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Good morning. Here’s what you need to know.
- Asian markets were mostly down in overnight trading with the Bombay Stock Exchange falling 1.87% after dismal earnings. Europe is sharply lower, and U.S. futures are lower. Eurozone fears are the story of the day.
- Spain had a horrible debt auction selling €3.56 billion of a new 10-year bond at an average yield of 6.975%, missing the maximum target of €4 billion. Spanish yields are now at the highest since the start of the euro. Meanwhile, Spanish finance minister Elena Salgado cut GDP forecast saying the economy will grow 0.8% this year, against the 1.3% government target. Check out the 19 countries most likely to default >
- France sold €6.98 billion of medium-term treasury notes, also called BTANs, above its projected range, but with borrowing costs jumping. The BTAN maturing September 2013 had an average yield of 1.85%, above 1.31% a month ago, while the note maturing in July 2015, had an average yield of 2.44%, up from 1.96%. Meanwhile, France is at risk of losing its AAA rating and the country continues to spar with Germany over the ECB’s role in Europe’s debt crisis. Now here’s why people are flipping out over France >
- UK retail sales including fuel, increased 0.6% in October, from the previous month. Sales rose unexpectedly after stores offered discounts to consumers amid rising unemployment and high inflation. An index measuring consumer confidence however dropped 9 points to 36 in October, falling to a record low. Check out the 15 most bizarre economic indicators in the world >
- On an annualized basis housing starts beat expectations at 628K. Initial jobless claims dropped to 388K, against expectations of a rise to 395K >
- Britain sold bailed out bank Northern Rock to Virgin Money, the banking arm of Richard Branson’s conglomerate Virgin Group, for £747 million. The deal represents at least a £400 million loss in equity put into the bank by taxpayers.
- In earnings news, Sears Holdings Corp posted a wider than expected Q3 loss of $2.57 per share, on revenue of $9.57 billion. Sears posted a 0.7% drop in Q3 same-store sales. Salesforce.com is expected to report earnings of $0.31 a share.
- Occupy Wall Street protestors have planned a “Day of Action” today, occupying 14-subway stations, the Brooklyn-bridge, and attempting a shut-down of the New York Stock Exchange.
- Greek prime minister Lucas Papademos is now working on finalising next year’s budget and a voluntary debt swap, after he won yesterday’s confidence vote. Finance Minister Evangelos Venizelos will present the 2012 spending plan to the new cabinet for approval before it goes to lawmakers as early as this week. Don’t Miss: The European situation explained in seven huge slides >
- The Philadelphia Fed survey for November will be released at 10 AM ET. Consensus is for a rise in the general business conditions level to 9. Follow the release at Money Game >
- BONUS – Olivia Wilde unveiled the Swarovski Star sitting on the pinnacle of the Rockefeller Christmas tree in New York.