Image: AP Images
Good morning. Here's what you need to know.
  • Asian markets were mixed in overnight trading with the Hang Seng up 1.37%. Markets are fairly quiet leading up to Christmas, Europe is higher and U.S. futures are moderately higher ahead of the market open.
  • The French economy grew less than previously expected in the third quarter. GDP climbed 0.3% from the second quarter, against previous reports of a 0.4% gain. French statistics institute Insee has said that the economy is probably already in a recession, and investment growth slowed to 0.2% in the third quarter. 
  • Italian consumer confidence fell to 91.6 in December, from 96.1 the previous month, declining to its lowest level since 1996. Confidence tanked as consumers grew more concerned about austerity measures and a probable recession.
  • Congress looks set to pass a two-month payroll tax cut extension today after months of political wrangling. House speaker John Boehner and Senate majority leader Harry Reid agreed yesterday to extend the payroll tax cut and emergency unemployment benefits into 2012. The extension is almost entirely like the bill that passed the Senate on Saturday, but will need unanimous consent to assure an expeditious passage through the House and Senate.
  • Durable goods orders and personal income and outlays for November will be released at 8:30 AM ET. Consensus is for a 1.9% month-over-month increase in new orders, and a 0.3% month-over-month increase in consumer spending.
  • In M&A news, Deutsche Boerse won U.S. approval to buy NYSE Euronext, on the condition that its subsidiary, the International Securities Exchange, divest its stake in Direct Edge. The $9 billion deal could still be blocked in Europe. Meanwhile, Malaysian state-owned oil and gas company Petronas is in talks with oil giants Shell, Exxon Mobil and chemical maker Dow Chemical Co. among others, to develop petrochemical plants within its $20 billion refinery complex.
  • Meanwhile, AT&T has won approval from U.S. regulators for its $1.93 billion purchase of Qualcomm Inc's airwaves, days after its bid for T-Mobile USA collapsed. The FCC cleared the sale of frequencies for 300 million people, but AT&T can't use airwaves in a manner that would interfere with other wireless carriers.  
  • UK services output fell 0.7% in October from the previous month, but output was up 1.1% from a year ago. Services account for about 75% of the UK economy. Business services and finance, which account for about 40% of the index, fell 0.7% in October. Meanwhile, Q3 GDP was unexpectedly revised up to 0.6%, from an initial report of 0.5% growth.
  • Moody's downgraded Slovenian sovereign debt to A1 from Aa3, with a negative outlook. Risks to the country's balance sheet, from the potential need for support to banks, and risks to economic growth, were cited as the main reasons for the downgrade. 
  • New home sales data for November will be released at 10 AM ET. Expectations are for November new home sales to come in at 314K.