Category: Winning

Stock Market Falls as Trump threatens tariffs on $11 billion of EU goods

U.S. stocks closed lower Tuesday, with the S&P 500 snapping its eight-day winning streak, on fears over escalation of trade tensions with the European Union and a weaker global outlook from the International Monetary Fund.

How did the benchmarks fare?

The Dow Jones Industrial Average DJIA, -0.72%  dropped 190.44 points, or 0.7%, to close at 26,150.58, while the S&P 500 index SPX, -0.61% fell 17.57 points. or 0.6%, to 2,878.20. The Nasdaq Composite Index COMP, -0.56% declined 44.61 points, or 0.6%, to 7,909.28.

What drove the market?

The office of the U.S. Trade Representative threatened to levy tariffs on many European goods late Monday. The threat is a retaliation against European companies’ subsidies for aircraft manufacturer Airbus SE EADSY, -1.82% If the U.S. follows through, the proposed tariffs would affect about $11 billion in imports to the U.S., including helicopters, bicycles, cheese and wine.

Lighthizer said the Trump administration would wait for World Trade Organization clearance to implement the duties. President Donald Trump Tuesday morning tweeted that the EU has taken advantage of the U.S., adding that it would “soon stop!”:

The U.S.-EU tensions comes with the administration reportedly close to resolving a yearlong spat with China, which has roiled markets amid fears the clash between the world’s largest economies could disrupt global economic growth.

The IMF lowered the outlook for global economic growth in 2019 to 3.3% from 3.5% projected in January, marking its third reduction of growth expectations in six months. The decline has been broadly felt, with all advanced economies, including the U.S., and most major emerging-market economies seeing deterioration in their outlook.

Meanwhile, data pointed to a tightening of the U.S. labor market. The number of job openings in the U.S. fell by 538,000 to 7.1 million on the last business day of February, marking the smallest number of job openings since March of 2018.

The National Federation of Independent Business’s small-business optimism index edged up 0.1 point to a seasonally adjusted 101.8, marking the third month in a row in a narrow range.

What were strategists saying?

“The tariff threat is probably what’s moving markets negatively,” Karen Cavanaugh, senior market strategist with Voya Investment Management, told MarketWatch, though she noted that tariffs being discussed are relatively small. “We’re in an information vacuum before earnings season, and right now any little thing could move markets until we get something substantial to sink our teeth into.”

“Sentiment in continental Europe is holding up well, considering the heightened tensions between Washington, D.C., and Brussels in relation to the threat of $11 billion worth of tariffs being imposed on European imports,” wrote David Madden, market analyst at CMC Markets, in a research note.

Which stocks were in focus?

Apple Inc. AAPL, -0.30%  surrendered early gains to fall 0.3%, bringing its nine-day win streak to a close as its effort to reclaim $1 trillion in market cap took a pause.

Shares of Wynn Resorts Ltd. WYNN, -3.86% dropped 3.9% after the company terminated talks to purchase Australia’s Crown Resorts.

Shares of Paris-listed Airbus SE AIR, -1.86%  were off 1.9% amid the U.S. tariff threat. U.S. listed shares EADSY, -1.82% also fell 1.8%.

Avaya Holdings Corp. AVYA, +4.17% shares gained 4.2% after Bloomberg reported that the communications software company is organizing a sales process for the company, following the receipt of unsolicited bids.

General Electric Co. GE, -2.85% shares slid 2.9% a day after J.P. Morgan analyst Stephen Tusa downgraded the stock.

Shares of American Airlines Group Inc. AAL, -1.68% fell 1.7% after the company cut its first quarter guidance.

How were other markets trading?

Markets in Asia closed on a mixed note, with Japan’s Nikkei 225 NIK, -0.61%adding 0.2%, Hong Kong’s Hang Seng Index HSI, -0.35% rising 0.3%, while the Shanghai Composite Index SHCOMP, -0.39% lost 0.2%. European stocks were lower, with the Stoxx Europe 600 SXXP, -0.47% down 0.5%.

