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Good morning. Here’s what you need to know.
- Asian markets rallied in overnight trade, with Hong Kong’s Hang Seng gaining 1.8 per cent. Shares in Europe are mostly higher and U.S. futures point to a positive open.
- Yahoo named Google’s Marissa Mayer its new chief executive in a surprise announcement yesterday. Mayer led Google’s search operations for years, before managing its launch in local. EXCLUSIVE: Marc Andreessen tells us what he thinks of Yahoo’s choice >
- Business conditions in Germany worsened for the third straight month, but may have hit bottom, the Zew institute said today. The key expectations index fell to -19.6 in July from -16.9 a month earlier.
- Moody’s downgraded 13 Italian banks yesterday after cutting Italy’s sovereign rating last week. Ratings were lowered one level for seven of the institutions, and by two notches for the remaining six.
- Spain sold €3.56 billion in 12- and 18-month bills, exceeding targets as borrowing costs fell. One-year notes sold at a yield of 3.918 per cent, below the 5.074 per cent recorded at the last auction in June. The world is experiencing the opposite of a sovereign debt crisis >
- Bank of England Governor Mervyn King told a parliamentary panel they have no evidence that banks were deliberately misreporting borrowing costs at the height of the financial crisis. Here’s the LIBOR scandal explained in under 90 seconds >
- Goldman Sachs plans to increase lending to wealthy individuals and companies as it grows its private bank, Liz Rappaport of the Wall Street Journal reports. Executives hope to lend at least $100 billion, up from $12 billion at the end of the first quarter.
- General Motors is expected to post a “substantial” loss in Europe during the second quarter, sources tell the Wall Street Journal’s Sharon Terlep. However, GM does not plan to sell its Opel unit.
- Consumer prices were unchanged in June from a month earlier, showing a 1.7 year-on-year increase. June Industrial production topped forecasts, up 0.4 per cent compared to 0.3 per cent estimates.
- Investment banking giant Goldman Sachs reported better-than-expected second quarter results this morning, with revenues of $6.6 billion and earnings per share of $1.78. Meanwhile, Johnson & Johnson cut guidance today after reporting roughly in line quarterly results. Take a deep dive into global healthcare giant JNJ >