Finance

Amazingly Enough, Larry Kudlow Might Not Be The Worst Candidate To Replace Gary Cohn

We always knew that we would miss Gary when he was inevitably gone, but this is going to be ridiculous… Four rumored contenders for the position are: Kevin Warsh, former Fed governor and economic official for President George W. Bush; Shahira Knight, Deputy Assistant to the President for Economic Policy, Cohn’s top tax official; Peter Navarro, White House trade adviser, who argued for tariffs; and Larry Kudlow, CNBC senior contributor and conservative commentator, who shares Cohn’s views on trade. That’s quite the short bench. Warsh is a known quantity and real economist who also offers a quadrupling down on market fears of a hawkish Fed running amok. Shahira Knight is unknown enough to keep Wall Street nervous (but you’ve got to like anyone that’s comfortable telling Mnuchin to his face h...

Wilbur Ross Refutes Popular Misconception: ‘We’re Not Trying To Blow Up The World’

So obviously, the Trump administration is in damage control mode on Wednesday morning after Gary Cohn finally came to the conclusion that trying to keep this train on the tracks is an exercise in abject futility. Of course that was readily apparent to him last August when Trump resisted calls to publicly condemn actual neo-Nazis (“I don’t know if you know, they had a permit. The other group didn’t have a permit.”), but back then the tax cuts weren’t on the books yet and there was still a chance he could convince the President not to go the protectionist route on trade. Once Trump made it clear last week that Peter Navarro is his economic spirit animal and there was nothing anyone could say or do to change his mind, Gary lost his appetite for sadomasochism. To be clear, Wall Street hates th...

GE among the stocks ‘most at risk’ to be hurt from Trump’s tariffs: Deutsche Bank

Shares of General Electric, already trading near an 8-year low, may take another hit as steel and aluminum prices rise as a result of President Donald Trump’s tariffs, according to Deutsche Bank. “We believe GE to be among the most at fundamental risk from rapidly rising steel and aluminum prices – both directly in terms of competitive cost pressures and indirectly in terms of the risk of reduced global economic activity due to trade/tariff retaliation by other countries,” wrote Deutsche analyst John Inch. “General Electric produces a suite of very large/heavy, expensive equipment made significantly of metal that includes steel and aluminum.” Many market analysts expect such a rise in prices after President Trump declared a 25 percent tariff on steel imports a...

Ailing GE is among the stocks ‘most at risk’ to be hurt from Trump’s tariffs: Deutsche Bank

Shares of General Electric, already trading near an eight-year low, may take another hit as steel and aluminum prices rise because of President Donald Trump’s tariffs, according to Deutsche Bank. “We believe GE to be among the most at fundamental risk from rapidly rising steel and aluminum prices — both directly in terms of competitive cost pressures and indirectly in terms of the risk of reduced global economic activity due to trade/tariff retaliation by other countries,” Deutsche analyst John Inch wrote in a note to clients. “General Electric produces a suite of very large/heavy, expensive equipment made significantly of metal that includes steel and aluminum.” Many market analysts expect such a rise in prices after Trump announed plans on Thursday for a 25 ...

GM, Boeing and other big metals users drop after Cohn departure

Shares of companies that use metals like steel and aluminum for their products fell on Wednesday following the resignation of Gary Cohn, President Donald Trump‘s chief economic advisor. General Motors and Boeing declined 1.3 percent and 1.4 percent, respectively. United Technologies and Ford Motor slipped 1.1 percent and 0.9 percent, respectively. Caterpillar also fell 1.6 percent. Cohn — a free-trade advocate who opposed implementing tariffs — resigned from his post Tuesday after Trump announced he would implement tariffs on steel and aluminum imports. His resignation signaled an increased likelihood that Trump would implement the tariffs. Since Trump’s announcement on March 1, shares of metal users have been mostly under pressure. In that time period, GM and Boeing are down m...

Caterpillar, GM and other big metals users’s stocks drop after Cohn departure

Shares of companies that use metals like steel and aluminum fell Wednesday following the resignation of Gary Cohn, President Donald Trump‘s chief economic advisor. Caterpillar dropped 2 percent and General Motors skidded 1.2 percent. Boeing, United Technologies and Ford Motor slipped less than 1 percent. Cohn, a free-trade advocate who opposed implementing tariffs, resigned Tuesday night, five days after Trump announced plans for tariffs on steel and aluminum imports. The resignation signaled an increased likelihood that Trump would implement the tariffs. Since Trump’s announcement, shares of metal users have been mostly under pressure. In that period, GM and Boeing are down more than 3.5 percent, while United Technologies is down 2.3 percent. Ford, however, is up 0.2 percent. ...

