- Asset manager PIMCO is under investigation by the Securities and Exchange Commission (SEC) over how it valued mortgage-backed securities in its Total Return ETF between February and June 2012. Regulators want to see whether investors were given a misleading view of the fund's performance. The SEC issued PIMCO with a Wells Notice, which is usually issued when the regulator believes it has enough evidence for civil action, although this doesn't automatically follow. PIMCO said in a statement the SEC has no reason to start action against it, as its actions were appropriate and in line with industry standards.
- Japanese carmaker Toyota (TM) posted a record profit of 646.4 billion yen ($5.21 billion) in the April-June quarter, on revenue of 6.99 trillion yen, as the company continues to benefit from the weaker currency. The profit beat expectations of 607.5 billion yen in a Reuters poll of analysts.
- Chinese regulators tightened control of short-sellers further, unveiling rules making it harder for speculators to take advantage of hourly price changes. The Shanghai and Shenzhen exchanges said in separate statements on Monday night that new rules, effective immediately, ban traders from borrowing and repaying stocks on the same day. The Shanghai Composite Index jumped more than 3% on the news.
- Greek banking stocks crashed for the second day running, with the banking index down more than 29%, dragging down the whole Athens stock exchange, despite its initially opening the session in the green.
- The U.K. government has started its selloff of the Royal Bank of Scotland (RBS) seven years after it bailed out the bank. It sold a stake worth 2.1 billion pounds ($3.3 billion), cutting the government's stake to 72.9% from 78.3%. The government has been criticized for selling at a loss, given the shares were bought at an average price of 502 pence each and in London RBS shares closed at 336.6 pence on Monday.
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