• Amazon jumps into the TV-over-the-Internet fray. Amazon (AMZN) is entering the market to deliver television services over the Internet. The online retailer is working on a subscription service that would provide television shows and movies over the Internet. It recently pitched the idea to executives at General Electric’s (GE) NBC Universal, Time Warner (TWX), News Corp. (NWSA), and Viacom (VIA). The race to lead the digital delivery of television shows and movies is quickly heating up, as Apple (AAPL), Netflix (NFLX), and Google (GOOG) have also recently made moves to better position themselves in online delivery of such content.
• Burger King exploring a potential sale. Burger King (BKC), the nation’s number two hamburger chain, has held talks with potential suitors and is thought to be looking at options for a potential sale of the company. One company that may be interested is private equity firm 3i Group. Burger King currently has a market cap of $2.3B, and has been public since 2006, although private equity firms including TPG, Bain Capital, and Goldman Sachs (GS) still hold a sizeable stake in the company. Burger King was up 16.11% in pre-market trading.
• JPMorgan Chase halts proprietary trading to comply with Volcker Rule. JPMorgan Chase (JPM) is shutting down its lucrative proprietary trading desk as it seeks to come into compliance with the Volcker Rule, a part of the new financial reform law that limits proprietary trading on the part of commercial banks. Roughly 80 people, mostly in New York and London, will lose their jobs over the move. It could cost the firm as much as $1.4B in lost annual profit.
• Sprint debates sharing 4G investment with rival provider. Sprint Nextel’s (S) board met to discuss whether it will let rival T-Mobile (DTEGY.PK) invest in its majority-owned wireless network provider, Clearwire (CLWR). Clearwire has said it could announce new funding by the end of the fourth quarter and it is in talks with new and existing investors, including T-Mobile. It needs additional funds to pursue secondary markets and continue to build out its network.
• Motorola will capitalize spin-off with $3.5B; Icahn ups investment. Motorola (MOT) said it will put $3.5B into the phone and set-top box unit that it plans to spin off in the first quarter of next year. The cash will be used for operations, to expand the business, and possibly to fund acquisition activity, according to a company executive. Meanwhile, activist investor Carl Icahn disclosed in an SEC filing that he has recently purchased an additional 3.3M shares of the company. He currently owns more than 10% of Motorola.
• SEC declines to pursue fraud charges against Moody’s. The SEC said it will not bring charges against Moody’s (MCO) for securities violations, even though it found that the ratings agency failed to comply with its own procedures for rating complex derivative securities in 2007. The SEC said that the decision was based on jurisdictional issues, since the securities in the case were issued and rated in Europe. However, it warned ratings agencies that the new financial reform law gives it new powers to pursue such cases even if they originate outside the U.S.
• Hitachi plans IPO of hard-drive unit. Japanese electronics firm Hitachi (HIT) is planning an IPO of its hard-drive unit in the U.S. and could close the offer by the end of the year. Analysts said the world’s number three hard-drive maker could be valued at $3B. The company is also exploring a sale of the unit, but an IPO is thought to be the most likely outcome.
• Citigroup plans to triple its China workforce. A Citigroup (C) executive said that the firm plans to almost triple its workforce in China by hiring up to 7,500 people in the next three years. The bank currently has 4,500 employees in China and the addition would be the biggest expansion for Citigroup in the region. The plans support Citigroup’s effort to expand in China to compete with HSBC (HBC). Citigroup has said that it plans to open two branches a month there for the foreseeable future.
• Staples to sell Kindle, Borders slashes price on e-reader. Staples (SPLS) announced plans to begin selling Amazon’s (AMZN) electronic reader, Kindle this fall. It plans to sell the $139 Wi-Fi version of the Kindle, the $189 3G model, and the more expensive Kindle DX. The announcement intensifies Amazon’s battle with Barnes & Noble (BKS), Borders (BGP), and Apple (AAPL) for market share in the increasingly crowded space. Meanwhile, Borders said it would cut the price on its branded e-reader Kobo from $150 to $130.
• FOMC Minutes Recap: GDP and housing down but not out. The FOMC minutes released yesterday from the August 10 meeting indicated that GDP growth was worse than most members anticipated, but they still expect it to pick up in 2011. Many noted the protracted downturn in housing prices seems over, and a few said prices were rising in their districts. Credit conditions aren't restraining bigger firms' capital spending. Labor looked worse than expected. Splits are becoming apparent over whether moves toward easing send the wrong message, yet the policy statement got all votes except Thomas Hoenig's.

Earnings: Wednesday Before Open

• Joy Global (JOYG): FQ3 EPS of $1.13 beats by $0.10. Revenue of $850M (-11.1%) vs. $877M. (PR)

Today's Markets

• In Asia, Japan +1.17% to 8927. Hong Kong +0.43% to 20624. China -0.6% to 2623. India +1.31% to 18206.
• In Europe, at midday, London +1.5%. Paris +1.63%. Frankfurt +1.18%.
• Futures: Dow +1.0%. S&P +1.19%. Nasdaq +1.37%. Crude +0.95% to $72.6. Gold +0.3% to $1254.

