Texas Capital Bank recently sold $275 million of securities to investors looking to cash in on the pandemic-fueled boom in home prices. The bonds are backed by short-term loans the bank makes to mortgage lenders. When those lenders' borrowers default, the investors in the bonds effectively cover the loss.
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Lawmakers Say Infrastructure Deal Within Reach
WASHINGTON-Lawmakers expressed renewed optimism Tuesday that they were close to reaching a deal on a roughly $1 trillion infrastructure package as they worked through a series of 11th-hour holdups.
After a day of partisan sniping over last-minute disputes, lawmakers said Tuesday they were approaching resolution to some of the issues that had bogged down the final stretch of negotiations. But they still hadn't finished their talks, weeks after the group announced that they had agreed to a loose framework for a deal.
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Credit Suisse Expected to Publish Details of Archegos Failures
Credit Suisse Group AG is likely to publish an investigation as soon as Thursday into the breakdown that led to massive losses from family office Archegos Capital Management, people familiar with the matter said.
The detailed report could become public around the time Credit Suisse reports second-quarter earnings, the people said. The report focuses on problems in the bank's risk management unit, human errors in judgment and unheeded risk in concentrated positions, some of the people said.
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German Consumer Confidence Set to Stagnate in August
German consumer sentiment is expected to remain unchanged from the previous month in August, according to data from the market-research group GfK released Wednesday.
GfK's forward-looking consumer sentiment index is set to stay at minus 0.3 points in August, unchanged from July, when it reached the highest level since August 2020. Economists polled by The Wall Street Journal had expected consumer sentiment to rise to 0.5.
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Biden to Propose Buy American Rule for Government Procurements
WASHINGTON-The Biden administration is proposing a rule that would accelerate federal procurement policy to require a higher level of American-made products.
Under an initiative to be announced Wednesday, the government would require that products obtained under the longstanding "Buy American" program have at least 60% of the value of components made in the U.S., up from the current 55% threshold. That would increase to 75% by 2029, White House officials said.
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Vaccination Rates Drive Global Economic Growth Prospects, IMF Says
The economic outlook is diverging for countries based largely on how well they are rolling out Covid-19 vaccinations, according to new forecasts released Tuesday by the International Monetary Fund.
Economic prospects are improving for advanced economies, where nearly 40% of the population has been vaccinated, despite challenges from new variants of the coronavirus, the IMF said. At the same time, far lower vaccination rates have left emerging and developing economies more vulnerable to additional waves of the pandemic and the associated economic fallout.
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GOP Bill Attempts to Inject Life Into Stalled Internet Privacy Talks
With work toward a federal privacy law largely stalled for the past 18 months, a top GOP lawmaker is trying to turn back the clock.
Sen. Roger Wicker (R., Miss.) plans Wednesday to introduce the Setting an American Framework to Ensure Data Access, Transparency, and Accountability Act. The new bill from the Senate Commerce Committee's ranking member largely reverts to a 2019 draft bill for ensuring consumers' control over personal data collected or processed by companies.
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U.S., Russian Officials to Hold Talks on Future Arms Control Agenda
The Biden administration will take its first step toward defining its future arms control agenda with Moscow when senior U.S. and Russian officials meet Wednesday for strategic stability talks in Geneva.
The talks, which were agreed to by President Biden and Russian President Vladimir Putin at their summit meeting last month, will be led by U.S. Deputy Secretary of State Wendy Sherman and Russian Deputy Foreign Minister Sergei Ryabkov.
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Jake Ellzey Wins Texas Special Election, Upsetting Trump-Endorsed Candidate
WASHINGTON-GOP state Rep. Jake Ellzey won a special election runoff in Texas on Tuesday, unexpectedly defeating the widow of the GOP lawmaker he will replace in the U.S. House, according to the Associated Press.
Republican Susan Wright had been favored to win the runoff after being endorsed by former President Donald Trump to represent the district south of Dallas. Her late husband, Ron Wright, died in February at the start of his second House term after battling Covid-19 and cancer.
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China to Revise Population Law to Reverse Birthrate Decline
Lawmakers in China plan to clear remaining legal barriers to encourage couples to have more children, as the country faces another year of fewer births.
In a congressional meeting Tuesday, Chinese lawmakers said they would revise the Population and Family Planning Law in sessions scheduled between Aug. 17 and Aug. 20, according to a statement on the legislature's website.
