RED EVERYWHERE: What you need to know

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Screens are flashing red.

Around midday New York time, the Dow was down 320, S&P 500 off around 35, and the Nasdaq down around 50. That followed on from tough trading conditions in Asia and Europe.

Boeing fell as much as 10% after reports the SEC is looking into its accounting practices, taking the Dow down with it. Solar firm SunEdison is getting punished for the second day in a row. ‘Risk-off’ trades like gold and US Treasuries are going crazy.

And, instead of cheering multi-billion dollar takeovers, investors now seem to find them alarming.

There are some funds delivering returns despite the volatile market, with computer-driven hedge funds outperforming. Bill Ackman, on the other hand, is getting annihilated.

On Wall Street, Morgan Stanley is paying a $3.2 billion fine for a precrisis ‘magic’ trick, HSBC has canceled its pay freeze, and Goldman Sachs president Gary Cohn has noticed a change in mindset in Silicon Valley.

In non-finance news, the first discovery of two colliding black holes fundamentally changed our perception of the universe.

So there is that.

Here are the top Wall Street headlines at midday:

KYLE BASS: There’s a ‘ticking time bomb’ in China – Hedge fund manager J. Kyle Bass, the founder of Dallas-based Hayman Capital, has a warning about a “ticking time bomb” in the Chinese banking system.

Yet another sign the US economy isn’t heading for recession … On Thursday morning the latest report on initial jobless claims in the US — a weekly survey on how many people have filed for unemployment insurance — fell to 269,000, lower than expected by the markets and a clear sign that the labour market is still strong.

The market for diamonds is totally messed up right now It’s a good time to talk about how messed up the world’s diamond supply dynamics are right now.

Musk on the Model X: ‘We over-engineered the car’ – Tesla CEO Elon Musk told investors that the Model X SUV’s delays were caused by the vehicle’s extreme complexity.

JetBlue wants to invest in startups JetBlue Airways will launch a Silicon Valley-based venture capital subsidiary.

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