Whimsiest of tweets affecting Wall Street

I heard an old  saying repeated last night (1 News) – “When America sneezes the world catches a cold”.

Another saying could now be appropriate – “When Donald Trump tweets Wall street sneezes”.

Wall Street went up when the US and China seemed to come to an agreement to avert more tariff increases, but it has dipped after Trump tweets raised uncertainty.

Bloomberg: China Swings Into Action on Trade as Trump Ups Pressure for “Real Deal”

U.S. President Donald Trump said China is sending “very strong signals” following weekend trade discussions in Argentina, as uncertainty remains over what commitments were made between the two nations.

Beijing will start to quickly implement specific items where there’s consensus with the U.S. and will push forward on trade negotiations within the 90-day “timetable and road map,” the Ministry of Commerce said in a statement on Wednesday morning in China.

Hours later, Bloomberg News reported that officials have begun preparing to restart imports of U.S. soybeans and liquefied natural gas — the first sign confirming the claims of Trump and the White House that China had agreed to start buying some U.S. products “immediately.”

Global markets cheered the weekend accord on Monday, only to reverse course Tuesday as doubts emerged over exactly what the world’s two largest economies had agreed on.

NY Times: Trump Warns China He’s “Tariff Man,” Spooking Stock Investors

The trade war is back on — at least as far as investors are concerned.

Stocks sank on Tuesday, as President Trump threatened China with further tariffs, just days after the two countries agreed to a cease-fire in their escalating economic conflict. Referring to himself as a “Tariff Man,” Mr. Trump, in a series of tweets, deepened the murkinesssurrounding the trade agreement, while members of his economic team talked down the prospects of a broad deal.

The fear is that a lasting trade war will undermine the global growth at a time when some of the world’s largest economies are already slowing down, and the United States, a standout performer, is also expected to slow.

Stock markets always go up and down, sometimes seemingly for the flimsiest of reasons.

Add to that are fluctuations now due to the whimsiest of tweets.

The worry is that a whopper of a whimsy may precipitate a stock market slide down a slippery slope.

 

Q & A – earthquake and Trump

Earthquake

We’ll have the latest on the earthquake recovery effort in the top of the South Island and Wellington.

And we look at the response – could we have been better prepared?

Jessica Mutch will interview Wellington Mayor Justin Lester and acting Civil Defence Minister Gerry Brownlee.

US and Trump

Corin Dann talks to visiting Stanford University Professor Anat Admati – she talks about what’s wrong with our banking system and whether Wall St will change under Donald Trump.

Wikileaks reveal something about Clinton

As promised Wikileaks have released some Hillary Clinton emails. Initial reports indicated that there doesn’t seem to be anything particularly concerning.

However the timing of the release, while Donald Trump’s campaign is under extreme pressure, has been suggested as an indication of Wikileaks’ determination to swing the election against Clinton.

Politico: The most revealing Clinton campaign emails in WikiLeaks release

WikiLeaks released a trove of emails apparently hacked from Hillary Clinton’s campaign chairman email account, unleashing thousands of messages that reveal for the first time excerpts of Clinton’s paid speeches — including those delivered before Wall Street — that were flagged as problematic or potentially damaging.

The late-Friday release came almost immediately after a devastating tape emerged of Donald Trump in 2005 talking about how being “a star” entitled him to make aggressive sexual advances on women, fueling speculation that WikiLeaks is trying to tip the balance of the election.

The batch of emails — which Wikileaks promised is the first of many more to come — provided a glimpse into the inner workings of the campaign, and offered telling details about Clinton’s views on trade and the middle class.

In one of the most notable exchanges, Clinton campaign research director Tony Carrk emails other members of the team on Jan. 25, 2016 to share excerpts of her paid speeches that could come back to bite the campaign.

“Attached are the flags from HRC’s paid speeches we have from HWA. I put some highlights below. There is a lot of policy positions that we should give an extra scrub with Policy,” Carrk writes.

The first excerpt highlighted — with the header *CLINTON ADMITS SHE IS OUT OF TOUCH* — is from a Goldman Sachs-Black Rock event in 2014 in which Clinton discusses her distance from middle-class Americans.

The speech excerpts also delve into her support for a Canadian-style universal health care system and offer revealing comments about trade, which could prove controversial after Clinton dragged her feet in voicing fierce opposition to the Trans-Pacific Partnership trade deal that progressives loathe.

Beyond those excerpts, the emails affirm the campaign’s reputation for extreme caution, with an eagerness to proactively influence news coverage. Whether it’s plotting the candidates’ response to an early attack on influence peddling at the Clinton Foundation or writing jokes for an Iowa dinner speech, ad hoc committees — often incorporating advice from Bill Clinton — are shown agonizing over wording and tone. Under fire, they’re determined “not to look beleaguered,” as one aide put it.

Politico details “eight more e-mail exchanges that shed light on the methods and mindset of Clinton’s allies in Brooklyn and Washington”.

There doesn’t appear to be much that’s potentially very controversial.

Clinton’s campaign team has tried to imply doubts about authenticity of some of the material.

The most remarkable aspect of this is whether Wikileaks is going to try and match each Trump disaster with a hit against Clinton.