- Reuters/Goran Tomasevic
Here is what you need to know.
Verizon buying Yahoo. The deal for Yahoo’s core assets, worth $4.83 billion cash, allows Verizon to reach about 4.5% of the US advertising market. Yahoo will maintain its stakes in Alibaba and Yahoo Japan, which together are worth more than $40 billion. Verizon will report its second-quarter results on Tuesday.
LVMH is selling Donna Karan to G-III Apparel. The French luxury goods giant LVMH is selling Donna Karan International to G-III Apparel for $650 million. “Selling DKNY is a way to get rid of a problem, at a time when the market is tough and luxury companies would be right to show less leniency with underperforming businesses,” Exane BNP Paribas analyst Luca Solca wrote. The deal will be funded through new debt and by issuing $75 million of G-III common stock to be issued to LVMH, Reuters reports.
Nintendo warns that the impact from Pokémon Go will be “limited.” Shares of Nintendo plunged more than 17% Monday after the company released a statement late Friday suggesting that it would see a “limited” financial impact from Pokémon Go. The plunge has the stock down about 27% from its recent high, but the stock is still up about 67% since the game’s release.
Trump says the US could leave the WTO if he’s elected. Appearing on NBC’s “Meet the Press,” Republican presidential nominee Donald Trump suggested that the US could pull out of the World Trade Organization. According to AFP, Trump told host Chuck Todd: “We’ll renegotiate or pull out. These trade deals are a disaster, Chuck. World Trade Organization is a disaster.”
German business climate slipped. Business confidence in Germany slipped to 108.3 in July, according to the Ifo Institute. The reading was ahead of the 107.7 that economists were expecting but showed “far less optimistic business expectations on the part of companies” after the UK’s decision to leave the European Union. Construction was once again a bright spot, however, with assessment of the current business situation hitting a record high. The euro is up 0.1% at 1.0990.
Britain’s divorce from Europe will begin by 2020. Newly named Conservative Party Chairman Patrick McLoughlin says Article 50, which formally starts the UK’s exit from Europe, will be triggered before the 2020 election. Appearing on the BBC’s “Marr Show,” McLoughlin said the UK must secure its borders and get immigration under control, Reuters reports. “I’m quite clear that the referendum result is binding on Parliament,” McLoughlin said. The British pound is higher by 0.2% at 1.3132.
G-20 says terrorism threatens the global economy. Finance chiefs from around the world met in Chengdu, China, over the weekend and said terrorism was a growing threat to the global economy. “The world has already experienced terrorist attacks – the world experiences regional destabilizations,” French finance minister Michel Sapin told AFP. “But today the frequency of attacks creates a new situation of uncertainty, which is at least as damaging as regional destabilizations or a regional conflict.”
Stock markets around the world are mostly higher. Australia’s ASX (+0.6%) led the overnight gains, and Germany’s DAX (+0.8%) paces the advance in Europe. S&P 500 futures are down 0.25 points at 2,167.25.
Earnings reporting is slow. Kimberly-Clark and Sprint are among the companies reporting ahead of the opening bell while Gilead Sciences, Las Vegas Sands, and Texas Instruments highlight the names releasing their quarterly results after markets close.
US economic data is light. Dallas Fed manufacturing activity will be reported at 9:45 a.m. ET. The US 10-year yield is higher by 2 basis points at 1.59%.