Tuesday Watch

Around X:

• @Business

• Treasury Secretary Scott Bessent’s threat to unleash an “economic D-Day” against Iran risks setting the US on a collision course with China, its main trading partner. 
• Chinese hackers are ramping up attacks after integrating DeepSeek and other open-source artificial intelligence models into their operations, highlighting attackers’ ability to leverage basic AI tools to hit targets abroad. 
• South Korea and the US agreed to maintain close coordination on efforts to revive dialogue with North Korea, days after Pyongyang rebuffed President Donald Trump’s overtures and launched a barrage of short-range ballistic missiles. 
• UK Prime Minister Andy Burnham said he and other European leaders plan to travel to the US next month to lobby President Donald Trump to let Ukraine access some of its Patriot air defense missile stocks ahead of the winter. 
• Canada’s government on Tuesday will announce a range of measures to “protect and support” its workers and businesses in response to 50% US tariffs.
• US-Canada trade talks collapsed after last-minute pressure from Commerce Secretary Howard Lutnick, according to people familiar with the matter. 
• Thousands of residents remained without power in the Chicago suburbs of northwestern Indiana almost two weeks after a severe storm as Indiana Governor Mike Braun pressed for an investigation into a utility company’s emergency response. 
• Lambda, an AI cloud-computing provider backed by Nvidia, is in talks to raise as much as $3 billion in a round that could tee it up to go public next year, according to sources.
• Here's how markets are moving today.
• Here’s what you need to know to start your day.    

• @ZeroHedge

• DOJ To Deploy 1,000 Election Monitors For Midterms. 
• Japan Power Prices Surge To Highest Since 2023. 
• Inside China's Humanoid Robot Boom: What BofA Analysts Saw On The Ground In Beijing. 
• Michigan's Energy Abundance Is On The Ballot.   
• According to reports, The U.S. govt has proposed that S. Korea acquire a stake in Westinghouse Electric Company as Washington pursues an $80 bn partnership aimed at breaking ground on 10 large-scale nuclear reactors by 2030. KEPCO(015760) is being considered as the acquisition vehicle, with the Korea-US Strategic Investment Fund cited as a potential funding source.
• Massachusetts Citizenship Rule At Center Of Alleged Voter-Impersonation Case.
• TotalEnergies CEO Reveals Cost To Move A Supertanker Through Hormuz.
• UK NAVY REPORTS OIL TANKER OFF OMAN STRUCK BY PROJECTILE.
• Regulation: Protecting Incumbents And Suppressing Competition.
• Momentum has seen more >5% sell-off days in 2026 than in the last 5y combined.
• Supreme Court Backs Trump's Mail-In Ballot Overhaul.
• DEI Refuses To Die.
• Iryna Zarutska's Family Sues City Of Charlotte Over Fatal Rail Stabbing, Claims Inadequate Security.
• Our World 'Is Coming Apart Now... In Astounding Ways'.
• The AI Bottleneck Remains Physical. 
• Tokens, Tech, Turnover, & 'TINA Is Over'; These Are The Charts Goldman Traders Are Watching Closest. 
• Federal Appeals Court Rules In Favor Of James O'Keefe Over Undercover Reporting. 
• *SEC SUBPOENAS BANKS FOR DETAILS ON SITUATIONAL AWARENESS: NYT.
• Bonds, Bullion, & Bitcoin Bid Amid Bessent Double-Whammy, Tech Wreck Continues.        

• @CNBC  

• CNBC Daily Open: Washington escalates on two fronts; Nvidia earnings in focus. 
• Tuesday's big stock stories: What’s likely to move the market in the next trading session.
• Futures are flat as investors await Nvidia earnings, inflation report due later this week: Live updates.
• A Goldman Sachs partner leading one of the bank’s flagship artificial intelligence projects warned that AI’s spread across Wall Street risks hobbling the thinking capabilities of the next generation of financiers. “There’s a huge danger here that in the era of AI, we outsource our reasoning to these models, and we have cognitive atrophy that stops us being able to reason from first principles ourselves,” said Chris Churchman, who leads Goldman’s digital platform for institutional clients called Marquee.  
• Buy gold on the Treasury bond market intervention, says Deutsche Bank. 

Night Trading 

• Asian equity indices are -.5% to +.25% on average. 
• Asia Ex-Japan Investment Grade CDS Index 67.0 unch. 
• China Sovereign CDS 35.0 unch.
• China Iron Ore Spot 97.25 USD/Metric Tonne -.1%. 
• Crude Oil 85.40/bbl. +.5% 
• Gold 4,719.70 USD/t oz. +.46%. 
• Swiss Franc/Offshore Chinese Renminbi Cross 8.37 -.05%.
• Bloomberg Emerging Markets Currency Index 34.45 -.1%.
• Bloomberg Global Risk-On/Risk Off Index 125.8 -.1%.
• US 10-Year Yield 4.71% +2.0 basis points.
• Japan 30-Year Yield 4.08% unch.
• Volatility Index(VIX) futures 17.6 -.1%.
• Euro Stoxx 50 futures +.15%. 
• S&P 500 futures +.07%.
• NASDAQ 100 futures +.13%.

Morning Preview Links

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and commodity shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 75% net long heading into the day.