Monday Market Movement – Slow Week, Lots of Action!

Trade Wars are heating up!  

With Trump's tariffs set to take effect on July 6th, our former allies and trading partners are responding with tariffs of their own and, as we expected, that's not getting a good reaction from the stock market.  This was not a complicated premise, folks – no one wins trade wars – only psychopathic egotists and their sychophantic followers think otherwise.  Unfortunately, those are the people in power in America

The EU announced $300Bn worth of additional tariffs this weekend in retaliation for tariffs on their automakers in a written statment to the Department of Commerce (in other words, VERY serious) which pointed out what everyone but Trump seems to know – that European auto brands represent 25% of US-based auto production (4.5M cars worth $160Bn or about 30 Harley-Davidsons), providing jobs for over 1M Americans.   

Japanese automakers account for another 1/4 of US production and another 1M US workers and, in fact, the "foreign" manufacturers make more cars and employ more Americans than Ford, GM, Chrysler and Tesla combined.  Are there ANY US auto plants in China? No.  In Japan?  No?  In fact, Ford (F) employs less than 100,000 (out of 2M) production workers in other countries.  Imagine how hypocritical our trade posturning looks to people who are actually aware of the global situation? 

Image result for trump temper tantrum animated gifImagine how embarassing it is when your elected leader goes off on factless tirades launching baseless accusations at supposed allies and engaging in policies that are nothing but detrimental to the Global Economy…  We are used to having Presidents who stayed awake in school or at least learned something about the World along the way to the Presidency – being governed by effectively a selfish, clueless 5 year-old is a new experience for all of us.  Too bad it has real-life repercussions.

Unfortunately, this trade tirade is going to have devastating Global repercussions.  BMW estimates Trump Tariffs will cost it 20% of their profits in 2019 and Mercedes and Volkswagon are projecting 10% losses but moving more plants to the US would not make it better as they would be spittlng certain production lines for no logical reason – making production less…
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