Tag: stock market

White House chief of staff claims press covering coronavirus to take Trump down

White House acting chief of staff Mick Mulvaney on Friday downplayed the threat of the coronavirus but acknowledged likely school closures and disruptions to public transportation in the United States as a result of the outbreak.

He also accused the press of peddling a false narrative about the administration “scrambling” to contain the virus, saying he briefed Congress with other top health officials six weeks ago. He accused the media of ignoring the coronavirus until now because publications were too preoccupied with Trump’s impeachment before that, which he called a “hoax.”

“Why didn’t you hear about it?” Mulvaney told an audience at the Conservative Political Action Conference (CPAC) Friday morning in a discussion with Stephen Moore, an economic expert at the Heritage Foundation. “The press was covering their hoax of the day because they thought it would bring down the president.”

Trump has similarly accused the media of stoking panic.

Mulvaney claimed that the press is only covering the virus now because they believe doing so will “take down the president.”

“Is it real? It absolutely is real,” Mulvaney said. “But you saw the president the other day — the flu is real.”

“Are you going to see some schools shut down? Probably. May you see impacts on public transportation? Sure,” Mulvaney said, adding, “We know how to handle this.”

Mulvaney’s remarks came as the Trump administration’s efforts to combat the virus are coming under increasing scrutiny. He argued that the administration is well-prepared while asserting that the virus is less severe than past illnesses because it has a lower fatality rate, describing it as less deadly than Ebola, SARS and MERS.  

Mulvaney’s appearance at CPAC comes as President Trump has downplayed concerns about the virus, telling reporters at a news conference Wednesday that he didn’t believe the spread of the virus was inevitable.

The virus has been contained in the U.S. thus far, but health officials have said that its spread is likely. State and local officials may order school closures or otherwise limit public gatherings if the virus begins to spread communities.

The U.S. stock market has experienced sharp declines over the past week amid concerns about the virus, which originated in China and has spread quickly in other countries across the globe.

“What I might do to calm the markets is turn the television off for 24 hours,” Mulvaney told the crowd at CPAC Friday, mentioning a note he received from a reporter about what the administration’s plans were to ease concerns.

Trump on Wednesday tapped Vice President Pence to lead the government’s response efforts, and Pence has since tapped a career health official at the State Department, Debbie Birx, to coordinate those efforts.

“Congratulations and thank you to our great Vice President & all of the many professionals doing such a fine job at CDC & all other agencies on the Coronavirus situation,” Trump tweeted late Thursday. “Only a very small number in U.S., & China numbers look to be going down. All countries working well together!” 

[The Hill]

Media

Trump Boasts of Stock Market In Wild Tweet: ‘HOW ARE YOUR 409K’S DOING?’

President Donald Trump touched on a series of topics in his Thursday morning Twitter statements, and in the most recent one, he declared that the stock market is soaring and everyone’s “409K’S” are doing great.

“STOCK MARKET AT ALL-TIME HIGH!” Trump tweeted in all-caps. “HOW ARE YOUR 409K’S DOING? 70%, 80%, 90% up? Only 50% up! What are you doing wrong?”

https://twitter.com/realDonaldTrump/status/1215285845336502272?ref_src=twsrc%5Etfw

Here’s a picture of the tweet before it got deleted:

Long story short, there’s no such thing as a 409k. 401k, sure. Not 409.

[Mediaite]

Trump: Stock Market Up Cause People Saw Ukraine Call Transcript and Said ‘Oh, This Is Good’

President Trump attributed the stock market gaining 300 points on Friday to the text of his July 25 call with Ukrainian President Volodymyr Zelensky being released by the White House. “One of the reasons [the stock market] is up 300 points today is that people finally got to see the transcribed letter… of the phone call with the president of Ukraine,” Trump told reporters before departing for a campaign rally in Mississippi. “And everybody that saw it said, ‘oh, this is good!’ and the market went up a lot over the last short period of time… because they finally got to see it.” The text of the Ukraine call, which an NSC official reportedly said was missing certain information, was released by the White House on Sept. 25—more than a month before Friday’s market performance.