Wednesday's Economic Calendar

• Auto Sales
  7:00 MBA Mortgage Applications
  7:30 Challenger Job-Cut Report
  8:15 ADP Jobs Report
  9:00 FCIC Hearing: Too Big To Fail
  10:00 ISM Manufacturing Index
  10:00 Construction Spending
  10:10 Fed Conference: REO & Vacant Properties
  10:30 EIA Petroleum Inventories
  1:40 PM Fed's Fisher: "Perspectives on the Current Economic Climate"

• Notable earnings before Wednesday's open: [[HNZ]], [[JOYG]]

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• Regulators reject AIG's sale of Taiwan unit. Taiwanese regulators rejected AIG's (AIG) planned $2.15B sale of its Taiwan life insurance unit to Primus Financial and China Strategic, saying the deal failed to comply with regulations on mainland investment. Regulators also cited the lack of insurance experience on the part of Primus and China Strategic. Though some analysts said the decision was not a surprise after ten months of regulatory delay, it still leaves AIG with the uncertainty of facing another auction. Alternatively, AIG may be able to reach a deal with a group of investors led by a former Taiwanese diplomat who said they are putting together a bid in order to "save" the unit from mainland ownership. China Strategic will be able to appeal the decision for 30 days.
• Exelon buys Deere's wind energy business. Exelon (EXC) agreed to buy Deere's (DE) wind energy business in a deal worth a total of $900M (a purchase price of $860M with a provision for up to $40M upon commencement of construction on the advanced development projects). In its statement, Exelon said "not only does this acquisition add value for Exelon shareholders, providing incremental earnings in 2012 and cash flows in 2013, but it also is one more way to implement a clean energy future."
• Hedge funds move to block Ambac payments. A group of hedge funds has filed a motion to prevent Ambac Financial Group (ABK) from moving assets from Ambac Assurance Corp., its main operating business. The plaintiffs hold more than $1B in mortgage securities or other debt insured by Ambac Assurance and want to prevent Ambac Financial from receiving dividends from the unit until their claims have been paid in full. The group also alleges that $230M in dividend payments made in 2008-2009 were fraudulent because they took place at a time when the company's finances were rapidly deteriorating. Ambac Financial, which recently said it may file for bankruptcy protection, wasn't available for comment.
• Gov't proposes new grading system for cars. The Environmental Protection Agency and the Transportation Department jointly proposed new rules that would require passenger cars to be labeled with a grade from A to D depending on the vehicle's fuel efficiency and emissions. Electric cars and plug-in hybrids, for example, would be the only vehicles that could receive an A-minus, A or A-plus, while SUVs would get a C or C-minus. It would be the largest shake-up to car labeling rules in the last 30 years, and has left critics disgruntled that the government is trying to legislate its own value judgments about vehicles.
• Dell seen as likely to abandon 3Par pursuit. Dell (DELL) has until tomorrow to decide whether it wants to match H-P's (HPQ) latest bid for 3Par (PAR) but analysts think the rich valuation will prompt Dell to bow out of the heated bidding war. Both firms see the strategic advantage of storage in cloud computing architecture, so the issue will likely simplify to the size of H-P's balance sheet ($115B in annual revenue) and what it can afford to pay vs. the size of Dell's balance sheet ($53B). Dell said it's still assessing the situation.
• Google stacks the deck on social networking. Google (GOOG) acquired Social Deck, a producer of social games and platform technology for mobile devices, as the search engine giant works to bolster its social-networking efforts. Terms of the deal weren't disclosed. Google recently acquired Angstro and Slide, both of which focus on social networking.
• Whispers the PBOC chief has defected. Rumors have been flying furiously in the last 24 hours that Zhou Xiaochuan, head of the People's Bank of China, may have defected, possibly coming to the U.S., because a $430B loss on U.S. Treasury bonds may prompt the Chinese government to punish some individuals in the PBOC. The Hong Kong-based news agency that initially published the story has since recanted, but that has only added to the rumors, as has the fact that Zhou’s name has been blocked from internet search engines in China. A defection, if true, could have significant implications for Chinese monetary policy and for Sino-U.S. ties which have been strained recently.
• RIM wins Indian reprieve. Research In Motion (RIMM) has caved to Indian demands that the government be allowed to access secure BlackBerry data, and will make that information available beginning tomorrow. As a result, India has promised to delay by 60 days its decision about whether to shut down BlackBerry services as it tests the new monitoring solution. Failure to act would have led to disrupted service for more than 1M users and halted RIM's efforts to expand in the world's No. 2 cellphone market, but privacy critics are likely to make their opposition heard loud and clear and the move could damage BlackBerry's popularity with businessmen and lawmakers. Premarket: [[RIMM]] -1.4% (7:00 ET).
• IMF rolls out precautionary credit line. The IMF is creating a new credit line that is expected to serve as a precautionary "insurance policy" for developing countries with sound fundamentals that may not meet the more stringent requirements of the IMF's 2009 flexible credit line. The aim is to provide these countries with financial help before they reach a crisis point.
• India's economy rockets ahead. India's economy expanded at the fastest pace in over two years, growing 8.8% in Q2 from a year earlier. The rapid growth may force officials to raise interest rates, even as Japan steps up its monetary stimulus and the U.S. signals it stands ready to take additional steps as necessary to prevent a second recession.

Today's Markets

• In Asia, Japan -3.5% to 8824. Hong Kong -1.0% to 20536. China -0.5% to 2639. India -0.3% to 17971.
• In Europe, at midday, London -0.9%. Paris -1.1%. Frankfurt -0.7%.
• Futures: Dow -0.2%. S&P -0.3%. Nasdaq -0.3%. Crude -1.2% to $73.83. Gold -0.3% to $1235.70.

