• Debt restructuring talks in Greece drag on as euro zone finance ministers rejected the offer from private bondholders. The issue now is the coupon structure on the new debt. The IIF, representing banks and private institutions, demanded 4% on the agreed-to principal write down. Greek officials and euro zone finance ministers rejected that looking for 3.5% instead. The development lowers the chance of a voluntary restructuring. From Reuters News.
• S&P cut ratings on French banks Societe Generale and Credit Agricole on the back of the country’s downgrade earlier this month. The move was expected, but financials are under pressure in Europe after the downgrades. From The Financial Times.
• Nokia is under pressure this morning after a warning from one of its chip suppliers, STMicroelectronics. Nokia is the chip makers largest client. Nokia continues to struggle with rolling out a viable smart phone, as well as from European economic woes. The company’s stock was down as much as 7% earlier. STMicro’s full year profit was down over 20%. From The Wall Street Journal.
• It looks like the NYSE Euronext and Deutsche Borse deal will officially die February 1st at the European Commission meeting. The EU’s head of antitrust, Joaquin Almunia, does not expect much opposition to his decision from EU commissioners. From Bloomberg News.