Today's Headlines

Bloomberg: 

• Brazil’s Rating Outlook Revised to Negative From Stable by S&P. Standard & Poor’s said it may cut Brazil’s credit rating to junk, citing the country’s political and economic challenges amid an ongoing corruption probe. The ratings company said in a statement Tuesday it revised the outlook on Brazil’s rating to negative from stable. The country’s rating from S&P is already at BBB-, the lowest investment grade.
• Chinese Developer Bonds Face New Risk as Buybacks Boost Leverage. As Chinese developers use more money to buy back shares amid an equity rout, concern is increasing that the trend will leave less cash to pay back bondholders. Evergrande Real Estate Group Ltd., China’s most indebted developer, on Monday bought back 167.4 million Hong Kong-listed shares for HK$863 million ($111 million), bringing total repurchases to HK$3.64 billion since July 8. China Vanke Co., the nation’s largest homebuilder, this month approved a plan to repurchase as much as 10 billion yuan ($1.6 billion) of its onshore shares.
• Wal-Mart Rebound Imperiled by Mexico’s Worst Poverty in 14 Years. Just as Mexico’s consumer sector begins to emerge from the doldrums of the 2009 recession, a new government report suggests the recovery’s foundation is on shaky ground. An additional 2 million Mexicans have become poor since 2012, pushing one poverty gauge to a 14-year high, Mexico’s social policy evaluation council said. The data show the challenges faced by President Enrique Pena Nieto to meet campaign promises to lift millions out of poverty and expand the middle class.
• GM(GM) Makes $5 Billion Chevrolet Bet to Expand in Emerging Markets. General Motors Co. is investing $5 billion to expand its Chevrolet lineup to gain market share and boost profits in emerging markets including Brazil, China, India and Mexico. The project involves developing cars with Chinese partner SAIC and replacing many of GM’s existing subcompacts and compacts that are sold in emerging markets starting in 2019, President Dan Ammann said. The two companies expect to sell as many as 2 million vehicles a year through 2030, GM said. GM’s strategy reflects a bet on global growth patterns and a new approach to the Chevrolet brand. 
• European Stocks Rebound as Melrose, Hikma Rally Amid Takeovers. (video) European stocks rebounded from 2015’s worst five-day decline as deal activity increased and some corporate earnings topped projections. Melrose Industries Plc surged 9.6 percent after agreeing to sell its Elster business to Honeywell International Inc. Hikma Pharmaceuticals Plc jumped 12 percent after saying it will buy Boehringer Ingelheim GmbH’s Roxane unit. RSA Insurance Group Plc soared 18 percent as Zurich Insurance Group said it’s evaluating a potential offer for it. Kering SA and Drax Group Plc rose 5.6 percent or more after first-half profits beat projections. The Stoxx Europe 600 Index added 1.1 percent to 390.02 at the close of trading.
• These Small Cap Energy Stocks That Hedge Funds Love Have Been Getting Crushed. Losses are again ballooning in a corner of the U.S. stock market where professional speculators roam. Small-cap shares tracked by the Russell 2000 Energy Index have plunged 34 percent in three months, including a 24 percent skid since June 26 in which the group posted four straight weekly losses averaging 6 percent each. Rex Energy Corp. and Penn Virginia Corp. fell more than 50 percent in July alone.

CNBC: 

• UPS(UPS) posts earnings of $1.35 a share vs. $1.26 expected. United Parcel Service delivered quarterly earnings that surpassed analysts' expectations on Tuesday, as improved margins offset a slight drop in revenue. 
• Analysts see 'new era' for Google(GOOG) shareholders. Analysts were so impressed by the earnings report, they not only raised their forecasts, but began throwing around big talk like "dawn of a new era" for the company.

ZeroHedge: 

• Nervous Nasdaq - Too Many Highs & Lows. (graph)
• Toys'R'Us Bonds Crash As Suppliers Set To Tighten Credit Lines. (graph)
• Greek Economy Faces Total Collapse As Doctors Flee, Retail Sales Plunge 70%.
• Wall Street Still Didn't Get The Memo - China's Done, Top's In!
• US Middle Class Stays Dead: Homeownership Drops To 48 Year Low; Median Asking Rent Soars To All Time High. (graph)
• US Economic & Consumer Confidence Plunges To 10-Month Lows As "Hope" Crashes. (graph)
• How A Chinese Farmer Lost More Than Everything Trading Stocks.
• German Economic Council Backs Exit For "Uncooperative" Eurozone Members.

Business Insider: 

• Macau's troubles have hit Las Vegas hard.
• GOLDMAN: 5 reasons Chinese stocks are getting smoked.

Telegraph:

• The UK is living off borrowed time - and money. The UK is far from the reformed, more balanced economy that policymakers hoped would rise phoenix-like from the ashes of the financial crisis. 
• Four charts that show why the euro isn't working for Germany or Greece. The IMF has released its latest healthcheck on the state of the eurozone economy - it makes for grim reading. 

Vedomosti:

• Russian Economy Minister Sees June GDP Drop 4.2% Y/Y. Decline in June slows from 4.8% drop in May, citing Economy Ministry's monthly monitoring.

Folha:

• Brazil Govt Said Worried S&P May Lower Outlook to Negative.