MARKET WRAPS

STOCKS: U.S. stocks were mixed as anxiety about the sustainability of an artificial-intelligence boom offset the impact of a down-tick in oil prices.

TREASURYS: Treasury yields finished mixed, with a drop for the 30-year yield and a gain for the policy-sensitive two-year yield.

FOREX: The U.S. dollar recouped some recent losses as traders weighed U.S. trade-policy moves.

COMMODITIES: Oil futures fell after Treasury Secretary Scott Bessent launched "Operation Economic Outcast."

HEADLINES

Bessent Launches 'Operation Economic Outcast' to Isolate and Squeeze Iran

WASHINGTON-Treasury Secretary Scott Bessent said the U.S. is launching

a new campaign to isolate the Iranian regime, warning that countries and

companies that do business with Tehran will face the wrath of the Trump

administration.

"Let there be no ambiguity as to the position of the United States: An

economic engagement of any kind with this murderous regime will expose

those responsible to the full reach of American power," Bessent said

Monday during a press conference.

As part of the new effort, which he called "Operation Economic

Outcast," Bessent said his department has "mapped every node, every

facilitator and every network that Iran has used to smuggle oil and evade

sanctions." He said the U.S. was sanctioning more than 60 entities,

individuals and vessels across the world that enable the regime to

procure nuclear and missile technology, earn revenue from oil and carry

out cyber operations.

Trump Threatens 50% Tariff on Automobiles and Parts From Canada

President Trump said the U.S. would impose 50% tariffs on automobiles

and parts from Canada starting in January, the latest escalation in a

tit-for-tat trade conflict that erupted over the weekend.

"On January First, 2027, Tariffs on all Cars, Trucks, both large and

small, Automotive Parts, and Steel, will be increased to 50%," Trump said

Monday on Truth Social. U.S. tariffs on Canadian automobiles now stand at

25%, with discounts for the U.S. content in cars, while steel tariffs are

at 50%.

The threat came after Canadian Prime Minister Mark Carney said his

government would respond to a separate set of Trump's tariffs with levies

on U.S. products. Trump imposed those new tariffs-effective on about 5%

of Canadian exports to the U.S.-early on Saturday, after last-minute

talks fell apart.

California Attorney General Cancels Paramount Meeting, Citing Leaks

California Attorney General Rob Bonta's office canceled a planned

Monday meeting with Paramount Chief Executive David Ellison where the

parties were expected to discuss settling a lawsuit the state led seeking

to block the company's purchase of Warner Bros. Discovery.

California and 11 other states filed an antitrust suit last month to

block an $81 billion deal to combine Paramount and Warner, a transaction

that would bring together two of Hollywood's biggest producers and

distributors of entertainment and news content.

Bonta was expected to ask Paramount to divest some cable channels and

commit to keeping its movie studio separate from Warner Bros., The Wall

Street Journal reported. Lawyers from the two sides met on Friday to set

an agenda and talking points for the two sides, the Journal reported.

FTC Reaches Settlement With Zillow, Redfin Over Antitrust Concerns

The Federal Trade Commission reached a settlement with Zillow and

Redfin, resolving an earlier claim that the companies worked together to

reduce competition in the marketplace.

The FTC on Monday said its settlement unwinds an agreement from last

year, in which Zillow paid Redfin $100 million to shut down its

internet-listing services business and stay out of the market for up to

nine years.

The agreement also called for Redfin to exclusively repost apartment

listings provided by Zillow, according to the FTC.

NHTSA Expands Investigation Into GM Braking System

The National Highway Traffic Safety Administration is expanding its

investigation into GM's electronic braking system after receiving several

complaints.

The administration's office of defects investigation had opened a

preliminary evaluation in April after receiving complaints about a loss

of brake assistance in 2023 MY Cadillac Lyriq vehicles.

The NHTSA is opening a further analysis after receiving more

complaints to assess the safety-related consequences of a failed eBoost

system when braking. The agency is also expanding the scope of its

investigation to encompass all GM vehicles that use the system.

FDA Approves Alzheimer's Blood Test Developed by Roche and Eli Lilly

The Food and Drug Administration cleared a blood test for identifying

Alzheimer's disease symptoms, which was developed by Roche and Eli Lilly.

The Elecsys Phospho-Tau Plasma test identifies amyloid pathology

associated with Alzheimer's in people 55 years or older.

It provides positive, intermediate and negative result categories to

support doctors assessing the likelihood of amyloid pathology. Results

are interpreted in conjunction with clinical information and other

relevant findings as part of an Alzheimer's diagnosis.

UAW Workers Reject Deere's Contract Extension Offer, Setting Up 2027

Battle

Members of the United Auto Workers voted down an offer from Deere to

extend its contract with the union by two years, setting up what will

likely be a contentious negotiation for a new contract next year.

The farm-equipment maker last month offered union members two years of

4% wage increases and $3,000 bonuses if they accepted the offer by the

end of August. The proposal would have extended the current contract from

2027, when it is set to expire, to 2029.

The company said pensions, healthcare coverage, cost-of-living wage

adjustments and other benefits in the 2021 contract would have remained

unchanged under the extension.

EV-Maker Polestar Says Trump Administration Strung It Along Before U.S.

Ban

Two months after Chinese-owned electric-vehicle maker Polestar was

forced to exit the U.S. market, the company is telling its American

dealers that it was blindsided by the decision.

Polestar said in an Aug. 18 letter to dealers, seen by The Wall Street

Journal, that it still doesn't have an explanation for why it must cease

U.S. sales while Volvo Cars-a corporate cousin that sells a nearly

identical car-was allowed to remain.

