What to watch for today
Japan presents its inflation report card. Economists expect government data to show a 0.2% fall in core consumer prices for July, the first year-over-year decline since 2013. Inflation had risen by 0.1% in June, but sinking oil price and weak consumer demand are hurting Japan’s chances of hitting 2% by Sept. 2016.
Microsoft confronts a looming patent problem. Following the International Trade Commission’s April ruling that the software giant infringed on two mobile phone patents owned by InterDigital, it announces a final ruling about banning US imports of Microsoft phones.
Mylan shareholders vote on a hostile takeover of rival drugmaker Perrigo. If more than half of the pharmaceutical company’s investors say “yes,” Mylan will go directly to Perrigo’s shareholders with its $33 billion takeover offer. Only half of Dublin-based Perrigo’s shareholders would need to accept to seal the deal.
Day two of the annual global central banker pow wow. Because the famed getaway to Jackson Hole, Wyoming is notably missing Federal Reserve chair Janet Yellen, debates over inflation and interest rates will likely feature fewer hints about the timing of a US rate hike. But it could come soon, given strong US GDP figures.
Brazil announces an ugly quarterly GDP.
Analysts expect the numbers to show that Brazil is
. A massive corruption scandal involving state-run oil company Petroleo Brasileiro SA and
from China, Brazil’s largest trading partner, have taken their toll.
While you were sleeping
Austrian authorities found at least 20 migrants’ bodies in an abandoned truck. They likely suffocated in a vehicle abandoned on a highway near Austria’s border with Hungary. Meanwhile European and Balkan leaders met in Vienna, with Serbia blaming the EU for botching the region’s migration crisis.
US stocks surged on strong GDP numbers. The NYSE and Nasdaq surged for a second straight day after second-quarter GDP growth was revised up to 3.7% from 2.3%, and new data showed that jobless claims fell more than expected. Investors may welcome the news, but it also makes a Fed rate hike more likely sooner.
Ukraine reached a deal with its creditors. The embattled country agreed with lenders led by Franklin Templeton and other asset managers to cut repayments on its $18 billion in debt, in what the country’s finance minister called a “win-win” deal. But now Ukraine has to negotiate with Russia, which it owes $3 billion, even as it fights against Russian-backed separatists.
Amazon set aside its gadget dreams. After repeated failures in its attempt to build a smartphone, the online retail giant has decided to retreat. The company recently laid off engineers who were working on the development of the Fire phone at Lab126, its secret development center in Silicon Valley.
Apple announced its next big event. The iPhone maker dispatched invitations for a Sept. 6 gathering in San Francisco’s Bill Graham Civic Auditorium—a 7,000-person venue that augurs ample news. Apple is expected to unveil the iPhone 6S and the iPhone 6S Plus; little is known yet about their bells and whistles.
Quartz obsession interlude
Gwynn Guilford on how everything you’ve heard about China’s stock market crash is wrong. ”Chinese investors haven’t been investing based on how the economy is doing, but rather, based on what they think the government will do to prop up the market. The crash, termed “Black Monday,” was more likely a reaction to the central bank’s failure over the weekend to announce a widely expected cut to the bank reserve requirement since previous cuts in February and April had boosted stock prices.” Read more here.
Matters of debate
China’s slowdown has officially ruined it for everybody. The global economy revolves around the People’s Republic.
Donald Trump shares a personality type with Bill Clinton. It’s called “hypomanic temperament.”
Innovators should welcome the coming downturn in start-up funding. The most successful tech companies came from a leaner, meaner (paywall) Silicon Valley.
Child labor should not be banned. It would be better to ensure safe conditions for child workers.
Two colors look best on almost everybody. Add more black and red to your wardrobe.
Young Germans have adopted ‘Merkel’ as a verb. The German chancellor’s surname means “to do nothing.”
A sunbather lying on top of a wind turbine was spotted by a drone. He sat up and waved.
“Manspreading” and “butt dial” are officially new words. The online Oxford Dictionary also added wine o’clock.
Usain Bolt was wiped out by a Segway. The fastest man on Earth was not injured in the collision.
Beijing’s air met pollution standards for the first time ever. Authorities shut down factories to ensure blue skies for a World War II celebration.
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