In commodities markets, the price of oil CLK9, +0.19% retreated from five-month highs, while gold futures GCM9, -0.13% settled higher. The U.S. dollarDXY, +0.02% was mostly unchanged.

[MarketWatch]

Trump steps back from Mexico border threat as companies warn of economic fallout

President Donald Trump took a step back on Tuesday from his threat to close the U.S. southern border to fight illegal immigration, as pressure mounted from companies worried that a shutdown would cause chaos to supply chains.

Trump threatened on Friday to close the border this week unless Mexico acted. He repeated that threat on Tuesday but said he had not made a decision yet: “We’re going to see what happens over the next few days.”

Closing the border could disrupt millions of legal crossings and billions of dollars in trade. Auto companies have been warning the White House privately that it would lead to the idling of U.S. plants within days because they rely on prompt deliveries of components made in Mexico.

The U.S. Chamber of Commerce, the largest U.S. business lobbying group, has been in contact with the White House to discuss the “very negative economic consequences that would occur across the country,” said Neil Bradley, the group’s top lobbyist, on a call with reporters.

Trump praised efforts by Mexico to hinder illegal immigration from Central America at its own southern border. On Monday, the Mexican government said it would help regulate the flow of migrants.

“I really wanted to close it,” Trump said on Tuesday night at a fundraiser for congressional Republicans.

[Reuters]

Trump slams media for coverage of investigations into ‘all time favorite duly elected President’

President Trump tore into the media over its coverage of special counsel Robert Mueller’s investigation, which concluded without sufficient evidence that the president’s campaign had colluded with Russia during the 2016 election. 

“The Fake News Media has lost tremendous credibility with its corrupt coverage of the illegal Democrat Witch Hunt of your all time favorite duly elected President, me! T.V. ratings of CNN & MSNBC tanked last night after seeing the Mueller Report statement. @FoxNews up BIG!” Trump tweeted Tuesday evening. 

Trump and his conservative allies on Capitol Hill and in the media seized on Attorney General William Barr’s announcement that Mueller found no evidence of collusion, using it to slam mainstream outlets for what they said was speculative reporting that implied Trump’s guilt.

“The Mainstream Media is under fire and being scorned all over the World as being corrupt and FAKE. For two years they pushed the Russian Collusion Delusion when they always knew there was No Collusion. They truly are the Enemy of the People and the Real Opposition Party!” Trump tweeted early Tuesday morning. 

The president has long had an acrimonious relationship with the press, often hammering outlets that reported negative news of the White House as “fake news” and at times even speculating whether he should revoke the press credentials of certain publications’ employees.

Fox News, a staunch defender of the president in its primetime hours, saw a boost in its viewership in the aftermath of the Mueller news, more than quadrupling CNN’s ratings.

[The Hill]

Trump Touts CNN Poll With 71% Saying the Economy Is in Good Shape: ‘Is CNN Becoming a Believer?’

President Donald Trump regularly denounces CNN as “fake news,” but this afternoon he touted a poll released by the network this week showing a notable positive result for him.

The poll, released yesterday, finds 71 percent of people saying the economy is in good shape, “the highest share to say so since February 2001, and the best rating during Trump’s presidency by two points.” (26 percent say it’s “very good” and 45 percent say “somewhat good.”)

51 percent approve of Trump’s handling of the economy and his overall approval rating is at 42 percent.

[Mediaite]

Trump points to Dems over failure of North Korea summit

President Trump on Sunday appeared to point blame at Democrats for the collapse of his negotiations with North Korean leader Kim Jong Un last week.

“For the Democrats to interview in open hearings a convicted liar & fraudster, at the same time as the very important Nuclear Summit with North Korea, is perhaps a new low in American politics and may have contributed to the “walk” Never done when a president is overseas. Shame!” Trump tweeted.

The president was referring to the testimony of his former personal attorney, Michael Cohen, which occurred simultaneously with his summit in Hanoi, Vietnam. 

Cohen testified before the House Oversight and Reform Committee, where he accused the president of lying to the public about hush money payments and floated the possibility of Trump’s collusion with Moscow.

