Good morning. Here’s what you need to know.
- Asian markets were mostly lower, with the Shanghai SE Composite shedding 3.3%. Europe followed suit, with the French CAC and German DAX down moderately. U.S. futures are pointing to a higher open.
- The Federal Reserve, in conjunction with five other central banks, has announced it will take coordinated actions to lower dollar swap rates. It is working with the Bank of Canada, Bank of England, Bank of Japan, European Central Bank, and Swiss National Bank to decrease swap prices by 50 basis points, making the new price US dollar Overnight Index Swap rate (OIS) plus 50 basis points.
- Standard & Poor’s downgraded 37 financial institutions yesterday, including Bank of America, Goldman Sachs, Morgan Stanley and Citigroup, setting off a cascade of worries among analysts that banks will need to post additional collateral against trades held. Click here to see the 20 banks that will be hit further if the PIIGS go bust.
- The People’s Bank of China lowered reserve requirement ratios for banks by 50 basis points on concerns that economic growth could cool. Before the announcement, the PBOC held the requirement at 21.5% for the country’s largest banks. See also: 16 facts about China that will blow your mind >
- South Korea’s industrial output dropped 0.7% sequentially in October, but increased by 6.2% year-on-year. The country’s domestic machinery shipment index declined by 8.1%, while consumer trends ticked upwards as retail sales increased by 0.6% month-on-month.
- Indian GDP grew by 6.9% in the quarter ending this September, its slowest expansion in more than two years. However, that was in line with analyst expectations. Manufacturing output increased 2.7% while mining fell 2.9%.
- Today kicks off a slew of economic data announcements. ADP announces private payrolls, with analysts expecting growth of 130,000 jobs. At 2 p.m., the Federal Reserve’s Beige Book will be released. Follow them live on Money Game >
- Silver Lake has entered a bid for a minority stake in Yahoo! at $16.60 a share, Brian Womack, Jeffrey McCracken and Douglas MacMillan of Bloomberg report. That comes in lower than a bid by TPG Capital and values the firm at $20.6 billion.
- The FCC is allowing AT&T to withdraw its application to take over smaller wireless carrier T-Mobile for $39 billion. Documents delving into both carriers’ operations would have been made public had the FCC refused. Take a look at the investment banks that have it all riding on deals like this.
- Pfizer’s blockbuster cholesterol pill, Lipitor, loses its patent exclusivity today, allowing generic competitors to enter the market. Last year, Lipitor generated revenue of $10.7 billion. Analysts have predicted that could fall by nearly 70% in 2012 as generics begin competing for share.
- Unemployment in Italy jumped unexpectedly as the economy slowed further. The jobless rate hit a 17-month high of 8.5%. Meanwhile good news in Germany, unemployment was revised lower to 6.9% as 2.9 million people remain out of work. Now here’s who gets smashed if Italy goes bust >