Economy
Brazil’s presidential race is headed to another round after leftist President Dilma Rousseff won the most votes on Sunday but failed to clinch the majority she needed to win a second term outright. Rousseff will face the more conservative Aecio Neves in a runoff on Oct. 26. Marina Silva, the prominent environmentalist who recently led opinion polls but saw her support collapse late in the campaign, won only 21% of the vote, compared to Rousseff's 42% and Neves' 34%.

The crowds of pro-democracy protesters in Hong Kong dwindled today, although barricades could still be seen despite government warnings that roads would be cleared before the start of the business day. The city’s normally efficient transportation system faced numerous delays, with many suspended public transportation routes and traffic around the shrinking protest zones. Early talks between government officials and student leaders have started following the 11-day standoff, but many disagreements still remain.

European officials say the EU is preparing to reject France’s 2015 budget, setting up a potential power struggle. France said last month it would run a budget deficit of 4.3% of GDP in 2015, a far cry from the 3% deficit it promised. So far the French government has said it won’t take any extra measures beyond what it proposed in the spring.

Stocks
H-P plans to spin off its PC and printer ops into a separate publicly-traded company, reports the WSJ. An announcement could come as soon as today, although the spinoff is expected to happen in 2015. If the H-P (NYSE:HPQ) division goes off as planned, it would give rise to two publicly traded companies, each with more than $50B in annual revenue. HPQ +6.3% premarket.

As it seeks growth beyond smartphones, Samsung Electronics says it will invest 15.6T won ($14.7B) to build a new chip plant in South Korea. Construction of the facility will begin next year, with the aim to be completed in 2017. Samsung (OTC:SSNLF, OTC:SSNGY) has been on a falling cycle of capital expenditure, which dropped to 10% of sales last fiscal year from 14% in 2010. It plans to devote the bulk of its capex, or W14.4T, to semiconductors this year.

Becton Dickinson will acquire CareFusion for $12.2B in cash and stock in a merger of medical-products makers. CareFusion (NYSE:CFN) shareholders will receive $49 in cash and 0.0777 BDX share for each CFN share, based on Becton Dickinson’s (NYSE:BDX) Oct. 3 closing price. BDX expects the deal will add “double-digit” EPS accretion in its first full year, and has $9.1B in fully committed bridge funding from Goldman (NYSE:GS).

The NBA has reached long-term media rights contracts with Walt Disney (NYSE:DIS) and Time Warner's (NYSE:TWX) Turner Broadcasting, which more than doubles the current $485M and $445M fees the companies pay annually. The league also plans to partner with ESPN for a new online video service that would show live regular season games. The contracts will give Disney and Turner the rights to NBA games through the 2024-25 season.

Redbox Instant, a streaming video service operated by Verizon (NYSE:VZ) and Outerwall's (NASDAQ:OUTR) Redbox, will shut down next week because the venture has not been as successful as hoped. The JV launched in March 2013, and was viewed as a potential rival to Netflix (NASDAQ:NFLX). Rumors about a shutdown first surfaced about a week ago; the service had disabled new sign-ups for three months due to a credit card fraud issue.

Switzerland has given French authorities documents on 300 UBS customers suspected of evading tax, says Reuters quoting the SonntagsZeitung newspaper. The news follows last week's report of UBS (NYSE:UBS) possibly facing a fine as large as CHF6B ($6.3B) for tax evasion in France. The delivery of the documents was made possible under a revision to the Swiss Tax Administrative Assistance Act that came into force on Aug. 1 and makes it easier for other countries to obtain information on suspected tax dodgers.

H&R Block says its deal to sell its banking unit to BofI Federal Bank (NASDAQ:BOFI) will not be approved by regulators before next year's tax season. "We are extremely disappointed with this development," says CEO Bill Cobb. "We remain committed to exiting our bank and forming a long-term relationship with BofI." The holdup comes after H&R Block (NYSE:HRB) was forced to end a July 2013 agreement to sell its banking assets to Republic Bancorp (NASDAQ:RBCAA) after regulatory approval could not be obtained.

BHP Billiton plans to raise its iron-ore capacity by nearly 30% without building any new mines, to become the world's most profitable producer of the steelmaking commodity. By increasing the efficiency of existing operations, BHP (NYSE:BHP) intends to boost production, while lowering production costs to less than $20 a ton (more than 25% lower than its average in the year through June 2014). The miner has already slashed hundreds of positions across its operations, and will likely cut hundreds more to make the goal a reality.

Tesco has appointed chief executive Richard Cousins of catering group Compass and the former head of Ikea Mikael Ohlsson as non-executive directors, as the troubled British grocer looks to strengthen its board after an overstated £250M ($409M) profit forecast. The accounting error has already triggered the suspension of four senior execs and sent Tesco (OTCPK:TSCDF, OTCPK:TSCDY) shares to their lowest since March 2003 on Friday.

Euro Disney has agreed to a €1B funding deal backed by its largest shareholder, Walt Disney (DIS). The plan includes a rights issue of €420M open to all shareholders and backed by Walt Disney. The move would improve the cash position of Euro Disney (OTCPK:EUDSF) by about €250M. In addition, about €600M of the group's debt owed to Walt Disney will be converted into equity, while credit lines extended to Euro Disney by its parent will be consolidated.

The recall plague at General Motors is spreading again, after the company announced the recall of 57,182 vehicles on Saturday for potential problems, including overheating fuel pump modules, loose electrical connections and ignition key malfunctions. The announcement follows Friday's recall of 524,384 cars and SUVs. GM (NYSE:GM) has now issued 74 recalls this year, affecting some 30M vehicles.

Today's economic calendar:

8:30 Gallup US Consumer Spending Measure
12:30 PM TD Ameritrade IMX

Notable earnings after today's close: CAMP, IDT, TCS