“THE STOCK MARKET IS A NO-CALLED-STRIKE GAME. YOU DON’T HAVE TO SWING AT EVERYTHING – YOU CAN WAIT FOR YOUR PITCH. THE PROBLEM WHEN YOU’RE A MONEY MANAGER IS THAT YOUR FANS KEEP YELLING, ‘SWING, YOU BUM!’” — Warren Buffet

1. Moody’s cuts Greece to just above default — Moody’s has cut Greece’s ratings three notches to Ca and left it just one notch above default, which the agency said is “virtually 100%” likely to occur.
2. Iran, China discuss barter system — Iran and China are reportedly in negotiations about using a barter system to allow the latter to pay for up to $30B of oil debt with goods and services. The talks come as U.S. sanctions have made it extremely difficult to conduct dollar-denominated business with Iran.
3. India hikes key interest rate more than expected — The Reserve Bank of India on Tuesday hiked its key lending interest rate by a larger-than-expected half percentage point to 8%, as it tries to tame what it says are mostly demand-led inflation pressures. The move marked the 11th time the central bank has hiked interest rates since March 2010.
4. House panel probes Treasury over S&P rating — a House oversight panel is examining whether the Treasury tried to inappropriately influence S&P before it revised its outlook on the U.S.’s debt rating to negative in April.
5. Jefferson County weighs bankruptcy decision — the County Commission in Jefferson, Alabama, is close to file for the biggest municipal bankruptcy in U.S. history. The county has proposed that creditors including JPMorgan (JPM), which holds most of the bonds, agree to reduce the debt to about $2B.
6. Boehner pulls debt bill — Republican John Boehner postponed a House vote on his debt-reduction bill following his failure to overcome a rebellion within GOP ranks.
7. EU puts Spain on review for downgrade, bond yields rise — Greece’s second bailout and EU measures to prevent contagion may now be acting as a catalyst for the crisis spreading after Moody’s early today put Spain’s government-bond ratings on review for a possible downgrade from AA2.
8. GDP climbed at a 1.3 percent annual rate in 2Q, following a 0.4 percent gain in the first quarter — the figure was less than previously estimated. The median forecast of economists surveyed was for a 1.8 percent increase.
9. US Debt Holders ($14.3 Trillion) — below is the chart depicting U.S. debt holders courtesy from Congressional Quarterly.

The week ahead — Economic data from Econoday.com: