What to watch for today
Mylan shareholders vote on a buyout of rival drugmaker Perrigo. If more than half of its investors approve, the UK-based Dutch pharmaceutical company will take its $33 billion takeover offer to Perrigo’s shareholders. Only half of Dublin-based Perrigo’s shareholders would need to accept to seal the deal.
Day two of the annual global central banker powwow. The famed getaway to Jackson Hole, Wyoming is missing Federal Reserve chair Janet Yellen, meaning little news is expected on decisions over interest rates.
Brazil’s quarterly GDP could be ugly. Analysts expect the numbers to show that Brazil is officially in recession. A massive corruption scandal involving state-run oil company Petroleo Brasileiro and declining demand from China, Brazil’s largest trading partner, have taken their toll.
While you were sleeping
Markets in Asia steadied. All Asia-Pacific stock indexes (other than in Laos) rose in morning trading, following a second day of gains in the US. The Shanghai and Shenzhen stock indexes were both up by 1.9%, displaying a calmness that was missing earlier in the week (paywall).
Citigroup predicted a recession in China. Willem Buiter, the bank’s top economist, expects the government to act too slowly to prevent the Chinese economy from contracting—which he says will happen once the “mendacious” official data reads 4% growth. Buiter argued a stimulus to drive domestic consumption is crucial to avoid recession.
Japanese inflation fell flat. Core consumer prices failed to rise in July from a year earlier, adding further pressure on the central bank to achieve its target of 2% inflation. But that was better than analysts had expected; most anticipated a 0.2% decline in the index, which includes the price of oil.
British consumer confidence met a 15-year high. The monthly GfK survey found shoppers’ sentiment was at +7, beating estimates of +4 thanks to low inflation, low interest rates, and a modest rise in wages. That meets June’s figure, which was the highest since 2000.
Boeing and the UK got the go-ahead for a $3 billion military deal. US authorities gave the all-clear for the aerospace company to refurbish and upgrade 50 British military helicopters. The deal will allow the UK to perform counter-terrorism and counter-piracy missions, the Pentagon said, as well as better cooperate with the US military.
Apple announced its next big event. The iPhone maker dispatched invitations for a Sept. 9 gathering in San Francisco’s Bill Graham Civic Auditorium. The choice of venue—it holds 7,000—suggests 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 PRC.
Donald Trump shares a personality type with Bill Clinton. It’s called “hypomanic temperament.”
Innovators should welcome the coming downturn in startup funding. The most successful tech companies came from a leaner, meaner Silicon Valley (paywall).
We don’t need to ban child labor. It would be better to ensure safe conditions for child workers.
There’s no reason to divorce over Ashley Madison. Given the number of bots, it’s unlikely any cheating actually happened.
Surprising discoveries
Young Germans have adopted ‘Merkel’ as a verb. The German chancellor’s surname means “to do nothing.”
A drone spotted a sunbather lying on top of a wind turbine. He sat up and waved.
“Manspreading” and “butt dial” are officially words. The online Oxford Dictionary also added “wine o’clock” (paywall).
Usain Bolt was wiped out by a Segway. The fastest man on Earth was not injured in the collision, which was caused by an actual bolt.
Beijing met its own air pollution standards for the first time ever. Authorities shut down factories to ensure blue skies for a World War Two celebration.
Our best wishes for a productive day. Please send any news, comments, politician-inspired verbs, and outlandish sunbathing spots to hi@qz.com. You can follow us on Twitter for updates throughout the day.