10 things you need to know before the opening bell

Here is what you need to know.

Didi Chuxing is buying Uber China. China’s largest ride-hailing service is buying Uber China for $35 billion, Bloomberg reports. The terms of the deal say Didi will invest $1 billion in Uber global at a valuation of $68 billion, and that Uber China’s investors will own 20% of the merged Chinese company.

Tesla and SolarCity are getting ready to merge. A deal could be announced as soon as Monday, Reuters reports. The exact terms of the deal are unknown, but Tesla’s previous offer was 0.122 to 0.131 of its shares for each SolarCity share.

Caesars is selling its gaming unit. A consortium including game developer Shanghai Giant Network Technology Co Ltd and e-commerce company Alibaba Group Holding Ltd founder Jack Ma is buying the unit for about $4.4 billion, according to Reuters. The sale will help Caesars Acquisition Co (CAC) and Caesars Entertainment Corp raise cash ahead of their proposed merger.

Chances of a rate cut are being pushed out. Following Friday’s disappointing GDP data, fed fund futures suggest there’s a 35.7% probability that the next Fed rate hike will happen in December. That’s down from the 49.2% probability that markets were pricing in ahead of Wednesday’s Fed meeting.

European stress test results are out. Monte dei Paschi di Siena, Italy’s third largest lender and the world’s oldest bank, was the only European lender with a key capital ratio in negative territory. The test also provided some insight into the relatively weak capital positions of Barclay’s and Deutsche Bank.

China’s manufacturing slowed, but services improved. The latest manufacturing purchasing managers’ index (PMI), released by China National Bureau of Statistics, came in at 49.9, just missing the 50.0 that economists were expecting. Richard Grace, chief currency strategist at Commonwealth Bank, wrote “floods disrupted economic activity across large parts of China during the month.” Meanwhile, non-manufacturing PMI climbed to 53.9, its highest since December.

European manufacturing shrugged off Brexit. Final Markit manufacturing PMI for the eurozone printed 52.0 for July. German manufacturing (53.8) was the strongest while France (48.6) showed notable weakness.

Stock markets around the world trade mixed. Overnight, Hong Kong’s Hang Seng (+1.5%) led and China’s Shanghai Composite (-0.9%) lagged. In Europe, Germany’s DAX (+0.2%) outperforms. S&P 500 futures are up 1.75 points at 2170.00.

Earnings reporting is light. Loews and AMC Entertainment will report ahead of the opening bell and Texas Roadhouse will release its quarterly results after markets close.

US economic data flows. Markit US manufacturing PMI will be released at 9:45 a.m. ET before construction spending and ISM manufacturing are announced at 10 a.m. ET. The US 10-year yield is higher by three basis points at 1.48%.

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