Tuesday's Economic Calendar

• 7:45 ICSC Retail Store Sales
  8:30 ISM New York Business Index
  8:55 Redbook Chain Store Sales
  9:00 S&P Case-Shiller Home Price Index
  9:45 Chicago PMI
  10:00 Consumer Confidence
  10:00 State Street Investor Confidence Index
  2:00 PM FOMC Minutes
  3:00 PM Farm Prices
  5:00 PM ABC Consumer Confidence Index
• Notable earnings before Tuesday's open: [[DG]]

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• Intel buys Infineon unit. Intel (INTC) agreed to buy Infineon's (IFNNY.PK) wireless unit for $1.4B in cash. The deal will significantly strengthen Intel in cellphone chips, an area in which it has met with limited success in the past, and marks the company's second acquisition in as many weeks. Intel expects the deal to close in the first quarter of 2011.
• Sanofi goes public with Genzyme bid. Sanofi-Aventis (SNY) offered $18.5B in cash to buy Genzyme (GENZ), equivalent to $69/share. According to Sanofi's statement, the non-binding offer was first made on July 29 but was reiterated yesterday in a letter sent to Genzyme CEO Henri Termeer "after several unsuccessful attempts to engage Genzyme's management in discussions." The decision to make the offer known to the public is meant to put added pressure on Genzyme and push it towards a deal, but Sanofi has already hinted it may opt for a hostile bid if the "bear hug" letter doesn't do the trick. Premarket: [[SNY]] +0.5% (7:00 ET).
• BoJ extends easing in emergency meeting. The Bank of Japan held an emergency meeting today to discuss the yen's surge to a 15-year high, as the currency's appreciation is weighing on Japan's economy. The bank will add ¥10T ($117B) to an existing low-interest ¥20T lending facility, and Japan's prime minister is preparing to unveil a modest stimulus package tomorrow. There have also been indications that Japan may intervene directly in the currency markets, though many analysts think Tokyo is relying on the threat of action rather than action itself. The yen fell against the dollar and euro, as the bank intended, shortly after the meeting was announced, but strengthened somewhat after details of BoJ's measures were released; +0.4% against the dollar (5:30 ET).
• Posco buys control of Daewoo International. Posco (PKX), the world's No. 3 steelmaker, agreed to buy a controlling stake in Daewoo International for 3.37T won ($2.8B) in order to expand its sales network and gain raw materials. Posco will acquire 68.15% of Daewoo, a steel and crude oil trader, at a purchase price 53% higher than Daewoo's close on Friday.
• Dell mulls 3Par options. Dell (DELL) said yesterday that it's assessing its bid for 3Par (PAR) and is deciding whether to once again raise its offer for the company, following an announcement by 3Par's board late on Friday that H-P's (HPQ) $2B offer represents a "superior proposal." Dell has the right to match any higher bid and have its offer take precedence within three business days, starting today.
• Nokia Siemens in talks with P-E firms. Nokia (NOK) and Siemens (SI) confirmed they're in talks with various private equity firms over a possible investment in Nokia Siemens Network. Executives from both companies said they were committed to completing a turnaround before considering other options when the JV ends in 2013. An investment could be worth as much as $1B, and Blackstone (BX), Bain Capital and TPG Capital are said to be among the firms considering a potential stake.
• Anglo American to sell Scaw assets. Anglo American (AAUKY.PK) has begun the sale process for the international assets of Scaw Metals as it works to refocus on its core business. The assets in areas such as Canada and Australia, which do not include Scaw's main South African operations, are estimated to be worth around $1B. First-round bids are due early next month.
• No angst for Google over new acquisition. Google (GOOG) confirmed its acquisition of Angstro, a startup that sorts news and information across social networks like Facebook, as it works to build its social network presence. Terms of the deal weren't disclosed. Google is also said to be in negotiations with some of Hollywood's top studios to launch a global pay-per-view video service by the end of 2010 via YouTube. The move would put Google in greater competition with Apple (AAPL), Netflix (NFLX) and Hulu ([[GE]], [[NWS]], [[DIS]]) over the digital distribution of film and television content.
• Disney, Time Warner near fees agreement. Disney (DIS) and Time Warner Cable (TWC) are said to be nearing an accord over programming fees and expect to reach an agreement in time to prevent a threatened TV blackout. If a deal isn't reached by midnight on Thursday, millions of Time Warner Cable subscribers will lose access to TV channels like ESPN and ABC.
• Investor group readies backup-bid for AIG's Taiwan unit. A group of investors led by former Taiwanese diplomat Wang Shih-jung said they're lining up a $2.5B bid for AIG's (AIG) Taiwan unit in case the planned $2.2B sale to China Strategic and Primus falls through; the deal has been on hold since October because of Taiwanese regulators' concerns. Wang declined to list the names of the investors in his group, but said $900M of the bid cost would come from Japanese investors, $1.25B from a Qatari fund and the rest from Taiwanese banks. AIG said it remains committed to its deal with China Strategic and Primus.
• BHP may divest some Potash assets. BHP Billiton (BHP) may look to divest Potash's (POT) nitrogen and phosphates businesses if its $39B bid for the fertilizer maker goes through. BHP told analysts that 70% of the value is in the potash assets, and a sale of both the nitrogen and phosphates businesses could bring in as much as $12B. Agrium (AGU) has already indicated it could be interested in the two units if they come on to the market.

Today's Markets

• In Asia, Japan +1.8% to 9149. Hong Kong +0.7% to 20737. China +1.6% to 2653. India +0.2% to 18032.
• In Europe, at midday, London closed. Paris -0.5%. Frankfurt flat.
• Futures: Dow flat. S&P +0.1%. Nasdaq +0.2%. Crude -0.4% to $74.88. Gold -0.05% to $1237.30.