Cohen was sentenced to prison last year after pleading guilty to financial crimes, campaign finance violations and lying to Congress. He sentence is set to begin on May 6.

While Cohen was on Capitol Hill, Trump was in Hanoi, at his second meeting with Kim.

Trump entered negotiations with the hope of securing a deal that involved North Korea denuclearizing, but talks ended abruptly without any type of deal, which Trump alludes to in his tweet. 

The president told reporters following the summit that the U.S. was not willing to fully lift sanctions in exchange for partial denuclearization, stating that “[s]ometimes you have to walk, and this was just one of those times.”

A North Korean official disputed that characterization of the country’s position adding that Kim “may have lost the will” to engage in future negotiations.

“This proposal was the biggest denuclearization measure we could take at the present stage in relations to [the] current level of confidence between the DPRK and the United States,” North Korea’s foreign minister said.

[The Hill]

Trump hints at a softer stance on Huawei in a bizarre ‘6G’ tweet

President Donald Trump sent a pair of bizarre tweets Thursday morning mentioning a “6G” wireless network and seemingly hinting that he could take a softer stance on Chinese telecom company Huawei.

The tweets rang as odd because 6G technology doesn’t exist. U.S. telecom companies are barely on the cusp of 5G wireless networks, and they’re facing stiff competition to build it before Chinese companies.

Trump doesn’t name China or Huawei, but that’s likely what he’s referencing. Chinese companies are at the forefront of 5G technology, and the Trump administration resumed trade talks with Chinese negotiators Thursday. Both nations face a March 1 deadline to reach a deal, although Trump has indicated he could back off of it.

Meanwhile, Trump has reportedly been preparing an executive order to ban Huawei and ZTE from operating in the U.S., which would grant U.S. companies a little more cushion to build their own 5G networks. Now it seems Trump could be reconsidering a ban on Chinese telecoms.

It’s unclear whether a potential ban on Huawei and ZTE would factor into negotiations, but such an executive order would likely invite some bad blood between the world’s two largest economies.

The U.S. and other countries have long feared Huawei’s equipment could be used for spying.

TPG Telecom dropped plans to use Huawei equipment in Australia, which banned the use of Huawei’s equipment. New Zealand and Japan have similar prohibitions in place. The U.K. hasn’t made a decision either way, but the Royal United Services Institute, a defense think tank, warned earlier this month that allowing Huawei equipment could be “naive” and “irresponsible.”

Germany has considered similar measures, but said earlier this month that it isn’t ready to ban Huawei and that it will allow all 5G equipment vendors in the country.

U.S. carriers AT&T and Verizon are still activating fledgling 5G networks in select cities, and T-Mobile and Sprint plan to launch theirs later this year. Most experts think it will take until at least 2020 for 5G to become widespread.

Samsung just announced the first phone that will run on the faster network, but it won’t launch until the second quarter of this year.

Trump’s reference to nonexistent “6G” might just be an indication he wants technology to be running full speed ahead, but it’s not something that anyone will be able to use in the near future.

The White House did not respond to a request for comment.

[CNBC]

Reality

At the time of this tweet there is no white paper on 6G. Trump is showing again his complete lack of understanding of technology.

Trump Brags of 52% Approval Rating, From a Single Day in a Single Republican Daily Poll, Several Days Ago

n Trump’s third tweet this morning he cited numbers from an unnamed poll that he claims shows a 52 percent approval rating, 93 percent among the Republican Party: “Pretty amazing considering that 93% (also) of my press is REALLY BAD. The PEOPLE are smart!”

[Palm Beach Daily News]

Reality

Trump is cherry picking the Republican-leaning Rasmussen polls again. This number is from a single daily poll from one polling company… from several days ago.


Trump just tweeted a video of Democrats looking sad set to REM’s “Everybody Hurts.” Really.

After declaring a national emergency to get his wall at the US-Mexico border on Friday, President Donald Trump took a little time on Twitter to mock his Democratic critics — and Mitt Romney.

