Category: Policies

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

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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 Reportedly Told Border Agents to Do Something That’s Illegal

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President Donald Trump unsuccessfully pushed to close the border in El Paso, Texas, told Border Patrol agents to turn back migrants despite the fact that doing so would be illegal, and has been pushing to reinstate a more aggressive family separation policy than the one that tore apart more than 2,500 families last spring, CNN reported on Monday. 

Last month, Trump ordered since-ousted Homeland Security Secretary Kirstjen Nielsen to shut down some or all El Paso border crossings the next day, on March 22, at noon, according to CNN. Nielsen told Trump that would be a bad and even dangerous idea, and that the governor of Texas, Republican Greg Abbott, has been very supportive of the President. She proposed an alternative plan that would slow down entries at legal ports. She argued that if you close all the ports of entry all you would be doing is ending legal trade and travel, but migrants will just go between ports. According to two people in the room, the President said: “I don’t care.”The federal government is required to process migrants who cross the border without authorization and allow asylum seekers to make their cases for protection if they demonstrate a “credible fear” of being persecuted in their home countries. Trump reportedly told Border Patrol agents in Calexico, California, on Friday that they should simply force back the migrants they encounter.Behind the scenes, two sources told CNN, the President told border agents to not let migrants in. Tell them we don’t have the capacity, he said. If judges give you trouble, say, “Sorry, judge, I can’t do it. We don’t have the room.” After the President left the room, agents sought further advice from their leaders, who told them they were not giving them that direction and if they did what the President said they would take on personal liability. You have to follow the law, they were told.Trump has also spent months pushing to reinstate some form of the family separation policy that he was forced to abandon in June, CNN and NBC News are reporting. Trump is calling for a more comprehensive version of the policy than the one that was adopted across the border last spring. Instead of separating families who cross the border without authorization by prosecuting them for illegal entry, Trump also wants to split families who come to official ports of entry to request asylum, which now requires weeks of waiting.According to multiple sources, the President wanted families separated even if they came in at a legal port of entry and were legal asylum seekers. The President wanted families separated even if they were apprehended within the US. He thinks the separations work to deter migrants from coming. Sources told CNN that Nielsen tried to explain they could not bring the policy back because of court challenges, and White House staffers tried to explain it would be an unmitigated PR disaster. “He just wants to separate families,” said a senior administration official.

The CNN report comes three days after Trump unexpectedly pulled his nominee to lead US Immigration and Customs Enforcement, one day after Trump pushed out Nielsen, and the same day the New York Times reported that the hardline head of US Citizenship and Immigration Services—the DHS agency responsible for legal immigration—is also expected to leave government soon. Trump’s most important asylum crackdown, known as Remain in Mexico, was also temporarily blocked by a federal judge on Monday.

[Mother Jones]

Trump Slams Nonexistent ‘Judge Flores’ for Landmark Immigration Ruling Actually Named After Migrant Teen

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President Trump had a lot to say Friday about a landmark immigration ruling that limits how long the government can detain undocumented migrant children. Unfortunately, his argument took a turn for the incoherent as soon as he publicly called out a nonexistent judge for a 20-day cap on detaining immigrant minors.

Complaining about a build-up of migrants at the border while visiting Calexico, California, Trump blamed it on “some very bad court decisions,” singling out the “Flores decision” as a “disaster.”

“I have to tell you, Judge Flores, whoever you may be, that decision is a disaster for our country,” Trump said during a meeting with border patrol officials.

The “decision” the president was referring to was Reno v. Flores—otherwise known as the Flores Settlement—which protects migrant children from being held indefinitely in custody and grants them certain basic rights, like the right to food, medical assistance, drinking water, and toilets while in detention. The Trump administration tried unsuccessfully to modify the agreement last year to allow for longer detention periods for minors.

The agreement was named not after a judge, but 15-year-old Jenny Lisette Flores, who fled El Salvador in the 1980s and was detained upon trying to enter the U.S. to live with her aunt. The teen was the lead plaintiff in the case, which came before the 9th U.S. Circuit Court of Appeals and the Supreme Court. It was settled in 1997, with Clinton-era Attorney General Janet Reno as the defendant.

The Flores Settlement has been an obstacle for the Trump administration since their family separation policy rollout and for current immigration policies, with lawsuits claiming the government is holding children indefinitely and violating the settlement.

Trump’s criticism of the imaginary judge sparked a barrage of mockery on social media, where many were quick to point out the flub came in the same week the president claimed windmills cause cancer and falsely said his father was born in Germany.

Earlier Friday, the president also claimed those approaching the southern border to seek asylum in the U.S. were running a “scam” during his visit to Southern California.

“Asylum, you know I look at some of these asylum people, they’re gang members. They’re not afraid of anything… and they say ‘I fear for my life,’ they’re the ones causing fear for life. It’s a scam, it’s a hoax,” he said, before fitting in a jab at Special Counsel Robert Mueller’s investigation into potential Russian interference in the 2016 election.

“I know about hoaxes, I just went through a hoax,” Trump said, referring to his previous remarks claiming the “Russia hoax” was “finally dead.”

