Market News 31-3

(WSJ) Trump warns of “difficult” talks w/China’s Xi next week (the two will meet 4/6-7 in Florida); Trump suggested overnight that he would press Xi hard on trade; China commented Fri morning and signaled that it would be unlikely to make concessions on trade.
(CNBC) The Trump administration is considering new ways to penalize countries over alleged FX manipulation. Many are skeptical that Trump/Treasury will take the formal step of labeling China a currency manipulator.
(Reuters) Wilbur Ross said he hopes to commence the 90-day countdown clock to launch a NAFTA renegotiation before Congress takes its spring recess next week.
(Bloomberg) — President Donald Trump made addressing what he called unfair foreign trade practices a centerpiece of his presidential campaign. And one of his first acts as president was to withdraw from the Trans-Pacific Partnership trade deal his predecessor negotiated. Today, he’ll take another step toward fulfilling his campaign promises on trade. Trump will order a comprehensive study to identify every form of “trade abuse” that contributes to U.S. deficits with foreign countries, Commerce Secretary Wilbur Ross said.
(CBO) The budget office forecasts that both US government debt and deficits are expected to soar in the coming 30 years, with debt/GDP expected to hit 150% by 2047 if the current government spending picture remains unchanged. In addition to the booming debts, the office expects the deficit to more than triple from the projected 2.9% of GDP in 2017 to 9.8% in 2047. The deficit at the end of fiscal year 2016 stood at $587 billion. On the growth side, the CBO expects 2% or less GDP growth over the next three decades, far below the number proposed by the Trump administration.
(WSJ) American fracking firms are becoming increasingly efficient, finding fresh ways to lower production costs and profit despite falling oil prices. US oil industry is deploying “fracking 2.0” technologies that could slash production costs even further. “The promise of this new phase is potentially as significant as the original revolution”.
(Bloomberg) The Fed is much more sensitive to swings in the stock market than it ever was in the past; the shift in thinking is largely due to the influence of William Dudley
(WSJ) Article highlights deteriorating credit quality in the auto lending market. Auto loan defaults are rising across the US but esp. in some southern cities (serious delinquencies on auto loans in certain southern cities are now on par w/levels reached after the financial crisis).

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