Here is what you need to know.
- Top US trade negotiator confirms new China tariffs are coming. “Over the course of the last week or so, we have seen an erosion in commitments by China, I would say retreating from specific commitments that had already been made,” US Trade Representative Robert Lighthizer said on Monday.
- Stocks markets around the world are lower. Japan’s Nikkei (-1.51%) paced the decline in Asia as traders returned to work following Golden Week, and Britain’s FTSE (-0.93%) trails in Europe. The S&P 500 is set to open little changed near 2,918.
- Goldman Sachs has a plan to survive the coming stock-market turbulence. David Kostin, Goldman Sachs’ chief US equity strategist, explains why he thinks investors should be looking for growth stocks at a reasonable price.
- An escalation of the trade war has 4 major implications for China. China needs to be worried about its economy slowing even further, a weakening currency, and a bear market in stocks, and it would most likely have to step up stimulus efforts if President Donald Trump were to slap new tariffs on its goods, according to Capital Economics’ senior China economist, Julian Evans-Pritchard.
- Bitcoin is threatening to cross $US6,000 for the first time since November. The cryptocurrency is up 3.74% near $US5,919 a coin.
- AMD and Nvidia are dealing with a ‘major concern’ as Trump escalates the trade war with China. “We think China trade talks will negatively impact our universe,” the RBC analyst Mitch Steves wrote. “Most notably, we think GPUs and Semi-cap are most at risk to the downside if tensions continue to rise.”
- John Schnatter may be looking to sell his stake in Papa John’s. The pizza chain’s founder is in talks with financial advisers about the possibility of selling his approximately 31% stake, Reuters reports.
- Wells Fargo has reportedly reached out to the co-CEO of Bridgewater Associates. The beleaguered bank has contacted Eileen Murray, the co-CEO of Bridgewater Associates, the world’s largest hedge fund, about becoming its CEO, The Wall Street Journal reports.
- Earnings reporting is heavy. Ferrari reports ahead of the opening bell, while Lyft, Match Group, Papa John’s, and Wingstop release their quarterly results after markets close.
- US economic data is light. Jolts Job Openings will be released at 10 a.m. ET and consumer credit will cross the wires at 3 p.m. ET.
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