Good morning. Here’s what you need to know.
- Asian markets were mostly up in overnight trading, with the Hang Seng up 2.34%. Markets have lost their early gains, Europe is sharply lower and U.S. futures are lower ahead of the open.
- Italy sold €6.18 billion of bonds lower than its maximum target, including €3.5 billion of bonds due in 2016 at yield of 5.32%. Demand rose and borrowing costs fell, as the ECB supported the nation’s debt. The yield on Italy’s 10-year benchmark bond fell one basis point to 5.83% after the auction. Now here’s who will get crushed if Italy goes bust >
- China’s exports rose 17.1% in September from a year ago, growing at its slowest pace in seven months. The trade surplus was $14.51 billion, the smallest since May and the customs bureau warned of severe challenges as the global economic outlook weakens. Meanwhile, the IMF cut its growth forecast for Asia to 6.3% in 2011 and attributed the slowdown to turbulence in Europe and the U.S.. Don’t Miss: Why everyone’s freaking out about China >
- U.S. international trade gap widened to $45.6 billion in August and initial jobless claims increased to 404K basically in line with expectations >
- In earnings news, JP Morgan posted Q3 earnings of $1.02 per share, against expectations of $0.92 per share. Meanwhile, Google is expected to post profits of $8.74 per share on revenues of $7.21 billion when it reports earnings after the closing bell. Now here are 5 things UBS has already learned from the earnings season >
- Fitch is reportedly going to cut the ratings of UK banks and the FTSE is off 2.2%. The ratings agency is expected to announce a downgrade review that targets Barclays, Lloyds Banking Group and Royal Bank of Scotland. Moody’s recently slashed the ratings of 12 UK banks.
- The U.S. Treasury Budget for September will be released at 2 PM. Expectations are for a deficit of $64.5 billion. Follow the release at Money Game >
- Peabody Energy and ArcelorMittal have received regulatory clearance from China for their A$4.9 billion for Macarthur Coal. The deal required Chinese approval because China is a major customer of pulverized coal injection (PCI) metallurgical coal, and Macarthur controls a significant share of that market.
- Blackberry maker Research In Motion’s said its services across Europe, the Middle East, Africa and India have improved significantly, after a three-day disruption.
- German inflation increased more than expected to 2.9% in September, from 2.5% in August. Inflation was pushed up by an increase in energy costs. Meanwhile, wholesale prices rose 5.7% in September from a year ago. Check out the 15 most miserable places in the world >
- BONUS – Angelina Jolie was in Misrata, Libya yesterday and praised Libyans for their extraordinary participation in the country’s revolution.