EU antitrust regulators have ordered Apple (NASDAQ:AAPL) to pay up to €13B ($14.5B) in taxes to the Irish government after ruling that a special scheme to route profits through the country was illegal state aid. "In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1% on its European profits in 2003 down to 0.005% in 2014," Commissioner Margrethe Vestager declared. Apple and Ireland said they would appeal the decision. AAPL -2.7% premarket.

Economy

More than 100 flights were canceled and evacuation warnings were issued for thousands of people as Typhoon Lionrock approached Japan's northeast, a region devastated by a massive earthquake and tsunami five years ago. Toyota (NYSE:TM) has suspended production at two of its factories in the storm's path, while Tokyo Electric Power (OTCPK:TKECY) said offshore work would be halted and equipment would be stowed away to prevent accidents.

French Trade Minister Matthias Fekl aims to end TTIP negotiations in September because the free trade agreement has "no political support," a message that echoes his German counterpart who said Sunday that the talks had "de facto failed." Not everyone agrees with their stance. European Commission spokesman Margaritis Schinas confirmed that "the ball was still rolling," while U.S. Trade Representative Michael Froman said the "negotiations were in fact making steady progress."

Acting Prime Minister Mariano Rajoy will ask the Spanish Parliament to back him for a second term today, as he seeks to end an eight-month political impasse. Rajoy has secured 170 votes in the 350-seat chamber, but with many party leaders still opposed to his candidacy, the incumbent is set for defeat unless the grandees within the Socialist Party can persuade its leader, Pedro Sanchez, to back down at the last minute.

Eurozone confidence edged lower in August, as the European Commission's economic sentiment indicator fell to 103.5 from 104.5 in July, suggesting the Brexit vote has started to take its toll on the single currency bloc. With ECB President Mario Draghi leaving it largely to economic data to fine-tune policy expectations before next week's Governing Council meeting, the release provides a case for more stimulus to sustain the recovery and revive inflation.

Stocks

Apple has its tax issues in Ireland but it will hope to put all that behind it next week as a new iPhone is expected to be announced. What will an iPhone 7 (AAPL) look like? According to several reports, it will include waterproofing, stereo sound, a touch-sensitive home button, a dual-lens camera, and due to its thinner chassis, the headphone jack will be removed. The starting point for storage on the new entry-level model is thought to be 32GB, up from 16GB.

New MacBooks, iPad features and a monitor may also be in the works from Apple (AAPL) - but at least some of those devices may not be seen until after the company's Sept. 7 event. A thinner laptop, a faster iPad display to work with Apple Pencil, and 5K monitors are among the updates coming to Apple products, sources told Bloomberg. But the MacBook, which some tech bloggers had thought might come alongside the iPhone 7, is more likely to be released in October.

Facebook roundup: Mark Zuckerberg hopes to show off his robot butler next month, an artificial intelligence system he's building as part of his New Year's resolution. Germany wants the company to be more proactive in removing forbidden content from its platform and take initiative in the fight against online hate. Facebook (NASDAQ:FB) is also allowing users to trigger its "safety check" feature instead of the social network having sole control over it during a disaster.

The House Oversight and Government Reform Committee has launched an investigation into the cost of EpiPens, describing Mylan (NASDAQ:MYL) as having a "virtual monopoly" over the auto-injector market while profiting richly from its "unreasonable" pricing strategy. The letter asks Mylan executives to brief the committee by Sept. 6 and provide documents on its revenue, expenses and lobbying disclosures.

Countries including the U.K., Australia and Taiwan have issued travel advisories for tourists to Singapore after the city-state announced a further increase in Zika cases. Singapore's Ministry of Health confirmed 15 more people with locally-transmitted Zika, bringing the total number affected to 56. "We expect to identify more positive cases," the official statement said. Related tickers: SNY, ABT, INO, AEMD, XON, CEMI, BCRX, TMO, OTCQB:GOVX, OSUR

Uber has bid farewell to longtime Alphabet (GOOG, GOOGL) executive David Drummond, who recently left its board as the firms clash over the future of transportation. UBER has redirected much of its focus on developing a fleet of self-driving cars, also a sweet spot for Google, and recently opened a technology center in Pittsburgh, hired away some of the top robotics minds at Carnegie Mellon and partnered with major automakers like Volvo (OTCPK:GELYY).