Reality

The reality is the stock market rose because of a October jobs report that has been going strong since 2009 when Barack Obama turned the economy around.

Trump is absolutely un-tethered from reality when it comes to the stock market. It’s as if he has no idea how it works. Just the day prior Trump was claiming the stock market was down because of impeachment.

After criticism by Paul Krugman, Trump just lashed out at American labor on Labor Day

For a newspaper that he constantly describes as “failing” and “Fake News,” Donald Trump pays an awful lot of attention to The New York Times.

A series of tweets by the paper’s Nobel Prize-winning economics columnist Paul Krugman referenced an article in the newspaper on how Trump’s establishment of “Opportunity Zones” — part of the Republican tax bill that gave billions in tax cuts to the already wealthy while offering pittances to everyone else — primarily benefited Trump’s associates and benefactors in a swampy mass of corruption as usual.

Krugman’s strong indictment of the Trump administration’s tax policies — coupled with The New York Times’ exposure of the dark underbelly of billionaire tax evasion schemes — was enough to set the president off on an epic Twitter rant, one not likely to earn him the Nobel Prize in economics that his critic already possesses.

With growing predictions of an impending economic recession looming, Trump defended his economic policies with the usual parcel of lies he offers in defense of his economic stewardship to his gullible followers.

Nothing says “truthiness” like a quote praising Trump from Fox News, at least in the president’s own eyes.

Trump went directly after Krugman in his next tweet.

Trump’s criticism of Krugman’s economic advice would certainly carry more weight if the figures he used in his tweet were anything close to the reality of the stock market performance.

No, the stock market hasn’t grown “over 50%” since Trump took office. The S&P 500 was up around 29% since the beginning of the president’s term until mid-August of this year — a figure that compares negatively to the index’s performance of a 46% gain at the same point in the Obama presidency.

Yet, any rise in the market during the Trump administration also ignores the fact that only slightly more than 50% of Americans actually own any stocks whatsoever and that the richest 10% of households controlled 84% of the total value of the stock market.

Trump says that anyone following Krugman’s advice would be doing “VERY poorly,” but their opinions about that advice will change dramatically when the poor market fundamentals caused by Trump’s trade wars and tariff impositions lead to an inevitable market collapse and wipe out the paper wealth that was generated during his term.

Unfortunately for America and the global economy, Trump is the one who doesn’t “get it.” With the U.S. Treasury bond yield curve still inverted — a historical sign that a market crash is imminent as investors flee the stock market to the safety of government bonds — chances are good that the US will enter a recession before the 2020 elections are held.

At that point, no amount of tweeted lies by Donald Trump will help reverse the economic damage his policies have caused. The smart money is following Krugman’s advice while the rich continue to exploit Trump’s tax policies to siphon money from government services that the rest of us depend on while driving up government debt to make their case to cut back or even eliminate those services.

[Occupy Democrats]

Beijing denies Trump’s claim that China called US officials to restart talks

President Donald Trump said U.S. and Chinese officials spoke Sunday and he is optimistic China wants to make a deal after the trade war between the two countries escalated in recent days.

“They want to make a deal,” Trump told reporters Monday during a meeting with Egyptian President Abdel-Fattah el-Sissi at the Group of Seven Summit. “That’s a great thing.”

The conversations Sunday between the U.S. and Chinese officials were the first since the two countries lobbed a new round of tariffs at each other last week. Neither side formally broke off talks and White House officials had said they expected negotiations to continue despite the new tariffs. But investors had feared China could walk away from the negotiating table.

Speaking to reporters, Trump heaped praise on Chinese President Xi Jinping, calling him a “great leader” and said China wants “to do something very, very badly.” He said the calls were at the “highest levels.”

“We are probably in a much better position now than any time in the negotiations,” Trump said in a meeting Monday with German Chancellor Angela Merkel.

