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Good morning. Here’s what you need to know.
- Asian markets were down in overnight trading with the Hang Seng off 1.44%. Europe is sharply lower and U.S. futures opened lower.
- The 12-member bipartisan super committee is expected to announce today that it cannot agree on deficit savings and is likely to set off $1.2 trillion in automatic cuts beginning 2013. The Congressional Budget Office is expected to score a proposal today, ahead of the Nov. 23 target for reaching a deal. The S&P is expected to downgrade U.S. credit rating. Don’t Miss: The 15 countries that will get smashed if the government cuts spending >
- Japanese exports fell 3.7% in October from a year before, according to the country’s finance ministry. This is the first drop in three months and indicates that Japan’s recovery since the earthquake earlier this year is expected to slow. Now here at the 10 countries that will dominate world trade in 2050 >
- Moody’s has warned that its outlook on France’s AAA credit rating could turn negative if interest rates on French sovereign debt increased and if its growth prospects weakened. The French-German 10 year spread widened on the news. Check out why everyone is freaking out about France >
- Spain’s centre-right Popular party led by Mariano Rajoy won the election on Sunday with 99% of votes counted. The Popular party now has 186 seats in the lower house of parliament.
- Germany’s central bank cut its growth forecast to between 0.5% – 1% in 2012, down from earlier expectations of 1.8%. Growth is expected to shift from exports to the domestic economy.
- In M&A news, property and casualty insurer Alleghany Corp. has agreed to buy Transatlantic Holdings in a $3.4 billion cash-and-stock deal. Alleghany will pay $59.79 per share. Meanwhile, Validus Holdings has made a hostile $55.35 per share bid for Transatlantic. Meanwhile, Gilead Sciences wil buy Pharmasset Inc. for $11 billion.
- UK energy company Centrica has agreed to pay £1.03 billion to Statoil ASA for its gas and oil fields in the Norwegian North Sea. It also won a £13 billion natural-gas sales agreement that would boost UK energy imports by 25%.
- October existing home sales rose 1.4% month-over-month in October, to an annual rate of 4.97 million units >
- The European Commission believes that Eurobonds, issued jointly by the 17 member nations, are the best way to solve the financial crisis. The findings will be presented on Wednesday and could intensify a rift with Germany which has adamantly been against eurobonds. Meanwhile, EU economic and monetary affairs commissioner, Olli Rehn, said the economic recovery has stalled. Now here are 7 big debates happening in Europe right now >
- BONUS – Gisele Bundchen was spotted out at lunch with her son in New York’s West Village yesterday.