The decision was issued June 24 by the U.S. Commerce Department as

part of a wider crackdown on Chinese vehicle technology.

TALKING POINT Morgan Stanley's Bobby Singh: Why We Are Exploring an International Wealth Push Morgan Stanley touts itself as the largest offshore wealth management provider in the U.S., with market share exceeding 22%. But unlike competitors such as JPMorgan Chase and UBS, Morgan Stanley doesn't have a true international footprint: Its 750 international client advisors, and custody of their clients' assets, are all in the U.S.

Bobby Singh, who has headed Morgan Stanley's international wealth management business since 2024, is trying to change that. The impetus, he says, is a "mass migration of wealth" as countries compete to lure wealthy families from around the world. Speaking with Barron's Advisor, Singh-who once wanted to be a chef-explains why the business' first foreign outpost would be in Europe if it pursued an expansion. And he argues that Morgan Stanley would have one big advantage as a latecomer to foreign soil.

Were you gunning for a career in financial services from an early age? Actually, no. I grew up in India, and after high school I spent a couple of years in Switzerland trying to become a chef. I failed miserably. That's when I moved to the U.S., got a business degree and joined Ernst & Young. My client was Morgan Stanley. I spent four years sitting in Morgan Stanley's offices and eventually got hired into the wealth management division. My career has just turned out to be one of those fairy tales.

How is the international wealth business structured? It's part of Morgan Stanley Wealth Management; we are on the same platform. The uniqueness of the international wealth management business is that all our financial advisors and the custody of assets are U.S.-based. The international component is the clients who reside outside the United States. We're talking about clients from Mexico, Argentina, Brazil, the United Kingdom, Spain, France, the Middle East, and Asia, opening up investment accounts in the U.S. with Morgan Stanley through financial advisors who are mostly in our New York, South Florida, and California offices.

Our clients are mostly foreign nationals: families, founders, entrepreneurs, family offices, single-family offices, multifamily offices, institutions. We serve the full spectrum of clients across the globe. We've got about 750 international client advisors, so we provide them with specific training because Morgan Stanley does not have a wealth management license outside the U.S. So it's imperative that these individuals understand their obligations when they're dealing with clients around the world.

You're now aiming to get licensed outside the U.S. Can you explain the impetus for that? Over the past five or seven years, we have started to notice a globalization of wealth. A lot of countries, in order to lure capital in, are providing tax incentives, specifically to ultrahigh-net-worth people, to come reside in their countries. For folks who are centimillionaires and billionaires, that's a great incentive to say, "I'm going to spend 181 days in Milan or in Florence or in Rome and reduce my tax obligations significantly." This is not unique to Italy. Portugal and Dubai are doing the same thing for example. We have this mass migration of wealth taking place.

--Steve Garmhausen, Barron's

Expected Major Events for Tuesday 05:00/JPN: Jul Supermarket sales

05:00/JPN: Jun Indexes of Business Conditions - Revision

05:30/JPN: Jul Tokyo area department store sales

05:30/JPN: Jul Nationwide department store sales

06:00/GER: 2Q GDP - Detailed breakdown

06:45/FRA: Aug Consumer confidence survey

08:00/GER: Aug ifo Business Climate Index

12:55/US: 08/22 Johnson Redbook Retail Sales Index

13:00/US: 2Q U.S. Quarterly House Price Index

13:00/US: Jun U.S. Monthly House Price Index

13:00/US: Jun S&P Cotality Case-Shiller Indices

14:00/US: Jul New Residential Sales

14:00/US: Aug Richmond Fed Business Activity Survey

14:00/US: Aug Consumer Confidence Index

17:00/US: Jul Money Stock Measures

20:30/US: API Weekly Statistical Bulletin

23:50/JPN: Jul Services Producer Price Index

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Expected Earnings for Tuesday AnaptysBio Inc $(ANAB)$ is expected to report $-0.24 for 2Q.

Anavex Life Sciences Corp (AVXL) is expected to report $-0.17 for 3Q.

Bank of Montreal (BMO,BMO.T) is expected to report $2.93 for 3Q.

Bank of Nova Scotia (BNS,BNS.T) is expected to report $1.50 for 3Q.

Box Inc (BOX) is expected to report $0.11 for 2Q.

Citi Trends Inc (CTRN) is expected to report $-0.14 for 2Q.

Dick's Sporting Goods Inc $(DKS)$ is expected to report $3.66 for 2Q.

Electromed Inc (ELMD) is expected to report $0.33 for 4Q.

Heico Corp - Class A (HEI,HEIA) is expected to report $1.51 for 3Q.

Intuit Inc $(INTU)$ is expected to report $0.76 for 4Q.

Marzetti Co (MZTI) is expected to report $1.38 for 4Q.

Mega Matrix Inc (MPU) is expected to report for 1Q.

Peak Discovery Capital Ltd (PEC.H.V) is expected to report for 1Q.

SelectQuote Inc $(SLQT)$ is expected to report for 4Q.

Semtech Corp $(SMTC)$ is expected to report $0.36 for 2Q.

Strattec Security Corp (STRT) is expected to report $1.29 for 4Q.

Vicarious Surgical Inc (RBOT) is expected to report for 2Q.

Wins Finance Holdings Inc (WINSF) is expected to report for Interim.

ZenaTech Inc $(ZENA)$ is expected to report for 2Q.

Zoom Communications Inc (ZM) is expected to report $0.85 for 2Q.

nCino Inc $(NCNO)$ is expected to report $0.03 for 2Q.

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