10 things you need to know before the opening bell

Here is what you need to know.

Some of the biggest names on Wall Street are sounding the alarm on an overlooked threat that could make the next recession way worse. Much of the problem stems from fallout relating to the GOP tax law, which has been great for companies in markets in the short term, but may be creating some daunting long-term consequences.

Oil hits $US70 for the first time since 2014. Oil prices jumped to their highest since late 2014 on Monday on a deepening economic crisis in Venezuela and worries that the Unites States could re-impose sanctions on Iran, Reuters says.

Oil prices have been screaming higher – and that’s actually good news for airlines this time around. “There has been a level of debate amongst investors around the implications of higher oil on Airline shares, and in our opinion, higher is a good thing,” Morgan Stanley analyst Rajeev Lalwani told clients last week. “This is because it instills: 1) Pricing and capacity discipline; 2) Financial constraints on costs and capex; and 3) Margin and multiple expansion.”

Cryptocurrencies are getting whacked. Ethereum leads the major cryptocurrencies lower, trading down 10% at $US710 a token.

Nestle to pay $US7.15 billion to get into Starbucks’ coffee business. Swiss-based food giant Nestle has agreed to pay Starbucks $US7.15 billion in cash for the rights to sell its products around the world in a global alliance aimed at reinvigorating their coffee empires, Reuters says.

SPONSOR CONTENT BY YAHOO! FINANCEThis past weekend, business billionaire Warren Buffett shared his unscripted views on the markets at the annual Berkshire Hathaway Shareholders meeting. Listen to what he had to say.

A new rule that Warren Buffett calls a ‘nightmare’ led to Berkshire Hathaway’s first loss in 9 years. Berkshire Hathaway reported a $US1.14 billion loss in the first quarter, its first net loss since 2009, due largely to an accounting rule Warren Buffett called a “nightmare.”

Warren Buffett responds to Elon Musk’s criticism that one of his core investment principles is ‘lame.’Responding to a question at Berkshire Hathaway’s annual shareholder meeting, Buffett reiterated the importance of the so-called strategic moats he’s touted for many years.

Stock markets around the world are higher. China’s Shanghai Composite (+1.48%) led the advance in Asia and Germany’s DAX (+0.36%) paces a quiet session in Europe.

Earnings reports keep coming. Cognisant and Tyson Foods report ahead of the opening bell.

US economic data trickles out. Consumer credit will cross the wires at 3 p.m. ET. The US 10-year yield is unchanged at 2.95%.

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