Economy

China’s economy slows


China’s economic growth slows to 6.2%, the slowest in nearly 30 years. While Trump takes credit, the slowdown is likely due to China’s development. Economic growth is expected to slow as economies get stronger.

Trump goes after the ECB as euro drops against the dollar


President Trump attacked European Central Bank (ECB) President Mario Draghi in a Tuesday tweet after he signaled that he may lower interest rates as soon as next month, causing the euro to drop against the dollar. Trump is picking a fight one of the major central banks that has hinted at easing monetary policy as the global economy slows

Fred Hiatt: Frittering away foreign policy gains


“Previous presidents were smart enough not to insist on getting their own way every single time. As a result, nations were generally willing to live with norms and structures that kept the United States in the lead; they trusted the United States not to exploit their deference to squeeze them for every last dollar (or euro, or yen). They believed the United States would consider its own national interest but also global stability and not take advantage of others at every possible turn. … Once these norms and structures are changed—and they will change, especially if the Trump era lasts through 2024—there will be no going back.”

The rising influence of Peter Navarro


The recent showdown with Mexico marks a high point in Donald Trump’s economic adviser Peter Navarro’s tumultuous tenure in the White House, as Trump’s increasingly aggressive actions on trade, including toward China, mirror policies that the man he calls “my Peter” has pushed since the beginning of the administration.

Trump official suggests climate change may cause financial crisis


Rostin Behnam, who sits on the powerful five-member Commodity Futures Trading Commission, told the New York Times in an interview Monday that the financial risks from climate change are akin to those posed by the mortgage meltdown that caused the 2008 financial crisis. What? A Trump official who believes in climate change? Yep. Given the difficulty Trump would face in trying to get rid of Behnam, it’s likely he’s in for some unhinged attacks from the president.

‘Trump recession’ on the horizon?


As China and the U.S. engage in an increasingly aggressive trade war, economists are concerned that DonaldTrump’s tariffs may tip the U.S. economy into a recession. “They are taxes, they hurt consumers, they hurt American companies,” said Gary Shapiro, president and CEO of the trade organization Consumer Technology Association. Trump’s “weaponization of tariffs” hurts the U.S. economy and “creates uncertainty” with trading partners, said Myron Brilliant, head of international affairs at the U.S. Chamber of Commerce.

US only adds 75k jobs in May


Job growth slowed in May as the U.S. added only 75,000 jobs in May. April saw a much higher growth, adding 224,000 jobs. The unemployment rate remains unchanged at 3.6 percent.

Which states would be hit hardest by Mexican tariffs?


New tariffs on Mexico won’t be in anyone’s best interests, either in Mexico or stateside. For state economies, the impact of these rising prices depends on how reliant their major industries — from automakers to food producers to energy companies — are on suppliers in Mexico. Here’s how they would affect each state in the Union.

Disney CEO says Georgia’s abortion bill makes it ‘very difficult’ to film there again


Disney CEO Bob Iger has warned the state that the company could be finished with filming in Georgia if lawmakers push ahead with its heartbeat abortion bill. “I think many people who work for us will not want to work there, and we will have to heed their wishes in that regard. Right now we are watching it very carefully…[If it becomes law], I don’t see how it’s practical for us to continue to shoot there,” Iger said.

American soil is increasingly foreign soil


America’s farmers have been struggling thanks to President Trump’s tariffs, but at least they’re still on American soil, right? Well, not necessarily, as it turns out. Today, nearly 30 million acres of U.S. farmland are held by foreign investors. That number has doubled in the past two decades, which is raising alarm bells in farming communities.

‘Extremely stable genius’


During a presser that was supposed to be focused on Trump’s bailout of farmers hurt by his trade war, Trump asked his aides, who were present yesterday’s meeting with Nancy Pelosi, to comment on his “calm” demeanor during the meeting. After they responded he rambled some calling himself “…an extremely stable genius,” while calling the Speaker of the House “a mess”.

