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Good morning. Here’s what you need to know.
- Asian markets were mixed in overnight trading with the Nikkei down 0.4%. Europe is higher and U.S. futures are lower after Q3 GDP data was revised down to 2%.
- The 12-member bipartisan super committee failed yesterday to agree on $1.2 trillion in cuts to the federal deficit. S&P, which downgraded U.S. credit rating in August, said the rating would be unaffected by the failure of the super committee because mandatory cuts will kick-off in 2013. Meanwhile, Fitch is reviewing its U.S. credit rating, and Moody’s affirmed its AAA rating. Now check out the 15 companies that have a problem with the super committee’s failure >
- Borrowing costs at Spain’s short-term debt auction surged, showing that market concerns have not eased since the People’s Party won the election on Sunday. The average yield on the three-month bill more than doubled to over 5% from a month ago, while yield on six-month bills rose to over 5% as well, from 3.3% a month ago. Don’t Miss: The 19 countries with the most balance sheet risk >
- Bank of America has been operating under an informal “memorandum of understanding” with its regulators for two years, which requires it to fix governance risk and liquidity problems. But regulators have said that the company has failed to correct the problems and could be hit with an “enforcement action” which would require it to raise more capital or sell assets. But Bruce Berkowitz is still bullish on Bank of America >
- Netflix is raising $400 million to strengthen its balance sheet. Half of the funds will be raised through the sale of zero coupon convertible notes, and the other half will be through share sale to T. Rowe Price. Check out the 15 stocks that tons of people are shorting >
- In earnings news, HP posted Q4 earnings of $1.17 per share, down from $1.33 per share last year, on revenue of $32.1 billion. The company took charges of over $2 billion attributed to the end of its Palm hardware business. Meanwhile, Eaton Vance is expected to post earnings of $0.43 per share and Pandora is expected to post a loss of $0.01 per share.
- A KKR Co. led consortium is expected to acquire oil and gas producer Samson Investment Co. for about $7 billion. This would exclude Samson’s Gulf of Mexico operations, and would make the deal the biggest corporate takeover by a private-equity firm this year.
- The chunk of clients’ money missing from MF Global has doubled to $1.2 billion, according to the trustee overseeing MF Global’s bankruptcy. Previous estimates put the shortfall at $600 million. Now here are 10 big investors in MF Global >
- A second reading of Q3 GDP data showed the U.S. economy grew 2% in third quarter. Consensus is for a 2.4% quarter-over-quarter change. Meanwhile, the FOMC will release its meeting minutes at 2 PM ET. Follow the release at Money Game >
- UK October budget deficit narrowed, with new borrowing, excluding support for banks falling to £6.5 billion, from £7.7 billion a year ago. Government outlays fell 3.1% limiting overall spending, while revenue climbed 4.1%. Slashing budget deficit has been the focus of prime minister David Cameron’s policy.
- BONUS – Jessica Simpson is reportedly signing a $4 million Weight Watchers deal.