Good Tuesday morning. What should we be asking about the markets? Virtual currencies are falling, too. And will Congress avoid another government shutdown?
Stock markets around the world appear headed down for a third straight trading day, after yesterday’s 4 percent drop in the S.&P. 500. Here are the latest numbers:
• Hong Kong’s Hang Seng fell 5 percent.
• Japan’s Nikkei was down 4.7 percent.
• The U.K.’s FTSE 100 was down 2 percent.
• Wall Street’s “fear gauge,” the VIX, is at its highest level in two and a half years.
And here’s some more context from our colleague Peter Eavis.
The technical question: Has computer-driven unwinding of “Goldilocks” trades tied to peaceful market rises played a role here?
The economic question: Economies are growing around the world, which is likely to mean rising wages and then, perhaps, inflation. So will central bankers have to raise rates more than previously expected?
The political question: What does this mean for President Trump, who has touted stock market gains as a measure of his success?
More from Ben White of Politico:
There’s another way of thinking about Mr. Trump’s role, Andrew writes in his latest column:
But don’t expect action from the newly sworn-in Fed chairman, Jay Powell — at least, not yet.
A bit of humor, courtesy of our colleague Binyamin Appelbaum:
Today’s DealBook Briefing was written by Andrew Ross Sorkin in New York, and Michael J. de la Merced and Amie Tsang in London.
Where Bitcoin was this morning: $6,628, down almost 16 percent over the past 24 hours, according to CoinMarketCap. Ethereum’s Ether and Ripple’s XRP fell by double digits, too.
What’s happening: Regulators are clamping down on digital money, and scams and hacks are eroding trust in it.
More from Nathaniel Popper of the NYT:
Next: The heads of the S.E.C. and the Commodity Futures Trading Commission are to talk Bitcoin with the Senate Banking Committee today.
The House appears ready to vote on a stopgap bill; funding would otherwise expire at 12:01 a.m. on Friday.
What it does: Pairs short-term funding for the government with long-term funding for the military.
What it doesn’t do: Include the increase in domestic spending demanded by Democrats, particularly Senate Democrats. Nor does it address immigration, which caused last month’s shutdown (though Senators John McCain and Chris Coons have a bipartisan proposal on that).
Expect more give-and-take between the two sides of Congress:
Elsewhere in policy
• Most of President Trump’s legal team wants to avoid letting Robert Mueller question him. (NYT)
• Mr. Trump flippantly suggested that Democrats who sat through his State of the Union address stone-faced were guilty of treason. (NYT)
• The House Intelligence Committee voted unanimously to release a Democratic memo tied to the investigation of a Trump campaign aide. Now it’s up to the White House. (Politico)
• China is investigating U.S. sorghum exports, a move that threatens a widening trade standoff. (NYT)
It depends whether AT&T’s bid for Time Warner goes through. Comcast dropped out of the running for Fox once it became clear that Rupert Murdoch would prefer a tie-up with Disney, but it is studying whether to rejoin the fray, CNBC reported.
More from Alex Sherman of CNBC:
Elsewhere in the deal world
• Archer-Daniels Midland is in advanced talks to buy Bunge, unnamed sources say. (Bloomberg)
• Kroger agreed to sell its convenience store business to the British investment firm EG Group for $2.15 billion. (FT)
• Alibaba and an arm of the Chinese government have bought roughly 13 percent of Dalian Wanda’s movie business for $1.2 billion. (Bloomberg)
• Midstates Petroleum offered to merge with SandRidge Energy in an all-stock deal that would create a nearly $1 billion oil company. (Reuters)
• Viacom is near a deal to buy the online video conference VidCon, unnamed sources say. (Variety)
• Elliott Advisors continued to push BHP Billiton to simplify its dual-listed corporate structure. (FT)
• Walmart has bought a virtual reality start-up, Spatialand, for its Store No. 8 incubator unit. (Recode)
That’s what Emily Chang of Bloomberg said about her reporting for “Brotopia,” her forthcoming book about the lopsided power dynamics in Silicon Valley. (NYT)
The misconduct flyaround
• Steve Wynn and his legal representatives set up a limited liability company solely to handle settlement funds, including $7.5 million for a manicurist who accused him of sexual assault. (WSJ)
• Laurent Potdevin resigned as C.E.O. of Lululemon because, the company said, he had failed to “exemplify the highest levels of integrity and respect for one another.” (NYT)
• A partner at the international law firm Baker McKenzie lost his job after allegations surfaced that he had sexually assaulted a female colleague. (FT)
• Even with generous social policies, women in Scandinavia are still paid less than men, because they spend more time on child-rearing. (NYT)
The venture firm, which has invested in the likes of Groupon, Dollar Shave Club and Nutanix, has closed both its 12th venture fund, at $800 million, and its latest side fund for later-stage deals, at $450 million. (It also promoted Morad Elhafed to general partner.)
Battery’s latest investment focuses include big data, cloud and A.I. software, and consumer internet apps.
From Michael Brown, a Battery general partner:
The tech flyaround
• The Uber-Waymo trial began with dueling sports metaphors. (NYT)
• Meanwhile, Uber is working on its relationship with drivers. (Recode)
• Isaac Choi, who was C.E.O. of the failed start-up WrkRiot, has pleaded guilty to defrauding employees. (Axios)
• American and British lawmakers will convene to discuss their respective inquiries into social media’s impact on elections. (Axios)
• Facebook is hiring an “extraterrestrial product manager” to oversee an aerospace initiative. (CNBC)
• Hudson’s Bay, the parent of Saks and Lord & Taylor, has hired a new C.E.O.: Helena Foulkes, the president of CVS’s pharmacy division. (NYT)
• So has Avon: Jan Zijderveld, most recently the head of Unilever’s European business. (FT)
• President Trump plans to nominate Charles Rettig, a tax lawyer, to lead the I.R.S. (WSJ)
• Stephen Friend, a co-founder of Sage Bionetworks who joined Apple’s health care team, has left the tech giant. (CNBC)
• Marco Santori, a partner at the law firm Cooley and an expert in initial coin offerings, has joined the virtual currency start-up Blockchain as its chief legal officer. (Axios)
• Saudi Arabia is trying to untie itself from oil and tie itself to one of its other natural resources: sunlight. (NYT)
• Renée James, a former No. 2 at Intel, is taking aim at the company’s most lucrative business, which she helped to build. (NYT)
• Two top editors and a reporter at Newsweek were fired on Monday in a purge that targeted employees involved in covering the company’s financial and legal troubles. (NYT)
• Melvyn I. Weiss, whose class-action lawsuits made him a pariah to corporate America, a hero to plaintiffs, a catalyst for legal protections of investors and consumers and finally a felon, died on Friday at 82. (NYT)
• Romana Acosta Bañuelos, the U.S. treasurer under President Nixon, has died at 92. (NYT)
• A lunch for Oscar nominees attracted protests over the lack of Hispanic characters in movies. (NYT)
• James Gorman, asked to rate his time leading Morgan Stanley, gave himself an A-minus. (Bloomberg)
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