Good morning. Here’s what you need to know.
- Asian markets were mostly up in overnight trading with the Shanghai Composite 1.92%. Europe is sharply lower and U.S. futures opened lower.
- Italy’s president appointed former European Commissioner Mario Monti to head a new government on Sunday, after the parliament approved reforms demanded by the EU. Meanwhile, European officials have said that they will keep up pressure on Italy and Greece to implement economic reforms despite new technocratic governments in each country. How similar, really, is Italy to Greece?
- Italy sold €3 billion of five-year bonds at a gross yield of 6.2%, compared with 5.3% during a similar auction in mid-October. Yields were at euro-era high. Meanwhile yields on 10-year government bonds which had eased this morning, have surged over 6.5% again. Don’t Miss: 19 Countries most likely to default >
- Japan’s economy grew for the first time in four quarters. GDP grew at an annualized 6% in the three-months ending September 30, and was up 1.5% quarter-over-quarter. Growth was driven by a recovery in exports and companies like Toyota.
- India’s wholesale price index climbed to 9.73% in October from a year ago, staying above the 9% rate for the eleventh consecutive month. In an effort to curb inflation, India’s central bank raised rates in October for the thirteenth time since March 2010. Now here’s a quick look at what inflation is like around the world >
- Warren Buffett said today that it is unclear whether Europe has the ability to do whatever is necessary to resolve its debt crisis. He says he has not gotten back into European sovereign debt. Meanwhile, he said parts of the U.S. economy are doing well but the one area that’s worse is the housing market. He said Berkshire’s housing-related companies are in a ‘depression’. Now here’s an overview of where markets and the economy are right now >
- In earnings news, retailer Lowe’s Company’s Inc. is expected to post earnings of $0.33 per share, while JC Penney is expected to report earnings of $0.11 per share. Meanwhile, holding company Dynegy posted Q3 net loss of $75 million or $0.61 per diluted share.
- Italian bank UniCredit SpA’s board is considering a €7.5 billion share sale to boost its capital. This would be the bank’s biggest share sale in two years. The board will also approve quarterly earnings and is planning cost cutting measures that include 5,000 job cuts.
- Emirates has ordered 50 Boeing 777 long-haul aircrafts for $18 billion at list prices, making it the largest order of Boeing’s commercial aircrafts.
- Meanwhile, Buffett revealed that Berkshire Hathaway owns $10.7 billion dollars worth of IBM shares, which amounts to 5.5% of the company. He bought about 64 million shares of IBM and has said he would never buy Microsoft. IBM’s stock is up on the news. Now here are 10 strange facts you may not know about Warren Buffett >
- BONUS – Jennifer Lopez is reportedly dating dancer Casper Smart.