Good morning. Here's what you need to know.
- Asian markets were mostly up in overnight trading with the Nikkei rising 1.48%. Europe has lost its early gains after the ECB action, and U.S. futures have opened lower.
- 523 banks borrowed €489 billion at the ECB's first offering of three-year funding, driving the euro higher. One hope is that the cheap loans will be used towards Italian and Spanish bond purchases, while bolstering confidence in the banks as well. Don't Miss: Morgan Stanley - Here's what the euro economy will do in 2012 and 2013 >
- The Italian economy contracted in the third quarter, falling 0.2% from the previous quarter, when it gained 0.3%. Consumer spending also fell 0.2%, while investment declined 0.6%. Meanwhile, prime minister Mario Monti's government faces a final vote on its €30 billion emergency budget plan tomorrow. Now here's who will get crushed if Italy goes bust >
- Japan's exports declined for a second month, with shipments falling 4.5% year-over-year in November. Exports continue to be impacted by a strong yen and weakening demand in Europe and Asia. October shipments fell a revised 3.8%. Check out 10 countries that will dominate world trade in 2050 >
- In earnings news, Oracle posted Q2 net income of $2.2 billion or $0.43 per share, on revenue of $8.79 billion. The company reported non-GAAP earnings of $0.54 per share missing Wall Street expectations. Oracle's hardware business looked weak with sales falling 14%, while software sales gained a meager 2%. Walgreen Co. posted earnings of $0.63 per share on revenue of $18.16 billion. Meanwhile, Bed, Bath & Beyond is expected to post Q3 earnings of $0.88 per share. Check out Morgan Stanley's favorite stocks between now and 2015 >
- In M&A news, Japanese casualty insurer Tokio Marine Holdings Inc has agreed to buy Delphi Financial Group for $2.7 billion in cash. Meanwhile, Credit Suisse has agreed to buy a Japanese private banking unit from HSBC. The sale is part of HSBC's cost cutting operations, while the acquisition will help Credit Suisse boost earnings from its core private banking business.
- Japanese prosecutors raided the Tokyo headquarters of Olympus as they investigate the company's accounting scandal. Prosecutors, police, and officials from the Securities and Exchange Surveillance Commission also raided the home of former chairman Tsuyoshi Kikukawa.
- Bank of America is reportedly close to settling a probe by the US justice department into the lending practices of its Countrywide Financial Corp unit. A deal could be announced as early as this week and will involve compensation for Countrywide customers.
- The UK budget deficit narrowed more than expected in November, with net borrowing, excluding support for banks, declining to £18.1 billion pounds, from £20.4 billion a year ago. Meanwhile, Moody's has said that UK's strengths are not enough to protect its AAA rating from the European crisis. Now here's what will happen to government deficits over the next two years >
- BONUS - Gisele Bundchen is the face of Versace and Givency and is featured in two new photo shoots for the brands.
Please follow Money Game on Twitter and Facebook.
Join the conversation about this story »
See Also:
- 10 Things You Need To Know This Morning
- 10 Things You Need To Know This Morning
- 10 Things You Need To Know This Morning