11Sep2018 Pre-Market Commentary: Wall Street To Open Lower, World Stocks Hit By Trade Strain, Brexit Talk Supports Sterling, Global Stocks, Futures Slide As China Shatters Trade Calm

Here is the current market situation from CNN Money

European markets are lower today with shares in London off the most. The FTSE 100 is down 0.67% while Germany’s DAX is off 0.66% and France’s CAC 40 is lower by 0.35%.

HSBC whistleblower defends tax leak as fights extradition

A whistleblower fighting extradition to Switzerland for leaking details of thousands of clients of HSBC’s private bank there said on Tuesday his actions had played a key role in helping other European countries uncover tax frauds.

Las Vegas is booming again, and bracing itself for next slump

Diane Han is trying to leave the Las Vegas of her childhood behind.

Goldman banker had raised ethics concerns: NYT

A former Goldman Sachs Group Inc partner had raised concerns about some unethical practices at the bank before he left in 2015, the New York Times reported on Tuesday, citing people close to the matter.

World stocks hit by trade strain, Brexit talk supports sterling

World stocks slipped back towards three-week lows on Tuesday, on ongoing concerns over the trade dispute between Washington and Beijing, while the pound hovered near a five-week high on hopes of a UK-EU deal over Brexit.

Unilever details plans for December listing of new Dutch entity

Consumer goods giant Unilever laid out details on Tuesday for the planned December listing of its new Dutch entity, which has sparked criticism from some UK shareholders and become swept up in the debate over Brexit.

ING CFO steps down as backlash grows after $900 million money laundering fine

ING Groep’s Chief Financial Officer is to step down amid a public backlash after the Dutch bank admitted last week it had failed for years to prevent money laundering and agreed to a 775 million euro ($900 million) settlement with prosecutors.

China seeks WTO backing for sanctions on U.S. over dumping duties

China will ask the World Trade Organization (WTO) next week for permission to impose sanctions on the United States, for Washington’s non-compliance with a ruling in a dispute over U.S. dumping duties, a meeting agenda showed on Tuesday.

McDonald’s buns maker Aryzta strikes deal with banks ahead of capital hike

One of the world’s largest bakery companies, Aryzta, has agreed an underwriting deal with five banks, setting the stage for raising 800 million euros ($928.48 million) in new capital to strengthen its balance sheet.

Cadbury owner Mondelez braces for hard Brexit, stockpiles products: the Times

Mondelez International Inc , the owner of Cadbury brand, is stockpiling ingredients, chocolates and biscuits in case of a no-deal Brexit, the Times reported https://bit.ly/2MjCYjJ on Tuesday, citing the president of Mondelez’s European division.

Tesla Bulls Capitulate: Munster Sees Musk As “Jerk, Bully And Liar”; Shah Says “No Longer Investable”

Long time Tesla bull Gene Munster of Loup Ventures has written an op-ed stating what every Tesla short seller in the world has been saying for the last few years: Tesla needs to completely overhaul its board, Elon Musk is hurting the company, and if the problems aren’t addressed, “it could spell the end for the company”.

Separately, Nomura’s Romit Shah became the latest analyst to downgrade Tesla to neutral from buy. In a note titled “No Longer Investable” Shah writes that previously he’s been one of the biggest bulls on the Street since initiating coverage last October; that is no longer the case and Shah slashed his Tesla price target from $400 to $300 due to the “erratic behavior of CEO Elon Musk” citing such other concerns which we and others have highlighted before as: the increasing number of Musk tweets per day, the cave diver accusation, Musk’s outburst on an earnings call, his taunts of short sellers and his appearance on Joe Rogan’s podcast. As a result Shah said it’s better to remain on the sidelines until the company has better leadership, while still conceding that Tesla can out-innovate the competition and that the company may eventually be much bigger than it is today. …

US, France, and UK In Direct Talks Over Possible Syria Strikes

“That has to be, in the history of propaganda in the 20th and 21st centuries, one of the most outrageous claims that I can think of,” John Bolton stated in response to Moscow’s charge that anti-Assad insurgents in Idlib are preparing a chemical false flag in order to hasten a US attack on Damascus, according to a new Wall Street Journal report.

“Along with the United States and France, we have been clear that we will respond swiftly and appropriately if the Assad regime repeats its appalling use of chemical weapons,” he vowed, echoing statements the national security advisor began making weeks ago during a trip to Jerusalem.

The WSJ has revealed the White House is now in direct talks with the U.K. and France over plans for a possible third round of coordinated strikes on Syria should the Syrian Army use chemical weapons during its Idlib assault.

After a speech in Washington on Monday, Bolton told reporters, “We’ve …

Global Stocks, Futures Slide As China Shatters Trade Calm

Just when it seemed that the tenuous trade ceasefire between the US and China could result in more stable market sentiment, European stocks dropped -0.5% to session lows led by mining and autos, with S&P futures sliding as volume surged, joining Asia in the red after Reuters reported that China would ask the World Trade Organization for permission to impose trade sanctions on the U.S. rekindling fears over trade relations among the world’s two biggest economies.

The latest trade rumbling pushed the MSCI index of global stocks into the red, as Asian markets dropped for the ninth straight day. The MSCI index of Asia-Pacific shares ex-Japan eased 0.05 percent, but held just above last July’s lows.

“Groundbreaking Numbers”: Small Business Confidence Smashes Prior High Set Under Reagan

In the latest sign that the Trump administration’s economic policies are fueling an economic boom, the National Federation of Independent Businesses reported Tuesday that its gauge of small business optimism had risen in August to its highest level in nearly half a century. Indeed, the headline number climbed to 108.8, reflecting the fact that more small businesses are planning to hire more workers, raise wages or increase capital investment. That shattered the previous record set more than 35 years ago under Ronald Reagan.

“Today’s groundbreaking numbers are demonstrative of what I’m hearing everyday from small business owners – that business is booming. As the tax and regulatory landscape changed, so did small business expectations and plans,” said NFIB President and CEO Juanita D. Duggan. “We’re now seeing the tangible results of those plans as small businesses report historically high, some record breaking, levels of increased sales, investment, earnings, and hiring.” said Juanita Duggans, the CEO of the NFIB.

“There is no question that the change of policy in Washington has everything to do with the increase in the optimism index.”

A net 10% of all owners reported higher nominal sales in the past three months compared with the prior three months, an increase of two points. Meawhile, August was the ninth consecutive month of reported sales gains after years of low or negative numbers. The net percentage of business owners planning to build inventories rose six points to a record net 10%, marking the 14th positive reading in the past 22 months.

Jack Ma’s Retirement Is a Sign Alibaba’s Heyday May Have Passed

Despite the fabled co-founder’s retirement, Jack Ma will still have influence at Alibaba. But the real question for investors is whether his departure means the company’s best days are behind it.

CBS After Moonves

Les Moonves’s departure from CBS, and the deal with National Amusements, ends a messy chapter for the company, but there are still important issues to consider before CBS gets an all-clear.

FA Center: Resist the urge to sell if another 9/11-scale attack sinks the stock market

Commit now to ride out the panic that will grip investors, writes Mark Hulbert.

Bond Report: Treasury yields tick higher ahead of debt auction

Treasury yields rose Tuesday ahead of a key debt auction that could influence trading of U.S. government paper.

The Tell: Junk bonds became a ‘quiet haven’ for investors, says BAML

Oleg Melentyev, an analyst at BAML, highlights the resilience of high-yield corporate debt in a turbulent year for financial markets