Here is what you need to know.
- The stock market is facing a cocktail of fears in 2019. “The market tensions we saw during this quarter were not an isolated event,” said Claudio Borio, the head of the Monetary and Economic Department at the Bureau of International Statistics, according to Markets and Money. “It was not the first, and it will not be the last. It was just another bump along the narrow path of monetary policy normalization.”
- Trump’s trade war is already hitting pockets of middle America. President Donald Trump’s trade war will cost American taxpayers in the middle quintile of income earners $146 on average, a number expected to rise to $453 in a year if he goes ahead with his threatened tariffs, according to the Tax Foundation.
- The era of US dollar ‘exceptionalism’ is ending soon. “We expect the US dollar index (DXYT) to weaken by about 6.5% to 91 in 2019,” UBS’ Global Macro Strategy team said.
- We may have just gotten the most alarming sign yet that a stock-market collapse is coming. Investors pulled $27.6 billion out of US equities in the week that ended December 12, making for the second-biggest outflow ever, according to Bank of America Merrill Lynch.
- Malaysia files criminal charges against Goldman Sachs and 2 of its former executives over the 1MDB scandal. Malaysia has accused the bank and two of its former executives, Tim Leissner and Roger Ng Chong Hwa, as well as the former 1MDB employees Jasmine Loo Ai Swan and Low Taek Jho, of “grave violations of our securities laws” relating to its $6.5 billion sovereign wealth fund.
- Google is spending big money on a new campus in New York City. The tech giant plans to spend $1 billion on the campus, which is meant to be the home of its global business organization, Reuters says, citing a Google blog post.
- GM issues layoff notices for 5 US and Canadian factories. The automaker said in a statement out Friday evening that 2,800 positions would be affected and that 1,100 employees were interested in relocating to plants that need more labor.
- Stock markets around the world are going nowhere. Hong Kong’s Hang Seng (-0.03%) was little changed in Asia, and Germany’s DAX (-0.11%) leads in Europe. The S&P 500 is set to open flat near 2,601.
- Earnings reporting is light. Oracle reports after markets close.
- US economic data keeps coming. Empire Manufacturing will cross the wires at 8:30 a.m. ET, and the NAHB Housing Market Index will be released at 10 a.m. ET. Data concludes at 4 p.m. ET with TIC flows.