Bayer has raised its offer for Monsanto (NYSE:MON) to $127.50 a share, bringing the total value of the potential deal to over $65B, which would be the largest all cash takeover on record. It's the second time Bayer (OTCPK:BAYRY) has raised its bid, having started at $122 a share back in May before offering $125 in July. It's also the latest in a string of deal activity in the chemical sector: ChemChina recently bought Syngenta (NYSE:SYT) for about $43B, while Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD) are in the process of a $130B tie-up. MON +2.7% premarket.

Economy

"We are determined to use all policy tools - monetary, fiscal and structural - individually and collectively to achieve our goal of strong, sustainable, balanced and inclusive growth," heads of the world's top economies declared in a joint communique on Monday following a summit in Hangzhou, China. G20 leaders also reiterated their support for "international tax cooperation, a transparent financial system, environmentally sustainable growth strategies, and opposition to protectionism on trade and investment in all its forms."

Oil continues to trade higher in the session, adding to yesterday's rally as other producers welcomed an agreement between Saudi Arabia and Russia to stabilize the crude market. However, prices have drawn back from Monday's highs amid skepticism as to whether the two oil giants will be able to reach an output deal. According to Saudi Energy Minister Khalid al-Falih, "Freezing production is one of the preferred possibilities, but it does not have to happen specifically today."

Shares across the globe have started the week in a positive mood after Friday's muted U.S. jobs report fueled expectations the Fed may refrain from raising interest rates later this month. "The unemployment report was not weak enough to completely undermine the Fed's hawkish bias since Jackson Hole. It was probably enough to see fence-sitters on the FOMC wait until December before voting to hike interest rates," wrote analyst Jasper Lawler at CMC Markets.

A gauge of U.K. services jumped the most on record in August, adding to evidence of an economic rebound following the shock inflicted by the decision to leave the EU. IHS Markit's Purchasing Managers Index surged to 52.9 from a seven-year low of 47.4 in July, the biggest monthly gain since the survey began two decades ago. Meanwhile, Theresa May has eliminated a dramatic near-term shake-up of immigration policy that would see EU citizens lose their preferential access to the U.K.

All operations at London's City Airport have been suspended after nine protesters occupied the runway by erecting a tripod and locking themselves together. Following a series of conflicting reports on which campaign group had led the protest, U.K. Black Lives Matter released a statement on its social media accounts: "London City Airport is shutdown to protest the U.K.'s environmental impact on black people."

Eurozone GDP growth came in at just 0.3% for the second quarter, according to Eurostat, confirming an initial estimate published in July. The figure compares to an expansion of 0.5% in the first three months of the year. Recent survey data also suggests that growth isn't likely to pick up dramatically in Q3 either, despite both the eurozone and U.K. economies so far proving fairly resilient to any post-Brexit tremors.

The ECB has passed the €1T mark for its controversial purchases of government bonds, putting pressure on policymakers to address the scarcity of available assets when they meet in Frankfurt this week. Despite being well beyond the halfway point of the €1.7T program, inflation remains virtually non-existent. The latest figure from Eurostat showed euro area prices rising by 0.2% in the year to August - well below the central bank's inflation target of just under 2%.

The eurozone won't release additional bailout money for Greece at a meeting in Bratislava this month, sources told Germany's Handelsblatt Global. According to EU diplomats, Athens has only implemented two of 15 political reforms that are conditions for the bailout money. Above all, they said, Greece had been slow to privatize state assets.

Several pro-independence candidates have won seats in Hong Kong's first major election since pro-democracy protests in 2014, prompting a robust warning from Beijing. The Hong Kong and Macao Affairs Office said it "resolutely opposed" any form of independence, noting it would violate China's constitution. According to the Electoral Affairs Commission, 58% of the city's 3.8M eligible voters cast ballots, up from 53% in 2012, marking the highest turnout for any legislative election since 1997.

President Obama has cancelled what would have been his first meeting with Philippines' President Duterte, who described him as a "son of a bitch" on Monday. Obama was expected to challenge him on thousands of killings that have been part of the country's war on drugs, but the Filipino leader said he wouldn't discuss humanitarian issues, declaring he was "no American puppet." Duterte later expressed regret over the remark, saying his response to a reporter's question "elicited concern and distress."

Citing reasons such as continued growth, low inflation and mixed labor market data, the RBA kept rates unchanged at a record low of 1.5%, but warned the climbing Aussie dollar could complicate the country's economic recovery. There were also mentions of the prolonged period of low commodity prices and rising housing costs keeping Australia's terms of trade lower than they have been in recent years.

Singapore's central bank chief said there were early indications that a Zika outbreak in the city state could have a small impact on the economy, but it was too early to assess the impact of the virus on the financial and transit hub. In just one week, the number of locally-transmitted Zika cases has gone from zero to 242, raising concerns about a potential rapid surge in cases across Asia.

