TOP STORIES
U.S. CONSUMER SPENDING FALLS
Household spending fell in July, a sign cautious consumers could
hold back economic growth. Personal spending fell a seasonally
adjusted 0.1%. Personal income rose 0.2%. Economists expected
spending would rise 0.1% and income would rise 0.3%.
PUTIN LASHES OUT AT UKRAINE OVER FAILURE OF TALKS
Russian President Vladimir Putin accused Kiev and its allies of
backing peace talks only as a smoke-screen to allow Ukraine to
continue military operations, sidestepping accusations that Russia
is funneling troops into Ukraine to fight alongside separatist
rebels.
LEW TO SPEAK ON TAX REFORM, INVERSIONS
Treasury Secretary Jacob Lew is planning a Sept. 8 speech about
a controversial corporate strategy known as tax inversions,
suggesting that the White House could be progressing in its effort
to upend the practices.
U.S. STOCKS EDGE BACK UP
U.S. stocks rose, with the Dow industrials on pace to cap their
biggest monthly gain since February. Traders said the level of
activity was low -- in line with the market's recent summer
lull.
U.S. SENTIMENT INDEX IMPROVES
The Thomson-Reuters/University of Michigan final-August
sentiment index rose to 82.5 from a preliminary reading of 79.2 and
the final July reading of 81.8. The latest reading was above the
80.2 expected by economists.
CHICAGO PMI JUMPS IN AUGUST
The Chicago Business Barometer, commonly called the Chicago PMI,
rose 11.7 points in August to 64.3, regaining all the ground lost
in July, driven by a surge in production and new orders.
J&J, BAYER AIM TO EXPAND XARELTO'S USES
Johnson & Johnson and Bayer announced plans to launch
clinical trials of the anticoagulant Xarelto against three new
diseases in an ambitious bid to widen the market for a drug poised
to exceed $1 billion in sales this year.
SPRINT TO SELL NEXT SONY XPERIA PHONE IN U.S.
Sprint will sell Sony's next Xperia handset in the U.S. as part
of a strategy to broaden its lineup of smartphone offerings to
limit customer flight, a person familiar with the matter said.
IMF APPROVES BAILOUT PAYMENT TO UKRAINE
The International Monetary Fund approved the latest payment to
Ukraine in its $17 billion bailout program, providing a critical
boost to Kiev as it faces military, economic and political
threats.
OIL RISES ON UKRAINE VIOLENCE
Oil prices rose as tensions in Ukraine continued to rise and
leaders in the U.S. and Europe said they would consider new
sanctions against Russia's economy.
RUSSIA SHUTS 12 MCDONALD'S RESTAURANTS
The number of McDonald's restaurants shut down by Russia's
consumer regulator continues to rise as tensions between Moscow and
the West grow after Kiev accused Russia of invading Ukraine.
======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
Heard on the Street
GETTING TO THE CORE OF THE ECB'S INFLATION PROBLEM
The European Central Bank is under pressure to loosen policy
because energy and food prices are dragging inflation lower. The
euro zone seems at greater risk of a panic over deflation than of
experiencing the phenomenon itself.
Money Talks
THE GOOD NEWS IN EUROPE'S INFLATION STORY
Outright deflation for the single currency region overall seems
a distinct prospect. But there's a bright spot. Lower inflation due
to dropping energy prices leaves more money to spend on
discretionary goods, writes Alen Mattich.