Based
on the Tariffs and Trade Barriers long placed on the U.S. & its great
companies and workers by the European Union, if these Tariffs and Barriers are
not soon broken down and removed, we will be placing a 20% Tariff on all of
their cars coming into the U.S. Build them here!
President
Trump. Twitter 22-06-2018
Luckily the Dow and
stocks managed an unconvincing relief rally, helped somewhat by OPEC’s weak
agreement to increase production, by only about 600,000 barrels a day.
(Officially 1 million barrels a day, but few expect that OPEC can reach that
target.) It sets up stocks for a dress up week ahead, in the runup to the
month-end, quarter-end, and half year end.
But President Trump’s
worst PR week in office so far, might undo it all yet. Desperate to switch
attention from the media focus on Trump’s children’s concentration camps in
Texas, President Trump on Friday stepped up his trade war with Germany.
Things will go
downhill fast in Germany and the EUSSR if President Trump really goes ahead
with the nuke option, and 20 percent tariffs on European cars. While it might
not make much of a dent in sales of Rolls Royces and Bentleys, which tend to
sell by appointment and in limited quantities, it’s a death blow for German Mercs
and Beamers. As goes Germany so goes continental EU. Trump’s tariff, if
applied, torpedoes Germany and the EUSSR as we know it. In our grossly
inter-related world, a sinking EUSSR swiftly blows back into the USA.
The mere threat of EU
auto tariffs is destabilising enough. If President Trump and his trade war team
continue the loose tariff talk next week, far from a dress up stock week, ahead
of America’s following July 4th holiday week, what we could get is a
massive defensive “dress down” week, as the Great Global Trump Trade War really
starts to bite.
Below, just how bad
last week became.
'By the
way, I have great respect for China. I have many Chinese friends. They live in
my buildings all over the place.'
Candidate
Trump.
Dow snaps 8-session skid, but logs worst weekly fall since March as trade jitters persist
Published: June 22, 2018 4:54 p.m. ET
Energy stocks lead, supported by jump in crude prices
U.S. stock benchmarks ended mostly higher on Friday as an OPEC-inspired rally in energy shares helped the Dow industrials halt a lengthy slide, but equities rang up weekly losses in a period pockmarked by a series of trade-related spats.What did the main benchmarks do?
The Dow Jones Industrial Average DJIA, +0.49% rose 119.19 points, or 0.5%, to 24,580.89, with the equity gauge ending an eight-day losing streak, that if extended to a ninth session would have represented the longest losing since 1978.The S&P 500 SPX, +0.19% added 0.2%, or 5.12 points, to close at 2,754,88. Eight of 11 sectors finished higher, led by a 2.2% rise in the energy sector, a move that tracked a sharp rally in crude-oil prices.
The Nasdaq Composite Index COMP, -0.26% closed down 20.13, or 0.3%, at 7,692.82.
All three benchmarks finished off their best levels of the day in the final minutes of trade. Friday’s trading also marked the annual reconstitution of the Russell Indexes, where the index provider makes rule-based changes to composition of its indexes.
For the week, the Dow closed off 2%, marking its largest weekly decline since March 23, and its second straight weekly fall. The S&P 500 lost 0.9% over that frame and the Nasdaq booked a weekly drop of 0.3%, ending its streak of weekly gains at four straight.
What drove markets?
Investors have worried that trade tensions between the U.S. and major trading partners such as China and the European Union could develop into a big drag on the global economy. These concerns come as the U.S. economy, the world’s largest, is increasingly viewed as in the late stages of its expansion.----In the latest trade development, Trump threatened 20% tariffs on European cars coming into the U.S. General Motors Co. GM, +0.32% fell 0.3% while Ford Motor Co. F, -0.51% was down 0.5%. Tesla Inc. TSA, +24.20% sank 3.8%.
U.S. crude-oil futures CLQ8, +5.71% CLQ8, +5.71% surged 4.6% to settle at its highest level in a month, after members of the Organization of the Petroleum Exporting Countries and other major producers struck a deal that would result in an effective rise in production of around 600,000 barrels a day, a figure that comes as a relief to bullish traders who feared a more aggressive increase.
More
June 22, 2018 / 7:40 PM
Trump car tariffs could run European convertibles off U.S. roads
(Reuters)
- In the years before he became president of the United States, Donald Trump
owned luxury German cars. Now, pricey European convertibles are among the
vehicles that could become rare on American roads if Trump’s proposal to slap
tariffs on imported cars takes effect.
On Friday, Trump threatened to impose a 20 percent import tariff on all European Union-assembled vehicles, a move that could upend the industry’s current business model for selling cars in the United States.
“The tariffs, if they materialise, would call into question the business case for many niche models we currently sell in the United States,” a senior executive at one carmaker told Reuters on Friday. “Convertibles are a particular headache. With Brexit and U.S. tariffs, this market could shrink further.”
