Tag: wall street
Wall Street Deems Trump A Major Risk Factor As Markets Sink

Wall Street Deems Trump A Major Risk Factor As Markets Sink

President Donald Trump frequently justifies his claim that that the United States is the "hottest country in the world" by pointing to the stock market. But markets and investors disagree – and say Trump is the reason.

The New York Times reported Tuesday that the S&P 500 Index (which is made up of the 500 largest companies in the U.S.) dipped by more than two percent by the end of trading, marking the biggest one-day drop for the index since October. The Chicago Board Options Exchange's VIX volatility index — which tracks uncertainty in financial markets – also marked its biggest single-day increase since November.

According to the Times, Wall Street executives are increasingly bearish on stocks in the wake of Trump's escalated rhetoric about potentially invading Greenland, even though the autonomous island territory already belongs to the Kingdom of Denmark (a key NATO ally). This is a marked change in how investors are viewing the Trump administration, with the Wall Street Journal reporting earlier this week that some on Wall Street were still betting on Trump to "chicken out" rather than actually act on his threats.

Some institutional investors — like foreign governments and ultra-wealthy individuals – prefer to park their money in the form of U.S. Treasury securities rather than stocks, given that Treasury securities are typically seen as more stable and less likely to fluctuate in value. However, some bondholders are selling their stakes following Trump's bellicose rhetoric, including the Danish fund AkademerPension.

The Times reported that the 10-year U.S. Treasury yield – which moves inversely to price — jumped up this week, meaning it has lost value. A jump in the 10-year yield is often seen as a predictor of recessions, according to the Federal Reserve Bank of Chicago. Some investors are reportedly eager for Trump to take initiative to lower the temperature and back off of his Greenland threats.

"[Trump] has a path to lower rates and less controversial path with Greenland, but the question is will he take it?" said Andrew Brenner, who is the head of international fixed income at the firm National Alliance Securities. He added that he has told investors to expect "major volatility" in response to Trump's Greenland remarks.

The president commemorated the first year of his presidency on Tuesday with a meandering 80-minute speech from the White House Briefing Room. When a reporter asked him what he ultimately plans to do about Greenland, Trump would only say "you'll find out."

Reprinted with permission from Alternet


Even Fox's Maria Bartiromo Is Troubled By Trump Bullying Of Fed Chair

Even Fox's Maria Bartiromo Is Troubled By Trump Bullying Of Fed Chair

Fox Business host Maria Bartiromo is among President Donald Trump’s most zealous propagandists, so much so that he reportedly considered making her his 2024 running mate. But even she seems hesitant to fall in line with the Trump administration’s apparent effort to strong-arm Federal Reserve Chair Jerome Powell.

Powell, in an extraordinary video message released on Sunday night, said that the Fed had received Justice Department subpoenas on Friday which threatened a criminal indictment over his congressional testimony regarding ongoing renovations of its headquarters. He portrayed the move as pretextual, part of Trump’s long-running effort to pressure Powell to drastically lower interest rates and diminish the Fed’s independence.

Trump and his appointees have spent the last year refashioning the Justice Department into an institution that punishes his enemies and protects his friends, demolishing safeguards and purging dissidents along the way. The Powell investigation is in keeping with that trend, reportedly overseen by Jeanine Pirro, the longtime Fox host and fervent Trump ally whom he appointed as U.S. attorney for the District of Columbia.

Bartiromo, who typically demonstrates lockstep support for the president’s initiatives, seemed unusually skeptical of the Powell probe in a Monday morning discussion on her Fox Business show.

“It just feels like most on Wall Street do not want to see this kind of fight,” Bartiromo said. “I mean, you know, you’ve got a chairman who is at odds with the president of the United States. The president has very good points, certainly. But Wall Street doesn’t want to see this kind of investigation because it looks like the president is actually, you know, shoehorning rates, and now doing it through the DOJ.”

Bartiromo’s panelists were even more open in decrying the move.

Fox contributor Liz Peek said of the probe, “I don't like it. I think it's a unforced error by the Trump administration,” She explained that she agreed with the president on the cost of the Fed renovations and Powell’s performance, but added, “I don't really know what this is supposed to accomplish.”

“The president needs to kind of step back, quite honestly,” offered financial services consultant Kenny Polcari. “It's not in his job description to control interest rates. The Fed is an independent agency. We understand that. We know that. And I think that's what's causing a little bit of nervousness in the markets this morning, just about the fact that what could he really do, how could he really push this? I think he needs to back off and leave the Fed alone.”

Bartiromo then hedged, saying, “I know, but if he lied, he lied,” and suggesting it was important to get to the bottom of Powell’s comments to Congress.

Ken Mahoney, a financial asset manager, replied that while the cost of the renovations is sizable, this is “bad timing” given “the president’s other priorities,” noting that “most people probably wake up hoping that [Minnesota Gov.] Tim Walz was the one that was being indicted, not Jerome Powell.”

While Bartiromo’s willingness to use her Fox News and Fox Business shows to peddle insane conspiracy theories on Trump’s behalf has cost her network dearly, the president has rewarded her with multiple interviews and personal access, including an invitation to a splashy White House banquet honoring Saudi Crown Prince Mohammed bin Salman in November.

Reprinted with permission from Media Matters


As Markets Plunge, CNN Supercut Shows Trump Warning Of Crash (Unless He Won)

As Markets Plunge, CNN Supercut Shows Trump Warning Of Crash (Unless He Won)

President Donald Trump notably stayed away from cameras on Monday, as Wall Street experienced its worst day in years as investors react to a climate of economic uncertainty.

