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India begins evacuations as Cyclone Fani approaches, Trump and Xi ponder their next meeting, and Tesla plans to raise another $2 billion. Here’s what’s moving markets.
Cyclone Fani Bears Down on India
India began evacuating almost 1 million people from Odisha state to temporary shelters as it braces for its worst tropical storm since 2014. Cyclone Fani is set to hit the country's east coast Friday morning, with winds as high as 200 kph (124 mph) at landfall, according to the government. Security forces have deployed ships and helicopters.
Presidents Donald Trump and Xi Jinping will decide after next week's trade talks whether they'll meet to finish the deal, White House spokeswoman Sarah Sanders said, adding that the U.S. believes such a summit is likely. The Communist Party-backed Global Times wrote in an analysis that many observers wonder if the process has hit an impasse, given the lack of details from this week's meetings.
Stocks in Asia are set to open mixed as U.S. equities fell for a second day after the Fed did little to encourage rate-cut talk and amid concerns that a trade deal with China remains elusive. Treasuries dipped, while the dollar gained against every G-10 counterpart. Oil tumbled to its lowest in a month. Aussie futures are barely higher and the Hang Seng is poised to open lower. China and Japan remain closed for holidays.
Tesla’s Capital Plans
Tesla plans to raise about $2 billion through debt and stock offerings, an acknowledgement that the Model 3 sedan isn't generating the cash it needs to become self-sustaining. CEO Elon Musk said repeatedly last year that Tesla would no longer need to raise capital as its first mass-manufactured car ramped up. He changed his tune after earnings last week, when a record drop in deliveries and Tesla's biggest-ever debt payment combined to deplete its cash balance to a three-year low.
Moore Drops Out as Fed Pick
Stephen Moore pulled out of consideration for a job on the Fed's Board of Governors, just hours after he told us he was "all in" for the position. The conservative economic commentator had been facing growing opposition from Senate Republicans whose confirmation he'd need, especially since Trump's other planned board pick Herman Cain withdrew last month. Senators had fretted over Moore's disparaging writings about women and his political independence.
What We’ve Been Reading
This is what’s caught our eye over the last 24 hours.
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