Market News 12-3

(Barron’s) Corporate America is facing its worst labor shortage in decades and the problem is only going to grow more acute. As a result, wage increases will need to accelerate (which will eat into margins) and/or economic growth will be impeded.
(Reuters) Washington signals it is open to more exemptions from its steel/aluminum tariff proposal rhetoric from White House officials suggests there will be plenty of exemptions and carveouts from Trump’s metals tariff plan. The Hill reports Kudlow thinks all of Europe and most of the major US allies in Asia will wind up being exempt from the tariffs.
(Reuters) China warns a trade war w/the US will only bring disaster to the global economy
(FT) US asks China to cut the trade deficit by $100B – officials in Washington have asked their Chinese counterparts to slash the bilateral trade deficit between the two countries by ~$100B.
(FT) Asset managers experience margin pressure due to MiFID II requirements – fund firms are being forced to pay millions for research out of their own P&L at a time when fee revenue Faces ongoing headwinds.
(Bloomberg) Strong economic indicators seem to have given fresh impetus to the nine-yearold bull market in global equities, which was roiled in recent weeks as President Donald Trump raised the prospect of a full-fledged trade war. With a slew of data due from China this week as well as readings on U.S. inflation and retail sales, investors will be looking for more reasons to keep the party going. “Our customers are still bullish,” Chris Brankin, chief executive officer at TD Ameritrade Singapore, told Bloomberg TV. “You saw the jobs report last Friday, which was a perfect scenario — you had an uptick in wages, but not too much. Investors have taken that opportunity to buy the market dips and we look for the bull market to continue.”
(Bloomberg) — Commodity markets are set to shift focus on how the world’s going to respond to U.S. tariffs on steel and aluminum. Australia has joined Canada and Mexico in winning exemptions, but China and the European Union are among major trade partners still targeted. Are they going to retaliate? The tariffs are another headwind to steel, which is being weighed down by high stockpiles in China
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