Good morning. Here’s what you need to know.
- BREAKING – Markets have surged on the news that the ECB, the Federal Reserve, the Bank of England, Bank of Japan and the Swiss National Bank announced coordinated liquidity measures.
- Asian markets were mostly up in overnight trading with the Nikkei up 1.76%. Europe is higher after talks of an imminent Greek default were crushed yesterday, and U.S. futures are up.
- French president Nicolas Sarkozy and German chancellor Angela Merkel have said that Greece will remain in the euro. Greece’s cabinet is discussing the latest round of austerity measures today aimed at helping it meet its obligations and receiving the next tranche of loans. Yields on Greece’s two-year notes have fallen to about 69% from 75% yesterday. Reminder: Here’s who gets crushed if Greece defaults >
- UBS shares took a major hit after the bank announced that a rogue trader at its investment bank lost it $2 billion. This could result in UBS reporting a loss in the third quarter. This comes as a blow to the bank which recently announced that it was laying off 3,500 members of its staff. A 31-year old man identified as Kweku Adoboli has been arrested in London in connection with the trade. Here are the 16 strongest banks in the world >
- Spain sold nearly €4 billion of bonds at an auction today. It sold €1 billion of a bond maturing in 2019 and €1.4 billion and €1.5 billion of two notes maturing in April and October 2020. While the auction was close to the Treasury’s target, yields were near their highest levels since 2002.
- The European Union cut its quarterly growth forecasts for the second half of 2011. The 17-nation euro region is now expected to grow 0.2% in Q3 and 0.1% in Q4 to reflect the worsening outlook from the debt crisis. Meanwhile, Germany’s outlook was cut down to 0.4% in Q3 and 0.2% in Q4, while Italy is expected to stall in the second half. Don’t Miss: The countries most likely to default >
- August CPI came in higher than expected rising 0.4% from last month. Core CPI came in line with expectations rising 0.2%. Empire State Manufacturing survey’s business conditions index worsened to -8.82 >
- Netflix revised its third quarter guidance to lower its domestic subscriber base. Membership is expected to be down from 10 million in streaming to 9.8 million, and its DVD only subscribers from 3 million to 2.2 million. This comes after the company announced earlier this year that it was separating its streaming and DVD-rental services.
- Initial jobless claims came in much worse than expected at 428K, and industrial production for August was up 0.2% month-over-month.
- European officials will meet in Wroclaw, Poland tomorrow to discuss the implementation of the expanded bailout fund. European Central Bank president Jean-Claude Trichet will give a speech in Poland after the meeting.
- The Swiss National Bank has said it will take more measures to curb gains in the franc if required. It did however leave its benchmark interest rate at zero, after lowering it from 0.25% last month, on fears of a recession. Check out the only countries that have outperformed gold this year >
- BONUS – Cameron Diaz has reportedly split from boyfriend Alex Rodriguez after both decided to focus on their careers.
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