Mitsubishi Motors overstated the fuel economy on eight of its vehicle models, in addition to four others the embattled automaker admitted to earlier this year, the Nikkei reports. Mitsubishi (OTC:MMTOY) is likely to withdraw the affected cars from the market to revise its catalogs, a process which could take about two to three weeks. Compensation to customers is also a possibility.

It will take two to three years for Volkswagen's (OTCPK:VLKAY) wide-ranging revamp to bear fruit, CEO Matthias Mueller said at a briefing in Hamburg. VW's management board is working on 60 projects to overhaul the German automaker, including a cultural shift to get the company's 12 brands and numerous divisions to cooperate, as it retools for technological change and seeks to recover from its diesel-emissions cheating scandal.

From the air... Southwest (NYSE:LUV) has agreed in principle with its pilots union on a new contract that would provide an immediate 15% pay raise followed by annual increases and a ratification bonus. American Airlines (NASDAQ:AAL) President J. Scott Kirby is leaving the company to take the same role at United Continental (NYSE:UAL) and Boeing (NYSE:BA) will refrain from increasing jetliner prices for the first time since 2009 as the industry grapples with a slowdown in sales.

In a case full of twists, Caesars Entertainment (NASDAQ:CZR) rose 4.7% AH after winning a two-week extension on a shield from lawsuits worth billions of dollars just days after a different U.S. court allowed those cases to proceed. Shares of the gaming company closed down about 16% on Monday due to concerns of an imminent ruling on the New York lawsuits, which the firm has warned could plunge it into bankruptcy alongside its operating unit.

More than 76,000 people have signed a petition demanding former European Commission President Jose Manuel Barroso be stripped of his pension after taking a job at Goldman Sachs (NYSE:GS). Organizers plan to present it to current leaders of the EU institutions at the end of September. Critics claim the role is inappropriate given Goldman's role in the U.S. subprime crisis and Greek debt talks.

Energy deals: Chevron (NYSE:CVX) has signed a 10-year term supply deal with China's ENN to supply up to 650K metric tons per annum of LNG, which could boost the formation of a spot market for the fuel in Asia. More gas is coming on board from Statoil (NYSE:STO) after its Gullfaks Rimfaksdalen field started production four months ahead of schedule. KKR-backed Samson Resources has reached a new agreement with creditors that aims to bring the company out of Chapter 11 under the ownership of its second-lien lenders.

Following last year's Samarco disaster in Brazil, BHP Billiton (NYSE:BHP) is centralizing dam management and applying the industry's most rigorous evaluation process at its mines. The appraisal is separate from a recent audit looking into the causes of the rupture at the Samarco mine, which found the dam collapsed due to liquefaction, a process where a solid material such as sand loses strength and stiffness and behaves more like a liquid.

Mondelez has ended discussions with Hershey (NYSE:HSY) regarding a potential merger after factoring in recent shareholder developments at the candy company. "We remain focused on successfully executing our strategy to deliver both sustainable top-line growth and significant margin expansion," said Mondelez (NASDAQ:MDLZ) CEO Irene Rosenfeld. Hershey shares dropped 11.7% in extended trading as a result.

Today's Markets

In Asia, Japan -0.1% to 16725. Hong Kong +0.9% to 23016. China +0.2% to 3074. India +1.6% to 28343.
In Europe, at midday, London +0.1%. Paris +0.8%. Frankfurt +0.9%.
Futures at 6:20, Dow flat. S&P -0.1%. Nasdaq -0.3%. Crude +0.6% to $47.27. Gold -0.4% to $1322.30.
Ten-year Treasury Yield +1 bps to 1.58%

Today's Economic Calendar

8:55 Redbook Chain Store Sales
9:00 S&P Case-Shiller Home Price Index
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index