Detroit’s $369 million of voter-approved general-obligation bonds provide a “strong case’’ to be treated as secured debt in the city’s record bankruptcy, returning 100 percent to investors, according to Barclays Plc. To read more, click here.
NEWS: The Shanghai Composite Index surged as much as 5.6 percent in the biggest intraday jump since March 2009, spurring the exchange to investigate the spike. Angela Merkel said the European debt crisis hasn’t been overcome as she repeated in a speech that governments should cut debt. To read more, click here.
Sales of structured notes that bet on a weakening U.S. dollar have stalled after the busiest first quarter since 2010 on concern that reduced Federal Reserve stimulus may strengthen the currency. To read more, click here.
NEWS: Angela Merkel warned against the perils of excessive debt. India increased efforts to stem the rupee’s plunge and stop capital outflows. Egypt’s security forces broke up sit-ins by Islamist protesters, sparking violence that left hundreds dead. To read more, click here.
The longest-term bonds offer a buying opportunity, analysts at JPMorgan Chase & Co. and Citigroup Inc. say, as yields reach a two-year high following Detroit’s bankruptcy and concern over the Federal Reserve curbing bond purchases. To read more, click here.
WHAT TO WATCH: U.S. initial jobless claims probably rose to 335,000 in the week ended Aug. 10, 8:30 a.m. U.S. industrial production climbed 0.3 percent in July for a second month, 9:16 a.m. The Federal Reserve’s James Bullard speaks on the U.S. economy and monetary policy in Kentucky, 8:15 a.m. U.K. retail sales climbed 1.1 percent in [...]
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All 14 Forties crude cargoes scheduled to load in August were deferred because of planned and unplanned outages in North Sea oil fields and a pipeline. The net effect of the delays is an increase in September loadings to a daily rate of 420,000 barrels a day, and a decrease in those scheduled for August to 213,000, according to [...]
Grupo BTG Pactual, the investment bank controlled by billionaire Andre Esteves, is seeking $1.5 billion for its next private-equity fund that will purchase stakes in Brazilian companies, according to two people familiar with the situation. To read more, click here.
Build America Bonds, the federally subsidized municipal bonds orphaned in 2010 after Congress failed to extend their life, are beating Treasuries and corporate debt even as the taxable securities are poised to record their first losing year. To read more, click here.