Monday's Economic Calendar

• 8:30 Personal Income and Outlays
  10:30 Dallas Fed Mfg. Outlook
  11:30 Fed's Bullard: Financial Regulatory Reform

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• Dell, H-P up the ante in 3Par bidding war. Dell (DELL) submitted a sweetened offer for 3Par (PAR) yesterday morning, offering $24.30/share and topping H-P's (HPQ) rival offer, only to find itself in second place again as H-P countered with a new, higher offer of $27/share just hours later, valuing the company at $1.8B. H-P's latest bid is nearly three times the price that 3Par shares traded at two weeks ago, before takeover talks became public, but sources say H-P, which is sitting on a cash pile of nearly $15B, doesn't feel "any constraints;" in fact, the company expects Dell to try to top its latest offer and could decide to raise its bid once again. In after-hours trading, 3Par rose 6.8% to $27.80. Update: As of 7:00 ET this morning, 3Par said it will accept a newly revised bid from Dell, which is now offering to match H-P's $27/share offer. More details to follow...
• ArcSight looks for buyers. Cybersecurity firm ArcSight (ARST) has reportedly put itself up for sale, and has been quietly shopping itself to such tech heavyweights as Oracle (ORCL), H-P (HP), IBM (IBM) and EMC Corp. (EMC). A deal could be worth $40/share or more, valuing the company at $1.4B or higher, and sources say ArcSight is aiming to ink a deal before its Sept. 2 quarterly earnings report. Talk of a possible sale sent shares of ArcSight up 30% to $36.70 in yesterday's trading.
• Boeing delays Dreamliner, again. Boeing (BA) has once again delayed delivery of the first 787 Dreamliner, and expects the first plane to be handed over in the middle of Q1 2011 instead of by a few weeks into January 2011. The Dreamliner model is already years behind schedule, and the latest setback comes after the forced shutdown of a test facility delayed engine development. Boeing said the later delivery will not affect its financial guidance.
• All eyes on Bernanke. Analysts and economists will be watching closely as Bernanke delivers his outlook for the U.S. economy this morning at a symposium in Jackson Hole, Wyoming. Bernanke faces pressure to both send a reassuring message to markets and to provide clarification for what further steps could be taken should a second round of quantitative easing become necessary. His comments will come as even some of the most optimistic forecasters are scaling back their projections for U.S. growth.
• More recalls from Toyota. Toyota (TM) recalled another 1.13M vehicles, this time because of a flaw that regulators said could cause stalling "at any speed without warning." The voluntary recall, which affects Corolla and Matrix models from 2005-2008, follows at least three reported accidents linked to the defect. Toyota has already recalled more than 8M vehicles in the past year.
• More recalls from J&J. In the latest in a string of embarrassing recalls, Johnson & Johnson (JNJ) said it's voluntarily recalling two hip-repair implants because too many patients needed surgeries to replace the devices. J&J had sold around 93,000 of the implants before phasing out production last year, and said it will withdraw the "very few" left on the market. J&J has had to issue several recalls in the past year, and this latest addition is sure to deepen concerns about possible quality control issues at the company.
• Berkshire buys rest of Wesco Financial. In a regulatory filing, Berkshire Hathaway (BRK.A) disclosed plans to buy the 19.9% of Wesco Financial (WSC) that it doesn't already own in a transaction valued at around $514M. The news sent shares of Wesco up 11.8% in yesterday's trading. Wesco is run by Berkshire Vice Chairman Charlie Munger.
• Icahn ups Motorola stake. Carl Icahn raised his Motorola (MOT) stake to around 10.4%, buying 11.5M shares for $7.50 each this week, according to an SEC filing. Icahn has more than doubled his Motorola stake since the beginning of the year, and now holds 247.1M shares. Shares of Motorola climbed 2.3% in after-hours trading.
• Manulife, Ace eye NY Life's Asia unit. Manulife Financial (MFC) and Ace Ltd. (ACE) are among the bidders for New York Life Insurance's Hong Kong, Taiwan and South Korean assets, sources said. NY Life, which is unlisted, has reportedly hired Deutsche Bank (DB) to handle the sale of the three units, which could bring in $800M-$1B.
• Bain Capital buys Air Medical. Private equity firm Bain Capital agreed to buy Air Medical Group Holdings, the largest independent U.S. provider of emergency air medical services; the deal is said to be valued at around $1B. Air Medical is owned by private equity firms Brockway Moran and MVP Capital Partners. The deal is the latest in a string of secondary buyouts as private equity firms face pressure to utilize their available capital and to provide returns to investors such as pension funds whose portfolios may be partly underwater.
• AIG execs settle investor suits. AIG (AIG) officials, including former CEO Hank Greenberg, have agreed to pay $90M to settle lawsuits claiming they allowed investors to be deceived about problems at the company. The executives will pay the money directly to AIG, rather than to the investors, to resolve the derivative litigation.

Earnings: Thursday After Close

• Aruba Networks (ARUN): FQ4 EPS of $0.10 beats by $0.01. Revenue of $77.3M (+45%) vs. $73.5M. Shares +1.1% AH. (PR, earnings call transcript)
• J Crew Group (JCG): Q2 EPS of $0.53 beats by $0.07. Revenue of $408M (+14%) vs. $403M. Shares -6.5% AH. (PR, earnings call transcript)
• Novell (NOVL): FQ3 EPS of $0.06 misses by $0.01. Revenue of $199M (-7.9%) vs. $202.3M. Shares -0.2% AH. (PR, earnings call transcript)
• OmniVision Technologies (OVTI): FQ1 EPS of $0.39 beats by $0.04. Revenue of $193M (+83%) vs. $203M. Shares -4.1% AH. (PR, earnings call transcript)

Today's Markets

• In Asia, Japan +0.9% to 8991. Hong Kong -0.1% to 20597. China +0.3% to 2611. India -1.3% to 17998.
• In Europe, at midday, London -0.1%. Paris flat. Frankfurt -0.1%.
• Futures: Dow +0.3%. S&P +0.3%. Nasdaq +0.4%. Crude +0.1% to $73.42. Gold +0.1% to $1238.50.

