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Good morning. Here’s what you need to know.
- Asian markets were mostly down in overnight trading with the Hang Seng down 2.49%. Europe is sharply lower on reports of a Greek referendum and U.S. futures are selling hard with the S&P now off nearly 3%.
- The big news of the day: Greek prime minister George Papandreou has said Greece will hold a referendum to approve austerity measures and the EU bailout causing the European markets to sell-off. The German finance ministry though expects a second Greek bailout by the end of 2011. Meanwhile, the European debt market is showing worrisome signs with Italian 10-year yields widening to 6.2% today. Don’t miss: Here’s who gets slammed if Greece defaults >
- Chinese PMI fell to 50.4 in October from 51.2 the previous month, the lowest level since February 2009. A reading below 50 indicates contraction, and amid talk of a Chinese hard landing, the drop in PMI reflects a slowdown in the economy. Click here to see 16 facts about China that will make your mind melt >
- The U.K. economy grew 0.5% in the third quarter, against expectations of a 0.3% rise. But this growth was attributed to one-off factors and the Bank of England’s markets director warned of stagnation in the current quarter. This comes after the Bank of England expanded its stimulus program last month.
- ISM manufacturing data for October fell to 50.8 missing estimates of a reading of 52. Meanwhile, construction spending for September rose 0.2% month-over-month.
- Credit Suisse reported a 12% rise in Q3 net profit to 683 million Swiss francs boosted by accounting gains on its own debt, but missing analyst expectations. Meanwhile, the bank will cut 1,500 more jobs, after cutting 2,000 jobs in July, and will scale-back its investment banking operations.
- Federal regulators have discovered that as much as $700 million in customer money has gone missing from MF Global Holdings which filed for bankruptcy yesterday. Meanwhile, MF Global’s $6.29 billion net exposure to debt issued by Italy, Spain, Belgium, Portugal and Ireland caused its business partners to pull back and created a severe cash crunch. Now here’s how the MF Global bankruptcy decimated the floor of the CME yesterday >
- Motor vehicle sales data for October will be released today. Consensus is for a rise to an annualized 13.2 million units. Follow the release at Money Game >
- In earnings news, Pfizer reported adjusted earnings of $0.62 per diluted share, on revenue of $17.2 billion. Meanwhile, MetroPCS posted a 10% drop in net income to $69 million or $0.19 per share, missing estimates. Now here’s a quick look at the sectors beating earnings expectations >
- CNOOC Ltd. China’s biggest offshore oil producer is still in talks to buy BP’s stake in Pan American Energy LLC for $7 billion, despite missing the November 1 deadline. Check out the 15 biggest energy companies in the world >
- BONUS – Jessica Simpson has confirmed that she is pregnant.