Suppressed shots, Harris on US Steel-Nippon Steel bid

Investing.com — Wall Street stock futures are pointing to a weak start to trading in September after a volatile trading month in August. Meanwhile, Kamala Harris said she would take action to block a proposed takeover of US Steel by Japan’s Nippon Steel during a campaign stop in the key state of Pennsylvania. Elsewhere, electric carmaker Tesla (NASDAQ: ) is planning a new six-seat version of its Model Y vehicle in China in a bid to boost its appeal in the lucrative auto market.

1. Disabled futures

U.S. stock futures were mostly hovering around the flat line on Tuesday, with Wall Street poised to begin a new month of trading after a roller coaster August.

By 07:26 GMT (03:26 EST), the contract was down 44 points, or 0.1 percent, and was broadly unchanged and down 14 points, or 0.1 percent.

Major US media were closed on Monday for the Labor Day holiday.

They ended Friday’s trading session higher, ending August in positive territory despite a sharp decline to start the month that was fueled in part by concerns about a potential U.S. recession. The benchmark fell more than 7% but rebounded to rise 2.3% in August — its fourth straight month of gains.

30 stocks and tech-heavy also gained 1.8% and 0.7% respectively during the period.

2. Harris expresses opposition to proposed US Steel-Nippon Steel deal

Democratic US presidential candidate Kamala Harris has signaled she will block a proposed $14.9 billion takeover of US Steel by Japan’s Nippon Steel.

Addressing a crowd of supporters in Pennsylvania, a key state in the 2024 US presidential election, Harris called US Steel a “historic American company” that “should remain American-owned and operated.”

The comments are similar to objections previously raised by US President Joe Biden. Harris is currently Biden’s running mate.

Harris’ Republican rival, Donald Trump, has also spoken out against the tie-up, vowing to block it.

The bipartisan opposition to the deal echoed fierce opposition from the United Steelworkers union, which urged lawmakers to examine whether it would harm U.S. national security interests and U.S. Steel’s domestic workforce. US Steel and Nippon Steel continued to support the bid, saying it would benefit the US steel industry.

3. Tesla plans six-seat Model Y in China – Reuters

Tesla is to produce a new six-seater version of its Model Y vehicle, targeting a launch in China by the end of 2025, Reuters reported on Tuesday.

The move is part of the company’s strategy to refresh its best-selling electric vehicle (EV) and boost the Model Y’s appeal amid growing competition from China’s domestic EV makers.

Tesla has communicated to its suppliers the need to prepare for a significant increase in Model Y production at its Shanghai factory, according to the report.

Although specific details of how Tesla plans to increase production have not been disclosed, the Shanghai plant is awaiting approval to expand an adjacent 70 hectares of former farmland.

Tesla has already seen a 6 percent year-over-year increase in domestic and international deliveries of the Model 3 for the first half of the year, after introducing an updated version last year. August was Tesla’s best month in China this year, with sales up 37 percent from July in the world’s second-largest economy.

4. The president of Brazil supports the X ban

Brazilian President Luiz Inácio Lula da Silva has thrown his support behind a controversial decision by the country’s Supreme Court to uphold a ban on Elon Musk’s social media platform X.

The leftist leader told CNN Brasil that “the world is not obliged to put up with Musk’s far-right ideology just because he is rich.”

On Monday, a panel of judges at Brazil’s High Court unanimously upheld the ban against X. Supreme Court Justice Alexandre de Moraes instituted the shutdown over the weekend, saying the platform did not comply with hate speech regulations and other requirements .

Musk responded to X by saying de Moraes is a “dictator.” Billionaire Bill Ackman also warned that the ban could prove to make Brazil, South America’s largest economy, “uninvestable”.

Investors also raised concerns about de Moraes’ separate decision to freeze Brazilian bank accounts belonging to Musk’s Starlink satellite broadband business. de Moraes ordered the move last week after X failed to pay fines imposed for failing to comply with court orders.

5. Crude near two-month highs

Crude oil prices traded mixed on Tuesday as traders digested sluggish economic growth in China, the world’s biggest crude importer, as well as production and export shutdowns in Libya.

By 3:15 a.m. ET, the contract was down 0.1 percent at $77.42 a barrel, while U.S. West Texas Intermediate (WTI) futures were up 0.2 percent at $74.17 a barrel. after the contract was not settled on Monday due to the US Labor Day holiday.

China’s purchasing managers’ index hit a six-month low in August, data showed over the weekend, likely pointing to a weakening in demand from the world’s biggest crude importer.

However, oil exports to major ports in OPEC member Libya were halted on Monday and production was cut across the country, providing some support to oil prices.