1. Paris Air Show: All eyes are on Boeing as the Paris Air Show kicks off Monday.
The show is typically an opportunity for Boeing (BA) and Airbus (EADSF) to announce orders for hundreds of aircraft. That will be harder this year for the US jetmaker, which has halted deliveries of its 737 Max following two deadly crashes.
As of Friday, penalties on $200 billion of Chinese goods will be lifted to 25% from 10%. President Donald Trump has also warned that he could tax nearly all Chinese exports to the United States.
The big question for investors is whether a deal can be salvaged when Chinese officials arrive in Washington later this week. Beijing is still sending its top trade negotiator.
Stock markets in China stabilized Tuesday after a sharp sell-off on Monday. US markets were also able to recover most of their lost ground after a steep initial plunge.
2. Tariff hearings begin: Companies and trade groups are about to get their say on the wisdom of US tariffs on an additional $300 billion worth of Chinese exports.
BMW’s first quarter profits fell 78% to € 589 million ($660 million), and its automotive division posted a loss.
The company said it had set aside € 1.4 billion ($1.6 billion) to pay fines resulting from an EU investigation into whether Germany carmakers colluded in holding back technology to reduce harmful vehicle emissions. BMW (BMWYY) has denied wrongdoing and says it will contest any fines.
The carmaker warned that business conditions are expected to remain volatile for the rest of the year, and it cited uncertainty over Brexit and international trade policies as risks. Shares dropped 1% in Frankfurt.
Occidental has bid $76 per share for Anadarko, $59 of which is cash. Chevron has until May 10 to make a counter offer, although that deadline could be extended.
Occidental was backed last week by Berkshire Hathaway’s (BRKA) Warren Buffett, who invested $10 billion in the company to help finance its takeover of Anadarko.
American and Chinese negotiators are set to resume talks on Wednesday ahead of the sit-down.
7. Earnings bonanza: 3M (MMM), Bristol-Myers (BMY), Comcast (CMCSA), Hershey Foods (HSY), Hess (HES), Raytheon (RTN), Southwest Air (LUV), UPS (UPS) and Xerox (XRX) will release earnings before the open.
Shares in Anheuser-Busch InBev gained less than 1% in Brussels after the company reported first quarter revenue growth of 5.9%. The brewer said it had seen strong growth in Brazil and improvement in the United States.
4. Coming this week:
Monday: Paris Air Show, US Treasury foreign ownership report
Tuesday: Adobe earnings, US housing starts, US Senate hearing on tariffs
Wednesday: Fed decision and press conference, earnings from Oracle (ORCL) and Barnes & Noble (BKS)
Thursday: US leading indicators, Bank of England rate decision, earnings from Kroger (KR) and Red Hat (RHT)
Friday: US existing home sales, Markit flash US manufacturing PMI