Factory activity slips in Europe and China

The New Releases available at the video store and On Demand yesterday were uninspiring, to say the least. So I'm back.

• European stocks are sliding and U.S. stock index futures are pointing to a lower open after measures of the manufacturing economies in Europe and China unexpectedly shrank. The surveys of purchasing managers showed surprising weakness in both Germany and France and raised the likelihood of a deeper slowdown in China as European demand for Asian exports dwindles. With gains of more than 8 percent for the S&P 500 and almost 9 percent for the Euro Stoxx 50 already this year, equity markets may not be in a position to show much resilience in the face of worsening global economic data. What we need to know today is whether stock prices accurately reflect the impact a slowing Chinese economy and European recession could have on earnings.

• Among the guests who will answer that question for us is Richard Cookson, Global Chief Investment Officer at Citi Private Wealth. In a recent note to clients, he said investors should enjoy the stock rally while it lasts, "but easing by central banks, or the promise of it, won't stop a sharp deceleration in global growth and corporate profits this year." Ahem, yes, well, Cookson will join us at 9:10 a.m. ET.

• Canadian investors are looking at higher dividends from Rogers and Telus this morning. But they'll also be looking behind the headlines at Rogers where earnings topped expectations and smartphone activations surged to a record in the fourth quarter, but churn rose in the wireless unit and the average revenue per user declined. As one of the most widely-held stocks in Canada, there's a lot of detail that needs to be examined.

• Oil is retreating from a nine-month high this morning in the wake of the PMI reports out of China and Europe and yet Goldman Sachs is arguing that the biggest risk for the price of oil is to the upside. In other words, the average estimate for the price of oil in 2012 may be too low. We'll talk about the outlook for oil and the oil biz with Ted Bogle, CEO of Compton Petroleum, at 11:40 a.m. ET and John Richels, CEO of Devon Energy, at 11:50 a.m. ET.

• The Obama administration is expected today to propose cutting the top tax rate for U.S. companies to 28 percent from 35 percent, a plan that will still enrage Republicans somehow. The plan will mark President Obama's first official foray into reform of the tax code and will include the closure of several "loopholes" that companies have been using for decades to get their tax rates down..

• The Obama plan will stand in stark contrast to proposals in the BC budget yesterday, which promises higher corporate tax rates to help fight the deficit. Suddenly Seattle is looking like a better option.

• We are also looking at earnings from Yamana Gold, Silver Wheaton, Sherritt International, Lundin Mining, Hewlett-Packard, Toll Brothers, RR Donnelly, TJX, MGM Resorts and Aimia (the company formerly known as Aeroplan.

Every morning Managing Editor Marty Cej writes a "chase note" to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Click here to have it delivered to your inbox before the trading day begins.