SoftBank has acquired chip designer ARM Holdings (NASDAQ:ARMH) for £24.3B ($32B), as the Japanese telecoms giant bolsters its presence in the growing Internet of Things sector. The deal will see SoftBank (OTCPK:SFTBY) pay £17 in cash for each share in ARM, a 43% premium to its closing price last week, recording the largest ever purchase of a European technology company. ARMH +43% premarket.

Economy

The Istanbul 100 Index slid 5.1% this morning, while the Turkish lira rebounded 3% to 2.9274 vs. the greenback, following Friday's failed coup attempt that left 290 people dead and over 6,000 arrested. NATO allies have thrown their support behind President Erdogan, but tension is still high over his demand to extradite a U.S.-based cleric whom he blamed for the overthrow attempt. Is the West shifting its stance of wanting a thriving democracy in countries like Turkey and Egypt, or at this point, does it just want strength and stability?

Turkey's Deputy PM Mehmet Simsek has told investors "not to worry," saying the government has decided on "all necessary measures" after consulting with the central bank and treasury. Turkish Airlines on Saturday resumed flights from Istanbul's international airport, although some foreign carriers canceled weekend transport (the number of visitors to Turkey fell by 28% in April, marking the biggest drop in 17 years).

China has room to increase its fiscal deficit ratio to between 4-5% to more effectively boost the economy, official media quoted a central bank official as saying. The nation's current fiscal deficit target is 3% of GDP, up from an actual 2.4% in 2015. Meanwhile, the yuan fell overnight to its weakest level since 2010, pulled down by cooling property prices, a rebounding dollar and a weaker central bank fixing.

The ECB will release the list of names and allocations of the first set of bonds bought under its corporate purchase program later today after buying €8.5B worth of company paper since June 8. About 16% of European Investment grade corporate bonds currently hold negative yields, according to John Taylor, a fixed income portfolio manager at AB.

Brexit news roundup: International Trade Secretary Liam Fox is aiming for a Brexit date of January 1, 2019, but said the time could "be brought forward if necessary." Britain may also seek to curb immigration from the European Union even before it formally leaves the bloc, according to Brexit "Tsar" David Davis. Scotland's Nicola Sturgeon separately confirmed she would not rule out the possibility of Scotland remaining in the EU as well as part of Britain.

The Italian government is working on plans to set up a €50B bad bank bailout, sources told the Sunday Telegraph. The scheme, which is being put together by JPMorgan (NYSE:JPM), could help clean up the nation's stricken lenders, but also puts the country on a collision course with the EU, which does not want taxpayers bailing out banks before private investors take a hit.

Presumptive GOP nominee Donald Trump formally introduced Indiana Gov. Mike Pence as his running mate on Saturday after days of speculation. "I found the leader who will help us deliver a safe and really prosperous society for all Americans," Trump said at a rally in Manhattan. The announcement comes ahead of the Republican National Convention, which kicks off today in Cleveland.

At least three Baton Rouge police officers were killed on Sunday when they were gunned down in an apparent "ambush" by ex-Marine Gavin Long. The attack comes less than two weeks after the fatal shooting of a black man by police sparked protests in the city, turning the area into the latest flashpoint in the ongoing debate over law enforcement tactics.

Saudi nationals connected to the government in Riyadh may have aided some of the 9/11 hijackers, according to the long-classified "28 pages," but U.S. intelligence officials emphasized that they didn't consider it accurate or reliable. The document does "not put forward vetted conclusions, but rather unverified leads that were later fully investigated by the intelligence committee," said Representative Devin Nunes, the committee's Republican chairman.

More than 90 of the biggest U.S. companies will report results this week, giving a clearer picture of what is expected to be the fourth straight quarter of declining profits. Based on analysts' forecasts for companies in the S&P 500 index, Thomson Reuters predicts adjusted earnings per share for the second quarter will be down 4.7% from a year earlier, following a 5% drop in Q1.