Friday's Economic Calendar

• 8:30 GDP Q2
  8:30 Corporate Profits
  9:55 Reuters/UofM Consumer Sentiment
  10:00 Fed's Bernanke: Economic Outlook
• Notable earnings before Friday's open: [[FRO]], [[TIF]]

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• Debt-laden Dubai World to sell prized assets. Dubai World is preparing to sell some prized assets, including ports firm DP World, in order to raise as much as $19.4B to repay creditors. According to documents obtained by Reuters, the sale is necessary because Dubai World's debt stands at $39.9B, much higher than the widely expected mid-$20B range. The state-owned conglomerate is hoping creditors will give it 5-10 years to complete the sales, warning that a sale of assets at current prices would generate a maximum of $10.4B.
• Shell, Cosan ink final JV agreement. Shell (RDS.A) and Cosan (CZZ) signed a binding agreement yesterday to form a $12B joint sugar and biofuels venture in Brazil. In February, the two companies had agreed to merge ethanol and fuel distribution units, and subsequently modified the deal to include all of Cosan's energy generation business and an additional 500M reais ($283.6M) in debt owed to Brazilian development bank BNDES. Shell will have the right to buy Cosan's stake after ten years; either company will be able to buy out its partner in 15 years. Premarket: [[RDS.A]] -0.2% (7:00 ET).
• Fed scrambles to overturn disclosure ruling. The Federal Reserve filed an emergency request yesterday for a 90-day delay of a ruling that would force the Fed to disclose the details of its emergency lending program during the financial crisis. If the request is approved, the Fed and the Clearing House Association, a group of major U.S. and European banks, will have until Nov. 18 to appeal the ruling to the Supreme Court.
• Wal-Mart appeals to Supreme Court. Wal-Mart (WMT) has petitioned the Supreme Court to overturn an appeals court ruling that will allow a long-running gender-discrimination lawsuit to go to trial with class action status. The lawsuit, which alleges Wal-Mart discriminates against women in promotions, pay, training and job assignments, could potentially force Wal-Mart to pay billions of dollars in damages, and any negative verdict could be "material" to Wal-Mart's earnings results.
• Google takes on Skype. Google (GOOG) introduced voice calling through Gmail, allowing U.S.-based users to call landlines and cell phones in North America via the email service. The service is free at least until the end of the year, though there are charges to make international calls. Google hopes to offer the service internationally and to businesses at some point in the future. The new feature will be in direct competition with similar services offered by internet phone providers like Skype.
• Nestle finishes Alcon sale. Nestle (NSRGY.PK) said this morning it has completed the sale of its remaining shares in Alcon (ACL) to Novartis (NVS) for $28.3B in cash. With the completion of the deal, originally agreed upon in April 2008, Novartis is Alcon's majority shareholder and controls approximately 77% of Alcon's outstanding shares.
• Civil charges possible for high-frequency trading firm. Infinium Capital Management, a major high-frequency trading firm, faces possible civil charges by regulators after its computer malfunctioned in February, causing a spike in oil prices and losing the company a million dollars in the span of about a second. The documents obtained explain for the first time how the computer glitch caused the oil-trading surge on Feb. 3, and may also be responsible for the abrupt and largely unexplained $5 slide amid record volumes during the following two days. Futures exchange operator CME Group and the CFTC are both looking into the matter.
• SEC, Reserve Primary founder abandon settlement talks. Settlement talks between the SEC and Reserve Primary co-founder Bruce Bent Sr. have ended in an "impasse," according to yesterday's court filing. The SEC had been trying to settle a lawsuit it brought over the money market mutual fund's 2008 implosion, and had accused Bent and his son of deceiving investors into believing the fund, which once held $62B, was safe.

Earnings: Wednesday After Close

• Guess? (GES): Q2 EPS of $0.72 beats by $0.04. Revenue of $577M (+10.5%) in-line. Shares -4.5% AH. (PR)
• JDS Uniphase (JDSU): FQ4 EPS of $0.15 beats by $0.01. Revenue of $398M (+19.6%) in-line. Shares -3.6% AH. (PR, earnings call transcript)

Today's Markets

• In Asia, Japan +0.7% to 8906. Hong Kong -0.1% to 20612. China +0.3% to 2603. India +0.3% to 18226.
• In Europe, at midday, London +0.8%. Paris +0.5%. Frankfurt +0.5%.
• Futures: Dow +0.2%. S&P +0.3%. Nasdaq +0.25%. Crude +1.25% to $73.43. Gold +0.2% to $1243.80.

Thursday's Economic Calendar

• 8:30 Initial Jobless Claims
  10:30 EIA Natural Gas Inventory
  11:00 Kansas City Fed Mfg Survey
  12:00 PM Chicago Fed's Manufacturing Index
  1:00 PM Results of $29B, 7-Year Note Auction
  4:30 PM Money Supply
  4:30 PM Fed Balance Sheet
• Notable earnings after Thursday's close: [[ARUN]], [[JCG]], [[NOVL]], [[OVTI]]

