About 10 days ago, Scott Bessent began increasingly confident in telling Wall Street executives that he was about to remove the big dark cloud hovering over the American markets and economics: The Treasury Secretary said he is making great progress in cutting trade deals with India, Japan, South Korea and Australia, and some of our biggest commercial partners.
The markets will love this step. President Trump can move forward in his broader plans to isolate the rogue in global trade, China, with its high definitions and theft of repeated American intellectual properties.
He avoided an existential threat to his small presidency of the economic collapse that prevents customs tariffs, which could lead to an enlarged enlarged and stagnation.
But that was last week, and there are still any deals – at least nothing looks imminent by the time of the press on Monday – that is why the markets resume trading after the weekend in the free fall. This did not help add Trump to uncertainty, when the Federal Reserve Speaker Jerome Powell “The main loser” was called, more than knowledge that he would try to remove him because of his hesitation in reducing interest rates because the customs tariff may enlarge.
The shares have decreased more than 2 %, depending on the indicator. DOW was crashed 1200 points at some point, and the revenues of bonds, and other disastrous signs increased: a journey that we do not have treasury or dollar bonds but gold and bitcoin, the largest encryption currency in the world has no inherent value other than what some BRO believes in its cards.
The trade war was not supposed to decrease in this way.
Dan Evs, a veteran technology analyst in Wedbush, has placed: “The White House needs commercial deals that are rapidly with the negotiating path that was established with China, otherwise the markets and return for 10 years, the US dollar, gold and the economy will go to its different paths over the coming weeks and months.”
So far, companies have stopped announcing the demobilization of workers amid uncertainty because, as an institutional investor said, “Trump may be able to withdraw this” and reduce favorable commercial deals.
But what if he did not do?
This is the increasingly major concern for large investors and corporate executives because they see their costs rising due to customs tariffs and potential economic slowdown.
Looking at: It was believed that Japan was about to get a deal, but then nothing happened. One of the senior investors said that a Japanese commercial official told him that the White House continues to sarcast with the fine conditions. The White House believes that Japan, with the list of the other nation in the Bessent menu, was slow to remove the protective barriers of American goods.
Wall Street believes that the correspondence is still a problem. Psing seems to be the most efforts of the commercial center, but the Minister of Trade, the increasing and fallen trade in Trump Howard Lottenic, remains in commercial meetings along Jameson Jarir, American Trade. ambassador. The three were in the White House last week with Japanese Trade Minister Ryosei Akazawa.
Peter Navarro, the commercial teacher in Uber Haksh Trump is always in this mix.
The most worrying is that markets, companies in general love certainty and Trump is only a straight share when it comes to negotiations; His skill is to keep the other side of balance as he successfully did with banks during his long career in real estate and business.
I worked after that. The question is whether it will work now because it negotiates with the two countries instead of creditors.
“In the end, it does not matter what Bessent thinks or does because he works with Trump,” one of the bankers who deal with the White House told me.