Stocks

The phenomenal success of Pokemon GO and the surge in Nintendo's (OTCPK:NTDOY) market value by $17B in just over a week has shown the potential for augmented reality and the company's need to capitalize on its other popular game titles. Pokemon GO launched in 26 new countries over the weekend, but a Pokecrisis was declared immediately, with outages and server problems reported across the globe.

ExxonMobil has made a superior $2.2B offer for InterOil (NYSE:IOC), outbidding Oil Search (OTCPK:OISHF) for the company's large natural gas reserves in Papua New Guinea and the possibility to export the fuel from the Pacific nation. The move pits ExxonMobil (NYSE:XOM), the world's biggest oil company, against Total (NYSE:TOT), which is backing Oil Search. The latter has at least until July 21 to submit a revised offer.

Due to a Hawaiian regulatory order dismissing the companies' merger application, NextEra Energy (NYSE:NEE) and Hawaiian Electric (NYSE:HE) have announced the termination of their plans to combine. Under the merger agreement's conditions, NextEra will pay Hawaiian Electric a $90M break-up fee and up to $5M for reimbursement of expenses associated with the transaction.

The first case of female-to-male sexual transmission of the Zika virus has been documented in NYC, raising the prospect that the disease will spread further than previously thought. "The more we learn about Zika, the more concerned we are," said Dr. Thomas Frieden, director of the CDC. For months, there has been growing fear about the dangers of sexual transmission, but until now the virus has been thought to pass only from men to women or between two men. Related tickers: SNY, INO, AEMD, XON, CEMI, BCRX, TMO, OTCQB:GOVX

Boeing marked its centennial late Friday with plans to sharpen its focus on innovation, including ambitious projects for supersonic commercial flight and a rocket that could carry humans to Mars. But innovation at Boeing (NYSE:BA) will be "disciplined" and not endanger the future of the world's biggest planemaker, CEO Dennis Muilenburg told reporters at an event marking the company's founding on July 15, 1916.

SpaceX has successfully landed another Falcon 9 rocket after launching a Dragon spacecraft into orbit, where it will rendezvous with the International Space Station later this week. It marks the second time SpaceX (Private:SPACE) has pulled off this type of ground landing in Cape Canaveral, and the fifth time the firm has recovered one of its rockets post-launch.

Egyptian officials on Saturday disclosed that the word "fire" is clearly audible on the cockpit voice recording from EgyptAir Flight 804, but there are still no clear answers about the sequence of events that brought down the jetliner. The Airbus A320 (OTCPK:EADSY) crashed into the Mediterranean Sea almost two months ago, en route from Paris to Cairo, killing all 66 people on board.

OUR Walmart, the American worker group, has taken the unusual step of collaborating with the Wal-Mart Chinese Workers Association, discussing strategies on Skype last month for fighting work schedule changes and low wages. The U.S. organization is keen to maintain the relationship with the WCWA and believes such partnerships can boost the clout of the retailer's global workforce.

Singapore's central bank is scrutinizing several institutions, including UBS and DBS Group (OTCPK:DBSDY), to see if they broke anti-money laundering rules in handling transactions linked to scandal-hit Malaysian state fund 1MDB. The probe could lead to fines and other penalties if lapses are found, Reuters reports, although it's still unclear which transactions by the banks are being examined.

Volkswagen executives in the U.S. have pledged to compensate 650 American franchise dealers who have been dented by the carmaker's emissions crisis. The decision, which came at a meeting at a meeting on Friday, marked the first time VW (OTCPK:VLKAY) acknowledged that dealers would get retribution for the economic damage they suffered from the scandal.

Today's Markets

In Asia, Japan +0.7% to 16498. Hong Kong +0.7% to 21803. China -0.4% to 3044. India -0.3% to 27747.
In Europe, at midday, London +0.3%. Paris -0.4%. Frankfurt -0.2%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude -0.6% to $46.39. Gold -0.1% to $1326.80.
Ten-year Treasury Yield -2 bps to 1.57%

Today's Economic Calendar

10:00 NAHB Housing Market Index
4:00 PM Treasury International Capital