Written by Gary
US stock market index futures are pointing to a moderate drop at the opening (SPY -0.5%). DOW futures are down almost 200 points as Trump says US will slap tariff on $50 billion in Chinese goods.
Here is the current market situation from CNN Money | |
 | European markets are mixed. The CAC 40 is higher by 0.01%, while the FTSE 100 is leading the DAX lower. They are down 0.94% and 0.46% respectively. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | Futures slide as U.S. readies China tariffs(Reuters) – U.S. stock index futures fell on Friday as the Trump administration prepared to impose tariffs on Chinese goods worth $50 billion that could trigger a countermove from Beijing and escalate trade tensions between the two largest economies. |
| As trade war with China looms, U.S. readies second wave of dutiesBEIJING/WASHINGTON (Reuters) – The United States has nearly completed a second list of tariffs on $100 billion in Chinese goods, as President Donald Trump prepares to enact an initial round of duties that is expected to trigger an in-kind response from Beijing, several sources said. |
| Qualcomm-NXP deal still waiting for China nod: sourcesBEIJING/SHANGHAI (Reuters) – China is yet to approve U.S. chipmaker Qualcomm Inc’s proposed $44 billion acquisition of NXP Semiconductors, three people close to the talks said, dismissing an earlier media report that said Beijing had already greenlit the deal. |
| AT&T closes $85 billion deal for Time WarnerWASHINGTON (Reuters) – AT&T Inc, the No. 2 wireless carrier, on Thursday closed its $85 billion deal to acquire media company Time Warner Inc after U.S. antitrust regulators indicated they would not seek a delay. |
| China promises fast response as Trump readies tariffsBEIJING (Reuters) – China vowed on Friday to strike back quickly if the United States hurts its interests, hours before U.S. President Donald Trump was due to unveil revisions to a tariff list targeting $50 billion worth of Chinese goods. |
| Volcker ‘fix’ may cause new headaches for Wall StreetWASHINGTON (Reuters) – A proposal to simplify a rule banning banks from proprietary trading, rather than making life easier for Wall Street, could ensnare billions of dollars’ worth of assets not currently caught by the regulation. |
| How Reuters reported the AT&T-Time Warner ruling first(Reuters) – For U.S. media companies and investors, it was the ruling of the decade. |
| HSBC battles entrenched locals, past mistakes in U.S. credit card pushLONDON (Reuters) – HSBC’s push into credit cards and personal loans in the United States will be no easy task as the bank faces entrenched domestic rivals and the legacy of a previous disastrous foray into U.S. lending. |
| Italy court rules it cannot hear Morgan Stanley derivatives case: sourcesROME (Reuters) – An Italian administrative court has ruled that it cannot hear a case against Morgan Stanley and former senior Treasury officials that included a request for 2.7 billion euros ($3.1 billion) in damages. |
| The Trade War Begins: US Slaps China With $50BN In tariffs; Announces Target List Of Targeted Chinese GoodsUpdate: China immediately vows to retaliate to the trade war: CHINA SAYS DOESN’T WANT TRADE WAR, BUT WILL HAVE TO RETALIATE CHINA TO IMMEDIATELY TAKE MEASURES OF SAME SCALE AGAINST U.S. CHINA COMMERCE MINISTRY SAYS THE MEASURES HARM INTERESTS ON BOTH SIDES * * * At 8am EDT on Friday, as previewed extensively the the US formally announced the list of Chinese products to be hit with tariffs. In the first official shot in the US-Chinese trade wars, the US will implement 25% tariff on $50BN in Chinese imports, representing 1,102 product lines with the list of imported goods among those listed on China’s 2025 plan. The tariffs will be implemented in two tiers, the first one on July 6, and will cover $34BN in imports, and a second wave, which will cover the remaining $16BN, or 284 product lines, and will undergo further review in a public notice and comment process, including a hearing. Today’s official escalation followed the disclosure in April of a preliminary list targeting about 1,300 products worth $50 billion in Chinese imports, and which was subject to public comment. Having warned earlier in the week that he would confront China “very strongly” over trade in the coming weeks, Trump this morning said in a statement that the “The United States can no longer tolerate losi … |
| Trump Lashes Out At Strzok, Says “I Did A Great Service To The People In Firing Comey”One day after the release DOJ’s Inspector General report on the FBIs handling of an investigation into Hillary Clinton’s private e-mail server, Donald Trump said on Friday morning that he “did a great service” in firing former FBI Director James Comey.
