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Good morning. Here’s what you need to know.
- Markets in Asia sold off in overnight trade, with Japan’s Nikkei down 1.2 per cent. Shares in Europe are lower and U.S. futures point to a negative open.
- U.K. GDP contracted less than originally expected in the second quarter, new government data shows. The economy declined by 0.5 per cent during the spring, up from a 0.7 per cent drop first recorded.
- Greek Prime Minister Samaras is speaking with German Chancellor Angela Merkel this morning, as he works to secure additional time from creditors to implement reforms in Greece. Merkel has said that she must wait for a Troika report before making any decisions on changing the country’s bailout. A traveller in Greece sent us these photos showing why the country is in crisis >
- The European Central Bank is said to await Germany’s ruling on the region’s new bailout fund, the European Stability Mechanism, before finalising its bond plan, Bloomberg’s Jeff Black and Stefan Riecher report. The decision to wait highlights uncertainty in the Eurozone and means a decision will likely not be made at Mario Draghi’s September press conference.
- HSBC is in talks with U.S. regulators to settle matters that it laundered funds to sanctioned countries including Iran and the Sudan, Bloomberg’s Tiffany Kary and Greg Farrell report. Earlier this year, the bank made a $700 million provision for expected fines. Click here to see the craziest charges levied against another bank for laundering money >
- Apple and Samsung must both stop selling certain smartphones and tablets in South Korea after a high court ruling. The Seoul Central District Court found Apple violated two Samsung patents, while Samsung infringed on one Apple patent. However, the court said Samsung did not simply copy the iPhone.
- Kodak plans on selling a number of its major units, including its namesake camera-film business. Kodak plans to shift further to commercial businesses like printing. If the sales are completed, the company hopes to emerge from bankruptcy in 2013.
- Orders for durable goods in the United States advanced $9.4 billion, or 4.2 per cent, in July, as sales of aircraft boosted the headline figures. However, when stripping out the transportation sector, orders fell 0.4 per cent. That missed economist expectations for a 0.5 per cent gain.
- Mr. Romney is expected to receive his party’s nomination on Monday, two days earlier than originally planned. Officials made the move as Tropical Storm Isaac heads toward the region and concerns rise that Ron Paul supporters could disrupt the convention.
- Lance Armstrong has given up his fight against doping charges brought against him by the US Anti-Doping Agency, which will mean the loss of seven Tour de France titles. Armstrong is expected to be banned for life from cycling.