- The ESM Violates the Law And EU Treaties (Welt [18])
- Fears Rising, Spaniards Pull Out Their Cash and Get Out of Spain (NYT [19])
- RBA stays put for third straight month (SMH [20])
- Why PBOC will not cut rates: China’s Repo Rate Drops Most in Six Months as PBOC Injects Cash (Bloomberg [21])
- Manufacturing Downturn Spreads Gloom Across Asia, Europe (WSJ [22])
- "Sources" tell Dutch Dagblad that Weidmann is isolated in his objection to ECB monetization (Reuters [23], FD [24])
- Europe Bank Chief Hints at Bond Purchases (WSJ [25])
- Australia's Fortescue slashes capex as iron ore mkt drops (Reuters [26])
- Loan rates point to eurozone fractures (FT [27])
- U.S. nears deal for $1 billion in Egypt debt relief (Reuters [28])
- Majority of New Jobs Pay Low Wages, Study Finds (NYT [29])
- EU Outlook Cut by Moody’s on Germany, France, U.K. Risks (Bloomberg [30])
- Clinton Seeks Unified Asian Front to Ease Disputes With China (Bloomberg [31])
Overnight Media Digest
WSJ
* With Republicans trying to fan disappointment with President Barack Obama's leadership, Democrats begin the final run to the election with a convention beginning here Tuesday that aims to convince economically struggling voters the president has a workable plan for a turnaround.
* American diplomats are closing in on an agreement to dole out $1 billion in debt relief to Egypt, part of a gilded-charm offensive that Washington hopes will help shore up the country's economy and prevent its new Islamist leadership from drifting beyond America's foreign-policy orbit.
* Valeant Pharmaceuticals International Inc has agreed to buy Medicis Pharmaceutical Corp for $2.6 billion, the latest in a string of acquisitions that have transformed the Canadian drug maker into a multibillion-dollar global company.
* The International Cotton Association, a group backed by the world's largest cotton traders, wants to strengthen what is effectively a blacklist that is supposed to prevent its members from doing business with companies that renege on contracts and then ignore arbitration awards.
* Hyundai Motor Co's labor union voted to approve a revised wage and working-conditions deal on Monday, putting an end to prolonged strikes that have hurt sales at South Korea's biggest car maker.
* Guggenheim Partners has agreed to buy Dick Clark Productions, according to a person familiar with the matter. The value of the deal could not be learned, but an official announcement is expected as soon as Tuesday morning.
* Texas authorities are investigating whether Xerox Corp played a role in allowing dentists to allegedly overbill the state's Medicaid system by millions of dollars.
FT
CAMERON BEGINS SHAKE-UP OF TEAM
David Cameron began a key overhaul of his ministerial team on Monday night.
LOAN RATES POINT TO EURO ZONE FRACTURES
ECB data on Monday showed interest rates paid by companies in the euro zone's weaker economies have surged.
EU PLAN FOR WOMEN QUOTAS ON BOARDS
Europe's listed companies must have 40 percent of their non-executive director board seats filled by women by 2020 or face fines.
DIRECT LINE BOOSTS OPERATING PROFIT
Royal Bank of Scotland's insurance arm has set targets to improve its profitability, seeking to boost investor confidence.
FSA CHALLENGES BANK CHAIRMAN OVER IT
The chairmen of the main UK banks have been told by the FSA to disclose details to avoid any future IT glitches.
SENIOR BANKER QUITS TOP NOMURA ROLE
One of Nomura's most senior investment bankers has resigned his post.
UK MANUFACTURING ENJOYS AUGUST BOUNCE
The downturn in Britain's manufacturing sector eased in August after domestic clients placed more orders.
CHALCO ABANDONS MONGOLIA COAL MINE DEAL
Chalco has dropped its $926 million offer for a majority stake in Mongolia-focused coal miner SouthGobi Resources Ltd.
BUSINESS WARNS ON OSBORNE BANK PLAN
George Osborne's plan for a state-backed small-business bank needs to go well beyond a "rebranding exercise", business leaders have warned.
NYT
* It still remains unclear whether the United Automobile Workers union will agree to the health care overhaul sought by the carmakers, and how much General Motors Corp (GM.N), Ford Motor Co (F.N) and Chrysler will be willing to pay to make that happen.
* More than a decade after the drive began to convert electricity from a regulated industry into a competitive one, many states are rolling back their initiatives or returning money to individuals and businesses.
* This week will offer the first big test of the credit market as seven banks try to entice investors to buy $24 billion in loans and bonds to pay for the sale of the First Data Corp FDC.N, the credit card payments processor, to the private equity firm Kohlberg Kravis Roberts & Co [KKR.UL].
* Driven by a roaring world economy, among other things, global milk prices have doubled over the last two years.
* The European Union's ambitions to open its energy sector to greater competition were dealt a fresh blow after the French state-owned company Gaz de France GAZ.PA announced that it would merge with the utility Suez to create one of the world's largest energy groups.
* Private equity firms are setting records in the size of Asian buyout funds, adding to an existing pool of more than $35 billion that is waiting to be invested in deals in the region.
* Amid intense lobbying, Microsoft Corp (MSFT.O) is expected to squeak out a victory this week to have its open document format, Office Open XML, recognized as an international standard.
* As the 2008 presidential campaign picks up speed, Indian outsourcing companies have returned to Washington as veritable insiders, slicker and better connected than ever.
* In July, German auto parts maker, Continental (CONG.DE), clinched a major deal to acquire Siemens' (SIEGn.DE) VDO automotive unit. Now the company must integrate a company nearly its own size.
Canada
THE GLOBE AND MAIL
* A winner will be declared in the wee hours of voting day in this tight Quebec election, but the most probable result is that no leader emerges with a mandate for bold action.
Reports in the business section:
* Canaccord Financial, Canada's largest independent securities firm, is showing its ability to attract big name hires by adding a senior Lazard banker as its new head for Britain and Europe. Canaccord is bringing on Alexis de Rosnay as Chief Executive of the firm's U.K. and Europe investment banking operations.
* Trapeze Group, a Mississauga-based transit consultant and software company, has bought German ticketing company Elgeba Gerätebau GmbH, beefing up its portfolio of services for transportation companies internationally.
NATIONAL POST
* Nobel Peace Prize Laureate Desmond Tutu called Sunday for Tony Blair and George Bush to face prosecution at the International Criminal Court for their role in the 2003 U.S.-led invasion of Iraq.
FINANCIAL POST
* Valeant Pharmaceuticals International Inc, possibly the most acquisitive company in Canada and definitely one the country's most successful stocks, is looking to pull off another big buy. The Montreal-based company said it has agreed to buy dermatological product company Medicis Pharmaceutical Corp for $2.6-billion.
* Athabasca Oil Corp confirmed Friday it had signed a letter of intent that "contemplates a joint venture" involving two properties in northern Alberta - Hangingstone and Birch - both within an hour's drive from Fort McMurray. No details regarding the identity of the partner company or the value of the potential deal were released and the company stressed "that no assurance can be given that the transaction will be completed."
European Economic Update
- Switzerland GDP -0.1% q/q 0.5% y/y – lower than expected. Consensus 0.2% q/q 1.6% y/y. Previous 0.7% q/q 2.0% y/y.
- Spain Unemployment for August 38,200. Previous -27,800.
- UK PMI Construction 49.0 – lower than expected. Consensus 50.0. Previous 50.9.
- Eurozone PPI 0.4% m/m 1.8% y/y – higher than expected. Consensus 0.2% m/m 1.6% y/y. Previous -0.5% m/m 1.8% y/y.