When asked about the phone calls, Chinese Foreign Ministry spokesperson Geng Shuang said, “I haven’t heard about this.” News of Trump’s comments was breaking as he was addressing reporters.

Hours earlier, Chinese Vice Premier Liu He said China sought “calm” negotiations and opposed an escalation.

“We are willing to solve the problem through consultation and cooperation with a calm attitude,” he said, according to Chinese newspaper Caixin. “We firmly oppose the escalation of the trade war,” he said, adding that it “is not conducive to China, the U.S. and the interests of people all over the world.”

Liu, China’s top trade negotiator, was speaking at a tech conference in Chongqing in southwest China, the Chongqing Morning Post reported.

The stock market fell sharply Friday after China announced it would slap retaliatory tariffs on $75 billion worth of U.S. goods, and Trump hit back saying he would increase existing tariffs on $250 billion in imports to 30 percent from 25 percent Oct. 1.

He also said that a planned 10 percent tariff on a further $300 billion in Chinese goods would now be taxed at 15 percent starting next month.

But the continued talks and optimism from Trump eased financial market jitters. U.S. stock futures pointed to a recovery Monday morning, with Dow futures jumping more than 200 points.

Trump’s top economic adviser, Larry Kudlow, said Sunday afternoon that he was anticipating a call from the Chinese this week and for Chinese officials to still come to Washington as planned.

“You’ve got both sides playing their game, we get that,” Kudlow told reporters. “As long as they are talking, I’m good.”

Trump also signaled a hint of optimism on Iran.

He said he didn’t feel disrespected by the surprise arrival of Iranian Foreign Minister Mohammad Javad Zarif at the seaside town where the meeting of world leaders is taking place. Trump said French President Emmanuel Macron let him know Zarif was coming on the day of his arrival.

“I don’t consider that disrespectful at all, especially when he asked for my approval,” Trump said of Macron.

But White House aides said they felt blindsided by the unanticipated visitor, and some were upset at the French over the move, U.S. officials said shortly after Zarif’s arrival.

A spokesman for Zarif announced that he had arrived in Biarritz at the invitation of the French foreign minister “to continue talks” between the Iranian and French governments.

Trump said it would have been too soon to meet with the Iranians, and he declined to comment when asked if he sent any message to Zarif. There is no indication Zarif would have been willing to meet with the U.S. officials.

Trump said he isn’t looking for regime change in Iran, but that he wants to see the country abandon its nuclear program and stop its terrorism funding before lifting financial restrictions that have crippled its economy.

“We are looking to make Iran rich again,” Trump told reporters Monday. “Let them be rich.”

[NBC News]

Reality

Beijing has no idea what Trump is talking about.

‘You have no choice but to vote for me,’ Trump tells N.H. rally

Even as markets show signs of a coming recession, President Donald Trump told New Hampshire voters Thursday that they had to support his re-election campaign or suffer the economic consequences.

“I won the election, the markets went up thousands of points, things started happening,” Trump said at a rally here. “If, for some reason, I were not to have won the election, these markets would have crashed. That will happen even more so in 2020. You have no choice but to vote for me, because your 401(k), everything is going to be down the tubes.”

“Whether you love me or hate me, you have got to vote for me,” he added.

Trump, appearing at his first campaign stop in New Hampshire this year, delivered a wide-ranging speech lasting more than 90 minutes that addressed Hillary Clinton’s emails, eradicating the AIDS epidemic and the prospects of the nearly two dozen Democrats running for president against him.

“You’ve got Pocahontas is rising. You’ve got Kamala, Kamala is falling. You’ve got Beto, Beto is like, gone. We’ll see what happens. Whoever it is, I don’t know that it matters,” Trump said, referring to Sens. Elizabeth Warren and Kamala Harris and former Rep. Beto O’Rourke, before turning to former Vice President Joe Biden: “I think Sleepy Joe might be able to limp across the finish line, maybe. … I sort of hope it’s him.”

