Here’s what’s been happening on Wall Street overnight

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The worst-case scenario for a global trade war could wipe out the stock market’s most important driver

As a global trade war gathers steam, banks across Wall Street are starting to prepare for the worst.

This comes after President Donald Trump announced a start date for a second tranche of tariffs on Chinese goods, worth roughly $US16 billion. A Goldman Sachs economist, Alec Phillips, now thinks there’s a 70% probability that Trump will proceed with most of the tariffs he has threatened on an additional $US200 billion in Chinese goods.

Goldman believes a further escalation of the trade conflict could result in a 25% tariff levied against all imports from China. And Goldman says that major downside scenario wouldn’t be pretty.

European markets drop as Turkey’s lira crisis spreads around the world

European markets started the week deep in negative territory before recovering a little over the course of Monday as the crisis over the Turkish lira drags on investor sentiment around the world.

Asian markets fell sharply overnight. Those falls then spread into Europe, with major European share indexes losing as much as 1% in early morning trading.

Spain and Italy were the biggest losers, down about 1% each. Elsewhere, markets were seeing losses of about 0.5% to 0.8% as investors digested last week’s 25% fall in the lira.

Elon Musk reveals what he meant by his ‘funding secured’ tweet

Elon Musk is defending his “funding secured” tweet.

In a company statement on Monday, Musk said Saudi Arabia’s sovereign wealth fund had brought up taking Tesla private multiple times for almost two years. The Saudi fund recently bought a 5% stake in Tesla. Musk said he met with the fund’s managing director on July 31 and left that meeting confident that a deal to take Tesla private would close.

Chat app Symphony’s battle to break into a $US28 billion Wall Street market

Major Wall Street banks like Goldman Sachs and JPMorgan have invested almost $US300 million in Symphony, a startup building encrypted, cloud-based communication tools. Google is also an investor.

The banks want to build a platform they can all communicate on to help them cut down on expensive Bloomberg terminals.

Almost four years into the project, Symphony has over 300,000 users.

But there are questions around usage, partnerships, and whether it’s really having an effect on Bloomberg.

BI’s story, based on conversations with 35 sources, looks at how Wall Street’s audacious bet has gone so far and the challenges the startup still faces.

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