25,000 ‘British Steel’ jobs in danger


British Steel, the country’s second largest steel producer, is on the brink of collapse unless the government agrees to provide an emergency bailout. The company employs 5,000 workers directly, mostly at a single giant plant in the north of England, but a further 20,000 jobs are dependent upon its supply chain.

Morgan Stanley sees global recession on the horizon


With no end in sight for the trade war between the U.S. and China, Morgan Stanley is worried that a global recession is coming. The bank said, “If talks stall, no deal is agreed upon, and the U.S. imposes 25% tariffs on the remaining ~US$300 billion of imports from China, we see the global economy heading toward recession.”

Ford to cut 7,000 jobs


Ford Motor Co. said on Monday it will eliminate about 10% of its global salaried workforce, cutting about 7,000 jobs by the end of August as part of its larger restructuring effort. “To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision making, focus on the most valuable work, and cut costs,” said Ford CEO Jim Hackett.

Inu Manak: Is the GOP still the party of free trade? No


“The U.S. Constitution vests Congress with the authority to regulate commerce, but over the years it has ceded that authority. If the current environment does not invigorate Republican members of Congress to work to take back this responsibility, it is hard to take claims that they value trade as a benefit for Americans seriously. Meanwhile, polls suggest that most Americans support free trade, and Democrats have surpassed Republicans as its most ardent supporters. We have yet to see whether Democrats will take up the mantle of free traders, but in the meantime, the Republicans certainly can no longer claim that title, as they continue to make excuses for the president’s actions. The party of free trade? No. More like the Grand Old Protectionists.”

Daily News Ed Board: No light at the end of Trump’s trade tunnel


“To minimize the damage, Trump pushed for another $15 billion in subsidies to farmers losing out because their products now cost more. That’s above the $12 billion he authorized last year when he launched the trade war. Which means Americans pay for the tariffs not once, but twice. First, consumers lose by paying more for Chinese products. Second, taxpayers pick up the tab by bailing out ‘great patriot’ farmers who absorb economic pain for the motherland. With each new round of economic penalties, Trump tells Americans the clouds will break and the light will soon shine through. Right after they pay more, and more, and more.”

The trade war is leaving lasting effects on the markets


Investors are dealing with a painful new reality that the trade war between the United States and China could last indefinitely. That anxiety spread across the stock markets on Monday, as investors around the world tried to divine the potential fallout to economic growth and corporate profits.

China retaliates against the US with tariffs of its own


China said it would raise tariffs on roughly $60 billion worth of U.S. imports, in response to the U.S. increasing tariffs on $200 billion worth of Chinese goods. Because China’s entire imports from the United States are considerably less than $200 billion, it has not had the option of matching the United States dollar for dollar.

Trump may redefine poverty


The Trump administration may alter the way it determines the national poverty threshold, putting Americans living on the margins at risk of losing access to welfare programs. The possible move would involve changing how inflation is calculated in the “official poverty measure,” the White House Office of Management and Budget said in a regulatory filing on Monday. The formula has been used for decades to determine whether people qualify for certain federal programs and benefits.

The Dow’s terrible, no good, very bad day


The Dow had a lousy day. It fell 473 points, tumbling below 26,000 points. What happened? Trade Rep. Robert Lighthizer and Treasury Sec. Steven Mnuchin indicated late yesterday that Donald Trump was dead serious about his tariff threat — and new import penalties will be imposed on China on Friday. So the market freaked out, falling steadily throughout the day.

Economists flee the Trump administration


Economists within the Department of Agriculture published research which showed how Trump’s trade policies hurt American farmers. This research caused the economists to receive heavy criticism from the Trump administration, which eventually led to their departure from the administration.

Morgan Stanley says ‘dasvidaniya’ to Russia


The American investment bank Morgan Stanley is officially leaving Russia, closing banking operations during the first quarter of 2020. Russia’s actions in Ukraine led to heavy sanctions, which made it hard for a bank like Morgan Stanley to operate in Russia. Russia’s seizing of Ukrainian territory is still negatively impacting the country and will likely do so for years.