Politics

(Washington)

Something very odd has been going on in markets for the last few weeks—investors are completely tuning out politics. The political situation both domestically and internationally has grown steadily worse in recent weeks. The US has a growing trade war with China, Brexit is a complete mess, Trump is meddling with allies etc., yet markets continue to move higher. Even emerging markets have rallied.


FINSUM: On top of politics, recession fears are also growing. Accordingly, it is slightly concerning markets are rising. Markets have learned to not take Trump’s comments too seriously, but that lack of sensitivity might be serving investors poorly right now. The Wall Street Journal says it best: “Markets are notoriously bad at pricing changes in the political weather until they are forced to”.

(Washington)

We have not covered the Trump probe saga in a while, and with good reason—there has been little news. However, that may be about to change. ABC News has run an interview which seems to suggest that Trump’s former attorney, Michael Cohen, may be about to turn on the president as he prioritizes his own family. “I will not be a punching bag as part of anyone’s defence strategy … My wife, my daughter and my son have my first loyalty and always will ... I put family and country first”. He says he is not the villain in this story and does not want to be depicted that way.


FINSUM: Maybe he is about to turn on Trump, but no one knows what cards he may or may not be holding.

(Washington)

President Trump has been leading a tumultuous trade war with the US’ largest trading partners. So far his efforts have put tariffs on many different goods, but with metals being the single most notable materials. However, a new interview with the President suggests that the metal tariffs were just an opening act to a much bigger area: autos. In an interview with Fox News yesterday, Trump said “You know, the cars are the big one … We can talk steel, we talk everything. The big thing is cars”. Trump is reportedly planning a 20% tariff on all imported cars as part of a national security measure.


FINSUM: We believe this would be a major line in the sand to the US’ trading partners. Both our Nafta partners and the EU, and maybe Japan, would be furious about this, but it is a major source of leverage for the US.

Page 8 of 63

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…