Economy
Russia and Ukraine have reached a preliminary agreement on a price for winter gas supplies, easing some concerns that the countries’ dispute could disrupt supplies to Europe via Ukraine. Russia cut off supplies in June, demanding Ukraine pay a debt of some $5B. Lacking the funds to purchase the gas due to its recession, Ukraine has appealed to the IMF for help.

China is due to report Q3 GDP tomorrow, in what could turn into fresh panic over the state of the global economy. The economy is forecast to have grown 7.2% in the July-September period, the slowest pace since the first quarter of 2009 and down from 7.5% in the previous three months. Over the weekend, media outlets reported that the People's Bank of China is planning an injection of about 200B yuan ($32.7B) into some national and regional lenders to keep liquidity ample and bolster growth.

French Finance Minister Michel Sapin says France will continue to pursue a slow deficit reduction due to the country's fragile recovery, reiterating that Germany should lead the effort to boost investment in the euro zone, ahead of a meeting in Berlin with his German counterpart. Regarding France's budget, Economy Minister Emmanuel Macron announced Sunday that he was sure the European Commission would not reject Paris' 2015 plan despite it breaking EU deficit limits.

Stocks
IBM has reached an agreement with Globalfoundries to take over its loss-making semiconductor unit, WSJ reports. Under the terms of the deal, IBM (NYSE:IBM) will pay Globalfoundries $1.5B to take the chip operations off its hands, says a source. IBM is scheduled to report Q3 earnings at 7 a.m. EST.

SAP cut its outlook for full-year operating profit as customers moved to cloud-based software rather than packaged software, delaying recognition of those sales. The company now expects 2014 operating profit, excluding some special items of €5.6B-5.8B ($7.1B-7.4B), down from €5.8B-6B previously. Despite cutting its outlook, SAP (NYSE:SAP) reported €880M in net profit for the period ended Sept. 30 vs. €762M for the same period a year ago. Total revenue rose 5% to €4.3B from €4.1B a year earlier. SAP -4.8% premarket.

Philips reported a net loss of €104M for the quarter ending Sept. 30, compared with a €282M net profit in the same period in 2013. The Dutch technology company missed analyst estimates due to several factors, including unfavorable exchange rates, sluggish demand in Europe and China, and the continued fallout from sanctions against Russia. Philips' (NYSE:PHG) results were also hit by a $467M charge after losing a legal battle to Masimo, which accused Philips of infringing on tech patents. PHG -3.5% premarket.

Microsoft is readying the launch of a smartwatch, which will hit stores before the holiday season, Forbes reports. Microsoft's (NASDAQ:MSFT) new wearable can passively track a wearer’s heart rate and will work across different mobile platforms. A major advantage of the gadget includes its robust battery life, which can last more than two days of regular use.

A group of investors from Hong Kong and Abu Dhabi is launching a €1.7B ($2.2B) bid to buy Reebok from Adidas (OTCQX:ADDYY) following years of disappointing results and fading market share. Hong-Kong based private equity fund Jynwel Capital and funds affiliated with the government of Abu Dhabi plan to send a letter to Adidas proposing the deal. Adidas bought Reebok in 2006 for approximately €3B ($3.8B).

Shire's interim CFO, James Bowling, is stepping down only days after AbbVie (NYSE:ABBV) walked away from a $55B planned takeover of the company. Bowling will leave the company in 2015 to join Severn Trent (OTCQX:STRNY) as the water utility’s finance chief. Meanwhile, Shire (NASDAQ:SHPG) has been reported to now be looking at an acquisition of an American rival, such as NPS Pharma (NASDAQ:NPSP) or Cubist Pharma (NASDAQ:CBST). SHPG +1.7% premarket.

German pilots union VC called for yet another strike at Lufthansa (OTCQX:DLAKY) Tuesday, targeting the airline's long-haul flights, in addition to strikes for the carrier's short and mid-length routes announced for today and tomorrow. The strike is the eighth at Lufthansa this year, as pilots dispute retirement benefits. Lufthansa has cancelled 1,450 flights as a result, affecting more than 200K passengers and two thirds of its scheduled flights.

Yahoo is expected tomorrow to outline cost-cutting efforts and give details of how it is evaluating possible acquisitions, as the company faces pressure from activist investor Starboard Value. The struggling Internet business is considering buying one or more large technology start-ups with some of the $5.8B it made off of Alibaba's (NYSE:BABA) IPO. Acquisitions could trigger significant new streams of revenue at Yahoo (NASDAQ:YHOO), where sales have declined in four out of the past five quarters.

Today's economic calendar:

10:00 Fed's Powell: “Fed Perspectives on Community Banking”
12:00 PM Daniel Tarullo speech

Notable earnings before today's open: BTU, CBU, GCI, GPC, HAL, HAS, LII, NVR, PETS, PHG, SAP, VFC, VRX

Notable earnings after today's close: AAPL, BRO, BXS, CDNS, CE, CMG, CYS, ELS, EWBC, GLF, HLX, HSTM, HXL, IBM, ILMN, KALU, PCH, PKG, RCII, RMBS, STLD, TXN, UCTT, WERN, ZION