Here are five things you must know for Wednesday, Sept. 19:
1. -- Stocks Mixed as Wall Street Monitors U.S.-China Trade Spat
U.S. stock futures turned lower on Wednesday, Sept. 19, while global stocks were mostly higher amid signals the U.S. and China could be prepared to broker an agreement in their ongoing trade war.
China's decision to retaliate with tariffs of 5% on $60 billion of U.S. imports, following Donald Trump's move to add levies of 10% on $200 worth of goods coming the other way, both fell short of investor expectations and, if managed by the two sides correctly, shouldn't have a significant impact on economic growth or corporate profitability.
Contracts tied to the Dow Jones Industrial Average
Gains on Wall Street Tuesday, Sept. 18, flowed into the Asia session on Wednesday, with Tokyo's Nikkei 225 rising 1.08%, and the Shanghai Composite closing 1.14% higher.
The economic calendar in the U.S. on Wednesday includes Housing Starts for August at 8:30 a.m. ET, and Oil Inventories for the week ended Sept. 14, at 10:30 a.m.
Earnings reports are expected Wednesday from Red Hat Inc. (RHT) .
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2. -- Tesla Tumbles as Feds Open Probe Into Musk's 'Going Private' Tweet
Tesla Inc. (TSLA) fell 4.3% in premarket trading on Wednesday, following on from losses suffered Tuesday, after a report said the Department of Justice was opening a fraud investigation into the electric vehicle company over CEO Elon Musk's "funding secured" tweet he made in early August.
The Justice Department inquiry came after the Securities and Exchange Commission launched a formal investigation into Musk's tweet shortly after he made it.
"Last month, following Elon's announcement that he was considering taking the company private, Tesla received a voluntary request for documents from the DOJ and has been cooperative in responding to it," a Tesla spokesperson, who declined to be named, said in a statement. "We have not received a subpoena, a request for testimony, or any other formal process. We respect the DOJ's desire to get information about this and believe that the matter should be quickly resolved as they review the information they have received."
The New York Times reported that the SEC, as part of the investigation, in the past month sent subpoenas not only to Tesla but also to Goldman Sachs Group Inc. (GS) and investment firm Silver Lake which Tesla hired to explore the going-private transaction, according to people briefed on the subpoenas. Goldman and Silver Lake both received subpoenas demanding materials about their interactions with Tesla, the people told the Times.
3. -- Disney Has Plans for Marvel TV Shows on Its Streaming Service
Walt Disney Co. (DIS) is in the early stages of developing a plan for a number of limited streaming series centered on popular characters from the Marvel Cinematic Universe, Variety reported.
The series likely will include shows centered on Loki and the Scarlet Witch, along with other superheroes who have yet to appear in their own standalone movies, according to the report.
Disney and Marvel had no comment. Sources close to the production remained quiet on the costs of the programming, Variety said the budgets are expected to be hefty rivaling those of a major studio productions. Each series is expected to include six to eight episodes.
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4. -- Tencent Music Halves U.S. IPO to $2 Billion - Report
Tencent Music Entertainment Group, China's biggest music-streaming company, has reduced by half the amount it is seeking to raise in a U.S. listing to about $2 billion, Reuters reported, citing three people close to the deal.
Tencent Music, a unit of Chinese tech giant Tencent Holdings Ltd. (TCEHY) , two weeks ago filed confidentially with the Securities and Exchange Commission, three people with knowledge of the matter told Reuters, in what will be one of the biggest listings in New York by a Chinese company in 2018.
Tencent Music earlier had been seeking to raise up to $4 billion, people familiar with the matter said, which would have made it the biggest Chinese float in the United States so far in 2018.
5. -- Danske Bank CEO Resigns Amid Money-Laundering Scandal
Danske Bank A/S (DNKEY) shares slumped to a four-year low Wednesday after Denmark's largest bank said its CEO would resign following a probe into money laundering at one of its branches in Estonia.
The bank said the investigation found that the "vast majority" of around $234 billion in examined client flows from the Baltic branch, which were mainly connected to clients in Russia and the former Soviet Union, were deemed suspicious. It also said that even though CEO Thomas Borgen and Chairman Ole Andersen didn't breach their legal obligations, Borgen nonetheless decided to step down.
"It is clear that Danske Bank has failed to live up to its responsibility in case of possible money laundering in Estonia," said Borgen, who oversaw the operation from 2009 to 2012. "I deeply regret this."
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