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.
Turkish President Erdogan has fired the head of Turkey’s central bank following Erdogan’s efforts to influence the bank and interest rates. The firing caused heavy losses for Turkey’s stocks and currency.
Deutsche Bank has cut 18,000 jobs in an effort to restructure the bank and help it recover from its financial struggles. Nearly 1 in 5 Deutsche Bank employees will lose their jobs.
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
“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 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.
Sec. of State Pompeo is on a mission to improve the trading relationship between the U.S. and India, following President Trump’s decision to end India’s preferential trade treatment. Pompeo is seeking more access for U.S. businesses to India’s local markets.
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.
The month of May saw increased deficit spending as the federal deficit ballooned to $208B. 2019 has a cumulative deficit of $739B.
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.
The UK economy shrank 0.4% in April as Brexit paralysis took hold, following the proposed deadline for departure from the EU. The latest monthly fall was four times larger than analysts had forecast and marked the second consecutive month of contraction for the UK’s economy after a 0.1% drop in March.
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.
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.
IMF Managing Director Christine Lagarde warned that if the trade war between the U.S. and China continues, the global GDP will experience a loss of $455B in 2020. Lagarde continued saying, “These are self-inflicted wounds that must be avoided…”
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.
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.
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”.
The Trump administration announced a $16B package to help farmers hurt by Trump’s trade war. Trump, who often derides socialism, is ironically now having his administration pay farmers for crops that they can no longer sell to China.
Following the U.S. decision to place Huawei on its export blacklist, UK and Japanese companies have suspended orders for Huawei’s smartphones. The suspension of orders is the first sign that the Trump administrations restrictions on Huawei may start hurting the company.
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.
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 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.
Following President Trump’s blacklisting of Huawei, American companies are no longer allowed to sell components to the Chinese company. This move could cost U.S. companies $11B in revenue.
“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.”
The Trump administration has finally reached a deal with Canada and Mexico to lift steel tariffs, opening the door for the USMCA trade deal to be passed. U.S. lawmakers previously signaled resistance to passing the new trade deal if steel tariffs on U.S. allies remained.
The supermarket chain, Aldi, is revolutionizing grocery shopping and competing directly with the biggest names in the industry. Aldi is a super-efficient, low-price, no-frills supermarket that is continuing to grow, expecting to add 130 stores in 2019 alone.
There is a point beyond which debt becomes a drag on growth. That means the recovery after the next recession will be even slower than the last. The U.S. seems to be quickly heading toward that point.
“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.”
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.
Apple’s stock alone dropped nearly 5%. “Volatility is going to persist. People don’t know what to make of it,” said JJ Kinahan, chief market strategist at TD Ameritrade.
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.
Treasury Secretary Steve Mnuchin and IRS Commissioner Charles Rettig have been subpoenaed by House Ways and Means Committee Chairman Richard Neal to produce Donald Trump’s tax returns. The subpoena comes after the Treasury Department formally declined to turnover Trump’s tax returns.
U.S. equity futures were little changed Thursday as traders nervously awaited a midnight deadline for tariffs on China to increase. Meanwhile the Nasdaq and S&P 500 dropped for the fourth day in a row.
President Trump signed an executive order sanctioning Iran’s industrial metals. Iran’s metal industry accounts for 10 percent of its export economy.
Uber and Lyft drivers plan to strike Wednesday in major cities around the globe in opposition to Uber’s upcoming Wall Street debut. The drivers are striking for livable incomes, job security, and regulated fares, among other demands.
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 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 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.
Investors are nervous as Trump continues to threaten more tariffs on Chinese goods, The Dow dropped 500 points as Trump’s trade war with China continues to escalate.
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.