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• American Airlines union rejects contract offer. Mechanics at AMR Corp.'s (AMR) American Airlines rejected a new pay deal yesterday, raising the possibility of a strike at the second-largest U.S. airline. More than 6,000 members of the Transport Workers Union of America voted against the proposed contract and only 3,371 voted in favor, unraveling a tentative accord reached between American and TWU negotiators in May. The breakdown in negotiations could renew pressure on the National Mediation Board to allow American's mechanics to go on strike after several years of unsuccessful talks between labor and management.
• Shareholder lawsuit seeks to halt Hertz purchase of Dollar. Shareholders who are opposed to Hertz's (HTZ) takeover of rental car company Dollar Thrifty (DTG) have filed a lawsuit seeking a court order to halt the transaction. The suit also accuses Goldman Sachs of working both sides of the deal and it accuses Scott Thompson, Dollar's CEO, of not acting in the company's best interests when he declined to meet with Avis (CAR) to discuss a counterbid. Dollar Thrifty shareholders are expected to vote on the Hertz bid on September 16.
• Apple nears iTunes deal with Disney, TV firms. Apple (AAPL) is in talks with Disney (DIS) and other network owners that would allow the computer company to offer television episodes for sale on iTunes. It is close to gaining access to ABC shows from Disney, but the proposal is facing at least some resistance from other TV companies, including CBS (CBS), General Electric's (GE) NBC Universal, News Corp. (NWSA), and Viacom (VIA.B). The shows would cost $0.99 and would be available for 48 hours after purchase. Apple is also working on a device that would allow users to stream video directly to their television sets, which could be announced as early as next month.
• BHP posts profit, stands firm on Potash bid. BHP Billiton (BHP), which is pursuing a $39B hostile offer for global fertilizer maker Potash (POT), announced second half results of a net profit of $6.77B, up from $4.59B in the year-earlier period and its best profit in two years. The results fueled speculation that BHP could substantially up its bid for Potash. Yet, BHP CEO Marius Kloppers was quick to quell any ideas that positive results mean more firepower for the deal. On a conference call, he told investors that BHP would not pay just any price to win the bid and that it would remain disciplined in the process. In premarket trading, BHP shares +0.9% (7:00 ET).
• Dell enters the smart phone market. Dell (DELL) unveiled its first smartphone for the U.S. market yesterday, entering into an increasingly crowded arena with a product that uses the Android operating system from Google (GOOG). The new phone, called the Aero, will sell for $99 with a contract from AT&T (T), and $299 without one. Dell says it is the lightest of the phones available that use Android. The move, which is an attempt to keep up with Apple (AAPL), was criticized by some as too little, too late.
• Goldman losing market share in corporate bonds. Goldman Sachs (GS) is slipping in one area that has usually been a strength of the Wall Street leader: underwriting corporate bonds. As Goldman seeks to put a run-in with the SEC behind it, it is now losing market share in bond underwriting to its rivals. The profitable Wall Street firm has slipped to 10th in helping the world's companies raise debt, down from ninth last year and as high as third place in 2003. JPMorgan (JPM), the second-biggest U.S. bank, is leading global underwriting for the third straight year, while Deutsche Bank (DB), Germany's biggest lender, is ranked second.
• SEC charges 2 with insider trading on BHP-Potash deal. In other news on BHP's (BHP) pursuit of Potash (POT), two Spanish investors were charged with insider trading by the SEC, which alleges that the pair traded on secret information about BHP's plans to launch a bid for Potash. The SEC said they made an illegal profit of $1.1M by trading on their information. One of the men was head of research at Banco Santander (STD), which is advising BHP on the deal.
• Ireland's debt rating downgraded by S&P. The credit rating on Ireland's government debt was cut one notch by S&P to AA- from AA. The ratings agency cited the projected cost of propping up the country's financial sector, as the key reason behind the downgrade. S&P said its new projections suggest that Ireland's net general government debt will rise toward 113% of gross domestic product in 2012. That is more than 1.5 times the average of other eurozone nations and well above that of similarly rated countries.
• Credit card debt hits lowest level in 8 years. As card holders continue to pay off balances, the amount of credit card debt dipped to its lowest level in eight years during the second quarter. The average combined debt for bank-issued credit cards, such as those that carry the MasterCard (MA) or Visa (V) name, fell to $4,951 in the second quarter, down more than 13% from $5,719 in the same period a year ago, according to TransUnion, which tracks consumer debt. Fear of unemployment and a tighter credit environment, as the economy continues to sputter, contributed to the decline in consumer debt.
• BOJ considers move as yen rises. Tokyo officials said they may call a special meeting to consider moves to intervene in the path of the yen, which has been surging recently. Any such action would be to smooth sharp market moves if the yen moved too far or too fast. The currency, which recently hit a 15-year high, pulled back earlier today on news of possible actions to slow its rise. Japanese officials have not intervened in the market since 2004.

Earnings: Wednesday Before Open

• Toll Brothers (TOL): FQ3 EPS of $0.16 beats by $0.30. Revenue of $454.2M (-1.5%) vs. $393.4M. (PR)

Today's Markets

• In Asia, Japan -1.7% to 8845. Hong Kong -0.1% to 20635. China -2.0% to 2597. India -0.7% to 18180.
• In Europe, at midday, London -0.5%. Paris -0.5%. Frankfurt -0.3%.
• Futures: Dow flat. S&P flat. Nasdaq -0.2%. Crude +0.1% to $71.72. Gold +0.4% to $1238.40.

Wednesday's Economic Calendar

• 7:00 MBA Mortgage Applications
  8:30 Durable Goods
  10:00 New Home Sales
  10:00 FHFA Housing Price Index
  10:30 EIA Petroleum Inventories
  1:00 PM Results of $36B, 5-Year Note Auction
• Notable earnings before Wednesday's open: [[AEO]], [[TOL]]
• Notable earnings after Wednesday's close: [[GES]], [[JDSU]]

Seeking Alpha's Market Currents team contributed to this post.

