Wall Street Journal (March 10)
Mr. Trump issued a new executive order directing the Treasury Department to take the first steps in establishing what he refers to as “a crypto version of Fort Knox.” This proposal “invites government abuse.” Basically, a “government crypto reserve serves no good purpose while creating an opportunity for political bad behavior. Let private investors speculate all they want without the government having a stake in crypto-currency prices.”
Tags: Abuse, Bad behavior, Crypto, Crypto reserve, Currency, Executive order, Fort Knox, Government, Investors, Prices, Private, Speculate, Stake, Treasury Department, Trump
Fortune (March 9)
“U.S. outperformance in the global economy and across financial markets is fading as President Donald Trump’s tariffs weigh on growth prospects and send investors to seek gains elsewhere. U.S. stocks are down so far this year and the Nasdaq slipped into correction territory, while European and Chinese stocks are soaring.”
Tags: Soaring
Investment Week (March 6)
“January was a disappointing month for asset managers as cautious investors withdrew £3bn from markets, according to figures from the Investment Association (IA)…. Active funds in general, and equities, particularly UK equities, were hardest hit.” UK equity funds suffered their “ninth-year of outflows in 2024” while investors have been “reacting to high levels of uncertainty” with “factors including confusion over interest rate cuts, the impact of then-anticipated tariffs from the newly elected President Trump and a market shake up.”
Tags: Shake-up
The Week (March 6)
President Donald Trump has launched a trade war against Canada by levying 25% tariffs on the country’s goods, and some Canadians are now preparing to abandon their vacation plans to the U.S. in protest.” Canadians log more visits to the U.S. than any other country so “this could have a significant impact on the American tourism sector.” A 10% reduction in “Canadian travel to the U.S. could result in ‘2.0 million fewer visits, $2.1 billion in lost spending and 14,000 job losses.’”
Barron’s (March 6)
“The Nasdaq Composite closed in correction territory as Wall Street sold pretty much everything in response to the Trump administration’s latest tariff rhetoric.” Both the S&P 500 and the Dow also dropped amid a tariff saga that has left investors shaking. “The uncertainty surrounding Trump’s tariff plans have caused headaches for market participants. There are also fears among some economists that policy uncertainty will send sentiment falling further until it triggers a recession.”
Tags: Correction territory, Dow, Economists, Fears, Headaches, Investors, Market participants, Nasdaq, Recession, S&P 500, Sentiment, Sold, Tariff, Trump, Uncertainty, Wall Street
Financial Times (March 4)
“Washington’s greatest miscalculation may not be underestimating China’s chipmaking capabilities, but rather overlooking the forces that drive technological progress. History has shown that every industrial power that has tried to suppress a rival’s technological rise has, at best, delayed it — and at worst, accelerated it. Chips are no exception. The chip war is far from over, but in the long run, the US may have ensured that it is a war China cannot lose.”
Tags: Accelerated, Capabilities, China, Chip war, Chipmaking, Delayed, History, Industrial power, Miscalculation, Overlooking, Rival, Suppress, Technological progress, Underestimating, Washington
Bloomberg (March 4)
A roller coaster day left the S&P 500 Index ”at its lowest level since Nov. 4, the day before Trump was elected…. The dizzying ride provided a preview of the difficulties facing investors, who now must figure out how to price American assets in what essentially amounts to a new world order created by Trump’s tariffs on China, Canada and Mexico.” The volatility and steep decline are “a comeuppance for those on Wall Street who bet big on Donald Trump’s election win, trades that powered the equity market higher along with the dollar and Treasury yields. The bet that Trump wouldn’t do anything to disturb the stock market rally has, for now, been lost.”
Tags: Assets, Canada, China, Comeuppance, Dizzying, Dollar, Investors, Mexico, New world order, S&P 500, Stock market, Tariffs, Treasury yields, Trump, Volatility, Wall Street
Barron’s (March 6)
“The Nasdaq Composite closed in correction territory as Wall Street sold pretty much everything in response to the Trump administration’s latest tariff rhetoric.” Both the S&P 500 and the Dow also dropped amid a tariff saga that has left investors shaking. “The uncertainty surrounding Trump’s tariff plans have caused headaches for market participants. There are also fears among some economists that policy uncertainty will send sentiment falling further until it triggers a recession.”
Tags: 2020, Capitulation, Escalation, Fears, Havoc, Market, Panic selling, Recession, Sparking, Stocks, Tariffs, Trade war, Trump, U.S., VIX, Volatility, Worst week, Wreaked
Wall Street Journal (March 3)
We’ve called “the Mexico and Canada levies the ‘dumbest’ in history, and we may have understated the point. Mr. Trump is whacking friends, not adversaries. His taxes will hit every cross-border transaction…. The 25% tariff will raise the cost of a full-sized SUV assembled in North America by $9,000 and a pickup truck by $8,000. Is this how the new Republican Party plans on helping working-class voters?”
Tags: $9K, 25% tariff, Adversaries, Canada, Cost, Cross-border transaction, Dumbest, Friends, Levies, Mexico, Republican, SUV, Taxes, Trump, Understated, Whacking
Reuters (March 3)
“Europe’s dark defence picture has a bright side. President Donald Trump’s hostility to erstwhile U.S. allies in Europe… has scrambled the continent’s security arrangements. Yet leaders who gathered in London on Sunday have a consolation of sorts: the pressure to rapidly rearm gives them cover to hike taxes.” They can now “legitimately tell their populations that everything has changed. There’s a solid long-term argument for Europeans to make a bigger contribution to their security. It’s a silver lining for an otherwise gloomy outlook.”
Tags: Allies, Consolation, Cover, Defense, Europe, Gloomy outlook, Hostility, Leaders, London, Pressure, Rearm, Scrambled, Security arrangements, Silver lining, Taxes, Trump, U.S.