On Monday evening, CNN host Anderson Cooper reminded viewers that despite normally being willing to take questions from reporters in the Oval Office, Trump was "nowhere to be seen" following a "massive stock sell off that began the moment the bell rang." Cooper noted that the Dow Jones Industrial Average was "down almost 900 points," while the Nasdaq Composite "took the worst beating" of the day, down by four percent after the conclusion of trading on Monday. He also remarked that today marked the biggest single-day decline since September of 2022.

"More than an hour after markets closed, the White House did finally put out a statement touting the president's economic agenda and first term record on the economy. It didn't mention the massive drops today, nor what sparked it," Cooper said. "The culprit wasn't a poorly received report of jobs, GDP or consumer spending. as is often the case. It was what the president himself said."

Cooper then aired an excerpt of an interview the president gave to Fox Business host Maria Bartiromo, in which he waffled when she asked him if he was "expecting a recession this year."

"I hate to predict things like that. There is a period of transition because what we're doing is very big. we're bringing wealth back to America. That's a big thing," Trump said. "And there are always periods of, it takes a little time."

Cooper then noted that Trump was similarly cagey with reporters on Air Force One when they asked for clarity on what he told Bartiromo, with one reporter pointing out that he "hesitated" at the recession question.

"I tell you what, of course you hesitate. Who knows?" Trump responded. "All I know is this: We're going to take in hundreds of billions of dollars in tariffs."

Cooper contrasted Trump's tone with that of Commerce Secretary Howard Lutnick, who proclaimed in a recent interview that there was "no chance" of a recession. He observed that Trump has "no such confidence," which he said was "notable" given his recent bullish attitude after the February jobs report showed the U.S. economy adding more than 100,000 new jobs.

"Perhaps it's not surprising he didn't want to be on camera today as the markets crashed. After all, he has often tied a president's performance as a leader to the stock market," Cooper said. "During a brief dip in the markets in late October and early November, Trump blamed it on Democrats."

According to Cooper, "one line [Trump] used repeatedly throughout much of 2024" was that a Democratic victory would result in a poor economy.

"If Harris wins this election, you will quickly have a Kamala Harris economic crash," Trump said. "You're going to have a crash."

Reprinted with permission from Alternet.

​​As Omicron Spreads, New York City Mandates Vaccination For All Private Firms

​​As Omicron Spreads, New York City Mandates Vaccination For All Private Firms

By Peter Szekely and Brendan O'Brien

NEW YORK (Reuters) -New York City declared on Monday that all private-sector employers must implement COVID-19 vaccine mandates for their workers, as the highly transmissible Omicron variant has spread to at least one-third of U.S. states.

The biggest U.S. city set a December 27 deadline for all 184,000 businesses within its limits to make their employees show proof that they have been vaccinated.

In addition, children 5 to 11 years old must get at least one vaccine dose by Dec. 14 to enter restaurants and to participate in extracurricular school activities, such as sports, band, orchestra and dance, Mayor Bill de Blasio said.

"Vaccination is the way out of this pandemic, and these are bold, first-in-the-nation measures to encourage New Yorkers to keep themselves and their communities safe,” de Blasio, who leaves office next month, said in a statement.

De Blasio's successor, Eric Adams, “will evaluate this mandate and other COVID strategies when he is in office and make determinations based on science, efficacy and the advice of health professionals,” said his spokesperson Evan Thies.

About 27 percent of children ages five to 12 have gotten at least one dose and 15 percent are fully vaccinated, according to the city's website.

The Greater New York Chamber of Commerce said it supported the expanded mandate.

The requirements come at a time when new coronavirus infections are accelerating nationwide https://tmsnrt.rs/2WTOZDR, especially in northern states, as colder weather has encouraged more mingling and socializing indoors.

Over the last week, the country has averaged more than 120,000 new infections a day, up 64% from the prior week, according to a Reuters tally.

Deaths, which lag infections, have averaged 1,300 a day over the last seven days, up from an average of 800 a day a week ago, according to Reuters data.

The Delta variant still accounts for 99.9 percent of new COVID cases in the United States, CDC Director Dr. Rochelle Walensky told ABC News on Sunday.

Omicron, first detected last month in southern Africa, has spread around the globe and shows signs of being more contagious than the Delta variant.

A total of several dozen Omicron cases have been found in 18 out of 50 U.S. states: California, Colorado, Connecticut, Georgia, Hawaii, Maryland, Massachusetts, Louisiana, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, Pennsylvania, Utah, Washington and Wisconsin, according to a Reuters tally.

Louisiana has also reported a probable Omicron case in a crew member on a cruise ship that disembarked in New Orleans over the weekend. At least 17 COVID-19 cases were detected on the ship and more testing is underway, state health officials said.

Several Wall Street banks headquartered in New York, including Goldman Sachs Group Inc, Morgan Stanley and Citigroup, already require vaccines for anyone coming into their offices. JPMorgan Chase & Co, the largest U.S. bank, has so far allowed unvaccinated employees to come to work in offices if they submit to twice-weekly COVID-19 tests.

Alphabet Inc's Google and Meta's Facebook, which also have operations in New York City, also already require all U.S. employees to be vaccinated to enter buildings.

A nationwide vaccine mandate issued earlier this year by President Joe Biden for companies with 100 workers or more has been tied up in litigation. In November, a U.S. appeals court upheld its decision to put on hold the order.

De Blasio, noting that the city has already issued mandates covering several other sets of municipal workers, expressed confidence that his latest order would withstand legal scrutiny.

"We are confident because it's universal," he said on MSNBC.

(Reporting by Peter Szekely in New York and Brendan O'Brien in Chicago; Additional reporting by Elizabeth Dilts in New York, Susan Heavey in Washington and Barbara Goldberg in Maplewood, New Jersey; Editing by Doina Chiacu and Lisa Shumaker)

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