Economy
Under Treasury Secretary Jack Lew’s crackdown on inversions, the Treasury Department announced new tax rules late yesterday to deter U.S. companies from moving their domicile to countries with lower tax rates. The tax changes make it harder for companies to complete overseas mergers, and should they choose to invert, companies will face a hard time using the cash accumulated abroad. The new rules are effective immediately and apply to all deals that had not closed by yesterday.

The U.S., joined by five Arab allies, launched the first air strikes on Islamic State targets in Syria Monday night, marking the first U.S. military intervention in Syria since the start of the country's civil war. The U.S.-led strikes opens the war's new front, and is on top of the extra funding approved by Congress last week to train Syrian rebels. About 190 air strikes have already been carried out in Iraq since August.

Stocks
Philips is planning to split its 120-year-old company in two, creating a stand-alone lighting unit and merging consumer and healthcare divisions into a €15B ($19.3B) business. Philips (NYSE:PHG) expects to incur a charge of around €50M for the restructuring over the next two years, but expects the new structure to bring cost savings of €100M next year and a further €200M in 2016.

After being threatened with severe penalties from Argentina if it does not process a $5M interest payment by Sept. 30, Citigroup (NYSE:C) has returned to court to plead its case in front of the New York judge who originally issued the injunction. Citigroup is now seeking a stay from Judge Thomas Griesa, after an appeals court last week dismissed the bank's request to reverse the ruling. The injunction blocks payments on $8.4B in bonds issued under Argentine law.

Barclays is expected to be fined close to £38M ($62.3M) for intermingling billions of pounds of client money with its own funds in its investment bank between 2007 and 2012. The fine, a record for this type of misconduct, is expected to be announced by the U.K.'s Financial Conduct Authority as early as today. Meanwhile, Barclays (NYSE:BCS) CEO Antony Jenkins has announced that the bank will "robustly" defend its dark pool allegations, which accuses the bank of misleading clients about how its dark pool operated.

Allergan is in advanced talks to buy Salix (NASDAQ:SLXP) in an all-cash deal after turning down an offer from Actavis (NYSE:ACT), WSJ reports. The deal could be announced "late this week or next," and is meant to thwart Valeant (NYSE:VRX) and Pershing Square's hostile bid for Allergan (NYSE:AGN). A source says Actavis is still interested in buying Allergan, but only through a "friendly" deal.

Mexico has received its first bid from a consortium led by Alcatel-Lucent (NYSE:ALU) and Ericsson (NASDAQ:ERIC) to build its proposed $10B state-owned mobile network - an effort that will break the hold of Carlos Slim's America Movil (NYSE:AMX) on the industry. If the consortium's bid wins, those companies could be key suppliers of mobile antennae and other gear and manage the network. Mexico expects to pick a winner in mid-2015.

Sony's PlayStation TV set-top box will hit stores in the U.S. on Oct. 14, with a $99 price-tag for a standalone unit. Earlier this month, Sony (NYSE:SNE) signed a deal to carry 22 Viacom channels, including Comedy Central and MTV, but still has not announced the launch date for its online TV service. The PS TV will also allow users to access movies, TV episodes and games from the PlayStation store.

Following a rumor from TechCrunch stating that Apple is planning to shut down Beats Music streaming service, Apple (NASDAQ:AAPL) spokesman Tom Neumayr says the reports are not true. A report from Re/code elaborates further, stating, "Based on conversations with people familiar with Apple’s thinking: Apple won’t shutter the [Beats Music] streaming service. It may, however, modify it over time, and one of those changes could involve changing the Beats Music brand."

The Federal Trade Commission is debating whether to file an antitrust lawsuit to block Sysco's (NYSE:SYY) $3.5B proposed merger with US Foods, which was announced last December. Antitrust concerns focus on whether the merger will drive up costs, as the two companies combined would make up more than 25% of the $231B U.S. food-distribution industry. The FTC is also exploring alternatives to require Sysco and US Foods to divest assets to competitors.

McGraw Hill Financial is selling McGraw Hill Construction to P-E firm Symphony Technology for $320M. CEO Douglas Peterson says the deal completes the company's reorganization plans to improve efficiency, after previously stating that the McGraw Hill (NYSE:MHFI) unit did not fit into the global reach of the rest of the portfolio. The transaction is expected to close in Q4.

Total says its joint venture with Russia’s Lukoil (OTCPK:LUKOY, OTC:LUKOF) to explore shale oil in western Siberia has been halted as a result of western sanctions, a clear sign that the latest round of sanctions against Russia over Ukraine will put a brake on plans to develop the country’s shale oil resources. Total (NYSE:TOT) is also developing the $27B Yamal liquefied natural gas project with Russian natural gas producer Novatek (OTC:NOVKY) and China National Petroleum (NYSE:PTR).

Veresen has agreed to buy Global Infrastructure Partners’ 50% stake in the Ruby pipeline for $1.43B. The pipeline supplies gas from Wyoming to the Malin hub in Oregon, which connects to a pipeline that would feed Veresen’s (OTC:FCGYF) proposed Jordan Cove LNG terminal on the state’s coast. The terminal was approved by the U.S. Energy Department in March. Kinder Morgan (KMI, KMP) owns the other half of the Ruby pipeline and will continue to operate it.

General Motors has again raised the number of compensation payments linked to its faulty ignition switch. GM (NYSE:GM) now counts 21 death claims eligible for payments, compared to last week's raise to 19. Compensation expert Kenneth Feinberg says he has also received 532 injury claims. Of those, 16 are eligible for compensation thus far, while the rest are still being reviewed.

Today's economic calendar:

7:45 ICSC Retail Store Sales
8:55 Redbook Chain Store Sales
9:00 FHFA House Price Index
9:45 PMI Manufacturing Index Flash
10:00 Richmond Fed Mfg.
1:00 PM Results of $29B, 2-Year Note Auction

Notable earnings before today's open: KMX, CCL

Notable earnings after today's close: AIR, BBBY, CPRT, SCS