10 things you need to know before the opening bell

Here is what you need to know.

South Africa enters a recession. The South African economy contracted 0.7% quarter-over-quarter in Q2, making for two consecutive quarters of negative growth and sending the rand down 2.45% to 15.2227 per dollar.

Argentina launches a sweeping new austerity program to try to solve its economic crisis. Argentina late on Monday revealed new austerity measures – including an increase in export tariffs for grains such as soybeans and a halving of the number of government agencies – aimed at reducing the country’s huge budget deficit.

Australia holds rates. The Reserve Bank of Australia on Tuesday kept its benchmark interest rate unchanged at 1.5% for a 25th consecutive meeting.

Jeremy Grantham explains where you should be putting your money. The cofounder and chief investment strategist at the $US71 billion Grantham, Mayo, & van Otterloo shared with Business Insider his contrarian play for investors who can afford a longer time horizon.

China is considering merging two of its biggest mobile-phone carriers. Officials are considering a merger between China United Network Communications Group Co. and China Telecommunications Corp. with the hope of speeding up the development of 5G, Bloomberg says, citing people familiar with the matter.

One of China’s richest men was arrested in the US on sexual-misconduct allegations, then left the country. Liu Qiangdong, the founder and CEO of Chinese e-commerce giant JD.com, was detained in Minneapolis over the weekend on a sexual-misconduct allegation – but has returned to China after not being charged with a crime.

Tesla reportedly misses its Model 3 production target in August. The electric-car maker produced about 4,300 Model 3 sedans during the last week of August – shy of its goal of 6,000 a week, but remains on track to meet its quarterly goal of producing 50,000 to 55,000 vehicles, according to the auto-news website Electrek.

Stock markets around the world trade mixed. China’s Shanghai Composite (+1.1%) led the gains in Asia, and France’s CAC (-0.91%) trails in Europe. The S&P 500 is set to open little changed near 2,903.

Earnings reports trickle out. RH reports after markets close.

US economic data flows. Markit manufacturing PMI will be released at 9:45 a.m. ET before construction spending and ISM Manufacturing cross the wires at 10 a.m. ET. US auto sales will be announced throughout the day. The US 10-year yield is up 1 basis point at 2.87%.

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