Media Digest (8/6/2011) Reuters, WSJ, NYT, FT, Bloomberg

The next challenge for Congress will be a tax deadlock. (Reuters)

The Nikkei falls another 2% on news of a U.S. downgrade. (Reuters)

Yields on Italian and Spanish bonds fall as the ECB agrees to buy their sovereign paper. (Reuters)

The Administration and S&P are in a battle over the credibility of the credit agency’s write down. (WSJ)

Some markets have entered a bear market–down 20%. (WSJ)

Geithner will stay on as treasury secretary. (WSJ)

Berkshire Hathaway (NYSE: BRK) will try to buy Transatlantic Holdings (NYSE: TRH). (WSJ)

U.S. regulators have sent subpoenas to firms that do high-frequency trading. (WSJ)

Verizon (NYSE: VZ) faces a strike of 45,000 union workers concerned about the telecom’s faltering landline business. (WSJ)

Japan’s current account surplus falls. (WSJ)

Nissan will cut exports. (WSJ)

The Corporate Executive Board says most employees who leave a company would not recommend it as a place to work. (WSJ)

Citigroup (NYSE: C) suffers data theft in Japan. (WSJ)

The Federal Reserve has run low on options to help the economy. (WSJ)

More companies try to raise cash as the bond markets become volatile. (WSJ)

Mortgage rates may rise. (WSJ)

China’s reliance on exports will be hurt by an ongoing rise in its U.S.-based currency reserves. (WSJ)

Geithner says the EU needs to increase the size of its bailout fund. (WSJ)

Recruiters have made more use of Facebook. (WSJ)

Corn prices will hurt food producer margins. (WSJ)

Comcast (NASDAQ: CMCSA) sues DirecTV (NASDAQ: DTV) over its marketing of NFL programs. (WSJ)

The S&P downgrade will hurt the price of oil and copper. (WSJ)

A downgrade of U.S. paper by a second credit rating agency could be more damaging than the first. (WSJ)

A new debt reduction panel formed by Congress will be under more pressure because of the U.S. downgrade (NYT)

AIG (NYSE: AIG) will sue Bank of America (NYSE: BAC) over the value of bonds the bank sold the insurance company. (NYT)

Moody’s again warns the U.S. on the state of its deficits. (NYT)

A second recession in the U.S. could be worse than the first because little is left to cut in expenses and because the economy would dip from an already troubled position. (NYT)

China revenue has helped Apple’s (NASDAQ: AAPL) sales to surge. (FT)

Gold rises above $1,700 for the first time. (Bloomberg)

Buffett bought large amounts of equities before the market fell. (Bloomberg)

Douglas A. McIntyre