1. Global market overview

It's shaping up to be a gloomy day in the stock markets and a good day for gold.

U.S. stock futures are pointing lower and European markets are declining in early trading. But gold is rising by about 1.5% to trade around $1,215 per ounce.

Traders tend to put money in gold when they're feeling nervous about stocks.

Asian markets are closing the day with mixed results.

2. Mega takeover on the way

Two of the world's biggest cigarette companies are being rolled into one.

British American Tobacco (BTI) said Tuesday that it's agreed to pay $49.4 billion to take control of Reynolds American (RAI), the No. 2 U.S. tobacco company.

The two cigarette giants hold some of the biggest selling brands on the planet, including Pall Mall, Camel and Newport.

There's also takeover news in the energy sector: Noble Energy (NBL) said it's agreed to buy Clayton Williams Energy (CWEI) for $2.7 billion in stock and cash. Both companies are based in Texas.

3. Brexit speech

British Prime Minister Theresa May is set to give a speech outlining her plans for the U.K.'s exit from the European Union.

She's expected to say that the country will "not seek to hold on to bits of [EU] membership as we leave." That kind of message rattles traders because they worry that the U.K. will lose its free access to the giant trading bloc.

The GBP had been declining in the lead up to the speech, but it's now stabilized above $1.21.

Over the past year, the pound has dropped by 13% or more versus every other major global currency as investors worry about the impact that Brexit will have on the U.K. economy.

4. Watching Davos

Top business and political leaders from around the world are convening in Davos, Switzerland, to kick off the annual World Economic Forum.

IMF Director Christine Lagarde, Facebook (FB, Tech30) COO Sheryl Sandberg, Chinese President Xi Jinping and Alibaba (BABA, Tech30) founder Jack Ma will be among those in attendance.