The executive said convertibles may not disappear if car makers can forge alliances to share production costs, or design vehicles that are less expensive to build alongside high-volume models.
Because of high pollution and scorching sunshine, convertibles are not selling in Asia, leaving the United States, Britain and Germany as the largest potential growth markets. Potential tariffs between the EU and Britain after Brexit and yet more tariffs between Europe and the United States will shrink the market further, auto executives fear.
German automakers BMW AG, Daimler AG and Volkswagen AG (VOWG_p.DE) operate assembly plants in the southeastern United States. Those plants concentrate on building high-volume models, mainly SUVs and crossovers and some sedans. But they lack the flexibility to quickly and inexpensively shift production from one model to another in response to rapidly shifting tariff threats, industry experts said.
“The tariff discussion highlights why this flexibility is necessary,” said Ron Harbour, a manufacturing consultant with Oliver Wyman. “Those that don’t have it will suffer.”
A tariff of up to 25 percent would destroy the business case for foreign carmakers to export to the United States models such as the $88,200 (£66,538) Mercedes SL roadster or Audi S5 Cabriolet - and deliver a 4.5-billion euro (£3.96 billion) hit for Germany’s premium manufacturers, analysts at Evercore ISI said.
----Mercedes is expected to sell about 20,000 convertibles this year in the United States and BMW fewer than 16,000, LMC projected.
More
June 22, 2018 / 5:38 PM
Harley says EU duties could prompt price hikes
FRANKFURT
(Reuters) - Harley-Davidson Inc could be forced to raise prices in Europe due
to EU tariffs on U.S. goods, hitting buyers of new motorcycle models when they
are shipped to dealers later in the year, the head of its central European
business said.
Earlier this
week, the European Commission said it would start charging import duties of 25
percent on a range of U.S. products from Friday after Washington imposed
tariffs on EU steel and aluminium at the start of June.
“Of course
this will have an impact on the price. We will try and make it as painless as
possible but no company can foot this alone,” Christian Arnezeder told Reuters
TV in an interview.
A spokeswoman for the company said the group was still
evaluating the potential impacts of EU duties, and that no decisions on pricing
had been made.
Harley says
it is getting hit by tariffs twice: Once by the EU import duty and once by a
rise in raw material prices resulting from U.S. steel tariffs.
For the
moment, though, Harley does not need to raise prices as it used the roughly
three months since Europe first threatened to impose duties on its motorcycles
to prepare.
“We tried to
get the current model to Europe as quickly as possible, as far as production
allowed for it,” Arnezeder said.
He also said
that the anticipation of tariffs boosted demand as customers sought to snap up
motorcycles before prices rise.
“You could
tell on the market, in talking to dealers, that some customers said, I want to
fulfil my dream before any tariffs come into effect,” he said.
Struggling
to overcome a slump in U.S. demand, Harley has been aiming to boost sales of
its motorcycles overseas to 50 percent of total annual volume from about 43
percent currently. Europe, the Middle East and Africa accounted for little over
21 percent of its global retail sales in the last quarter.
Finally, we close for
the week with the top EUSSR power Germany.
President Trump is driving Germany to the far left and far right, though
Mrs. Merkel’s misguided Mad Migrant policy also drove many Germans to the right.
Below, Der Spiegel offers one perspective on President Trump. Is dying NATO already
doomed?
With rising negative
publicity as below, President Trump can expect a very hostile trip to NATO in
Brussels next month and his follow up trip to GB.
'And
did you notice that baby was crying through half of the speech and I didn't get
angry? Not once. Did you notice that? That baby was driving me crazy. I didn't
get angry once because I didn't want to insult the parents for not taking the
kid out of the room!'
President
Trump.
Trump's Attacks on Germany The Enemy in the White House
Trump's latest lies are an open attack on the
German government and the European Union. This U.S. president was never a
partner. He is an aggressive opponent and should be treated as such.
June 20, 2018
03:51 PM
Vladimir
Putin operates in the shadows. The Russian president controls a clever
disinformation campaign with the aim of upsetting the populations of Western
countries, discrediting their institutions, dividing society, influencing
elections and ultimately causing the collapse of liberal democracy.
Nevertheless, there are still many people who continue to believe that Putin is
innocent and that the claims are merely the malicious fabrications of Western
intelligence agencies. Is it all just a conspiracy theory?
Regarding
Donald Trump's intentions, by contrast, there can no longer be any doubt. Since
taking office, he has carried out a scorched-earth policy against multi-lateral
treaties of all kinds. He is a man with no interest in foreign policy, seeing
it merely as an instrument to pursue his "America First" ideology. He
views cooperation as a weakness, the latest proof being the US withdrawal from
the United Nations Human Rights Council.
Trump acts quite openly. And now, the American president has turned his attentions toward launching a disinformation campaign against Germany. He is doing so as a way of justifying his morally repugnant refugee policies to the American people.
