The Global Sell -Off – The New York Times
Some bad days have been for markets around the world. Yesterday, the S&P 500 closed the 10 percent from where it was at the beginning of the month. Entered briefly Territory of the bear market. European and Asian indices also fell from April 1st.
The chaos obviously began with the rates of President Trump. International leaders are now trying to be reproached by the president. More than 50 nations they contacted The White House to negotiate, supports the administration. The Israeli Prime Minister came to Washington yesterday looking for an agreement.
The situation is unusual as it is entirely in the hands of Trump. The president can usually influence, but rarely controls economic challenges: a bank collapse, a housing bubble, a pandemic. In the current market route, Trump is the cause. He imposed the rates and decides when they go.
So world leaders have a place to turn. Today’s newsletter examines their efforts to persuade Trump and if they are probably successful.
Looking for recovery
Other countries, it is right to say, are confused. World leaders I want to hit a deal With Trump to relieve rates against them, but they don’t know what he wants. And he did not explain a clear purpose for his rates.
Sometimes, it has outlined the objectives that contradict each other: Trump suggested that the rates are mutual and part of a negotiating tactic, which would make them temporary as long as other countries work with him. But he also said that rates aim to increase tax revenues and report US production, which suggests that they are actually permanent; Rates cannot raise funds or invoke manufacturers in America if they end.
Consider the situation of Israel. Before Trump announced his rates last week, the Israeli government promised to cancel all its withdrawals in the United States. After all, Trump had said that his rates were intended to take revenge against the commercial barriers of other countries, so Israel thought he could give Trump in advance what he wants. Trump has imposed new withdrawals on Israel anyway.
Yesterday, Benjamin Netanyahu of Israel has become the first world leader to talk to Trump in person since the president published his rates. Netanyahu reiterated that Israel would eliminate commercial barriers against the United States. Trump thanked him but did not promise anything in return.
The chaos of the market reflects the uncertainty that foreign leaders are browsing. The actions increased briefly yesterday on not proven relationships according to which the administration could pause the rates for 90 days. But the social media accounts of the White House called the “False News” and Trump reports threatened even more rates on China contrast its retaliation duties in the United States. The markets collapsed again. For a few hours, Trillions of dollars have appeared and vanished.
Different possibilities
The president’s game has one of the two probable results. In the first, Trump breaks into economic chaos and gets serious concessions from other countries. In the second, the markets – and, potentially, the economy – continue to collapse and Trump never gets true concessions from commercial partners. Perhaps he retires, with little to show for his rates, as he did with Canada and Mexico at the beginning of this year.
Israel is playing on the first result, as Netanyahu has shown to the White House. Europe is also; He is preparing retaliation measures, but they are more modest than his initial threats. “The officials are moving slowly and deliberately, avoiding a single series of retaliation moves, in the hope of giving the United States the time to come to the table to make an agreement”, My colleague Jeanna Speliek explained.
Others bet on the second result. China, for one, hit a provocative tone, David Pierson, Claire Fu and Vivian Wang reported. He says he is ready for a commercial war and that he will win. The Chinese government seems to believe that it no longer depends on the US market for its exports. (The Times is monitoring which countries are negotiating and which they are taking revenge here.)
Unlike other complex pieces of politics – tax changes on income, new laws, judicial cases – This chapter of Trump’s presidency rests in a couple of hands: his. His conclusion depends on him.
Related: Stock in Europe and Asia they were more calm This morning.
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