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• Showdown over 3Par. Shares of 3Par (PAR) rocketed 44.6% yesterday as investors bet H-P's (HPQ) $24/share offer will set off a bidding war with Dell (DELL), which earlier in the month had offered $18/share for the company that handles data storage systems and cloud-computing infrastructure. Sources say Dell is already preparing a sweetened offer which could be sent in the coming days, but it's unclear how high the company is willing to go. Analysts say the offers are "not about valuation at this point" considering H-P's bid is already more than double what 3Par's shares were worth before the Dell bid was announced, but rather about solidifying a strategic position in storage space and cloud infrastructure. Shares of Dell closed down 1.1% yesterday; H-P closed down 2%.
• Rio Tinto weighs Potash bid. Rio Tinto (RTP) and an unnamed Chinese partner are considering a joint bid for Potash (POT), according to a report by Canada's Globe & Mail. Vale (VALE), which had previously expressed interest, has cooled on the possibility of presenting a counter-bid to BHP Billiton's (BHP) $38.6B offer. Other potential bidders include Mosaic (MOS), Agrium (AGU), Monsanto (MON), privately-held Cargill Inc. and a handful of Chinese firms including Sinochem and private equity fund Hopu Investment Management. Premarket: [[RTP]] -2.6%, [[POT]] +0.3%, [[BHP]] -1.5% (7:00 ET).
• Disagreement on threshold price stalls Sanofi-Genzyme progress. Sanofi-Aventis (SNY) continues to talk with Genzyme (GENZ) about a possible takeover bid, but sources say significant progress towards a deal has been held up over a disagreement on the threshold price at which Sanofi can begin due diligence on Genzyme. The threshold price has proved to be such an impasse that Sanofi was reportedly considering last week whether to launch a hostile bid, though it ultimately decided to remain in friendly talks for now. Genzyme board members have also been debating whether it's wise to sell the company in the middle of a turnaround, and consider Sanofi's initial offer of $69/share, or $18.4B, to be "lackluster;" the offer would likely have to approach $75/share for Genzyme to open its books, and approach $80 for the deal to get approved. Premarket: [[SNY]] -1.7% (7:00 ET).
• AWB backs Agrium bid. As expected, Australia's AWB has thrown its support behind a $1.1B takeover bid from Agrium (AGU) after withdrawing its earlier recommendation for GrainCorp's (GRCLF.PK) bid. As part of the deal, Agrium will allow AWB to pay a dividend of up to $0.20/share, which would be funded by a loan from Agrium. Agrium expects the acquisition to generate annual synergies of $36M and to be accretive to earnings from year one.
• Gov't intensifies Toyota engine probe. The National Highway Traffic Safety Administration has stepped up its investigation of Toyota's (TM) Corolla and Matrix vehicles because of a possible defect that could cause the engines to stall, not start or shift gears harshly. The preliminary evaluation of the cars began on August 18, and they will now be subject to a more serious scrutiny called an engineering analysis. Toyota confirmed the investigation but declined to provide more details. It's unclear whether a recall will be necessary.
• Mortgage industry faces new fees. Government officials are said to be considering new fees on the lending industry in order to pay for federal backing of mortgages. The consensus appears to be that regardless of what happens with Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) the government will have to provide some sort of guarantee to keep the mortgage market functioning properly. In order to justify placing this obligation on the government, policymakers want the cost of any explicit guarantee to be fully offset by the mortgage industry itself.
• Xstrata boosts iron ore exposure. Xstrata (XSRAF.PK) agreed to buy Australia's Sphere Minerals for $381M, gaining access to magnetite iron ore deposits in Mauritania. Xstrata is exploring for iron ore in the Republic of Congo and in December said it would construct an iron ore extraction plant in Australia, but had no producing assets in the iron ore sector. The purchase reflects the coveted status iron ore has achieved as the fast-growing economies of China and India clamor for the key steel making commodity.
• Fed loses appeal on bailout disclosure. The Federal Reserve lost its appeal of a ruling that forced it to name firms that would have failed without a bailout. Unless the court stays its decision, the Fed will have seven days to disclose the documents. The central bank may still appeal to the Supreme Court, and the 20 commercial banks that joined with the Fed in the request already said they plan to appeal.
• Vedanta may face rivals on Cairn bid. Indian state-run energy companies are reportedly considering bidding for a stake in Cairn India (CRNCY.PK) that would edge out Vedanta Resources' (VDNRF.PK) $9.6B offer. India’s oil ministry has told Oil & Natural Gas Corp. to study the possibility of making a counter offer, and GAIL India (GAILF.PK) may join the bid.
• Yen rises to multi-year highs. This morning, the yen reached its highest level against the dollar in fifteen years, and the highest level against the euro in nearly nine years. The currency was already on the rise but accelerated its gains after Japanese finance minister Yoshihiko Noda declined to signal that authorities were preparing to intervene in currency markets. Noda said he was watching the currency markets closely, but had no comment on the possibility that Japan could sell yen in its first direct market intervention since 2004. As of 4:15 ET, the yen was +1.1% against the dollar to 84.20.

Earnings: Tuesday Before Open

• Big Lots (BIG): Q2 EPS of $0.48 beats by $0.01. Revenue of $1.14B (+5.2%) in-line. (PR)
• Trina Solar (TSL): Q2 EPS of $0.52 beats by $0.03. Revenue of $370.8M (+147.2%) vs. $338.7M. Shares +1.9% premarket. (PR)

Today's Markets

• In Asia, Japan -1.3% to 8995. Hong Kong -1.1% to 20659. China +0.4% to 2650. India -0.5% to 18312.
• In Europe, at midday, London -1.1%. Paris -1.3%. Frankfurt -1.0%.
• Futures: Dow -0.7%. S&P -0.75%. Nasdaq -0.7%. Crude -1.2% to $72.24. Gold -0.7% to $1219.50.

Tuesday's Economic Calendar

• 7:45 ICSC Retail Store Sales
  8:00 Fed's Evans speaks to Indianapolis Neighborhood Housing Partnership
  8:55 Redbook Chain Store Sales
  10:00 Existing Home Sales
  10:00 Richmond Fed Mfg.
  5:00 PM ABC Consumer Confidence Index
• Notable earnings before Tuesday's open: [[BIG]], [[MDT]], [[TSL]]

Seeking Alpha's Market Currents team contributed to this post.

