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Good morning. Here’s what you need to know.
- Markets in Asia sold-off in overnight trade, with Hong Kong’s Hang Seng off 3 per cent. Shares in Europe are sharply lower and U.S. futures point to a negative open.
- The Spanish economy contracted by 0.4 per cent during the second quarter, the Bank of Spain said this morning. That marked the third straight quarter of decline. Meanwhile, Spanish yields are spiking >
- Greek leaders are set to announce billions of euros worth of budget cuts before officials from the European Commission, ECB, and IMF head to the country this week. The Greek government plans on closing and merging some 20 agencies as it streamlines itself to shave more than €11.5 billion from its budget.
- The IMF could stop funding Greece if the euro zone’s proposed bailout program is approved by member states, Der Spiegel reports. This is the beginning of the end game >
- The euro fell below $1.21 against the U.S. dollar for the first time since June 2010, touching a low of $1.2081.
- Taiwan’s industrial output declined for the fourth consecutive month, down 2.44 per cent in June from the year-ago period. That was in sharp contrast to expectations for a 0.5 per cent increase during the month. The world’s biggest companies reveal what’s really happening in the global economy >
- U.S. and European officials are close to charging individual traders with collusion to manipulate LIBOR, Reuters’ Matthew Goldstein, Jennifer Ablan, and Philipp Halstrick report. Sources tell Reuters that prosecutors in Washington have notified lawyers representing some suspects that arrests “could be imminent.” Here’s the LIBOR scandal explained in 90 seconds >
- China’s CNOOC will purchase Canadian oil-and-gas firm Nexen for $15.1 billion, a 61 per cent premium from the firm’s Friday closing price. The deal will mark China’s biggest international energy acquisition ever.
- NRG Energy will purchase GenOn Energy for $1.7 billion in a stock transaction creating one of the largest independent power companies in the U.S. The combined firm will generate enough energy to power 40 million homes.
- Earnings on tap today include Halliburton, McDonald’s and Texas Instruments. The oil-and-gas servicer posted better-than-expected earnings of $0.82 per share. McDonald’s missed earnings expectations, as a strong dollar weighed on results. Still to come: TI earnings, which are forecast at $0.34 a share. Follow it all live on Money Game >
- Attacks in Iraq killed at least 89 people on Monday, following more than 20 deaths on Sunday. The violence targeted mostly Shi’ite Muslims.