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Good morning. Here’s what you need to know.
- Markets sold off in overnight trade in Asia, with Japan’s Nikkei down 0.8 per cent. Shares in Europe are in the red and U.S. futures point to a negative open.
- Spain officially requested a bailout from the 17-nation euro-zone. In a letter, Spain’s Finance Minister Luis de Guindos said the country would ask for a sufficient amount to cover its banking system, channeled through a state backed bailout fund. This is the scariest chart on the Spanish banking system >
- Fitch downgraded Cyprus into junk territory this morning, lowering the bank to BB+ from BBB-. The ratings agency cited a large exposure to Greek debt, forecasting the country’s banks will require at least $4.9 billion more in capital injections.
- Moody’s affirmed India’s long-term credit rating and outlook at stable Baa3, keeping it one level above speculative grade. Moody’s said slowing growth and lower business confidence should only be temporary. The report follows negative outlook actions by Standard & Poor’s and Fitch. This is why everyone is freaking out about India >
- J.P. Morgan will change its risk and investment strategy within its Chief Investment Office, the unit responsible for the $2 billion trading loss, the Wall Street Journal’s Gregory Zuckerman and Dan Fitzpatrick report. The group will avoid large investments in private equity and derivatives, but maintain holdings in other riskier assets.
- Nasdaq Chief Executive Robert Greifeld blamed employee arrogance and overconfidence for the glitch that delayed Facebook trade during its IPO. Greifeld said that although they tested higher trading volumes for Facebook, Nasdaq was not prepared for the number of cancelled trades. Here are two IPOs that have performed worse than Facebook’s >
- Muslim Brotherhood candidate Mohammed Morsi was declared the winner of Egyptian presidential elections. Morsi took 51.7 per cent of the run-off vote, to Ahmed Safiq’s 48.3 per cent return.
- Anheuser-Busch InBev is near striking a deal to purchase the remaining interest in Modelo for $12 billion, Bloomberg’s Jeffrey McCracken and Clementine Fletcher report. AB In Bev already owns a 50 per cent non-controlling stake in the Mexican brewer.
- More than half of U.S. voters don’t believe the winner of the presidential election will have an impact on the economy, a new poll out of the Associated Press shows. Six-of-10 respondents said both Obama and Romney would have a slim to no impact on unemployment.
- New home sales are forecast to rise 0.7 per cent to an annual pace of 346,000 in the U.S., when announced at 10:00 a.m. At 10:30, the Dallas Fed wil release its business activity report, with consensus for the main index to improve to 0 from -5.1. Follow it all live on Money Game >