WHAT TO WATCH: The euro-area economy probably edged back to growth of 0.2 percent in the three months through June, for the first time since 2011, economists forecast before GDP data on Wednesday. Japan’s economy slowed more than forecast in the second quarter as businesses cut investment. To read more, click here.
California’s sale this week of $5.5 billion of notes is putting it on pace for the least short-term borrowing in five years as the outlook for the world’s ninth-largest economy brightens. To read more, click here.
The U.S. Department of Justice and the Federal Deposit Insurance Corp. are pressuring banks to cut ties to online lenders whom regulators suspect of shady business practices, as part of a broad crackdown on frauds in the payment system, according to five people briefed on their work. To read more, click here.
Residential Capital LLC’s disclosure statement for its reorganization was opposed by the U.S. Trustee, which oversees bankruptcy cases for the government. To read more, click here.
Governor Chris Christie’s post-Hurricane Sandy leadership has won over New Jersey voters as he heads toward re-election. Now he’s gaining fans in the municipal-bond market. To read more, click here.
BOE policy makers held three votes for the first time at their meeting this month. German chancellor candidate Peer Steinbrueck criticized Angela Merkel for misleading voters over the true cost of the debt crisis. Japan’s national debt exceeded 1 quadrillion yen (1,000 trillion yen) for the first time. To read more, click here.
Bank of America Corp. is poised to become the top seller of U.S. structured notes for the second straight year, issuing its highest proportion ever of securities tied to stocks. The bank leads with $3.28 billion of issuance, of which 93 percent, or $3.04 billion, is linked to equities. Morgan Stanley is second with $2.93 billion of [...]
NEWS: The Bank of Japan refrained from adding to stimulus. Gilt yields rose to the highest in more than a month after BOE Governor Mark Carney pushed to restrain expectations of an increase in interest rates. (See page 3.) Emerging-market currencies are trailing their peers in advanced economies by the most since 2009. To read more, click here.
Wayne County, home of Detroit, has seen the extra yield investors demand to own its debt soar to a record, showing the price Michigan localities are paying after the Motor City filed for bankruptcy. To read more, click here.