Making history in Cannes

The chase by Marty Cej:

The Euro has erased slight gains after the European Central Bank unexpectedly lowered its benchmark interest rate to 1.25%. We have a new top story.

Speculation is growing that the Greek government will fall before it gets a chance to hold a nationwide referendum on membership in the euro-zone. The BBC is reporting right now that Prime Minister George Papandreou will offer to resign in the next half hour or so.

He has been chairing an emergency cabinet meeting in Athens in a bid to quell dissent after his surprise announcement on Halloween. His Finance Minister, Evangelos Venizelos, appears especially put out since he was not consulted or warned about the plan. A confidence vote set for Friday could force an election and an end to Papandreou's stay at the Maximos Mansion, which sounds like it was named by a teenager, who plays bass.

The Greek cabinet confab was called after what Reuters is characterizing as a "torrid meeting" between Papandreou, French President Nicolas Sarkozy and German Chancellor Angela Merkel (brrrrr) at which it was decided that Greece would not receive one cent of the 8 billion-euro bailout installment earmarked for this month.

The Greek finance minister has now gone on the record to say that his country's membership in the euro "cannot depend on a referendum."

Meanwhile, the chairman of euro zone finance ministers, Luxembourg Prime Minister Jean-Claude Juncker, said policymakers were working on possible scenarios for a Greek exit. Making clear his own priorities, he told a German TV channel that he and his colleagues "are working on the subject of how to ensure there is not a disaster for the people in Germany, Luxembourg, the euro zone." Lest Greece miss the point, France's Europe minister (they have a minister for that?), Jean Leonetti, said simply that "Greece is something we can get over, something we can live without."

One of the questions we need to answer today is just how long Greece can avoid default without the bailout funds. Also, we should talk again about the mechanism of an orderly default vs. a chaotic and thoroughly messy default. How would Greece's exit from the euro-zone be orchestrated? Would the money destined for Greece's bailout be channeled directly to Italy? If Greece makes its exit, wiping its hands of its financial obligations to lenders, what's to stop Portugal and Ireland? Oh, Papandreou.

There is a terrific list of Canadian company earnings to slice and dice today starting with BCE, which topped expectations, and Manulife Financial, which appears to have reported a wider-than-expected loss. Manulife CEO Don Guloien, who will join us on Headline tomorrow, said he is "disappointed" with the results. CNQ is on our watch list, as are Suncor, Agrium, Air Canada, Husky Energy, Eldorado Gold, Centerra Gold, Penn West, Manitoba Tel, Valeant Pharmaceuticals, Magna, Dorel Industries and Yellow Media.

We are also watching same-store sales updates from the major U.S. retailers, which will be reported through the morning. A new survey released by America's Research Group and UBS says this year's Black Friday will be the "biggest ever." Today's sales data could help support or undermine that assertion.