My Writings. My Thoughts.

Tuesday March 3, 2020

// March 3rd, 2020 // Comments Off on Tuesday March 3, 2020 // Daily News

5 things to know before the stock market opens Tuesday

Dow futures, in another volatile overnight session, were pointing to losses at Tuesday’s open on Wall Street after a morning G-7 statement contained no specific actions to the combat the economic risks of the coronavirus. Hopes for action from the Federal Reserve and world central banks to mitigate the impact of the coronavirus sparked a powerful rally on Monday. The Dow Jones Industrial Average soared nearly 1,300 points or 5% in its biggest percent-gain since March 2009, reclaiming a big chunk of last week’s largest weekly decline since the 2008 financial crisis.

The Dow, S&P 500 and Nasdaq closed out of correction territory Monday. A correction is defined as a decline of at least 10% from recent 52-week highs. Meanwhile, investors will be looking for signs of how the coronavirus may be affecting retailers Target and Kohl’s when they hold conference calls after issuing earnings. Target reported mixed fourth-quarter results before the bell. Kohl’s beat on the top and bottom lines and hiked its dividend by 5%. Nordstrom leads Tuesday afternoon’s retail earnings reports.

2. Mnuchin and Powell led a call of G-7 finance ministers and central bankers

Treasury Secretary Steven Mnuchin and Fed Chairman Jerome Powell on Tuesday morning led a conference call of global finance ministers and central bankers to coordinate an economic policy response to coronavirus. “We, G7 Finance Ministers and Central Bank Governors, are closely monitoring the spread of the coronavirus disease 2019 (COVID-19) and its impact on markets and economic conditions,” according to a post-call statement. Early Tuesday, the 10-year Treasury yield, a benchmark for many consumer loans, moved higher after hitting a record low of 1.03% on Monday.

3. Trump again calls for the Fed to cut rates

Ahead of the G-7 call, President Donald Trump once again called for the Fed to cut interest rates after the Australian central bank cut its rates to record lows and noted the impact of the coronavirus. In an early Tuesday morning tweet, the president said, “Jerome Powell led Federal Reserve has called it wrong from day one.” Powell was appointed by Trump to lead the U.S. central bank.

Australia’s Central Bank cut interest rates and stated it will most likely further ease in order to make up for China’s Coronavirus situation and slowdown. They reduced to 0.5%, a record low. Other countries are doing the same thing, if not more so. Our Federal Reserve has us paying higher rates than many others, when we should be paying less. Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut rate big. Jerome Powell led Federal Reserve has called it wrong from day one. Sad!

4. Coronavirus cases outside China accelerate

The spread of coronavirus in China is slowing while new cases in many other countries are accelerating. The vast majority of the more than 91,000 global cases and over 3,100 deaths are still in China. However, new cases in South Korea surged by 851 on Tuesday, bringing total infections there to more than 5,100, including 31 deaths. Italy’s cases rose to more than 2,000 with 52 deaths. The U.S. has at least 91 coronavirus cases with at least six deaths. On Capitol Hill, aides said negotiations were nearing completion on an emergency funding bill to develop a vaccine and offer disaster loans to businesses hurt by the crisis.

5. Super Tuesday could be make-or-break for the remaining Democratic candidates

Vermont Sen. Bernie Sanders and former Vice President Joe Biden are vying for a victory in Texas, the second biggest delegate haul among the 14 states holding Democratic presidential nominating contests on Super Tuesday. Billionaire ex-New York City Mayor Mike Bloomberg, on ballots for the first Tuesday, and Massachusetts Sen. Elizabeth Warren could also win delegates as the primary field shrinks. A reinvigorated Biden gained endorsements from former South Bend, Indiana, Mayor Pete Buttigieg and Minnesota Sen. Amy Klobuchar, both of whom dropped out of the race after poor results in Saturday’s South Carolina primary.

 

 

Today’s Inspiration

Love Through the Little Things

What we do for others doesn’t always need to be a big thing—it’s often little acts of kindness that mean the most. If we always do just a little more than we have to, we’ll end up being a blessing to many. For example, if you’ve eaten at a restaurant and your meal was $8 and you pay with a $10 bill, you could leave a $1 tip, or you could do a little extra and tell the waiter to keep the rest. It’s only a dollar, but it’s a way of doing a little something extra.

If we treat people with generosity, we will find our own blessings increasing. We’ll have more joy, and God will bring a harvest of good things into our own lives. Don’t be the kind of person who only does what they have to—always go the extra mile.

One day I was checking out at a bookstore and my change was a little over a dollar. I noticed a collection box at the register asking people to give their change to help hungry children. My first thought was, “I don’t have to do that, I give all the time.” But my second thought was, “I don’t have to, but I’m going to, just to go the extra mile.” It isn’t difficult to figure out which of my thoughts was from God and which one was just my own mind. I gave the change and of course I never missed it, but my small extra gift was enough to feed a child for an entire day in a third world country like India or Africa. What seems like a small thing to us is often huge to someone else. Do all you can, as often as you can, for as many people as you can. This is the way God wants us to live.

Prayer Starter: Father, thank You for all the ways You’ve blessed me. Please show me how I can go the extra mile to be kind to those around me today. In Jesus’ Name, amen.

