STOCKS EDGE LOWER AT THE OPEN
- Lower chances of an interest rate hike and a host of multi-billion dollar takeover deals are boosting investor sentiment.
- Top Federal Reserve officials had hinted that a rate hike could come as early as this month.
- However, Friday’s disappointing employment numbers dampened those expectations.
- Traders now see a 21 percent chance of a rate hike this month, down from 24 percent.
- The odds edged down to 50.6 percent from 53.6 percent for December.
- The ECB signaled at its July meeting that it would reassess the economic situation in September.
- The central bank’s bond-buying program, which was instituted last year, is officially scheduled to run until March 2017.
- The program has touched a milestone as the central bank revealed it has purchased €1 trillion ($1.12 trillion) in sovereign debt.
- Investors brace for European Central Bank meeting on Thursday.
US FINANCIAL MARKET
- $56 billion offer is third attempt to snare seed giant.
- Bayer would be prepared to pay $127.50 a share if the two sides can reach an accord.
- Monsanto responded to say that it’s evaluating the Bayer offer as well as proposals from other parties and strategic alternatives.
- No assurances parties will enter into pact, Bayer says.
- New company will have assets in crude oil, liquids and natural gas pipelines, terminal and midstream operations.
- The deal creates a major North American energy-infrastructure company.
- This comes at a time when energy-industry operators continue to deal with the fallout from low oil prices.
- The deal, which has the full support of the boards of both Enbridge and Spectra, is expected to close in the first quarter of 2017.
- General Electric launched bids on Tuesday to buy two of the world’s top makers of machines for metal-based 3D printing.
- The bids are for Sweden’s Arcam and Germany’s SLM Solutions for a total $1.4 billion.
- The bids aim to bolster its position in the fast-growing technology.
- Both companies technologies complement each other as Arcam uses an electron beam as an energy source, while SLM uses lasers.
- MasterCard said on it had expanded its deal with payment processor PayPal, and allow customers to use PayPal’s payment services in stores.
- PayPal’s partnership follows a similar deal with MasterCard’s larger rival Visa in July as the company looks to expand its payments network.
- As part of the deal, MasterCard will allow PayPal users to withdraw cash from their accounts using a debit card and also waive the digital wallet fee it currently charges PayPal.
- Company cites actions by U.S. Department of Education for closure; 8,000 employees affected.
- “We reached this decision only after having exhausted the exploration of alternatives, including transfer of the schools to a nonprofit or public institution.” ITT’s parent company said.
- In July, Danaher completed the spinoff of its test and measurement, industrial technologies and petroleum platform segments into their own public company, Fortive Corp.
- Cepheid develops and manufactures fully-integrated testing systems that can be used to screen for genetic-based disorders and to manage infectious diseases.
- A new skyscraper in downtown Los Angeles has become the tallest building west of the Mississippi River.
- Construction workers on Saturday placed a 10-ton spire atop the Wilshire Grand Tower. The spire adds 160 feet to the 73-story building. That makes it 1,099 feet high.
- That’s 81 feet higher than nearby U.S. Bank Tower, which held the tallest building record since 1989.
US ECONOMY & POLITICS
- The Institute for Supply Management’s non-manufacturing index slumped to 51.4, the lowest since February 2010, from 55.5 in July.
- While a reading above 50 indicates the industries that make up almost 90 percent of the economy are expanding, the figure is lower than the most pessimistic projection in a Bloomberg survey.
- The spending average for August is on par with the average of $90 for 2016 so far.
- Both higher- and lower-earning Americans reported lower spending on average in August than in July.
- The drop was more pronounced among Americans whose annual household incomes are $90,000 or higher, whose self-reported daily spending average fell $21, to $140.
- Spending dropped less in August among Americans whose annual household incomes are lower than $90,000.
EUROPE & WORLD
- Data reveal slowdown in household and government spending and a reliance on exports.
- The figures highlight underlying weaknesses in an economy that appears to have lost further momentum during the third quarter as policy makers from the European Central Bank prepare to meet Wednesday and Thursday to consider the need for further stimulus.
Eurozone Confidence Wanes as U.K. Sentiment Rebounds
- British sentiment perks up as the likely impact of the U.K.’s Brexit vote is reassessed.
- The European Commission on Tuesday said its Economic Sentiment Indicator for the eurozone—which aggregates measures of consumer and business confidence—fell to 103.5 in August from 104.5 in July.
- By contrast, the U.K.’s ESI rose to 104.0 from 102.6.
- The government is reviewing thousands of projects valued at about 260 billion riyals ($69 billion) and may cancel a third of them.
- The world’s biggest oil exporter is taking unprecedented steps to rein in a budget shortfall that ballooned to 16 percent of gross domestic product last year.
- Car sales in Western Europe rose 8.1 % in August, thanks to buoyant demand in Italy, Spain, France and Germany.
- Western Europe sales reached 765,383 passenger cars.
- Based on the seasonally adjusted annual selling rate (SAAR), demand improved to an estimated 13.9 million car sales.
TODAY in HISTORY
President William McKinley was shot by anarchist Leon Czolgosz at the Pan American Exposition in Buffalo, N.Y. McKinley died on September 14th (1901)
Italian operatic tenor Luciano Pavarotti died at age 71 (2007)
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