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Write to sarka.halas@wsj.com
TODAY IN CANADA
Earnings:
Acadian Timber Corp. (ADN.T) 2Q
Alamos Gold 2Q
Alaris Equity Partners Income Trust (AD.U.T) 2Q
Trust Units Reg S 3c7
Baytex Energy Corp. (BTE.T) 2Q
Cameco 2Q
Canadian Pacific Railway Limited 2Q
CGI Inc. Class A (GIB.A.T) 3Q
Champion Iron Ltd. (CIA.T) 1Q
Crescent Point Energy Corp. (CPG.T) 2Q
Equitable Grp Inc. (EQB.T) 2Q
Exco Tech Limited. (XTC.T) 3Q
Kinross Gold 2Q
Methanex 2Q
North American Constr Grp Ltd. (NOA.T) 2Q
Real Matters 3Q
Shopify 2Q
Tilray 1Q
Toromont Indus Ltd. (TIH.T) 2Q
Tourmaline Oil Corp. (TOU.T) 2Q
West Fraser Timber Co. Ltd. (WFG.T) 2Q
Economic Indicators (ET):
0830 Jun CPI
Stocks to Watch:
FirstService Higher-Than-Expected 2Q Revenue Drives Profit Rise
FirstService Corp. on Tuesday reported a rise in second-quarter profit, benefiting from higher-than-expected revenue in the period as activity among its brands accelerated and amenity services approach normalized levels.
The Toronto-based real estate services company said earnings per share were 83 cents, up from 64 cents in the comparable quarter a year ago.
Net income attributable to the company was $36.7 million, compared with $27.1 million a year ago.
However, adjusted earnings at $1.21 a share in the period missed analyst consensus expectations of $1.27 a share, polled on FactSet.
Sales rose to $831.6 million from $621.6 million, while analysts anticipated revenue to be at $737 million.
"The strong results for this second quarter reflect an acceleration of activity in many of our brands and a resumption of amenity services approaching normalized levels in our property management business," Chief Executive Officer Scott Patterson said.
Other News:
No items published
Market Talk:
No items published
Expected Major Events for Wednesday
05:00/JPN: May Indexes of Business Conditions - Revision
06:00/GER: Aug GfK consumer climate survey
06:00/GER: Jun Foreign trade price indices
06:00/UK: Jul Nationwide House Price Index
06:45/FRA: Jul Consumer confidence survey
08:00/ITA: Jul Consumer Confidence Survey
08:00/ITA: Jul Business Confidence Survey
11:00/US: 07/23 MBA Weekly Mortgage Applications Survey
12:30/CAN: Jun CPI
12:30/US: Jun Advance Economic Indicators Report
14:00/US: Jun Metropolitan Area Employment & Unemployment
14:30/US: 07/23 EIA Weekly Petroleum Status Report
18:00/US: U.S. interest rate decision
23:01/UK: Jun UK monthly automotive manufacturing figures
23:50/JPN: Jul Provisional Trade Statistics for 1st 10 days of Month
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Wednesday
A&W Revenue Royalties Income Fund (AW.UN.T,AWRRF) is expected to report for 2Q.
Affiliated Managers Group Inc (AMG) is expected to report $2.37 for 2Q.
Amphenol Corp (APH) is expected to report $0.55 for 2Q.
Automatic Data Processing Inc (ADP) is expected to report $1.13 for 4Q.
Avery Dennison Corp (AVY) is expected to report $2.04 for 2Q.
Boeing Company (BA) is expected to report $-0.21 for 2Q.
CME Group Inc (CME) is expected to report $1.48 for 2Q.
Cameco Corp (CCJ,CCO.T) is expected to report $0.03 for 2Q.
Celsion Corp (CLSN) is expected to report $-0.08 for 2Q.
Cowen Inc (COWN) is expected to report $1.35 for 2Q.
Enterprise Products Partners LP (EPD) is expected to report $0.49 for 2Q.
Evercore Inc (EVR) is expected to report $2.98 for 2Q.
Farmers National Banc (FMNB) is expected to report $0.43 for 2Q.
General Dynamics Corp (GD) is expected to report $2.54 for 2Q.
Loblaw Companies (L.T,LBLCF) is expected to report $1.20 for 2Q.
Marine Products (MPX) is expected to report $0.17 for 2Q.
McDonald's Corp (MCD) is expected to report $2.11 for 2Q.
New York Community Bancorp (NYCB) is expected to report $0.30 for 2Q.
Norfolk Southern Corp (NSC) is expected to report $2.95 for 2Q.
Owens Corning (OC) is expected to report $2.08 for 2Q.
Pfizer Inc (PFE) is expected to report $0.87 for 2Q.
Prosperity Bancshares (PB) is expected to report $1.39 for 2Q.
Provident Financial Holdings Inc (PROV) is expected to report $0.22 for 4Q.
RPC Inc (RES) is expected to report $-0.01 for 2Q.
Radware Ltd (RDWR) is expected to report $0.05 for 2Q.
Rollins Inc (ROL) is expected to report $0.18 for 2Q.
(MORE TO FOLLOW) Dow Jones Newswires
07-28-21 0607ET