Trump also claimed the United States no longer had the capacity to accept more asylum seekers or undocumented migrants entering through the southern border.

“The system is full. We can’t take you anymore. Whether it’s asylum. Whether it’s anything you want. It’s illegal immigration,” Trump said, according to CNN. “Can’t take you anymore. Can’t take you. Our country is full… Can’t take you anymore, I’m sorry. So turn around. That’s the way it is.”

[Daily Beast]

Trump Takes Credit for Obama’s Border Wall

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On Friday, President Donald Trump stood in front of recently-refurbished border wall along the California-Mexico border and boasted that it was the beginning of construction on the wall he promised voters in the 2016 campaign. And Homeland Security Secretary Kirstjen Nielsen installed commemorative plaque bearing Trump’s name last fall along that section of the fencing, declaring it “the first section of President Trump’s border wall.”

Except, wait: That particular section of wall was actually just a replacement of fence that had been there for decades. And the refurbishment was approved during the Barack Obama administration in 2009. The funding for Trump’s border wall, meanwhile, is still tied up in Congress.

“We just wanted to get out in front of it and let everybody know that this is a local tactical infrastructure project that was planned for quite some time,” David Kim, assistant chief patrol agent for the Border Patrol’s El Centro sector, told the Desert Sun, adding that he wanted to ensure “there is no confusion about whether… this is tied to some of the bigger immigration debates that are currently going on.”

A recent federal court victory allowed the Trump administration to move forward with replacing the fencing thanks to a federal ruling allowing them to bypass environmental laws to speed construction. And the president boastfully tweeted about it recently, again claiming it was part of “the Wall.”

It’s a classic Trumpian move: claim credit for something that was actually President Obama’s doing. He’s done it with the economy and jobs, and now with the border wall.

[Rolling Stone]

Trump tells Legal Hispanic immigrants seeking asylum: ‘Our country is full’

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Donald Trump had a unwelcoming message to those seeking political asylum in the United States: Don’t bother.

“Our country is full,” Trump said at an event in Calexico, Calif., to promote construction of a wall on the U.S. border with Mexico. “Our area is full. The sector is full. Can’t take you anymore, I’m sorry. Can’t happen. So turn around, that’s the way it is.”

Trump described his remarks as “our new statement,” and said it applied to asylum seekers as well as immigrants crossing the border illegally.

“If you look at our southern border, the number of people and the amount of drugs, human trafficking — the human trafficking is something that nobody used to talk about, I talk about it. It’s a terrible thing. It’s ancient and it’s never been bigger than it is modern, right now, today. All over the world, by the way, not just here. All over the world, human trafficking, a terrible thing.”

According to figures provided by U.S. Customs and Border Protection officials the number of people arrested for illegally crossing the border rose from 47,986 in January to 66,450 in February. Families, many traveling from Central American countries, made up more than half of those numbers, CBP said.

While arrests of criminal aliens have continued to fall the past two years, Trump assured his audience that “there is indeed an emergency on our southern border.”

“It’s a colossal surge,” Trump said of the migrant caravans from Central America, “and it’s overwhelming our immigration system. We can’t take you anymore.”

Specifically, Trump singled out those seeking asylum, saying that a large number of them were gang members.

“It’s a scam. It’s a hoax,” Trump said. “I know about hoaxes. I just went through a hoax,” which is how he refers to special counsel Robert Mueller’s probe of his campaign’s ties to the Russian government.

At the same time, Trump proclaimed that Mexico “has been absolutely terrific for the last four days,” arresting “thousands” of Central American migrants before they could reach the U.S. border. But then the president issued another warning.

“If for any reason Mexico stops apprehending and bringing the illegals back to where they came from, the U.S. will be forced to tariff at 25 percent all cars made in Mexico and shipped over the border to us. If that doesn’t work, I will close the border,” Trump vowed.

Trump had backed off from that threat earlier in the week after lawmakers from both parties threw cold water on the idea.

“Closing down the border would have potentially catastrophic economic impact on our country, and I would hope we would not be doing that,” Senate Majority Leader Mitch McConnell warned.

As for the country being “full,” the United States, with a population density of 35 people per square kilometer, ranks 175th of 240 countries, between Venezuela and Kyrgyzstan.

Trump’s rolling up the welcome mat for immigrants stands in opposition to the long-standing American tradition of welcoming immigrants summed up by the lines in Emma Lazarus’s poem “The New Colossus,” inscribed at the base of the Statue of Liberty. “Give me your tired, your poor, your huddled masses yearning to breathe free…”

In February, Trump painted a very different picture regarding the country’s need for new immigrants.

“I need people coming in because we need people to run the factories and plants and companies that are moving back in,” Trump told reporters in February. “We need people.”

[AOL]

Trump says he will nominate Herman Cain to Fed

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President Donald Trump said Thursday he will nominate Herman Cain, the former Republican presidential candidate, to a seat on the Federal Reserve Board, a move surprising Capitol Hill and alarming Fed watchers.

“I’ve recommended Herman Cain. He’s a terrific man,” Trump told reporters in the Oval Office.

