10 things you need to know before the opening bell

Here is what you need to know.

Trump seems to be backing down in the trade war with China. President Donald Trump and his administration have taken a softer tone against China in recent weeks, and talks between the two sides have restarted ahead of the G20 summit in Buenos Aires, Argentina, scheduled for the end of November.

A top economist warns Trump’s China trade war is doing more damage to the US economy than people think. “We expect a material slowing in the fourth quarter of this year – so right now – into the first quarter of next year,” Seth Carpenter, UBS’ top US-focused economist, said in London on Thursday at the launch of the bank’s 2019 Global Economic Outlook.

The IMF just became the latest to warn about the $US1.3 trillion ‘leveraged loan’ market. “With interest rates extremely low for years and with ample money flowing though the financial system, yield-hungry investors are tolerating ever-higher levels of risk and betting on financial instruments that, in less speculative times, they might sensibly shun,” the International Monetary Fund said. “It is not only the sheer volume of debt that is causing concern. Underwriting standards and credit quality have deteriorated.”

Oil is gaining ground. West Texas Intermediate crude oil was up 1.54% at $US57.33 a barrel, on track for a third straight day of gains after closing Tuesday at its lowest level in a year.

California’s biggest utility provider has seen half its market value wiped out since the wildfires started. The Pacific Gas and Electric Company has lost more than 60% of its market value after saying last week that it experienced problems with transmission lines and substations near where the wildfire in Paradise, California, erupted. Shares were up 38% ahead of Friday’s opening bell after a state regulator said late Thursday that he couldn’t see a scenario in which PG&E would go bankrupt.

Nvidia misses on revenue and profits. Nvidia was down 18% early Friday after reporting third-quarter adjusted earnings of $US1.84 a share on revenue of $US3.18 billion, missing the $US1.92 and $US3.24 billion that analysts were expecting. The chipmaker’s fourth-quarter revenue guidance also fell short of estimates.

The world has a new most expensive living artist.The sale of David Hockney’s “Portrait of an Artist (Pool with Two Figures)” for $US90.3 million at Christie’s auction house easily broke the 2013 record of $US58.4 million, set by Jeff Koons when his orange balloon dog sold in 2013.

Stock markets around the world were mixed. China’s Shanghai Composite (+0.41%) led the advance in Asia, and Britain’s FTSE (-0.12%) clings to losses in Europe. The S&P 500 is set to open down 0.46% near 2,719.

Earnings reports trickle out. Viacom releases its quarterly results ahead of the opening bell.

US economic data flows. Industrial production and capacity utilization will cross the wires at 9:15 a.m. ET before TIC flows are released at 4 p.m. ET. The US 10-year yield is unchanged at 3.11%.