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China says it won’t flinch in the trade war, Jamie Dimon says Treasury yields may hit 5 percent, and HSBC earnings disappoint. Here are some of the things people in markets are talking about today.

Protracted war

China let it be known that it’s in the trade war for the long haul, explaining in an editorial published in state media that it doesn’t fear sacrificing short-term economic interests. The comments came in response to President Donald Trump’s tweet that he has the upper hand. On Friday, Beijing released a tariff list designed to retaliate against the American threat to impose new duties on $200 billion of Chinese imports. While China’s economy is showing the biggest strains from the tension, pressures are also mounting in industries across the world, from oil markets to U.S. newspapers.

Treasuries to test 5?

Jamie Dimon upped the stakes in the game of guess-where-Treasuries-are-headed with a new warning that 5 percent yields are a distinct possibility. Forecasts from the  JPMorgan Chase & Co. CEO and other big investors for Treasuries to reach 4 percent this year have fallen flat as even the 3 percent level provides stiff resistance. It briefly rose through that mark last week before retreating for the fourth time this year. The level will be tested this week in a sale of $78 billion of three-, 10- and 30-year debt, part of the largest quarterly refunding since 2010.

HSBC miss

Banks were among the biggest losers in the Stoxx Europe 600 Index after HSBC Holding Plc posted one of the worst equities-trading revenue performances among global banks in the second quarter Adjusted revenue also disappointed, indicating that the lender’s bet on Asian markets hasn’t been enough to cushion a slump in Europe. In other earnings news, United Co. Rusal gave investors the first glimpse of how sanctions are hitting, showing that it’s still making money despite lower sales. 

Markets mixed

Overnight, the MSCI Asia Pacific Index stayed steady while Japan’s Topix index closed 0.6 percent lower. European stocks were little changed at 5:50 a.m. and the euro was flat after German manufacturers took a hit in June. The pound fell for a third day following the prediction by a key U.K. minister that the nation may face a messy split from Europe. S&P 500 futures pointed to a flat open, the 10-year Treasury yield was at 2.951 percent and gold slipped. 

Saudi-Canada spat

Saudi Arabia suspended diplomatic ties with Canada in response to its call for the release of women’s rights activists, in a sign of the kingdom’s increasingly assertive foreign policy under Crown Prince Mohammed bin Salman. The Saudi Foreign Ministry cited remarks last week by Foreign Minister Chrystia Freeland and the Canadian embassy in Riyadh, criticizing the arrests of women’s rights activists including Samar Badawi. Canada is “seeking greater clarity” about the matter, Freeland said.

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