“I think he would do very well” at the Fed, the president added. “He’s a very good guy.”

A report that Trump planned to nominate Cain was reported early Thursday morning by Axios.

Trump has previously said he will appoint former Wall Street Journal editorial writer Stephen Moore to the Fed, but the White House has yet to send the nomination to the Senate. Moore and Cain would fill the two remaining vacancies on the Fed’s seven-member board. Trump’s interest in selecting Cain for the Fed was first reported in January. The president remains sharply critical of the Fed’s interest-rate policy even thought the central bank has shifted in a dovish direction. 

Trump said he was not trying to send a message to the Fed with the pick of Moore and Cain.

[MarketWatch]

White House Invents New Word to Cover for Trump: Transcript Claims He Said ‘Oringes,’ Not ‘Oranges’

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Millions of Americans heard Donald Trump substitute the word“oranges” for “origins” three times at a photo op, but rather than accurately reflect that embarrassing reality, the White House invented a new word.

During an Oval Office spray with NATO Secretary General Jens Stoltenberg on Tuesday, Trump riffed on Special Counsel Robert Mueller’s investigation. He told reporters “I hope they now go and take a look at the oranges, the oranges of the investigation, the beginnings of that investigation,” then managed to correctly say “origins” on his third try.

He went on to say that “the only thing that’s disappointing to me about the Mueller report” was that he wished it had covered “the oranges — how it started.”

But according to the official White House transcript, released almost five hours later at 6:47 pm, Trump didn’t say “oranges” at all, he said “oringes,” and he only did it twice:

And I hope that this investigation now, which is finished — it’s totally finished. No collusion. No obstruction. I hope they now go and take a look at the oringes [origins] — the origins of the investigation, the beginnings of that investigation. If you look at the origin of the investigation — where it started; how it started; who started it, whether it’s McCabe or Comey or a lot of them; where does it go; how high up in the White House did it go — you will all get Pulitzer Prizes, okay? You’d all get Pulitzer Prizes. You should have looked at it a long time ago.

And that’s the only thing that’s disappointing to me about the Mueller report. The Mueller report, I wish, covered the oringes [origins] of how it started — the beginnings of the investigation and how it started. It didn’t cover that. And for some reason, none of that was discussed.

Presumably, someone at the White House concluded that it’s less embarrassing for Trump to have made up an entirely new word that swaps letters and adds an “e” to “origins” than for him to have said “oranges” three times, which is what actually happened.

[Mediaite]

Trump tells Republicans they lost in 2018 because the election was rigged

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President Donald Trump warned Congressional Republicans to be “paranoid” that Democrats were rigging elections.

Trump spoke at a fundraiser for the National Republican Campaign Committee (NRCC), the organization in charge of House elections for the GOP.

During his remarks, Trump denied that he was a reason why Republicans lost control of the House of Representatives during the blue wave of the midterm elections.

“I say, what the hell do I have to do with it?” Trump said, according to Washington Postnational political reporter Felicia Sonmez.

Trump then seemed to suggest the 2018 midterms were stolen.

[Raw Story]

President Trump Ranted About ‘Getting Rid of Judges’

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Apparently, we had something of an “episode” in the Oval Office Tuesday afternoon.

“Sure, it’s going to have a negative impact on the economy,” the president jovially admitted of his proposed shutdown. “It is one of the biggest trade deals in the world that we’ve just done with the USMCA. It is a very big trading partner. Trading is very important, the borders are very important, but security is what most important. I have to have security. And we’re going to have security in this country. That is more important than trade. Let me just give you a little secret, security is more important to me than trade, so we’re going to have a strong border, or we’re going to have a closed border. I’m totally prepared to do it.”

“Well I haven’t made that intention known and I’m ready to close it if I have to close it. Mexico has the strongest immigration laws in the world. Nobody has stronger. I guess some have the same but you can’t get any stronger than what Mexico has and we don’t want people coming up on this dangerous journey and coming in. And what we have to do is Congress has to meet quickly and make a deal. I could do it in 45 minutes. We need to get rid of chain migration, we need to get rid of catch and release and visa lottery and we have to do something about asylum and to be honest with you, I have to get rid of judges.”

Oh. And there were some pronunciation issues.

Meanwhile, those “rural voters” who, evidently, are the only voters that truly matter, are getting hammered all over the midwest. From NBC News:

Farmers will have to destroy any grains that were contaminated by floodwater, which could also prevent some growers from planting oversaturated fields. Near Crescent, Iowa, farmer Don Rief said the flood damaged more than 60,000 bushels of his grain, worth hundreds of thousands of dollars. He tried to move the crops before the flood, but dirt roads were too soft from the storm to support trucks. “We were just hurrying like hell,” Rief said. “Hopefully USDA will come in and minimize some of the damage.” The USDA does not have a program that covers flood-damaged grain because farmers have typically received more advance notice of rising waters, allowing them to move crops and limit losses, said Tom Vilsack, who ran the agency under former President Barack Obama.

That’s going to have to change, it seems. We don’t get many warnings about sudden calamities anymore and, the ones we get, we don’t listen to anyway.

[Esquire]

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

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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]

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