European and Asian markets rose, while U.S. index futures were little changed, with the Dow Jones Industrial Average pushing for yet another record, as traders digested the Italian referendum news, await the ECB's Thursday announcement and reflect in a notably quieter overnight session. Oil slipped from a 16-month high after 4 straight days of gains.
Time will tell whether this Carrier deal was just a symbolic line in the sand, or whether it is a sign of future government interventionist policies which will ultimately backfire. In the long run, the less government, the better.
American policitians claim the “propaganda and disinformation threat” against America is real, and we must “counter and combat it.” Yet it is often our own allies, like the Brits, and our own leaders who mislead and lie us into unnecessary wars.
"Politicians picking and choosing recipients of corporate welfare is railed against by fiscal conservatives, for it’s a hallmark of corruption. And socialism. The Obama Administration dealt in it in spades.... When government steps in arbitrarily with individual subsidies, favoring one business over others, it sets inconsistent, unfair, illogical precedent."
Ford CEO frames the "ask" for starting negotiations with Trump centered around less restrictive fuel economy standards, currency-manipulation rules that promote free and fair trade, tax reform and safety guidelines for autonomous vehicles.
While some have described Trump's approach as crony capitalism, if the terms of the deal really are limited to tax relief, such claims are baseless. While it is true that tax breaks for specific companies are less ideal than across-the-board cuts (or outright abolishment) of business taxes, they should not be confused with taxpayer subsidies. The underlying deal seems to reflect a larger commitment to addressing the corporate tax and regulatory burdens that have long held back the American economy.
Did Jeff Gundlach do it again? Shortly after the DoubleLine manager told Reuters yesterday afternoon that the Trump rally is ending, that "stocks have peaked" and that it is "too late to buy the Trump trade", US stocks tumbled to session lows, and have continued to drop overnight, with S&P futures down 0.3%, alongside sliding Asian and European markets.
In 2014, the Obama administration signed an executive order intended to help Central American minors reach their families in the U.S. without relying on "human smugglers." Two years later we find that 70% of those admitted under the program are adults while the number of unaccompanied children apprehended at the border has doubled. Victory!?