The president received his largest applause of the night when he pledged his support for gun ownership, even though he has repeatedly said he is seriously considering several changes to tighten gun restrictions following a police shooting in Pennsylvania, and two deadly mass shootings in Ohio and Texas in recent weeks.

“It’s not the gun that pulls the trigger. It’s the person holding the gun,” Trump said, receiving a standing ovation from the crowd of about 10,000 in the SNHU Arena when he called gun violence a mental health problem. “We can’t make it hard for good, solid, law-abiding citizens to protect themselves.”

Trump repeated his vows to use new scientific breakthroughs to end AIDS within the next decade, though some say his administration’s policies will make that goalmore difficult.

“We will achieve new breakthroughs in science and medicine, ending in the AIDS epidemic in America, and finding new cures for childhood cancer,” he said. “And something I never thought I’d be able to say: Within one decade, the AIDS epidemic in the United States will be gone. In 10 years, the AIDS epidemic will be eradicated. So great. Who thought that was going to be happening? Who thought I would be able to get to say that?”

When Trump briefly mentioned Rep. Ilhan Omar (D-Minn.), several members of the crowd began a chant of “send her back,” but it did not catch on. He has repeatedly clashed with Omar and a group of progressive, first-year lawmakers in recent weeks, after making racist statements about them. Earlier Thursday, Israeli leaders barred Omar from the country after Trump lobbied them to deny her entry.

A chant that did catch on with the crowd was “lock her up,” when Trump mentioned Clinton, the 2016 Democratic presidential nominee, and her emails, and took the crowd through the wins and losses on his 2016 electoral map.

As Trump was laying out his electoral map, he shared a story about Michigan, a state he narrowly won in 2016. Trump’s own polling has shown him falling behind in the battleground state.

“Five or six years before I even thought about running, for whatever reason, they named me man of the year in Michigan. I said how come? I didn’t even understand it myself,” Trump said. The president has previously used this anecdote in speeches, though it is unclear whether Trump ever received that award.

“I wasn’t even political,” Trump added. “But I was always complaining that our car business was being stolen. I mean it’s sort of obvious right? Mexico now has 32 percent of our car business. It all left. We are bringing it back at a level that nobody’s ever seen before.”

The Trump campaign views New Hampshire as another battleground state in the 2020 general election. Clinton won New Hampshire in 2016, and the president is making a play to turn it red in the next election.

“New Hampshire, you have a reputation. Very, very elegant state. You’re not acting it tonight, and that’s a good thing,” Trump said to the enthusiastic crowd. “New Hampshire was taken away from us [in 2016] but we did great in New Hampshire. We should’ve won in New Hampshire.”

The president also mentioned another race shaping up in New Hampshire. Corey Lewandowski, who was fired as Trump’s campaign manager but remains close to the president, may run for Senate in the Granite State. The two spoke about the race on Thursday, according to a person familiar with the conversation.

As he stood before the crowd, Trump lavished praise on Lewandowski, but he stopped short of outright endorsing him.

“I think he’d be tough to beat. I’ll tell you one thing: He’s gonna go into Washington and he’s gonna have you in mind,” Trump said, adding that Lewandowski would be “fantastic.”

But in the next breath, the president conveyed that he wasn’t yet making a declaration of support.

“People ask if I’ll support him and I say, ‘I don’t know if he’s running,’” the president said, before turning to his former aide. “Corey, let us know, please.”

Lewandowski greeted the president upon his arrival at the Manchester airport. He and his family briefly joined Trump on Air Force One. The president departed the airport with Gov. Chris Sununu, a Republican. Sununu, who faces a potentially competitive 2020 reelection bid, has relayed concerns about Lewandowski to party leadership.

During the rally, the president also gave a shout-out to Republican New Hampshire state Rep. Al Baldasaro, who has previously called for Clinton to face a firing squad.

Early on in his speech, the president briefly stopped his remarks when a protester interrupted him. “Go home, start exercising,” Trump taunted as police escorted the man out of the crowd. “That guy’s got a serious weight problem,” he said, though the protesters appeared to be thin.

