The global recession has taken its toll on many companies, as have cheap knockoffs of products. When you can get a comparable product for half the price, why wouldn't you purchase the cheaper product? While such practices may not take a major bite out of the profits of athletic apparel companies like Nike (NKE) or Under Armour (UA), it is having a devastating impact on Russian company OAO Izhmash. Haven't heard of OAO Izhmash, if you haven't, I can almost guarantee that you have heard of its major product: the AK-47.

General Dynamics (NYSE: GD) turned in a quarterly profit that beat expectations. The business of battle overshadowed aviation industry contraction, which contributed to the result. Thanks to the strong Q3, General Dynamics has raised its profit forecast for the year.

JPMorgan analyst Joseph Nadol wrote to his clients this morning that "the stock has been strong recently" and "there is no denying that the company posted good results." But, he also observed that the near-term upside is limited, because investors expected a solid Q3, and the company still faces some pressure from a pretty sharp drop in its aerospace backlog.

MAJOR PAPERS:

• Higher interest rate are making commercial real estate deal makers think twice about deals, according to the Wall Street Journal's "Heard on the Street," sending shares of companies like Archstone-Smith Trust (NYSE: ASN) down from $64 to $60.75 a share.
• The Financial Times reported that U.S. senators have proposed new laws that would impose higher taxes on private equity firms that list their shares on stock exchanges, a move that could be a blow to private-equity firm Blackstone Group, which is seeking to list its shares.
• The U.S. and U.K. are working on a treaty that would allow Britain to buy American weapons without obtaining export licenses, the Financial Times reported; any deal on the issue could face opposition in the U.S. Congress, although the British believe eliminating the need for the licenses would expedite the arms purchasing process.

OTHER PAPERS:

• Turnaround candidate Eastman Kodak Company (NYSE: EK) may be ready to shine, BusinessWeek's "Inside Wall Street" column reported, and now may be a good time to evaluate a potential EK play, according to investment advisor Gregory MacArthur.
• Gateway Inc (NYSE: GTW) is selling products in China for the first time in a pilot program with Digital China Holdings Ltd, the LA Times reported.
• According to The Nation, The Dow Chemical Company (NYSE: DOW) is planning to ask its board of directors later this year for approval to invest in five petrochemical projects in Thailand.
• Cementos Portland Valderribas, a unit of Fomento de Construcciones y Contractas is planning a bid for Texas Industries Inc (NYSE: TXI), the Expansion reports, citing people close to the situation.