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Good morning. Here's what you need to know.
  • Asian markets were mostly higher in overnight trading with the Nikkei surging 2.3%. After yesterday's rally, Europe is moderately higher and U.S. futures are nicely higher ahead of the market open.
  • Italy sold €3.5 billion of a three-year bond, €2.5 billion of bonds maturing in 2022, and €1.5 billion of bonds maturing in 2020. Italy had to pay more than 7% to auction its debt, and the total €7.5 billion auction was short of the maximum target. 
  • Meanwhile, European finance ministers are meeting in Brussels today to discuss details of boosting the EFSF, to prevent contagion in bond markets. 
  • S&P could lower its outlook on France's AAA credit rating to negative in the next 10 days. This comes after Fitch said France's debt and deficit levels were consistent with its AAA rating, but warned that another shock to its public finances could alter that rating.
  •  Meanwhile,Moody's has put junior bonds of 87 European banks on review for downgrade. Bonds from BNP Paribas, Societe Generale, UniCredit, Santander and Dexia are included in the review.
  • Fitch revised the U.S. long-term debt rating to negative from stable, which means there is an over 50% chance of an actual downgrade in the next two years. The negative outlook was attributed to the super committee's failure to reach a deal on federal deficit cuts. 
  • In earnings news, Tiffany & Co. posted Q3 net earnings of $89.7 million or $0.70 per share, on global net sales of $821.8 million beating estimates of $803.8 million.
  • Management raised its full year earnings forecast to to $3.70 - $3.80 per diluted share.
  • American Airlines' parent company AMR Corp has filed for bankruptcy protection in New York, citing $29.5 billion in debt. This comes after the company failed to reach an agreement with its labor union. AMR has been trading close to $1 per share, and the bankruptcy filing isn't unexpected. The company is however looking to restructure and return to business.
  • Facebook is set to IPO between April and July next year. The company plans to raise up to $10 billion, at a $100 billion valuation. Facebook could file for its IPO as early as the end of the year.
  • The S&P/Case-Shiller home price index for September will be released at 9 AM ET, and consumer confidence data for November will be released at 10 AM ET. Consensus is for a 0.1% month-over-month drop in the home price index, and for an increase in consumer confidence level to 45. 
  • Spanish retail sales fell 7% year-over-year in October, after a revised decline of 5.6% the previous month. Retail sales have declined for 16 consecutive months. Meanwhile, November consumer prices rose 2.9% year-over-year, inching lower from 3% rise in inflation the previous month. 
  • UBS lowered its estimate for global growth next year attributing the cut to Europe's debt crisis. Global GDP is set to expand just 2.7% the next year, against previous estimates of 3.1%. The euro area is expected to contract 0.7%, against previous estimates of 0.2% growth.