Displaying items by tag: white house

(Washington)

The market is increasingly worried about a big regulatory push against the tech industry. Amazon, along with Facebook, are dead center in the bullseye of the push. However, Bloomberg tells investors not to be too worried. The reason why is that according to five sources inside the White House, there are no active discussions or planning about any regulation that would impact the ecommerce retailer. Even in the case of the Post Office, which Trump has focused on, rates are set by a commission, and the organization is legally barred from charging any shipper less than its cost of delivery, meaning Amazon can’t be underpaying.

FINSUM: This is quite relieving if you are an Amazon investor. However, beyond any immediate threats, we do agree that the government is going to have to reconsider anti-trust regulation in light of how data is being used an abused by large tech companies.

(Washington)

Wall Street is getting nervous about the changes occurring in the White House. Over the last week, President Trump has lost or fired both Gary Cohn and Rex Tillerson, former Goldman Sachs COO and former Exxon CEO, respectively. Both Cohn and Tllerson were considered the business-friendly part of Trump’s White House who would look after corporate and investor interests. With them gone, investors are betting the odds of a trade war are getting more likely. One equity strategist summarized the situation, saying “We’ve gone a long time with a zero percent chance of a trade war, it’s now higher than that -- probably significantly higher than that … The internationalists have lost and the nationalists have won”.

FINSUM: We agree that a trade war is getting more likely. If it occurs, we think it will be poor for equities markets, but not necessarily terrible for the economy.

(Washington)

The business-friendly part of the White House appears to have taken a hit over the last week. First it was Goldman Sachs alumni Gary Cohn to leave, and now former Exxon CEO Rex Tillerson has been fired as Secretary of State. In his place will be CIA Director Mike Pompeo. Pompeo is expected to walk a much closer line to Trump’s agenda. Speaking about Tillerson, President Trump commented “We were not really thinking the same; with Mike Pompeo, we have a very similar thought process . . . I think Rex will be much happier now”.

FINSUM: We are concerned that a former CIA director might not have the diplomatic skill to smooth out some of the rough edges of foreign policy. That said, greater harmony between the White House and Secretary of State will be a good thing.

(Washington)

It would be easy to dismiss the current uproar over the Stormy Daniels case against Donald Trump as another in a long series of minor scandals surrounding the White House. However, this one might be very different. The reason why is that the legal case surrounding the situation may force Trump to testify under oath, which could prove a very dicey situation. Daniels, whose real name is Stephanie Clifford, is now offering to pay back the $130,000 she received in exchange for releasing her from her obligation of silence.

FINSUM: It will be very interesting to see where this case leads, as there could be wide-ranging implications.