News before the opening bell

10 Things You Need To Know Before The Opening Bell

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Mamta Badkar, On Tuesday September 6, 2011, 7:26 am

Good morning. Here's what you need to know.

• After getting smashed on Monday, European markets are modestly higher, having bounced around all morning. US markets are set for a sharply lower open, coming off an eventful three-day weekend.

• The big news is that the Swiss National Bank is intervening dramatically to weaken the Franc. It announced an immediate 'substantial and sustained' weakening of the currency, and said it would no longer tolerate a EUR/CHF rate below the minimum rate of CHF 1.20. At 4:00 AM ET, when the news was announced, the currency instantly plunged against both the dollar and the euro. Check out the only currencies that outperformed gold this year >

• The buildup towards a Greek endgame continues. German Chancellor Angela Merkel told Christian Democrats members that Greece would not receive aid payments this month, unless it met its obligations under the bailout agreement. This comes after Merkel's party suffered a historic loss in a regional election over the weekend.

• There's more proof of a slowdown in Germany, with factory orders in July falling at 2.8% rate, much faster than the 1.5% decline anticipated. This compares with 1.8% growth in June. Now here are the most miserable countries in Europe >

• Thousands of protestors are expected to gather in Rome today to oppose prime minister Silvio Berlusconi's $64.5 billion austerity package. Italian bond yields eased on the Swiss National's Bank's announcement, but are expected to rise over concerns that the government may backslide on the plan. The Senate could approve the plan as early as tomorrow. Now here is the sad story of how Italy got to be such a mess >

• Europe experienced a major sell-off yesterday, with Italy off 5.3%, Germany plummeting 5.5% and France down 4.9%. European banks were hit hard and yields on Greek 2-year notes surged past 50% for the first time.

• On Friday, the FHFA unveiled its major lawsuit against 17 U.S. banks over mortgage fraud. It has been reported that banks are likely pursue 'all out war strategy' rather than settle. Expect big selling in Bank of America and other stocks in early going. Click here for a complete guide to who was sued for what in the lawsuit >

• Macquarie Group is reportedly looking to bid for Royal Bank of Scotland's aircraft leasing business that is worth about $6 billion. The first round of bids are due this week, and the Australian financial services group which purchased 53 jets from AIG last year, is looking to expand its aviation assets.

• President Obama's Labor Day address in Detroit built pressure on Republicans to put the country's interests first and vote to create new jobs. Obama has faced criticism from GOP leaders over consistently weak economy and high unemployment, and this speech came ahead of his major job's speech this Thursday.