10 things you need to know before the opening bell
Here is what you need to know.
1. The pound is tanking after Boris Johnson's Brexit talks with Angela Merkel reportedly hit a dead end. The pound dropped 0.7% against the euro on Tuesday morning.
2. Stocks are dropping after China hints at retaliation after the US blacklisted Chinese tech firms. China's foreign ministry told reporters to "stay tuned" for a response, tempering hopes the two countries will strike a trade deal in talks this week.
3. WeWork is reportedly seeking a $4 billion lifeline from SoftBank and JPMorgan. The shared workspace group hopes to parlay a $1 billion injection from its largest shareholder into a $3 billion debt deal, Reuters said.
4. Hong Kong Stock Exchange dropped its $36 billion bid for its London rival after the LSE snubbed it. The original unsolicited bid took markets by surprise, given the LSEG had already secured a $27 billion deal with Refinitiv.
5. The US blacklisted some of China's most valuable AI startups over human rights issues in a dramatic trade war escalation. Among these 28 were eight major tech companies, including three AI startups valued at over $1 billion.
6. China said it will stop broadcasting NBA games after Commissioner Adam Silver defended Daryl Morey's freedom to support Hong Kong protests. Basketball is hugely popular in China, and the NBA stands to lose hundreds of millions of dollars if it loses its Chinese sponsors.
7. The 'Trumpian backlash' to globalization could lead to a 'technological iron curtain,' says an economist. Neil Shearing, group chief economist at Capital Economics in a note said that globalization is coming to an end.
8. Stocks are set to fall on Tuesday. US futures underlying the S&P 500 (-0.7%) and the Nasdaq (-0.7%) are set to fall. In Europe, the DAX (-1.2%) fell sharply as did Euro Stoxx 50 (-1.1%). In Asia, stocks closed in the green, with the Nikkei (+1.0%) up as was the Shanghai Composite (+0.3%) and the Hang Seng (+0.3%).
9. There is a stack of earnings out today. The highlights are KFC owner Yum! brands and Procter and Gamble.
10. There is lots of data on the docket today. The producer price index is the key stat today.