US stocks weaken over Trump’s latest tariff threat


REPORTING, GRIFF GENERAL SINCE IN JACKSONVILLE, NORTH CAROLINA. TURN TO GO TRADE TENSIONS NEGOTIATIONS BETWEEN THE UNITED STATES AND CHINA AT RISK AS THE TRUMP ADMINISTRATION PREPARES TO HIT CHINA WITH A NEW ROUND OF TARIFFS ON ADDITIONAL $200 BILLION WORTH OF IMPORTED GOODS, THE PRESIDENT TWEETING THIS MORNING TARIFFS HAVE PUT THE U.S. IN A VERY STRONG BAR OUR COUNTRY YET COST INCREASES HAVE THUS FAR BEEN ALMOST UNNOTICEABLE, IF COUNTRIES WILL NOT MAKE FAIR DEALS WITH US MANAGING DIRECTOR FOR OTCFX INTEREST RATES, DID I SAY THAT RIGHT? GOOD TO SEE YOU ERIC.>>GREAT TO BE HERE, THANKS. DAGEN: WHY ARE MARKETS NOT CONCERN ON THE TRADE FRONT? 20 TRILLION-DOLLAR ECONOMY, 200 BILLION IT’S A BIG HEADLINE THINGS, WE HAVE A SERVICE-BASED ECONOMY AND WHEN YOU LOOK AT 80% OF THE ECONOMY IS BASED ON THAT IMPACTFUL TO THE OVERALL ECONOMY AND I THINK THAT’S WHY>>I WAS WITH A BUNCH OF FOLKS DURING THE WEEK, THIS PAST WEEK AND ONE OF MY FRIENDS SAID AS IT RELATES TO CORPORATE DECISION MAKING, BUSINESSES ARE TERRIFIED MAKING UP NEW EXPRESSION, IT’S TERRIFYING WONDERING WHAT’S PUSHING ON ALL OF THIS?>>IT IS WEIGHING ON THE DECISION-MAKING PROCESS, IT’S NOT ENOUGH TO HOLD THEM BACK RIGHT NOW AND I THINK THAT WHEN WE LOOK AT WHAT THE POTENTIAL OUTCOMES ARE, WE SAW THE PLAYBOOK WITH ME PLAYBOOK WITH MÉXICO, TRUMP IS GOING TO RAMP UP THE RHETORIC AND THEN HE’S GOING TO ULTIMATE SAME THING TO HAPPEN WITH CHINA AND HE’S GOT TO TAKE IT UP A TARIFF, HE HAS THE SPOOK THE 20% TARIFF OF ANNUAL IMPORT COMING FROM CHINA,LESS OF A BLOW SO TO SPEAK TO AMERICANS QUITE FRANKLY.>>WELL, IT WOULD BE AS WE ARE DISCUSSING WITH ERIC, MARKETS DON’T SEEM TO CARE ABOUT THIS BECAUSE AS ERIC POINTS OUT WE ARE VERY MUCH A SERVICE-ORIENTED ECONOMY, THE QUESTION IS WHERE DO WE GO FROM THERE? THE WALL STREET JOURNAL TALKING IF TARIFFS ARE IMPOSED, CHINA IS THREAT TONG WALK AWAY FROM TRADE TALKS THAT ARE SUPPOSED TO HAPPEN IN A LITTLE OVER A WEEK, IS THAT GOOD NEWS OR BAD NEWS, THIS THE ALL PLOY TO GET CHINA BACK TO THE TABLE AND COULD CORPORATE EARNINGS HAVE STAYED TALKING ABOUT COMPANIES BEING TOWARDS — WE ARE TALKING ABOUT TWO MORE HIKES BEFORE THE END TO HAVE YEAR, THAT’S PROBABLY HAVING BIGGER IMPACT THAN THE TARIFF DISCUSSION AT THIS POINT. ENOUGH IMPACT. DAGEN: WHEN PRESIDENT TRUMP, HE TWEETED ABOUT THE STEEL INDUSTRY AND WHAT I WAS POINTED OUT WHICH INDUSTRIES AND BUSINESSES THAT USE STEEL, IT PUTS — IT POTENTIALLY HURTS THOSE JOBS AND TO THE POINT IF YOU HAVE YOUR YOU PASS ALONG THOSE PRICE INCREASES TO YOUR CUSTOMERS OR YOU EAT THEM AND THAT HURTS YOUR PROFIT MARGINS AND AT WHAT POINT DOES THAT BECOME AN ISSUE $200 BILLION BEING TARIFFED, THAT BECOMES MORE OF A PROBLEM HERE. TARIFFS ARE GOOD OR BAD IN POSITIVE. DAGEN: TRUMP SUPPORTERS LIKE THE>>THE THING THAT WORRIES ME AND I’M WITH YOU ON THE SIZE OF THE ECONOMY AND HOW 200 BILLION LOOKS SMALL, HAVING SAID THAT LOOK AT RETAIL INDUSTRY AND HOW THEY HAVE STRUGGLED IN THE LAST 10 YEARS, YOU NOW INCREASE THE EXAMPLE, BY 10 OR EVEN 25%, THAT IS WHAT THEY PASS LONG TO>>THIS IS DEVASTATE TO GO AGRICULTURE AND YOU TALKED ABOUT COUNTRY, IF YOU LOOK AT THE ELECTORAL MAP TRUMP DID VERY WELL — DAGEN: THE THING THAT I’VE PUSHED BACK THE AGRICULTURAL SECTORS FARMERS ARE GETTING A BAILOUT BECAUSE OF RETALIATORY TARIFFS FROM THE OTHER NATIONS WHAT ABOUT THE BAILOUT FOR ALL LOOKS LIKE THERE’S NO OTHER MONEY GOING INTO ANY OTHER>>IN ADDITION, THE AGRICULTURAL INDUSTRY IS UNIQUE THAT THEY ARE FORWARD HEMMINGED AND SO RIGHT TO 2019 THIS WILL HAVE POLITICAL FALLOUT. DAGEN: IRIC, WE SHALL SEE, WE WILL HAVE TO WAIT FOR MIDTERMS, MARKETS REACT EVERY DAY, ERIC

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