Updated from 5:55 a.m. EDT with information on the Tesla and SolarCity merger.
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Here are five things you must know for Monday, Aug. 1:
1. -- Uber reached an agreement for its China operations to be acquired by local rival Didi Chuxing.
Didi Chuxing confirmed the alliance Monday following reports in several media outlets. Uber will receive 5.89% in preferred shares in Didi Chuxing, which is equivalent to a 17.7% economic interest, while Baidu (BIDU - Get Report) and other Chinese backers of Uber will receive 2.3%.
Didi Chuxing didn't disclose the terms of the deal, which were previously reported to have valued Didi Chuxing at $28 billion and Uber China at $7 billion.
Didi Chuxing founder and Chairman Cheng Wei will join the board of the San Francisco's Uber, while Uber founder Travis Kalanick will take a board seat at its Chinese partner.
The two companies have been hit with heavy losses as they fought to attract customers. Uber is reported to have been spending $1 billion a year on Chinese expansion and had been planning to spend some of the $3.5 billion it raised in June from Saudi Arabia's sovereign wealth fund on that market.
Separately, Uber is preparing to put $500 million into a global mapping project as it seeks to wean itself off dependence on Google Maps and pave the way for driverless cars, the Financial Times reported.
2. -- The market shouldn't be ruling out the possibility the Federal Reserve will raise interest rates again this year, New York Federal Reserve Bank President William Dudley said Monday.
"Market expectations, to my eye, derived from federal funds futures prices, which price in no more than one 25 basis-point rate hike through the end of 2017 ... appear to be too complacent," he told a conference of central bankers and financial regulators on the Indonesian island of Bali, CNBC reported.
Dudley said he expected the U.S. economy to grow around 2% annualized over the next 18 months, boosted by improved consumption.
"If the upcoming information validates my view of the outlook, then U.S. monetary policy will need to move at a faster pace than implied by futures prices to a more neutral posture as the labor market tightens further and U.S. inflation rises," Dudley said, CNBC reported.
3. -- U.S. stock futures on Monday were pointing higher as investors appeared to be shrugging off comments from the Fed's Dudley after U.S. economic growth data released Friday came in soft.
European stocks rose Monday, following a mixed day in Asia, as banking shares responded to stress test results from late Friday. The European Banking Authority's stress tests examined how 51 lenders would fare in an "adverse scenario," which included GDP shrinkage for two consecutive years. Almost all emerged with a core Tier One Equity capital ratio above the minimum 4.5% floor.
The S&P 500 ended a record-making July on Friday just shy of clinching new closing highs. The index gained 0.16% on Friday to 2,173.43, short of its previous record of 2,175.03. For the month, the S&P 500 gained 3.6%.
The economic calendar in the U.S. Monday includes the ISM Manufacturing Index for July at 10 a.m. EDT, and Construction Spending for June at 10 a.m.
Under the agreement, SolarCity stockholders will receive 0.110 a Tesla common share per SolarCity share, valuing SolarCity common stock at $25.37 a share based on the five-day volume weighted average price of Tesla shares as of July 29, SolarCity said in a blog post Monday.
Shares of SolarCity jumped 7% before they were halted for trading at around $28.68 a share. The stock is set to resume trading at 7:30 a.m.
While Elon Musk is CEO of Tesla, chairman of SolarCity and the biggest shareholder in both companies, a merger agreement wasn't certain because SolarCity had formed a special committee to review Tesla's offer independent of the influence of Musk and other executives close to him, Reuters noted.
5. -- GlaxoSmithKline (GSK - Get Report) is forming a joint venture with Alphabet's (GOOGL - Get Report) Verily Life Sciences that will invest 540 million pounds ($714 million) in the relatively new field of bioelectronic medicine.
The new company -- Galvani Bioelectronics -- will be based in the U.K. and will "enable the research, development and commercialization of bioelectronics medicines."
GSK will hold 55% of the equity interest in Galvani and Verily (formerly Google Life Sciences) will own the remaining 45%.
Bioelectronic medicine is the use of miniature, implantable devices that can modify electronic signals that pass along nerves to help chronic diseases. GSK has researching the field since 2012 and said that diseases such as arthritis diabetes and asthma could possibly be treated by using the devices.