Dow futures drop nearly 200 points as sell-off looks set to continue in new week
- U.S. stock futures fell on Sunday night as traders feared an intensifying trade war between the United States and China.
- The Dow, S&P 500 and Nasdaq Composite all posted their worst weekly performances since March last week as worries and confusion about the ongoing U.S.-China trade war and fears of an economic slowdown gripped Wall Street.
- Later that day, trade advisor Peter Navarro told CNN that Trump would "simply raise" tariffs on Chinese goods if a permanent deal was not struck after the 90 days.
- U.S. Trade Representative Robert Lighthizer warned on Sunday he considers March 1 — when the truce is scheduled to end — as "a hard deadline." He added that additional tariffs will be placed on Chinese goods if a deal is not reached by then.
The bear market is here, and stocks will plunge at least 20 percent, Ned Davis Research warns
- The wild trading that's gripped Wall Street may be no ordinary correction.
- According to Ned Davis Research's Ed Clissold, a bear market is officially here.
- A bear market is defined as an environment when overwhelming pessimism sparks a 20 percent drop or more from recent highs.
- In this case, it would wipe out 588 points from the S&P 500's all-time high of 2940.91 hit on Sept.
- Originally, Clissold called for a bear market to hit Wall Street in 2019, due to jitters over interest rate hike risks, U.S.-China trade tensions and slowing growth in earnings and the economy.
- By spring, Clissold said, the pain will be largely behind the Street.
- Despite the looming trouble, Clissold expects stocks will stage a healthy rally in the second half of 2019 and the market will ultimately see high single-digit to low double-digit gains by the end of next year.
Steven Mnuchin is under consideration to become Trump's next chief of staff, but he has indicated he feels better suited at Treasury
- Treasury Secretary Steven Mnuchin is one of the advisors to President Donald Trump under consideration to be the next White House chief of staff, according to two people with direct knowledge of the matter.
- Even so, according to a source close to the Treasury secretary, some of Trump's family members are pushing for Mnuchin as a possible replacement for the departing John Kelly, who is set to leave the administration by the end of the year after an often-chaotic time in the job.
- The New York Times had reported that Mnuchin was a possible contender for the chief of staff job.
- On Sunday, Nick Ayers, the chief of staff to Vice President Mike Pence who had been the favorite to replace Kelly, announced he would be departing the administration at the end of the year.
Goldman Sachs: As long as consumers keep shopping, there's hope for the economy
- Although falling stocks and rising interest rates will continue to weigh on sentiment, those negatives are likely to be offset by higher wages and oil prices in retreat, Goldman said in a research note to clients Saturday.
- Rising interest rates will also dampen the outlook, the bank said, adding that growth will gradually decelerate from 2.8 percent in the first quarter to an average of 2.4-to 2.5 percent over 2019.
- With the Federal Reserve and the European Central Bank pulling back on loose money policies, "the good news is that tightening may be coming to a pause/end early next year which could bring relief to global asset prices particularly if China growth stabilizes," Morgan Stanley's analysts wrote.
- Still, economists point to the sharp drop in crude prices, which recently fell below $50 per barrel, as a boost for consumers.
US Trade rep warns 90 day pause in US-China trade war is a 'hard deadline'
- U.S. Trade Representative Robert Lighthizer said on Sunday he considers March 1 "a hard deadline" to reach a deal on trade with China, and that new tariffs will be imposed otherwise.
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Unlike the US, China is playing the long game
- But China is focused on playing the long game in ways that threaten US national security.
- While alleviating the economic pressures of the trade war at home is a priority, China's President Xi Jinping also wants to extend its reach elsewhere.
- While we plan to address cyber theft as part of our trade negotiations (with possible charges against Chinese nationals for hacking), Chinese hackers have penetrated a lot of our public and private places.
- But China has penetrated classified security clearance information before -- in addition to state-sponsored cyber espionage against the private sector for commercial advantage.
- Increased Chinese economic uncertainty and any anger directed at us for trade war intransigence could lead to increased efforts to ramp up cyber espionage that would jeopardize sensitive information and expose China's skills, and our own insecurities, in cyberspace.
Dubai's most outrageous open-air market sells only gold and has a $3 million, 141-pound gold ring
- If you were to listen to most travel guides on Dubai, you'd think the desert city materialized out of the air a decade ago.
- The city exploded in prosperity after United Arab Emirates discovered oil in 1966,, leading to a development boom that has resulted in the world's tallest building, the second-biggest mall, the most luxurious hotel, and more skyscrapers than any city besides New York and Hong Kong.
- But Dubai was settled as a port city in the early 1800s, where it became a center for fishing and pearling, and a crossroads of sea and land trade routes through Asia and the Middle East.
- That trading history has left behind a legacy of souks, or open-air marketplaces native to the Middle East and North Africa.
- But the most extravagant is the gold souk, where people come from all over the world to get a deal on that sweet yellow nugget.
Saudi Arabia hosts Gulf summit amid Qatar tensions, Khashoggi crisis
- The Gulf Cooperation Council's (GCC) annual summit was set to open in Riyadh on Sunday, with regional unity imperiled by a bitter row between Qatar and Saudi Arabia, which is mired in a diplomatic crisis over the murder of journalist Jamal Khashoggi.
- The one-day annual gathering of leaders from the six member states is expected to focus on security issues, including the Yemen war and Iran's regional activities, and may touch on oil politics and a protracted boycott of Qatar by some neighbors.
- Following global outrage over the Oct. 2 murder of Khashoggi at Saudi Arabia's Istanbul consulate, Washington has increased pressure on Riyadh to end the nearly four-year-old Yemen war that has pushed that country to the brink of famine and to restore ties with Qatar for a united Gulf front against Iran.
China says Canada's detention of Huawei exec is 'vile in nature'
- A report by the official Xinhua News Agency carried on the Foreign Ministry's website said that Vice Foreign Minister Le Yucheng called in Ambassador John McCallum on Saturday over the holding of Chief Financial Officer Meng Wanzhou, who is reportedly suspected of trying to evade U.S. trade curbs on Iran.
- Canadian prosecutor John Gibb-Carsley said in a court hearing Friday that a warrant had been issued for Meng's arrest in New York Aug. 22.
- Gibb-Carsley alleged that Huawei had done business in Iran through a Hong Kong company called Skycom.
- While protesting what it calls Canada's violation of Meng's human rights, China's ruling Communist Party stands accused of mass incarcerations of its Muslim minority without due process, locking up those exercising their right to free speech and refusing to allow foreign citizens to leave the country in order to bring pressure on their relatives accused of financial crimes.
China warns Canada of 'consequences' if Huawei executive not freed
- Shanghai | China has warned Canada there will be "serious consequences" if it does not free the jailed senior executive of telecoms giant Huawei as diplomatic tensions over demands for the extradition to the United States escalated over the weekend.
- Chinese vice foreign minister Le Yucheng summoned Canada's ambassador to China for talks on Saturday over what Beijing called a violation of the "legitimate rights and interests" of a Chinese citizen.
- Meng Wanzhou, Huawei's chief financial officer and the daughter of the company's well-connected founder Ren Zhengfei, was arrested in Canada on December 1, reportedly on charges of violating US sanctions against Iran.
- However, analysts said Ms Meng's arrest threatened the fragile trade truce reached at last month's G-20 meeting given the executive's high profile in China and Huawei's prominent role in China's aspiration to become a world leader in technology.