Coalition For A Prosperous America chief economist Jeff Ferry said to Fox that the Trump administration`s tariffs have a positive impact on the steel industry. This is one of the reasons why Trump is so popular in the United States.
Jeff Ferry said; «…..even as some pundits and economists say America`s steel industry is in decline…… for those who understand the steel industry, it`s clear that the Trump administration`s steel tariffs have generated a boom in steel investment and a shift to newer technologies that are creating high-paying jobs for thousands of new steelworkers.
Steel prices last year were lower than they were in 2017, before Trump`s tariffs. Donald Trump and Wilbur Ross did this because they know the steel industry. They did it because they knew that Communist China subsidized the steel and dumped the prices.
This kind of protectionism is good for Communist China, but it made it difficult for the United States to compete, and this is exactly here where Trump`s «America First» agenda comes in. He protects the U.S steel industry, its workers, and America.
The U.S steel industry is healthy, and steel consumers are better off because they pay the same price for steel now as they did a few years ago. Before the tariffs. Now, the U.S steel industry can invest in new technology, and grow and meet their need much better than before.
This is the difference between Biden who has been in politics for the last 47 years and Trump who is one of the few to stand up against Communist China.
We are all in it toghether and the times we are living in right now is historic. Just take a look at China and the Chinese economy that shrank 6,8 percent YoY in the first quarter of 2020. What a drop! This is the first GDP contraction since records began in 1992. Wow.
The reason for the drop is well known; COVID-19. No doubt. Xi and the CCP took action after the virus outbreak and enforced a two-month-long shutdown of all non-essential business activity. Nor did they celebrate a new year, and a shutdown like this is of course very expensive.
Car production in China recorded the sharpest decline which dropped -44 percent. That is a big shock. Last year, approximately 21,36 million passenger cars and 4,36 million commercial vehicles had been produced in China.
The growth for passenger cars has jumped from 7 million in 2008 (financial crisis) to 25 million in 2017. In 2018, every fourth passenger vehicle in the world had been produced in China, and China is ranked first among countries with the largest production of passenger cars in 2018.
As you can see, the growth of the production and sale of vehicles in China have increased rapidly. Its interesting to see that almost all of the leading bestselling cars in China are the product of joint ventres with foreign manufacturers.
Shanghai Automotive Industry Corporation (SAIC) has an ongoing cooperation with General Motors (GM). SAIC-GM manufactures and sells Chevrolet, Buick and Cadillac brand automobiles in Mainland China. When the sales drop in China, so it does in the U.S.
Export from China also dropped 6,6 percent YoY to $185 billion in March 2020, compared with marked estimates of a 14 percent fall and after a 17 percent plunge in January-February combined amid the COVID-19 pandemic.
Among the the biggest trade partners, exports fell to the U.S by -20,8 percent. Considering the first quarter of 2020, exports declined 13,3 percent from a year earlier.
However, China`s long term growth potential will not be affected by the short term fallout of the coronavirus pandemic, as the country`s economic fundamentals remain unchanged, the authorities said.
To contact the author of this story: Ket Garden at email@example.com
The bull market is 11 years old on Monday, and it is the longest stretch of non stop gains ever. The sell off over the past 12 trading days means that the US stocks are on the edge of a bear market. Therefore; Tuesday will be a test.
If the market goes below 20%, the bull market will officially be over, and we are entering a bear market. After the Great Recession, the bull market started in March 2009. The S&P 500 has gone straight up since then.
The S&P 500 is up 339% and it has been a slow recovery. It`s similar to the recovery from the Great Depression in June 1932 were the S&P 500 skyrocketed 325%. At that time, it was the deepest recession in modern American history.
President Franklin Roosevelt supported the bull market with massive government spending. Later on, Roosevelt pulled back from the program and the Fed tightened its reserve ratios for banks. The economy didn`t recover as much as it should, and tighter monetary and fiscal policy led to a double-dip recession.
This is why the Fed is important now. So are the Trump administration. The Fed cut the rates 50 points only days ago and they will probably come up with more news about the market even this week.
The Fed offers Repo Market $50 Billion more to ease rate pressure. New York Fed Repo Totals $112,93 Billion and Fed`s move to tap liquidity operations will buy time on more rate cuts.
What they do now is great leadership on the world stage. They can`t stop the virus but they can make liquidity.
To contact the author of this story: Ket Garden at firstname.lastname@example.org
A lot of people started the year talking about a recession, but 2019 was a big sucess. A great bull market and a big surprise for many. President Trump have played a huge part in it by cutting tax and regulations and that`s what Wall Street like.
Only a few trading sessions are left of this Wall Street record year. It has been an unbelievable year for stocks! Recession will come one day but the bull market will continue until it stops.
So far, it has been a good earnings
season with a higher than average seventy-five percent of S&P 500
companies that have reported beating expectations. That was strong
enough to push the stock market to record highs.
On Tuesday 19, Home Depot will report earnings before market open. The report will be for the fiscal Quarter ending October 2019, and the consensus EPS for the quarter is $2,52, which is up from the same quarter last year at $2,51.
The Home Depot is the largest home
improvement retailer in the United States, and considered to be the
best run retailer in the world. I have been watching this stock for
years and it`s interesting and funny to see that they beat estimates
time after time.
Home Depot opened up two stores 40
years ago. In 1979, the first two stores, built in spaces leased from
J.C Penny that werw originally Treasure Island «hypermarket». As of
October 20, 2019, they have 2,285 locations and 413,000 employees.
The founders created a company to keep alive the values that were important to them; Values like respect among all people, excellent customer service and giving back to communities and society.
In December 2006. the Home Depot
announced its acquistion of the Chinese home improvement retailer The
Home Way. The acquisition gave the Home Depot an immediate presence
in China, with 12 stores in six cities.
But the Home Depot didn`t succeed in
China. They lack of success in China has been attributed t o the
disconnect between The Home Depot`s do-it-yourself ethos and Chinese
culture. The market in China is more of a do-it-for-me culture.
So, as of April 2011, Home Depot shut
its last Beijing store, the fifth Home Depot to close in China in the
previous two years. As of September 16, 2012, all seven of the box
stores in China had been shut down, and they has no immediate plans
to further expand its specialty stores in China.
The US-China trade war is risky but the
impeachment is even more risky. They want to impeach a president that
have done so much for its own people, and tax cuts and many reforms
have boosted to U.S economy.
Strong consumer activity and low
interest rate is helping companies like Home Depot, and this is why
they beat earnings all the time. At least for the last two years. But
according to DM Martin`s Research, the RMI (remodeling market index)
and future bid activity have come off their 2017 peaks in the past
The management doesn`t seems to be concerned about the demand. Last quarter they said; «Current health of the U.S consumer and a stable housing environment» was postive for them. Its difficult not to be bullish, and share repurchase can push the EPS higher.