The heartbreaking scenes at the southern U.S. border, where crying children are brutally separated from their parents for having committed the error of seeking a better life for themselves and their families in the U.S. is heaping pressure on even the most diehard Trump supporters. This zero-tolerance policy turned into a PR disaster, one that Trump now wants to contain by grasping at whatever straws he can - including attacks on Germany.
'As an American, I Feel Deeply Ashamed'
U.S. President Donald Trump says he has put an
end to the separation of migrant families. But 2,300 children remain
incarcerated with no plan in place to reunite them with their parents. Human
rights lawyer Michael Bochenek has visited them.
June 22, 2018
10:46 AM
SPIEGEL ONLINE: Mr. Bochenek, you recently spent time
in two detention centers for immigrants and their children in Texas. What did
you see?
Bochenek: The first
one was a facility where people are placed right after apprehension at the
border. They call those facilities "hieleras" (freezers) because
they're kept unreasonably cold. The cells are very, very small and yet they
hold up to 30 people. They have concrete floors and concrete benches lining the
walls.
SPIEGEL
ONLINE: Why so cold?
Bochenek: We were
never given a good explanation for the cold. The border patrol said they keep
the cells at a comfortable temperatute. But some are only around 55 degrees (13
degrees Celsius). You can imagine what that feels like if you're sitting on a
concrete bench in wet clothing.
SPIEGEL
ONLINE: That first facility housed adults and children together?
Bochenek: Yes, that's
a facility intended for short term only. Most people spend 12 to 24 hours
there. Only afterwards do the adults and the children become separated.
SPIEGEL
ONLINE: How does that happen?
Bochenek: The adults
are charged in federal court with unlawful entry into the country, which is a
misdemeanor. Upon transfer to the court, federal marshals determine that the
children are now unaccompanied and sends them on another track. They treat them
as if they never arrived with parents at all.
SPIEGEL
ONLINE: Because once you're charged, your child is separated from you by law. (Trump's
executive order instructs the Department of Justice to change that, but it's a
cumbersome process that could take some time.)
Bochenek: Yes. The
kids immediately go to a different facility. That facility is a large,
warehouse-type arrangement with what looked like cages made from chain-link
fencing. The migrants who have been there refer to it as the "dark
kennel" because they feel like they're being held like animals.
SPIEGEL ONLINE: How were
the children treated there?
Bochenek: The
facilities are incredibly basic. The kids get food and a roof over their heads
but they're not getting the kind of care and support you expect for children. I
saw a five-year-old boy on a green mat with an emergency blanket made from
foil. He looked entirely lost. Nobody had ever spoken to him about what was
happening. He hadn't seen his parents in a day or more.
SPIEGEL
ONLINE: How are these kids dealing with the situation?
Bochenek: They are
completely traumatized with no sense of what happens next. There were no
caregivers looking out for them, only uniformed guards checking off lists of
names. The children are sitting in a detention facility, with the lights on 24
hours a day.
SPIEGEL
ONLINE: Why are the lights kept on? That borders on torture.
Bochenek: They told
us it was for security reasons. It certainly doesn't comply with national or
international standards in any sense.
SPIEGEL
ONLINE: What happens with sick children in need of medication?
Bochenek: All their
property is taken and stored. Everybody there had paper tickets as receipts.
But of course there's always problems getting stuff back in the end. That also
applies to medication. I heard from some parents whose child was asthmatic that
the necessary medication was locked up with their other possessions.
SPIEGEL
ONLINE: Is there medical care in the detention centers?
Bochenek: There
seemed to be no way of ensuring the medical needs of the children. Only some
basic medical screening.
SPIEGEL
ONLINE: It sounds like a situation that would be tough enough for adults to
handle. How can children in their formative years process this, even if they
are eventually reunited with their parents?
Bochenek: It is
deeply traumatizing. It has a very, very long-term effect on children. Studies
have told us over and over again that detention is trauma, that separation is
trauma. It doesn't go away even if it's over. The effects stay for a long time.
SPIEGEL
ONLINE: Where do these kids come from?
Bochenek: They're
largely from Guatemala, El Salvador and Honduras. Many of them spoke about
about fleeing death threats, violence, rape of women and girls, extortion and
other threats of harm by gangs.
SPIEGEL
ONLINE: How will they be reunited with their parents, if at all?
Bochenek: We do not
know. These agencies don't have a good record tracking people. Even before now
there were serious problems. Now they created even more problems.
More
Our
first duty, and our highest loyalty, is to the citizens of the United States.
We will not rest until our border is secure, our citizens are safe, and we finally
end the immigration crisis once and for all.
President
Trump. Twitter 22-06-2018
The monthly Coppock Indicators finished May.
DJIA: 24,416 +201 Down. NASDAQ:
7,442 +276 Down. SP500: 2,705 +180 Down.
All
three slow indicators moved down in March and April and continued down in May.
For some a new bear signal, for others a take profits and get back to cash
signal.
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