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Good morning. Here’s what you need to know.
- Asian markets were down in overnight trading with the Nikkei off 2.56 per cent after policymakers said the yen’s decline was overdone, prompting it to rally against the dollar. Europe is selling off and U.S. markets are modestly lower.
- JP Morgan reported earnings of $1.39 per share, on revenue of $24.4 billion, beating expectations of $1.22 per share. Ex-all items earnings were $1.35 per share. JP Morgan cut CEO Jamie Dimon’s compensation in half after the London Whale loss. This presentation will have you convinced that stocks will move sideways for the next decade >
- Meanwhile, Goldman Sachs reported earnings of $5.60 per share, on revenue of $9.24 billion. This beat expectations of $3.66 per share and revenue of $7.83 billion.
- The World Bank slashed its growth forecasts for the global economy. It now expects GDP growth of 2.4 per cent in 2013, down from 3 per cent. And 3.1 per cent in 2014, down from 3.3 per cent. While the worst of the financial crisis seems to be over it says the global economy is still “fragile”. 2012 GDP growth was lowered to 2.3 per cent. Gary Shilling: Here are 10 ways to invest in the Grand Disconnect >
- The Chinese Beige Book released on a quarterly basis showed that GDP is expected to have picked up to about 8 per cent in the fourth quarter. But bankers surveyed said less than 20 per cent of lending accounts for new loans. Debt rollovers and increases account for most of the lending.
- Core CPI rose 0.1 per cent in December. Meanwhile, industrial production increased 0.3 per cent.
- Carl Ichan is expected to double his $2 billion investment with oil processor CVR Energy after the initial public offering of its refineries today, according to Bloomberg. CVR Refining will trade under the ticker symbol CVRR, and is expected to raise $520 million by offering 20 million units for $24 – $26. 22 insights from the most successful investors in history >
- Two major Japanese airlines, All Nippon Airways and Japan Airlines, grounded their entire Boeing 787 fleets Wednesday after an ANA Dreamliner made an emergency landing because of a battery malfunction. Boeing shares are down 4.15 per cent in pre-market trading.
- The NAHB housing market index for January will be out at 10 a.m. ET. Analysts are looking for the housing market index to rise to 48. Meanwhile the Beige Book that offers insight into what Fed officials will consider in determining policy at the next FOMC meeting, will be out at 2 p.m. ET. Follow the release at Money Game >
- Japanese machine orders jumped 3.9 per cent in November, beating expectations of a 0.3 per cent rise.
- Bonus – Girls star Allison Williams said her television show is “like a digital time capsule … people will watch it in 20 years time and it will sum up a certain generation”.