United Technologies agreed Monday to buy Raytheon in an all-stock transaction whereby UTX shareholders would own around 57% of a combined company with annual sales of around $74 billion.

Why it matters: It would be the largest-ever merger in the aerospace and defense contracting space, and is sure to be causing consternation at Boeing and Airbus.

  • But first: UTX still plans to complete the previously-announced spin-outs of its Otis elevator and Carrier air conditioner businesses.

The bottom line: "The deal would reshape the competitive landscape by forming a conglomerate which spans commercial aviation and defense procurement. United Technologies provides primarily commercial plane makers with electronics, communications and other equipment, whereas Raytheon mainly supplies the U.S. government with military aircraft and missile equipment," write Reuters' Harry Brumpton and Kate Duguid.

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Illustration: Aïda Amer/Axios

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Why it matters: While classroom-based learning can be done virtually, it's nearly impossible to replicate physical education — which plays a crucial role in kids' physical and mental health — through a screen. And with sports on hold in most states, PE is the only physical activity outlet some kids have.

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Updated 27 mins ago - World

China announces retaliatory sanctions on Rubio, Cruz and other U.S. officials

Photos: Graeme Jennings/Pool/Getty Images; Al Drago/Pool/Getty Images

China's Foreign Ministry announced Monday that it's imposing sanctions on Sens. Marco Rubio (R-Fla.) and Ted Cruz (R-Texas), along with nine other Americans, per Bloomberg.

Why it matters: It's a direct response to similar actions by the U.S. that included the Trump administration placing sanctions on officials Hong Kong leader Carrie Lam last Friday over Beijing's encroachment of the Asian financial hub's s autonomy.