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• HSBC advances on Nedbank. HSBC (HBC) confirmed it's in exclusive talks with Anglo-South African insurer Old Mutual (ODMTY.PK) to buy up to 70% of South Africa's Nedbank (NDBKY.PK) in a deal that could be worth as much as $6.8B. It's unclear whether a deal would receive regulatory clearance in South Africa, where officials said it was still too early in the process to comment. The Nedbank stake would allow HSBC to boost its emerging markets exposure and grow its foothold in Africa. Premarket: [[HBC]] +0.9% (7:00 ET).
• Potential suitors circle as Potash snubs BHP. Sinochem, the Chinese-state owned chemical group, and Vale (VALE), the world's biggest iron-ore exporter, have reportedly contacted Potash's (POT) board with initial inquiries about holding merger talks. Other companies have also made preliminary contact with Potash, though talks may not materialize. While talks with potential suitors could eventually help fend off BHP Billiton's (BHP) unsolicited offer, an offer which Potash flatly rebuffed this morning, the strategy could also backfire; some analysts think a tie-up with Sinochem could hurt future flows and send Potash's stock price down as a result. Premarket: [[POT]] +1.6%, [[BHP]] +1.7% (7:00 ET).
• Blackstone bets on China's booming housing market. Blackstone Group (BX) reached a deal with Great Eagle, one of Hong Kong’s largest property developers, to build high-end apartments in China, marking Blackstone's first significant investment in China's booming housing market. The project will include more than 1,000 new homes and over 400 hotel rooms, and is consistent with Blackstone's efforts to focus its investments in developing markets, particularly China and India.
• Brookfield Infrastructure's prime acquisition. Brookfield Infrastructure Partners (BIP) will buy the 60% of Prime Infrastructure Group it doesn't already own in a deal that values the Australian firm at A$1.6B ($1.4B). The acquisition will create a global infrastructure company worth more than $2.5B. Premarket: [[BIP]] +3.8% (7:00 ET); Prime Infrastructure closed +20.8% in Australian trading.
• Foster's froths on beer buyout rumors. Shares of Foster's Group (FBRWY.PK) closed up 7.6% in Australian trading on speculation SABMiller (SBMRY.PK) or Japan's Asahi Breweries could make a bid for Foster's Group's beer operations. Sources said SABMiller and Asahi are still considering their options, and haven't yet decided whether to make formal offers which analysts expect to top $10B. Foster's announced earlier this year that it plans to split its beer and wine operations.
• Miners may be the winners in Aussie election saga. Australia's Labor Party failed to win a clear majority in the weekend's federal elections, marking Australia's first hung parliament in 70 years. This is potentially good news for miners, as a government formed by the Liberals would scrap the country's controversial mega-mining tax, which has already been watered down once. As political coalitions begin to take shape, keep an eye on firms like Rio Tinto (RTP), BHP Billiton (BHP) and Xstrata (XSRAF.PK). Premarket: [[RTP]] +1.9%, [[BHP]] +1.7%, [[AA]] +1.2% (7:00 ET).
• Campbell eyes the cookie jar. Campbell Soup (CPB) may make a £1.5B ($2.3B) bid for the biscuit-making operations of the U.K.'s United Biscuits. Private equity owners Blackstone (BX) and PAI Partners were considering selling the company for over £2B, according to earlier media reports, but apparently would consider a separate offer for the biscuit division because of lack of interest in the whole company.
• AIG aircraft unit repays $4B in aid. ILFC, AIG's (AIG) aircraft leasing unit, paid back nearly $4B in government aid after raising new debt from investors, sources said. The repayment reduced the principal balance of the government loan to just over $15B, its lowest level since the March 2009 restructuring of government aid.
• Content providers reluctantly embrace online viewing. Starting tomorrow, customers of Dish Network (DISH) will for the first time be able to watch television shows from several cable networks through Dish's new video portal website. The rollout signals a turnaround may be starting among content providers, who thus far have been relatively slow to adopt the "TV Everywhere" concept pioneered by Comcast (CMCSA) and Time Warner (TWX).
• Korean pension fund aims for U.S. pipeline stake. South Korea's state-run National Pension Service said it's looking to acquire a 23% stake in U.S. pipeline operator Colonial Pipeline from Chevron (CVX). Chevron puts its pipeline stake up for sale in March and will likely select a preferred bidder in the next couple weeks. The stake is valued at 1T won ($845M).
• Mortgage fraud creeps back. Mortgage fraud, which was on the decline in the two years after its 2006 peak, is on the rise again. In 2009, mortgage fraud was up 17%, accounting for $14B in loans, or roughly 0.7% of all mortgage loans made in the U.S. Though lawmakers did tighten lending rules after the housing market collapse, this hasn't deterred scammers as much as prompted them to create more complex schemes.
• Friday's failures. It was a busy Friday for regulators as they shuttered eight banks (I & II, III, IV, V & VI, VII, VIII), bringing this year's failure count to 118 so far. The closures, including ShoreBank of Chicago - the subject of a high-profile bank rescue in May - are expected to cost the FDIC's deposit insurance fund a total of $473.5M.

Today's Markets

• In Asia, Japan -0.7% to 9117. Hong Kong -0.4% to 20889. China -0.1% to 2639. India flat at 18409.
• In Europe, at midday, London +0.8%. Paris +1.0%. Frankfurt +0.5%.
• Futures: Dow +0.4%. S&P +0.6%. Nasdaq +0.7%. Crude +0.2% to $73.98. Gold flat at $1228.70.

Monday's Economic Calendar

• 8:30 Chicago Fed National Activity Index
  10:30 Fed's Hoenig: "Too Big Has Failed: Learning from Midwest Banks and Credit Unions"

Seeking Alpha's Market Currents team contributed to this post.

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