company also raised full-year earnings guidance to a range of $2.70 – $2.75 per diluted share. Cisco Systems is expected to post earnings of $0.39 per share. Check out what large corporations are revealing about the world economy >
- Federal Reserve chairman Ben Bernanke is speaking at 9:30 AM ET. He will make welcoming remarks at the Fed’s “Conference on Small Business and Entrepreneurship during an Economic Recovery”.
- BONUS – Katie Holmes has said she would love to act with husband Tom Cruise.