Dow set to tumble more than 300 points on US-Iran clash – CNN, CNN

What happens next: Eurasia Group, a political risk consultancy, expects Iran to retaliate but thinks its response “will likely be limited to Iraq and fall short of large-scale conflict . “

Its analysts predict that oil prices will likely hold around $ 100 per barrel, but could push up toward $ “if the conflict spreads to the oil fields of southern Iraq or if Iranian harassment of commercial shipping intensifies. “

Remember: The global environment was already supportive of oil prices. US shale production is slowing, Venezuelan production is suffering, and OPEC announced deeper supply cuts in December, Bernstein analyst Oswald Clint told me.

Clint already had a price target for Brent crude of $ 90 per barrel for 2020, above the industry consensus. Heightened tensions between the United States and Iran support that outlook, he said.

A recession is the top worry for CEOs in 96171573

Economists aren’t predicting a global or US recession in (*******************************. But top executives are still bracing themselves for the worst.

American CEOs say a recession is their top concern heading into next year, according to a new survey from the Conference Board. In (********************************, cybersecurity was their top worry, while a recession was in third place.

Bart van Ark, the Conference Board’s chief economist, said these concerns “reflect the slowing economy of the past year and the uncertainties about the outcome of the trade disputes.” But he thinks the mood will improve as business leaders take in a slightly better outlook for the global economy and easing trade tensions.

“We anticipate that a drumbeat of negative sentiment – which can become a self-fulling prophecy – can be avoided, and that we will see more confidence about business prospects in 2020, “he said.

However, with executives on edge, any bad news could reverberate and affect investment.

See here: Datareleased this weekby the Federal Reserve Bank of Philadelphia shows that the economies of nine US states are expected to contract within six months. That’s thehighest numbersince the end of the Great Recession in 2009, according to Bloomberg.

************** Tesla is already cutting the prices of China-built cars

Just days after starting deliveries, Tesla is lowering the prices of cars it builds in China.

The electric car company on Fridayslashed the starting priceof its Shanghai-made Model 3 sedan to (*****************************************, ************************************** Chinese yuan (about $

********************************************, () from (*****************************************, ************************************** (yuan) about $ (****************************************************, ). With government subsidies, the cost could drop to as low as 299, (yuan) about $ (********************************************************, 1100 – about 31% off the original sticker price, my CNN Business colleagues Jill Disis and Laura He report .

The takeaway: China is the world’s largest car market, though sales have fallen for two consecutive years as its economy falters. Doing well there is a big part of Tesla’s plans for growth.

The company has said it wants to eventually make

******************************, ************************************************************** cars a year at its new plant in Shanghai. It just needs to make sure it can sell them at a profit.

Up next

The ISM Manufacturing Index for December arrives at 31 am ET. That’s followed by the Fed minutes from the central bank’s December meeting at 2 p.m. ET.

This weekend: We’re watching to see how rising tensions between the United States and Iran unfold, which could affect the outlook for oil prices and stocks.