The president then quoted conservative radio host mark Levin in saying that he was “100% right to fire James Comey.”
Trump then slammed FBI agent Strzok (who for some reason is still employed by the agency despite his clear anti-Trump bias), saying “FBI Agent Peter Strzok, who headed the Clinton & Russia investigations, texted to his lover Lisa Page, in the IG Report, that “we’ll stop” candidate Trump f … |
| Futures Slide On Quad-Witch Friday As US-China Trade War Begins; Chinese Stocks TumbleBulletin Headline Summary from RanSquawk US President Trump set to impose USD 50bln of tariffs on Chinese imports BoJ keeps monetary policy unchanged as expected but cut its assessment on inflation, ECB’s Nowotny underlines QE and rate guidance Reports that Germany’s CSU/CDU alliance is at breaking point flatly denied Looking ahead, highlights include, Russian rate decision, US NY Fed mfg PMI, industrial production, Uni. of Michigan, Baker Hughes, quadruple witching On this quad-watching Friday, U.S. equity futures slide alongside Asian and European shares, after a torrid week full of political news and central bank developments, with Friday now anxiously eyeing the start of trade war between the US and China. As reported overnight, it is now a done deal that President Trump will impose tariffs on $50BN of Chinese imports, with Chinese retaliation imminent. However, what hit S&P futures and sent the dollar sliding from 2018 highs was a subsequent report from Reuters that Trump is also preparing to release a second list for $100BN in Chinese tariffs which will target technologies Beijing hopes to be a leader in and which is expected to be enacted in about 60 days. In response, China’s Foreign Ministry said that if the U.S. rolls out new tariffs, all previous bilateral agreements on trade will not come into effect; China will take “appropriate measures”. As a result markets are slowly starting to price in a messy collapse to all the ongoing trade negotiations between the US and China, which initially sent the dollar lower, but expect the move to be comple … |
| Leader Of Pakistani Taliban Killed In US Drone StrikeRoughly three months after the US offered a $5 million reward for information on his whereabouts, Pakistani Taliban leader Mullah Fazlullah was killed in a joint US-Afghan drone strike in the eastern Afghan province of Kunar, which is on the Pakistani border, senior defense officials from Afghanistan and Pakistan told Reuters and the New York Times on Thursday . In addition to Fazlullah, four other senior Taliban commanders were killed in the drone strike, which took place Wednesday. That attack was carried out in the Afghan province of Kunar, which is situated near the Pakistani border.
According to Reuters, the attack – which occurred at a time when relations between the US and Pakistan were finally beginning to heal after President Trump threatened to withhold aid from the country and accused it of sheltering militants early this year – could help ease strained ties between Washington and Islamabad. Islamabad is seen as an important ally that could help reopen negotiations with Taliban leaders as the US desperately searches for an exit strategy to end the 17-year-old war (which Trump’s Pentagon escalated last year … |
| Goodbye ECB Bond-Buying, Hello Forward GuidanceThe ECB hasn’t finished surprising investors yet. Thursday it brought the end of its massive bond-buying program closer, but pushed any interest-rate increases further out. The more dovish message won, sending the euro sinking against the dollar. |
| Big Tech Already Has the Best Show in TownTech companies have shown they don’t need to own large media agencies to establish a strong presence in the business. |
| Apple’s Display Plan Won’t Give Screen Makers Much ReliefThe iPhone maker is delaying its full transition to a new screen technology, but that won’t help most Asian manufacturers for long. |
| Economic Report: Empire State manufacturing index climbs to best level in eight months in JuneThe Empire State manufacturing survey rose 4.9 points in June to a reading of 25, the highest reading since October. |
| The Moneyist: My new wife wanted to live with me for free, even though she had $800,000 in the bank—so I asked her to move outThis man wants to know how they should split their assets. |
| People who are religious may live an average of four years longerGetting enough sleep and exercise isn’t the only road to a longer life. |
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