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Yahoo to Sell Web Business to Verizon for $4.8 Billion

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There's lot of tech news, oil drops below $44, and it's a huge week for central banks. Here are some of the things people in markets are talking about today.

Verizon to buy Yahoo, Nintendo slumps

Verizon Communications Inc. will announce plans to buy Yahoo’s core assets for a bit more than $4.8 billion before the market opens this morning, according to two people with direct knowledge of the situation. The deal will also likely end the reign of Yahoo Chief Executive Officer Marissa Mayer who was appointed from Google in 2012 to revive the company's flagging fortunes. In Japan, shares of Nintendo Co. plunged by 18 percent - the maximum one-day fall allowed by the exchange - after the company said late on Friday that its effective economic stake in Pokemon Go developer Niantic Inc. and Pokemon Co. is just 13 percent, and that the financial impact from the global smash hit would be limited. Shares in Nintendo had more than doubled in the two-weeks to July 19. Apple Inc., Google parent Alphabet Inc., and Facebook Inc. are also due to report earnings this week

Oil back under $44

A barrel of West Texas Intermediate for September delivery was trading at $43.92 at 5:59 a.m. ET, near the lowest closing level since early May. On Friday, Baker Hughes Inc. said that U.S. oil producers had added rigs for the fourth consecutive week in the longest streak of increases since August of last year. Oil bulls are also facing seasonal demand problems, with U.S. gasoline consumption typically dropping in August and September, while stockpiles are at their highest seasonal level since 1990. 

Fed, Bank of Japan and stress tests

On Wednesday, the Federal Reserve's Open Market Committee will announce its latest rate decision, with the majority of investors expecting the bank to continue its 2016 streak of making no changes to key rates. Expectations are much higher for Friday's Bank of Japan meeting, with 78 percent of economists surveyed by Bloomberg predicting an expansion of the bank's asset purchase program to be announced. On Friday morning the European Banking Authority will publish the results of its latest stress-tests of European banks. All eyes will be on Italian lenders as worries over non-performing loans are keeping pressure on their stock prices

Markets rise

Overnight, the MSCI Asia Pacific Index gained 0.1 percent thanks to those expectations for the Bank of Japan to expand its stimulus measures in its meeting at the end of the week. In Europe, the Stoxx 600 Index was 0.6 percent higher at 6:05 a.m. ET in a broad-based rally following survey data showing German business sentiment deteriorated less than expected in July. S&P 500 futures were flat

Democratic convention starts

The Democratic convention kicks off in Philadelphia today and is set to ratify Hillary Clinton as the party's presidential candidate. Clinton, who last Friday announced Senator Tim Kaine of Virginia as her running mate, will have to face some internal party strife as the convention risks being overshadowed by controversy as leaked emails showed Democratic staffers favored Clinton over Bernie Sanders during the primaries. 

What we've been reading 

This is what's caught our eye over the weekend.

 

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