The tweet features a video of Trump’s State of the Union last week, with REM’s “Everybody Hurts” playing in the background, and shots of various Democrats — Cory Booker, Elizabeth Warren, Kamala Harris, Alexandria Ocasio-Cortez, and more — looking sad while they watched Trump speak. There is also a cut to Romney, who’s at times critical of Trump.

The video is credited to @Carpedonktum, a pro-Trump meme-maker — making it even weirder, since presidents usually don’t promote random Twitter accounts’ content.

Sure, this is funny — if, say, The Daily Showor Stephen Colbert does something like it.

But for the president to tweet it, it’s alarming. In the past, presidents have tried to keep at least a bit of an appearance that they respected and were willing to work with the other party. With his tweet, Trump is doing nothing of the sort; he’s just mocking his Democratic rivals.

It’s another example of how strong negative partisanship — or, in conservative parlance, “owning the libs” — has become. On both sides of the aisle, people love dunking on the other team. As American politics becomes more and more polarized, and Republicans in particular move in more extreme directions, this is becoming a bigger problem — one that’s fracturing both sides’ ability to work together to pass legislation and solve problems.

This even showed up in Trump’s State of the Union speech. Peter Baker reported for the New York Times that the initial speech was supposed to promote a more unified, bipartisan message, but Trump tried to edit it to make it meaner to Democrats — because, Baker wrote, Trump was still “stung by his failure to use a partial government shutdown to pressure Congress into paying for his border wall.”

And we’ve seen it in governments’ inability to really function in recent years, with various threats that the debt ceiling won’t be increased and multiple government shutdowns.

All of that may lead to some funny, unexpected tweets. But those tweets are a symptom of America’s broken politics.

[Vox]

Trump Touts Fox News Poll … That Found 50 Percent Oppose Border Wall

President Donald Trump tonight tweeted out a screengrab from Fox News on the results of the network’s latest poll regarding border security, days ahead of the deadline to pass the compromise bill and avert a shutdown.

Fox News’ Special Report tonight covered part of the poll––finding that 66 percent of people support a border deal that “includes money for some form of a border barrier and other border security measures as well as money for humanitarian relief.”

And the president’s Twitter account posted the graphic tonight:

The full poll from Fox News finds that 46 percent support a border wall but 50 percent oppose it. 38 percent would favor Trump declaring a national emergency to get the wall built and 56 percent would oppose it.

When asked whether Trump or Nancy Pelosi ended the shutdown stronger politically, 35 percent said Trump and 43 percent said Pelosi.

[Mediaite]

Trump says he is considering using emergency powers to build wall

President Donald Trump said Friday that he is considering using emergency powers which would allow him to use military funding to build a wall on the US-Mexico border, saying “I can do it if I want.”

“We can call a national emergency because of the security … I haven’t done it. I may do it but we can call a national emergency and build it very quickly,” he said during remarks in the White House Rose Garden.

Trump has repeatedly talked about declaring a national emergency in recent months but hasn’t followed through yet, allowing the government to shut down over funding the wall rather than declaring one.

On Friday, he seemed to indicate that he would prefer to secure the funding through Congress.

“If we can do it through the negotiating process, we’re giving that a shot,” he said.

However, Trump also said he believes he doesn’t need congressional approval to build the wall.

“Absolutely,” Trump replied. “We can call a national emergency. I haven’t done it. I may do it. I may do it. We can call a national emergency and build it very quickly. It’s another way of doing it.”

Asked if that was a threat to Democrats, Trump said: “I never threaten anybody, but I am allowed to do it — call a national emergency.”

“If we can do it through the negotiating process, we’re giving that a shot,” he said.

In December, defense officials from the Homeland Defense section of the Pentagon visited the White House for a meeting to discuss the possibility, three US officials have told CNN.

The meeting, which included officials from the Department of Homeland Security, focused on options that would allow Trump to build the border wall by tapping into military funding if he was unable to secure the money he wants from Congress.

[CNN]

1 … 3 4 5 6 7 … 19