Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
"Sure, the trade war's taking its toll on business ... it's just not taking its toll where it was supposed to," Jim Cramer says.Mad Money with Jim Cramerread more
Joe Biden called on President Donald Trump Friday to release the transcript of a call with a foreign leader that is the subject of a whistleblower complaint. Biden described...Politicsread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Palantir Technologies is targeting a valuation of at least $26 billion in a private fundraising round, the first for the Peter Thiel-backed data analytics startup in four...Wall Streetread more
Michael Pack, a conservative filmmaker linked to Steve Bannon, saw at least $1.6 million in donations from his nonprofit sent into the coffers of his independent production...Politicsread more
The New England Patriots released Antonio Brown just 11 days after signing the wide receiver. The NFL Super Bowl champion team initially had kept him in the face of a rape...Sportsread more
A tour bus carrying Chinese-speaking tourists crashed near a national park in southern Utah, killing at least four people and critically injuring up to 15 others, authorities...U.S. Newsread more
Tensions between the U.S. and China are not escalating but there is still "no clear path" towards a deal between the world's two largest economies, according to Morgan Stanley.
Developments at the G-20 Summit in Osaka, Japan over the weekend on their own do not erase the uncertainty that is weighing on corporate confidence and the broader global economy, the firm said.
"As things stand, we lack clarity on whether real progress was achieved on the sticking points that caused talks to break down in the first place," Morgan Stanley chief economist Chetan Ahya said in a note to clients on Sunday.
On Saturday at the G-20 summit, President Donald Trump and Chinese President Xi Jinping agreed not to impose new tariffs on U.S. and Chinese goods. The U.S. said they would hold off on the potential 25% tariffs on the remaining $300 billion of imports from China and China said they would continue to buy U.S. agricultural products. This comes after a trade deal between the two countries fell through in the begging of May.
Although Trump said the two countries are "right on track," Ahya said the lingering unknown is dangerous for corporate sentiment and a looming economic slowdown.
"Uncertainty is the enemy of the business cycle," said Ahya.
Corporate sentiment is at multi-year lows, global PMIs for May fell broadly and Morgan Stanley Business Conditions Index fell to its largest one-month decline on record. Ahya said the data is painting a bleak picture and causing consumer sentiment to "sour."
Ahya said the uncertainty, paired with earnings growth slowing, will cause the corporate sector to face tightening financial conditions. This "could impair lending, weaken confidence further and exacerbate the slowdown in growth," said Ahya.
Morgan Stanley's equity analyst Michael Wilson said to sell the trade truce news, in a note to clients Monday.
"A pause in rising trade tensions is not a fix for slowing US economic activity and earnings pressure," said Wilson.
Although unlikely, Ahya also said in the event of re-escalation between the U.S. and China, we could end up in a global recession in three quarters.
On Monday, the Dow Jones Industrial Average closed down 117 points. The S&P 500 and the Nasdaq both closed positive as well.
—with reporting from CNBC's Patti Domm