Stock market news: Opening bell, July 25, 2018

Women help a child to cross over to the other house on a wooden plank after flash floods in Tailbal, on the outskirts of Srinagar.Reuters/Danish IsmailHere is what you need to know. 

Europe is ready to unleash a $20 billion tariff retaliation. The European Union has prepared retaliatory tariffs on $20 billion of US goods in case this week’s talks with the Trump administration fail.

A $6.3 trillion market could be sowing the seeds of the next financial crisis. The big risk UBS Asset Management sees in financial markets can be found in the corporate-loan market, and the firm has a few ideas on how to protect oneself. 

Former FCA and Ferrari CEO Sergio Marchionne is dead at 66. “Unfortunately, what we feared has come to pass,” FCA Chairman John Elkann said in a statement, as cited by Reuters. “Sergio Marchionne, man and friend, is gone.”

Deutsche Bank profits dive — but signs emerge that its turnaround program is working. Profits at Germany’s largest lender tumbled 14% versus a year ago to 401 million euros ($468.33 million) as the new management team attempts to turn around business. 

Investors are paying more than ever to protect against a Tesla bond crisis. The cost of insuring $100 of Tesla debt hit $6.58 around 10:30 a.m. ET Tuesday, according to Bloomberg data, amid fresh fears over Tesla’s cash position.

MoviePass’ parent company announces a massive reverse stock split. Helios & Matheson shareholders will receive one share for every 250 they own — sending their price up to $22.50 apiece from $0.09.

Lululemon names a new CEO. Calvin McDonald, a top executive at the cosmetics retailer Sephora, has been named Lululemon’s next CEO. He starts on August 20. 

Stock markets around the world trade mixed. Hong Kong’s Hang Seng (+0.9%) led in Asia and Britain’s FTSE (-0.65%) lags in Europe. The S&P 500 is set to open little changed near 2,820.

Earnings reporting is heavy. Boeing, Coca-Cola, General Motors, and UPS are among the names reporting ahead of the opening bell while AMD, Facebook, Ford, and PayPal are set to release their quarterly results after markets close.

US economic data trickles out. New home sales will be released at 10 a.m. ET. The US 10-year yield is down 1 basis point at 2.94%.