Keira Knightley
Pascal Le Segretain/Getty Images
Good morning. Here's what you need to know.
  • Asian markets were mostly higher in overnight trading, with India's SENSEX gaining 2.0 percent. European shares also headed higher, while U.S. futures point to a moderately higher open.
  • Japanese industrial production surged 4.0 percent month-on-month in December, faster than economists predicted. Automakers were bolstered by the return of Thai supply lines that had been down since flooding devastated the nation. However, the unemployment rate in Japan increased 10 basis points to 4.6 percent in December. 
  • The European Union headed closer to fiscal unity when leaders of 25 member countries agreed to sign a treaty designed to stop overspending and move forward with the establishment of a permanent E.U. rescue fund. The compact includes rules that limit debt allowances and makes it harder for countries to avoid sanctions if running debt above certain metrics. Britain and the Czech Republic said they were against the new ties. 
  • German unemployment fell to a 20 year low, when 34,000 fewer people said they were jobless. The rate hit 6.7 percent, 10 basis points below last month's reading, and below economist expectations for it to remain flat.
  • Lucas Papademos, the Greek prime minister, warned that the country could need more public funding to help solve its debt crisis. Recent reports put the private sector write downs at 70 percent, on top of a €100 billion plus bailout. 
  • The Russian economy expanded by 4.3 percent in 2011, topping forecasts for 4.1 percent growth. Net exports grew by 1.0 percent as imports surged 21.5 percent. Goldman Sachs doesn't think the BRIC story is over. 
  • Economic announcements in the U.S. include the Case Shiller housing index and consumer confidence. Case Shiller is set for release at 9:00 a.m., with economists polled by Bloomberg expecting the 20 city composite index declining by 0.4 percent month-on-month. U.S. consumer confidence will be announced at 10 a.m. Economists forecast the index will increase to 68 from 64.5. 
  • Apple has hired the leader of Dixons, one of Europe's largest electronics retailers, to run its store front operations. John Browett will become the company's senior vice president for retail. The move fills the void that was left when J.C. Penney named Ron Johnson its chief executive officer. 
  • Earnings season heats up after a slow Monday, with Exxon Mobil, Amazon, and UPS reporting, among others. Analysts expect earnings per share at Exxon Mobil at $1.98, Amazon at $0.16, and UPS at $1.25. Investors will be looking closely to guidance from bellwether UPS to see how global demand is shaping up early on in 2012. 
  • Honda announced net profit fell 41 percent to ¥47.66 billion, or $624.3 million, as a strong yen eroded international margins and Thai suppliers only started coming back on line. The company forecast full year net profit of ¥215 billion, well below analyst expectations for ¥250.5 billion.