In the next breath, the president said his campaign was part a movement “built on love.”

[Politico]

Trump Celebrates High Stock Market That Broke Record Under Obama in 2013

The US President Trump is on the wires now, via Twitter, saying: “Today’s Stock Market is the highest in the history of our great Country! This is the 104th time since the Election of 2016 that we have reached a NEW HIGH. Congratulations USA!”

Reality

The stock market had broke it’s all-time high in 2013 under Obama, and continued trending upward until Trump’s trade wars left the stock market mostly flat but highly volatile, with several dives.

Trump brags about his China trade war ‘success’ as stock ticker shows market tanking

President Donald Trump on Monday boasted about how successful his trade war with China has been — even though stock markets took an absolute beating on the news that China was about to slap tariffs on $60 billion of American goods.

While giving remarks to White House reporters on Monday, Trump bragged that his tariffs were making the United States richer, while a stock-market ticker showed that the Dow Jones Industrial Average was falling by more than 600 points.

“We’re taking in right now hundreds of billions of dollars,” Trump said of his tariffs on Chinese goods. “We’re taking in billions of dollars of tariffs, and those tariffs are going to be tremendously, if you look at what we’ve done thus far with China, we’ve never taken in ten cents until I got elected, now we’re taking in billions of billions.”

Trump also falsely credited the tariffs for economic growth in the first quarter of 2019, even though the majority of economists say the tariffs had nothing to do with strong GDP growth.

“This is a very positive step,” Trump said as the stock ticker continued showing a bloodbath in the markets. “I love the position we’re in.”

[Raw Story]

Trump questions impeachment talk after stock market hits record high

President Trump on Tuesday lamented that some Democrats are discussing the prospect of impeachment proceedings on the same day that the stock market closed at record highs, suggesting he should be given more credit.

“You mean the Stock Market hit an all-time record high today and they’re actually talking impeachment!?” Trump tweeted. “Will I ever be given credit for anything by the Fake News Media or Radical Liberal Dems? NO COLLUSION!”

The S&P 500 and Nasdaq composite closed at record highs on Tuesday, while the Dow Jones Industrial Average closed at 26,656.39, 1.1 percent short of an all-time high.

Trump has regularly taken credit for good news on the stock market, and he has previously questioned how lawmakers could move to impeach “somebody who’s done a great job.”

A pair of high-profile Democrats were asked at the Time 100 Summit on Tuesday about where they stand on launching impeachment proceedings, a topic that has dominated discussions since special counsel Robert Mueller‘s report was released last week.

In the partly redacted document, investigators did not establish that the Trump campaign colluded with the Russian government during the 2016 election, but did not exonerated Trump on the question of obstruction of justice. Investigators instead detailed 10 episodes they reviewed for potential obstruction by the president, with Mueller saying that Congress has authority to conduct potential obstruction probes.

“I do believe that impeachment is one of the most divisive forces, paths that we could go down to in our country,” Speaker Nancy Pelosi (D-Calif.) said Tuesday. “But if the facts, the path of fact-finding takes us there, we have no choice. But we’re not there yet.”

Hillary Clinton, Trump’s opponent in the 2016 election, said impeachment proceedings should “be something undertaken in a really serious, diligent way, based on evidence.”

She suggested that Trump would have been indicted for obstruction of justice as a result of Mueller’s probe if he weren’t the sitting president.

J.W. Verret, who served as one of the first 16 members of then-candidate Trump’s pre-transition team, said Tuesday that he believes Mueller’s report amounted to “a referral to Congress to begin impeachment proceedings.”

As Democratic leaders and media pundits weigh the merits of impeachment proceedings, Trump has been openly defiant about the prospect.

He has tweeted about the possibility multiple times in recent days, asserting Monday that he did not commit actions that reach the threshold of “high crimes and misdemeanors” that could lead to impeachment.

Trump told reporters at Monday’s White House Easter Egg Roll that he was “not even a little bit” worried about impeachment. 

