Knight Capital Group is expected to avert bankruptcy after a group of investors agreed to put $400 million into the troubled securities firm, sources said. The capital injection will help Knight continue to operate after a software glitch last week led to a $440 million loss.

Spain delays bailout, waiting for ECB bond-buying data

Spanish Prime Minister Mariano Rajoy said he won't decide on whether to seek help from the eurozone's rescue fund until he learns more about the bond-buying plan that the European Central Bank is developing. "What I want to know is what these measures are, what they mean and whether they are appropriate and, in light of the circumstances, we will make a decision, but I have still not taken any decision," he said. 

Greece's lenders report positive progress after visit

Representatives from the International Monetary Fund, the EU and the European Central Bank said talks with Greece about its recovery were productive. The troika is set to go back to Athens in September to assess the economy, a necessary step in Greece's process of repaying debt. 

London emerges as global hub for oil-futures trading

Contracts for North Sea Brent crude set a record in June, according to ICE Futures Europe, topping trading in West Texas Intermediate oil on CME Group's New York Mercantile Exchange for a third straight month. That propelled London past New York for trading in oil futures. 

Investors fret about U.S. "fiscal cliff"

Although markets have climbed recently, many investors say the shadow of automatic tax increases and spending cuts in the U.S. -- the so-called fiscal cliff -- is looming and worrying investors. "The quickly approaching fiscal cliff is big, scary [and] yet avoidable," said Bill Stone, PNC Wealth Management's chief investment strategist. Though most investors think a solution cannot be worked out before the presidential election in November, they also say that enough of a consensus exists to keep the nation from sailing off the edge. 

Market Activity


Upbeat U.S. jobs news bolsters Asian-Pacific markets

Positive U.S. employment data and optimism that Europe is making progress with its sovereign-debt problems boosted Asian-Pacific exchanges Monday. Japan's Nikkei 225 and South Korea's Kospi each rose 2%. Australia's S&P/ASX 200 added 1.2%. Hong Kong's Hang Seng Index gained 1.7%. China's Shanghai Composite and Taiwan's Taiex each advanced 1%. India's Sensex was up 1.2% at midday. 

Exchange for small companies is planned by NYSE Euronext

NYSE Euronext is working to launch a securities exchange intended to make it easier for small companies across Europe to offer stocks and bonds. 

Wall Street braces for biggest week of IPOs since Facebook

The U.S. pipeline of initial public offerings has more deals set to come to market this week than at any time since Facebook's IPO. Capital-market adviser and data provider Ipreo said six companies will try to raise $1.1 billion. 

Economics

U.S. manufacturers slash investment and hiring

The number of U.S. manufacturing firms canceling investment and delaying hiring is growing as executives anticipate that political deadlock will prevent Congress from heading off a "fiscal cliff" of tax hikes and spending cuts set to automatically take effect at year-end. Commerce Department data show that factory orders unexpectedly dropped 0.5% in June compared with May. 

Shell reportedly shifts funds out of eurozone banks

Oil company Royal Dutch Shell is withdrawing some cash from eurozone banks to limit exposure to the debt crisis, according to The Times newspaper in London. "There's been a shift in our willingness to take credit risk in Europe. The crisis has impacted our willingness to afford credit," said Chief Financial Officer Simon Henry. 

Analysis: Global food crisis might be taking shape

U.S. farmers normally provide more than half of the world's corn and 40% of its soybeans, but the worst drought in 50 years makes it impossible to save the corn crop, while there is some hope for soybeans, according to The Economist. "If the rains come too late to save America's soya harvest, a bad situation could become dire and hit the whole food sector, according to Abdolreza Abbassian of the UN Food and Agriculture Organisation," the magazine notes. 

U.S. unemployment rises despite strongest hiring in 5 months

Employers added more workers in July than at any time in the past five months, but the unemployment rate still edged up, from 8.2% to 8.3%, the U.S. Labor Department said. Last month, nonfarm employment increased 163,000. 

Financial advisers should prepare clients for tax-law changes

Because of disagreement between Democrats and Republicans about how to handle the impending expiration of Bush-era tax cuts, financial advisers should prepare clients for last-minute changes to U.S. tax law, experts said. Investors must be ready to change portfolios and estate plans to minimize taxes under a wide range of scenarios.

Geopolitical/Regulatory 

SEC round table will discuss HFT issues, Schapiro says

Mary Schapiro, chairman of the Securities and Exchange Commission, said the agency will hold a round table soon to discuss "critical issues" related to Knight Capital Group's error and high-frequency trading. Schapiro also said the SEC is considering rules to tackle such issues. "I have asked the staff to accelerate ongoing efforts to propose a rule to require exchanges and other market centers to have specific programs in place to ensure the capacity and integrity of their systems," she said. 

Vietnam moves to relax stock market rules to encourage investment

The Vietnamese State Securities Commission plans to increase initial public offerings of state-owned businesses and relax stock-trading rules to attract investment. The commission is expected to open the door to 100% foreign-owned securities firms. Vietnam's benchmark VN Index is the third-best-performing equity index this year in Asia.

Libor investigation zeros in on former Barclays swaps trader

An investigation into possible manipulation of the London Interbank Offered Rate has turned its focus to a 30-year-old former swaps trader at Barclays in New York. U.S. prosecutors are exploring activity by Ryan Reich, who was fired in 2010. Reich and Barclays declined to comment.

Financial Products
Fidelity reportedly readies actively managed sector ETFs

Fidelity Investments is getting ready to move into exchange-traded funds, with a series of actively managed sector funds, a source said. The company wants to be the first major mutual fund firm to offer ETFs whose investments are directed by active stock pickers.