The new trade on Wall Street: T.A.C.O (Trump Always Chickens Out)
Stocks and bonds retreated last week as fiscal & trade worries resurface. Over the week-end, Trump agreed to delay the date for a 50% tariff on goods from the EU to July 9 from June 1. This morning, US Stock Futures are spiking ("The T.A.C.O trade" idea comes from a tweet on X by HolgerZ)
📢 President Trump is expected to invoke the wartime Defense Production Act over US dependence on Russia and China for enriched uranium and nuclear fuel processing
Reuters reports in a post on X, citing sources. 🔴 Trump is expected to sign multiple nuclear-related executive actions as soon as Friday, Reuters reports 🔴Shares of Uranium Energy and Centrus Energy rose more than 6% in post-market trading
Breaking: President Trump’s One Big Beautiful Bill officially PASSES🔥
✅ No tax on tips or overtime ✅ $175B for deportations and the wall ✅ Tax relief for seniors ✅ Making his 2017 tax cuts permanent Below is the Big beautiful bill impact on various income groups Source: Markets & Mayhem
📢 CHINA SAYS U.S. DIALOGUE TO CONTINUE AS CHINA HINTS TRADE TALKS ARE ADVANCING - CNBC
The U.S. and China have agreed to maintain communication following a call between Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary of State Christopher Landau, according to a brief readout released by the Chinese Foreign Ministry on Friday. Both sides exchanged thoughts on crucial issues during the call on Thursday, the statement said, without elaborating. The U.S. Department of State issued a similar statement Thursday, briefly noting the consensus on the importance of the bilateral relationship and an agreement to keep open lines of communication. The statement came as Beijing and Washington continued to trade swipes at each other, despite the tariff de-escalation following a meeting between both sides in Switzerland earlier this month. Source: CNBC
House to vote post-midnight on President Trump's Big Beautiful Bill, pushing tax cuts, spending reductions, and America First policies. Speaker Johnson confident in passage despite GOP holdouts.
An analysis by itep.org comes to the conclusion that two-thirds of the tax cuts offered in 2027 would go to the top 20 percent of families, and 41 percent would flow to just the top 5 percent of families. https://lnkd.in/dS-KWdQV.
Canada's national pension fund piled into US market in Q1 despite the 'Buy Canada' push.
Another proof that the "Sell America" narrative is overdone? Source: Eric Balchunas, Bloomberg
The Federal Reserve has now lost a combined $192 Billion over the last 2 years
Source: Barchart, Wolfstreet.com
With the clock ticking on America’s $36 trillion debt ceiling (which could be breached as soon as August), the national debt continues to climb, as it has for decades.
According to the Congressional Budget Office, the US public debt stood at 98% of GDP last year, and is set to surpass the WWII peak by 2029, hitting 119% by 2035. 🔴 What might be of particular concern to the number crunchers at Moody’s is not just the current level of federal debt, but how quickly it’s growing. Last year, the deficit was $1.8 trillion, more than 6% of GDP. The interest payments on debt alone were some $882 billion, greater than the defense and Medicare budgets. 😨 The latest tax cuts and spending push — or, as President Trump calls it, “the big, beautiful bill” — could add another ~$4 trillion to the federal deficit over the next decade, with Moody’s now projecting that the debt-to-GDP ratio could surge to 134% by 2035. In an interview with NBC yesterday, Treasury Secretary Scott Bessent shrugged off the downgrade, calling Moody’s a “lagging indicator.” But the markets took note, with the 30-year Treasury yield topping 5% this morning, a level last seen in late 2023.
