For the week ended July 22, 2011

Week in review: Stocks higher as debt deals and positive earnings cheer investors

• European leaders agree to aid package for Greece
• U.S. lawmakers continue to debate deficit reduction deal
• U.S. home sales fall
• Morgan Stanley surprises markets with revenue gain
• Tech companies report strong profits
• Borders to liquidate
• Harry Potter and the Deathly Hallows — Part 2 sets box-office record

Global stocks were mostly higher for the week as European leaders agreed on a plan to reduce Greece's debt burden and U.S. legislators appeared to be heading toward a deficit-reduction deal. Numerous positive earnings announcements further supported the markets as financial and technology heavyweights reported better-than-expected results.

U.S. and global economic news
European leaders agreed to aid package for Greece

European leaders on Thursday agreed on a plan to reduce Greece's debt burden in an effort to prevent contagion to other weak economies in the eurozone. The overall size of the bailout package to cover Greece's financial gap is €109 billion and will include the participation of the International Monetary Fund and the private sector. The plan also cuts interest rates on bailout loans to Greece and doubles the repayment period to 15 years. Officials said the interest rates on Ireland's and Portugal's bailout loans will be cut to the same low level. European leaders also agreed on new steps to prevent the spread of Greece's debt problems. In the wake of the debt deal, Fitch Ratings said the role of the private sector in the Greek bailout plan would constitute a "restrictive default." In other words, the proposed debt exchange implies a 20% net present value loss for banks and Greek government debt holders.

Zillow, the online real estate information service, raised $69.2 million in its initial public offering.

Express Scripts to buy Medco; CNOOC to purchase OPTI Canada
Express Scripts agreed to buy Medco Health Solutions for $29.1 billion in cash and stock. In merging, the companies will form the largest manager of drug prescription services with nearly a third of the market. China's largest offshore-oil producer, CNOOC, agreed to buy bankrupt Canadian oil sands developer OPTI Canada for about $2.1 billion. The agreement comes as China seeks to invest in energy projects amid a global commodities boom. In past deals, Chinese firms have targeted minority stakes in Canadian companies.

Harry Potter movie sales set record

The last of the long-running series of Harry Potter films, Harry Potter and the Deathly Hallows — Part 2, from Time Warner's Warner Bros. Pictures set a sales record for its U.S. opening and took in nearly one half a billion dollars worldwide

Craig Barton 310-379-9621