About 10 days ago, an increasingly sure Scott Bessen began the Count Wall Street executives who was about to eliminate the great dark cloud that looms over the markets and the economy of the United States: the Secretary of the Treasury said he was making significant progress in Korea, some of our largest commercial partners.
Markets would love movement; President Trump could advance with his broader plans to isolate the rogue of global trade, China, with his high tariffs and frequent theft of American intellectual property.
He would avoid an existential threat to his young presidency in an economic crisis of induction of tariffs that could lead to unbridled inflation and a recession.
But that was last week, and there are still no offers, at least none that seems imminent at the time of the publication on Monday, so the markets resumed trade after the weekend in Free Fall. He did not help Trump added to uncertainty, when he called the president of the Fed, Jerome Powell, a “great loser”, rather than insinuating that he will try to eliminate him on his reluctance to reduce interest rates, tariffs could release.
The actions fell more than 2%, depending on the index. The Dow crashed 1,200 points at one point, the yields of the bonds shot and other more sinister signs: a flight not for the treasure bonds or the dollar, but the gold and the bitcoin, the cryptographic currency of the world that has no inherent value.
The commercial war was supposed to fall in this way.
Dan Iives, Wedbush’s veteran technology analyst, expressed it in this way: “The White House needs commercial agreements made quickly with a negotiation route established with China, otherwise, the markets, a 10 -year performance, USD, Gold and Thebra below.
Until now, companies have heroes when announcing dismissals amid uncertainty because, as an institutional investor said, “Trump could achieve this” and reduce favorable trade agreements.
But what if it does not?
That is the increasingly key concern for large investors and corporate CEOs, since they see that their costs increase due to tariffs and possible economic slowdown.
Consider: Japan should be close to getting a deal, but then nothing happened. A superior investor said that a Japanese commercial official told him that the White House continues to play with the exact terms. The White House believes that Japan together with the other nations on the Besent list have taken to eliminate commercial protectionist barriers for US assets.
Wall Street believes that messaging is still a problem. The more centrist Comercial Besent seems to be leading the efforts, but the Voluble and Hawkish Commerce of Trump, the secretary of Commerce, Howard Lutnick, remains in commercial meetings along Jamieson Greer, the United States trade. Ambassador. The three were in the colleges of the White House last week with Japanese Minister of Commerce Ryosei Akazawa.
Peter Navarro, Trump’s Guru of Trump of Super Falcon is always in the mixture.
The most worrying thing is that markets and companies in general, the certainty of love and Trump is anything but a direct arrow when it comes to negotiations; His ability is to keep the other side out of balance, since he made a success with the banks lasting his long career in real estate and businesses.
It worked then. The question is that it will work now while negotiating with countries instead of creditors.
“In the end, no matter what Besent thinks or does because he works for Trump,” a banker who deals with the White House told me.
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