Congress returns from a seven-week recess today with only a few weeks to pass a stopgap spending bill to keep the government running before funding runs out on September 30. Lawmakers will likely clash over money to fight the Zika virus, as well as a White House request to restore full lending authority to the U.S. Export-Import Bank.

Stocks

General Electric has agreed to acquire two European 3-D printing companies for a combined $1.4B, tapping into manufacturers' growing demand for digital technologies. Both Arcam (OTCPK:AMAVF) and SLM Solutions (OTC:SLGRF) make machines that can print metal parts used in aircraft components such as turbines. 3-D printing "will drive new levels of productivity for GE including a wide array of additive manufacturing customers, and for the industrial world," CEO Jeff Immelt said in a statement.

Airbus orders are taking off with three airlines checking in for new aircraft. VietJet has ordered 20 more planes valued at over $2.4B, while JetStar Pacific and Vietnam Airlines said they would buy 10 new A320s and 10 A350s, respectively. That leaves Airbus (OTCPK:EADSY) and Boeing (NYSE:BA) neck-and-neck in the year-to-date order race although overall demand is down on an annual basis due to lower oil prices.

Volkswagen's trucks division is close to announcing a partnership with Navistar (NYSE:NAV), in the latest example of a deal driven by emissions regulations. VW (OTCPK:VLKAY) will pay around $16 per Navistar share or about €200M in exchange for a 19.9% stake in the truckmaker, sources told Reuters, saying a deal could be announced as soon as today. NAV +26% premarket.

General Motors has settled the final two so-called bellwether cases aimed at setting settlement patterns for a faulty ignition switch linked to 124 deaths and 275 injuries. GM still faces another round of bellwether trials next year stemming from safety recalls, including those of vehicles with different ignition switches that can suffer unintended rotations.

Multiple British Airways flights were delayed at a number of U.S. airports late Monday due to a glitch in the airline's check-in system. "Our IT teams are working as hard as they can to quickly fix the problem," British Airways (OTCPK:ICAGY) said in a statement. "We are sorry for the delays some customers are experiencing as they check-in for their flights."

South Korea's Hanjin Shipping plans to file for court protection in about 10 countries, including Canada, Germany and the U.K., this week, and later expand that to 43 jurisdictions to protect its ships from being seized by creditors. The world's seventh-largest container operator by capacity filed for bankruptcy protection on Friday in the U.S. under Chapter 15, which deals with international insolvency matters. Hanjin's (OTC:HNJSF) court hearing is scheduled for today.

Ending a six-month search for the number two job under CEO Jes Staley, Barclays (NYSE:BCS) has hired JPMorgan (NYSE:JPM) banker Tim Throsby to head its Corporate and International unit. He'll also run Barclays' investment banking business within that division, filling the gap left by the departure of Tom King, who retired from the bank in March. Subject to regulatory approvals, Throsby is expected to take up his new role in January.

ChemChina has secured commitments from 17 lenders on a $12.7B loan for its purchase of Syngenta (SYT), sources told Bloomberg. ChemChina agreed to buy Syngenta for $43B earlier this year in a deal that would transform it into the world's largest supplier of pesticides and agrochemicals. It received takeover approval from the U.S. last month, though the deal is still subject to antitrust review by regulators worldwide.

Brazil's largest fixed line carrier Oi has unveiled a debt restructuring proposal, offering to sell assets and proposing a debt-for-equity swap option that could mean a 70% haircut for bondholders. Oi (NYSE:OIBR) filed for protection from creditors on June 20 in the country's biggest-ever bankruptcy case, involving 65.4B reais ($19.3B) in bonds, bank debt and operating liabilities.

Joining the industry group that runs the Bluetooth wireless standard, Snapchat has given the strongest hint yet of its ambitions to move from apps into hardware, FT reports. The move follows a string of new recruits and acquisitions from the world of consumer electronics, fueling speculation that the photo-sharing start-up is building a pair of augmented reality goggles. Snapchat (Private:CHAT), which is valued at more than $15B, has over 150M daily active users.

Tencent Holdings has become the most valuable company in Asia, beating out state-owned telecom China Mobile (NYSE:CHL) and entering the realm of the world's top 10. The company's shares closed 2.3% higher at HK$215 in Hong Kong today, lifting its market capitalization to HK$2.04T ($263B). Tencent (OTCPK:TCEHY) is best known for operating China's biggest messaging services QQ and WeChat. It also offers online payment services, cloud storage and entertainment.

Today's Markets

In Asia, Japan +0.3% to 17801. Hong Kong +0.6% to 23787. China +0.6% to 3090. India +1.6% to 28978.
In Europe, at midday, London -0.3%. Paris +0.1%. Frankfurt +0.2%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude +1.1% to $44.93. Gold +0.7% to $1335.30.
Ten-year Treasury Yield flat at 1.6%

Today's Economic Calendar

8:30 Gallup US Consumer Spending Measure
9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:00 Labor market condition index
12:30 PM TD Ameritrade IMX
2:00 PM Gallup US ECI
8:30 PM Fed's Williams: Economic Outlook