[The Hill]

Dow Jones plunges after Mnuchin comments; Trump doubles down on attacks on Fed

The Dow Jones Industrial Average continued plummeting Monday — in a history-making session — after U.S. Treasury Secretary Steven Mnuchin shocked investors worldwide over the weekend by tweeting that he had spoken unprompted to the CEOs of the six largest U.S. banks to ensure they were liquid. It was the worst Christmas Eve trading session in U.S. history, experts said.

The Dow ended the day a dramatic 653 points lower at 21,792 in an abbreviated trading session ahead of the Christmas holiday. That’s a decrease of 2.9 percent, adding to last week’s fall of 6.8 percent.

“I do believe this was the worst Dec.24 in history,” U.S. Global Investors head trader Michael Matousek told ABC News. “There hasn’t been a worse Christmas Eve since I started in the industry 22 years ago.”

Last week was the index’s worst in 10 years — since the 2008 financial crisis. This month is currently on track to end as the worst December since the Great Depression.

The tech-heavy NASDAQ was also crushed, ending the day more than 5 percent lower at 6,193. It crossed into bear territory last week for the first time since the 2008 recession, which means it is down more than 20 percent from its record high on Aug. 29.

Over the weekend, Mnuchin tweeted that he called the CEOs of J.P. Morgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup from his vacation in Cabo San Lucas, Mexico. His agency is one of the federal departments affected by the current government shutdown. Others at Treasury are forced to say home without pay. It is unclear whether Mnuchin traveled on a government plane to his vacation.

The bank executives assured the Secretary that “they have ample liquidity available for lending to consumer, business markets, and all other market operations,” Mnuchin wrote.

“They have not experienced any clearance or margin issues and that the markets continue to function properly,” he added.

Mnuchin’s comments seem to have been meant to assuage investors, economists and traders that there would not be a run on banks, which precipitated the last crisis.

However, the message may have had the opposite effect since it was not a concern of market watchers until his tweet.

“If this weren’t the end of December, I would have thought it was April Fools,” Jared Bernstein, former chief economist to Vice President Joe Biden, told The Washington Post. “The markets are already nervous enough. It’s like sending out a message saying our space shields can intercept incoming asteroids. Uh, I didn’t know there were any coming our way.”

Market watchers who were generally upbeat about the economy expressed concern over the panic that Mnuchin’s comments, coupled with the overall instability at the White House, could inflame.

“My guess is the Mnuchin was under pressure from Trump to ‘do something’ and this half-baked attempt to calm markets is the result,” Timothy Duy, economics professor at The University of Oregon and author of the influential Fed Watch blog, wrote to ABC News in an email.

“Mnuchin apparently thought (this is speculation of course) that easing fears of a financial crisis could help the stock market. But that is not a serious fear at this point,” Duy said, adding that traders are spooked by the trade wars, policy uncertainty and an economy that is slowing as many experts expected.

“Mnuchin raised a fear that really isn’t a current issue, and by doing so creates the perception that he knows of a problem that no one else knows about,” Duy added. “That kind of thing can precipitate a financial crisis because, fearing the unknown, market participants stop buying anything and financial institutions stop lending to each other.”

Many experts noted that the panic caused by the Treasury Secretary’s comments may cause a run on banks, which were a large factor in the Great Depression. It is widely believed, however, the banks are fine.

“A run on the banks is when people are afraid money won’t be liquid, so they start withdrawing money, like Lehman Brothers, so they had to go to the Fed for extra cash, which is essentially a bailout,” Matousek said.

“There’s a difference between now and then because we didn’t have stress testing like we do now,” Matousek added. “We have so much stress testing, they’re so regulated, when I saw he was calling the banks, that just tells me the administration is a little unsure of what’s going on.”

Duy added that even though Mnuchin’s comments were highly unusual, “it is widely believed that Mnuchin’s actions were so poorly conceived that they can’t be taken seriously. But they were so poorly conceived that they imply a worrisome lack of competence for economic policymaking as a whole, and that creates uncertainty that undermines investor confidence.”

[ABC News]

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