 

Tuesday January 21, 2020

// January 21st, 2020 // Comments Off on Tuesday January 21, 2020 // Daily News

Davos doubt China and US will reach a phase 2 trade deal by end of Trump’s term

KEY POINTS
  • Many business executives gathered for the World Economic Forum are casting doubt on whether a phase two trade deal with China will get done by the end of President Trump’s first term.
  • One executive who is close to Trump said that business leaders have heard from Chinese trade officials who are privately acknowledging that they hope for all of the tariffs to be removed by the time the next deal is signed.
  • But Trump touted tariffs as a key negotiating tool, while Treasury Secretary Mnuchin said that only some tariffs could be removed.
GP: 2020 WEF DAVOS: Donald Trump 200121 - 106346493
President Donald Trump delivers a speech during a special address on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 21, 2020.
Jason Alden | Bloomberg | Getty Images

DAVOS, Switzerland – Many business leaders at the World Economic Forum aren’t convinced the latest round of trade negotiations between China and the U.S. will yield a “phase two” deal before the end of President Donald Trump’s first term.

The biggest potential stumbling blocks: U.S. tariffs on Chinese goods and Chinese pledges to buy more American products.

One executive who is close to Trump said that business leaders have heard from Chinese trade officials who are privately acknowledging that they hope for all of the tariffs to be removed by the time the next trade deal is signed. This executive declined to be named since the conversations were deemed private.

A phase two deal is expected to lead to a rollback of billions of dollars of tariffs that the U.S. hit were first laid onto China by the U.S. in 2018. Trump has said he may want to wait until after the election to sign a phase two trade deal and there hasn’t been a clear timeline from the White House as to when they expect the two sides to come to an agreement.

Treasury Secretary Steven Mnuchin, who is in Davos with the president, told The Wall Street Journal the next agreement could remove some but not all of the tariffs.

Doubts about a second deal were likely to dominate conversations at the elite gathering in the Swiss Alps, particularly as business leaders talk with White House officials there and in the coming months as Trump pursues his reelection. It is unclear how another China trade deal could be accomplished if Trump isn’t reelected. More than a dozen Democrats are vying for their party’s nomination to take on Trump in November, including former Vice President Joe Biden, Sens. Bernie Sanders and Elizabeth Warren, and former mayors Pete Buttigieg and Mike Bloomberg.

“No one thinks it’s going to happen,” Ian Bremmer, the president of Eurasia Group, a political consulting firm, told CNBC after being asked where Davos attendees stand on future trade talks. “I really would be shocked to see a trade two deal get done before the election.” He noted one of the hurdles to another agreement could come down to China not buying as many goods as they promised.

A White House spokesperson did not return a request for comment.

The phase one deal demands that China increase their purchases of U.S. manufacturing, energy and agricultural goods and services by at least $200 billion over two years. It also includes provisions to root out intellectual property theft and forced technology transfers.

During his speech Tuesday in Davos, Trump reaffirmed that tariffs on China will remain in place and noted that these trade barriers have been a key negotiating tool.

“These achievements would not have been possible without the implementation of tariffs, which we had to use. And we’re using them on others, too,” Trump said. “That is why most of our tariffs on China will remain in place during the ‘phase two’ negotiations.”

Michael Corbat, the CEO of Citigroup, said he believes that the remaining tariffs on China will keep them at the negotiating table. But he noted that Trump is going to be under pressure by corporate CEOs and congressional leaders to get a phase two deal done if he gets reelected.

“I don’t think we see phase two in the remainder of this term, but I think if he is reelected certain people are going to try to hold his feet to the fire to deliver on this. I think some Democrats are going to come back and say, ‘You promised us this and you haven’t done it,’” Corbat said on the sidelines of Davos.

Citigroup does business all over the world, including extensive work in China.

Ray Dalio, who leads investment firm Bridgewater Associates, said he, too, doesn’t see a phase two deal getting done by the end of Trump’s first term. Yet Dalio also suggested that he wasn’t convinced phase one wasn’t as big of an accomplishment in the broader context of ongoing trade disputes between the two nations.

“I think it’s such a tiny thing as it almost doesn’t matter, in the whole scope of the issues. There are big issues,” Dalio told CNBC outside the conference center.

Finally, Richard Trumka, the president of the AFL-CIO and a supporter of Trump’s updated North American trade deal, poured some additional cold water on phase two hopes. The labor leader told CNBC that he does not believe phase two is a priority for the Trump administration.

Today’s Inspiration

Judged and Criticized

No matter what we do in life, at some point in time we will all face a level of criticism. But it is possible to learn how to cope with criticism and not let it affect your life.

We can be grateful for the example the apostle Paul set for us. Paul experienced criticism often, but he said that he was not concerned about the judgment of others. He knew he was in God’s hands and that in the end he would stand before God and give an account of himself and his life. He would not stand before any man to be judged (see 1 Corinthians 4:3–4).

You may not always do everything right, but God sees your heart. If you’re attempting to live for God and looking for ways to love others, God is pleased (see Matthew 22:37–40). Don’t worry about the criticism of others; God loves you. His love and approval are all you need.

Prayer Starter: Father, I thank You that I don’t have to listen to the criticism of others. You see my heart and You know my motives. I thank You that Your approval is greater than the approval of any person. In Jesus’ Name, Amen.