Ripple develops blockchain-powered payment app with 61 banks to speed up transactions in Japan

Blockchain firm Ripple has developed a payment app that settles transactions instantly, in partnership with a consortium of 61 Japanese banks. The San Francisco-based company said Wednesday that the app, called “Money Tap,” will first go live in the fall. It will initially be available with three banks included in the consortium — SBI Net Sumishin Bank, Suruga Bank and Resona Bank — before being rolled out to the rest of the consortium. Blockchain, which is distributed ledger technology, is more commonly known as the tech that underpins cryptocurrencies such as bitcoin. It maintains a growing list of transactions or other data across a decentralized network. Ripple’s own blockchain technology is known mainly as the underlying network for its cryptocurrency, XRP, often ref...

Blockbuster movie Black Panther provides these 4 valuable money lessons

“A man who has not prepared his children for his death has failed as a father.” When I watched King T’Chaka’s declaration to his son, T’Challa, in Disney-Marvel’s box-office hit Black Panther, the Dora Milaje warrior spirit in me surfaced and brought forth my financial planner’s spear! This mystical, ancestral scene piqued my curiosity regarding how King T’Chaka’s legacy would unfold in T’Challa’s reign as the new king of Wakanda. Preparing the next generation for leadership includes guidance on managing resources and wealth. This lesson is gender neutral despite the gender-specific reference made by King T’Chaka. In another poignant scene T’Challa’s mother, Queen Ramonda, also affirmed the parental and com...

China is ‘fully confident’ in fending off systemic debt risks

China is fully confident of its ability to fend off systemic debt risks, while it continues to strengthen control over local government debt, its finance minister Xiao Jie said on Wednesday. China will reasonably set quotas on local government debt issuance and keep cracking down on “chaotic” debt financing, Xiao said at a press briefing held during China’s annual parliament meeting. Local government finances and burgeoning debt levels in China have been a source of concern for policymakers as the central government looks to remove expectations of implicit guarantees for government financing vehicles. “Whoever raised the debt would be held responsible for it,” Xiao said, stressing he was fully confident that such measures would prevent China from suffering sys...

Some Steel Sector Indicators

which should give you pause for thought about national-security-rationalized tariffs. Output stable, real prices up. Figure 1: Raw steel production, 2012=100, Seasonally Adjusted (blue, left log scale), and Producer Price Index for Cold Rolled Steel Sheet and Strip, Jun 1982=100, Monthly, Not Seasonally Adjusted deflated by CPI less food and energy, seasonally adjusted (red, right log scale). NBER defined recession dates shaded gray. Source: Federal Reserve Board and BLS via FRED, NBER, and author’s calculations. The recovery has been driven in part by already implemented trade measures (anti-dumping, safeguard), so not asserting that we shouldn’t try to mitigate the effects of excess steel capacity abroad. Rather, it’s not clear that Section 232 is the way to go. From Palette and Dawsey i...

Donald Trump Proves Immune To Gary Cohn’s Mesmeric Grundle

Welp, it looks like Gary Cohn finally took our advice. The Big Grundle has finally escaped his voluntary bondage as Donald Trump’s National Economic Council Director after what we would generously refer to as “a wet shitshow nightmare” that somehow lasted more than 13 months. A lot of people were aghast when the Number Two at Goldman Sachs took a senior role in the Trump White House because the optics of “Government Sachs” are never popular. But in this White House, Gary Cohn was just what the doctor ordered. He was the guy that made Goldman tick, Lloyd Blankfein’s enforcer, a tough guy that understood markets. Gary might have been a Wall Street animal but he was also animal that understood Wall Street and 1600 Pennsylvania Ave. suddenly looked a lot like a zoo. Suddenly, Gary Cohn was the...

Wall Street reacts to Cohn resignation: He served ‘his country with class’

Following Gary Cohn’s resignation from President Donald Trump’s administration, Goldman Sachs CEO Lloyd Blankfein praised him on Tuesday for his work as chief economic advisor. In a tweet, Blankfein said: “Gary Cohn deserves credit for serving his country in a first class way. I’m sure I join many others who are disappointed to see him leave.” Blankfein tweet Cohn — a free trade advocate who opposed implementing tariffs — resigned from his post Tuesday night after Trump announced he would implement tariffs on steel and aluminum imports. Earlier on Tuesday, New York Times reported that Cohn would resign if Trump moved forward with his plan. Bank of America also reacted to the news, with a spokesperson saying: “We thank him for his service to the country i...