Here’s from Bloomberg macro strategist Cameron Crise this morning (China-related comments from the President [several times over] this morning — and the resulting rally in stocks — suggest he’s onto something):
“…you could argue that domestic political troubles would incentivize Trump to resolve the trade dispute with China to buoy business confidence and markets.”
Could very well be. But of course that begs a plethora of questions; the three most-pressing being:
1. Would a rammed-through politically-necessary deal even begin to address any of the legitimate (which don’t include the trade deficit, by the way) concerns?
2. Is the global economic damage already done sufficiently reparable to — in the near-term — stave off the next downturn?
3. Will — whether one sympathizes or not — the nationalistic tone (which sparked yesterday’s selloff) struck by the President in yesterday’s UN speech guide the administration’s hand through the waters of international relations going forward?
Time will tell….
P.s. As I finish up, a news flash just hit my screen quoting the President on a deal ostensibly struck with Japan:
“It’s a tremendous thing that just took place.”
There you go!