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(Bloomberg) --

U.S. shares stretch their rally to a second day, Theresa May’s Brexit pitch gets routed in Parliament, and Boeing’s crisis deepens. Here are some of the things people in markets are talking about.

Washington Dangles Tariff Threat

President Donald Trump’s top trade negotiator said the U.S. must keep the option of raising tariffs on Chinese imports as a way to ensure Beijing lives up to a trade agreement that could be finalized in a matter of weeks. “We have to maintain the right to be able to - whatever happens to the current tariffs - to raise tariffs in situations where there’s violations of the agreement,” U.S. Trade Representative Robert Lighthizer said Tuesday in testimony before the Senate Finance Committee. “I can’t predict success at this point, but we’re working hard and we have made real progress.” Under questioning from Democratic Senator Ron Wyden, Lighthizer declined to say the administration will roll back U.S. tariffs if it reaches a deal with the Chinese. “That’s still a subject matter of negotiation,” Lighthizer said.

U.S. Stocks Extend Rally 

Asia shares looked set for a mixed open after U.S. stocks pushed a rally to a second session. Treasuries advanced after weak  inflation data bolstered bets the Federal Reserve can stay patient. Futures on equities in Japan and Australia dropped, while Hong Kong shares indicated a flat open to trading, after the S&P 500 Index posted a small advance. The dollar slid, while crude oil climbed. In the coming days investor focus will turn to Chinese production and retail sales data, as well as a Bank of Japan policy decision.

Boeing’s Woes Deepen

Boeing Co. staggered into a deepening global crisis as governments around the world grounded the company’s best-selling jet over safety concerns after a second deadly crash. The European Union Aviation Safety Agency and Indian regulators suspended all flights by the 737 Max on Tuesday as investigators probe why an Ethiopian Airlines aircraft plunged to the ground near Addis Ababa, killing 157. The March 10 crash occurred less than five months after a Lion Air 737 Max 8 plunged into the Java Sea off the coast of Indonesia. The global rush to halt flights is leaving Boeing and the U.S. Federal Aviation Administration isolated a day after they expressed confidence in the jetliner’s airworthiness. Jurisdictions including China, Australia and Singapore had already grounded the Max, as had airlines from Latin America to Africa and the Middle East. U.S. aviation regulators say they see no evidence yet of a safety issue with the beleaguered jetliners and reiterated their decision not to join a slew of other nations in grounding the plane.

May’s Brexit Deal Routed 

U.K. Prime Minister Theresa May’s Brexit deal was rejected once again by Parliament, throwing the country deeper into political crisis and raising the prospect that the divorce will be delayed or even reversed. May’s deal -- renegotiated late on Monday night -- was defeated by 391 votes to 242. That was less than the record 230-vote margin she suffered in January, but still a resounding repudiation of two years of painstaking work. With the deal all but dead, Parliament will probably vote to postpone Brexit later this week, and lawmakers -- including some of May’s own Cabinet -- will likely try to maneuver to force the government to rip up its Brexit plans and start again. Sterling fell for the eighth time in nine sessions.

Ex-Goldman 1MDB Bankers Banned by Fed   

Former Goldman Sachs Group Inc. bankers Tim Leissner and Roger Ng were banned from the industry by the U.S. Federal Reserve for their role in helping divert billions of dollars from the Malaysian state fund 1MDB. Leissner and Ng coordinated bond offerings that allowed funds to be stolen from 1MDB, the Fed said in a Tuesday statement. Some of the money was used to bribe government officials in Malaysia and Abu Dhabi, and criminals also used proceeds to pay for lavish lifestyles, according to regulator.

What we’ve been reading:

This is what caught our eye over the last 24 hours.

• China’s big default scares are giving bond investors whiplash. 
• Fear of Trump walking out on Xi haunts China.
• Pompeo says Kim told him “half a dozen times” he’ll denuclearize.
• How the Danish Justin Bieber made it big in China.
• Five timepieces to look for at the biggest watch show of 2019.
• U.S. celebrities, financial professionals charged in vast college-admissions plot.

To contact the editor responsible for this story: Boris Korby at bkorby1@bloomberg.net

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