US Economy

5

Shane Oliver: Beware Biden bust

Via Shane Oliver: Introduction Investor focus on the US election waned earlier this year after socialist Bernie Sanders dropped out of the Democratic primary race in favour of moderate Joe Biden. At the same time coronavirus became the main focus for markets. However, markets may soon start to pay more attention as the election is

81

Murdoch dumps Trump

Via Crikey: Murdoch watchers are about to see in real life how Lachlan handles the dilemma his father regularly faced: how to choose between the political right (in this case, Trump) and the likely political winner (almost certainly not Trump). It’s not just the polls, with averages currently showing Joe Biden up about 10%. It’s

24

Golden oldies abandon Trump

Hoocoodanode that killing your base would…well…kill your base? Via the FT: The coronavirus pandemic is eroding Donald Trump’s popularity among a group that was crucial to his 2016 victory — older white Americans — a worrying sign for the president’s re-election hopes. According to a New York Times-Siena College poll released last week, two-fifths of

8

US hurtles towards fiscal cliff

Via Bank of America: Fiscal: look out below In the face of the shock from the COVID-19 pandemic, fiscal stimulus has poured into the economy. Washington has pushed in roughly $2.8tr of stimulus, equaling 13% of GDP while the Fed has expanded its balance sheet to $7.1tr. The rapid and forceful support on the policy front likely

19

Brainless Biden sustains polling lead

Here is the problem: pic.twitter.com/hvyjRBiyCC — Donald J. Trump (@realDonaldTrump) June 27, 2020 Trump should be careful. It won’t be a good look losing to an empty head. Polls: Betting markets: Brainless Biden is still an unbackable favourite. And why not? Senility is no match for homicidal ineptitude: Brainless is as brainless does.

0

Sick US consumer won’t save the world

Via the excellent Damien Boey at Credit Suisse: US consumption disappoints pre-“second-wave”. US consumption rose by a smaller-than-expected 8.1% in May, albeit with upward revisions to prior months’ data. More timely retail sales, chain store turnover and card spending data have been pointing to a stronger recovery, which has not manifested yet in the official data. The rise in consumption

6

US headed for double-dip recession

Via Calculated Risk, the best and most honest judge of the US economy that I know of: On March 31st, I wrote: This is a healthcare crisis, and the economic outlook is based on presumptions about the course of the pandemic.I’ve been updating my outlook monthly, and turning more and more pessimistic due to the poor US

7

A deep dive into the US virus

Via GaveKal: It is clear that the southern United States is in the grip of a major wave of the Covid-19 pandemic. About half of US states, mainly in the south and southwest, have rising daily infections; and for the whole country, daily new cases are fast approaching 30,000, up sharply from the rate of

37

Trump has lost his spark and the election

For a brief moment yesterday I thought Donald Trump was back in the race: White House trade adviser Peter Navarro said on Monday the trade deal with China is “over,” and he linked the breakdown in part to Washington’s anger over Beijing’s not sounding the alarm earlier about the coronavirus outbreak. “It’s over,” Navarro told

24

Biden polls surge with virus

El Trumpo is mad: Trump: When you do testing to that extent, you’re going to find more people. You’re going to find more cases. So I said to my people slow the testing down please. pic.twitter.com/RalPJeVH0F — Acyn Torabi (@Acyn) June 21, 2020 Americans seems to have had enough:   Betting odds: Early days but

41

American idiots catch the virus

There are lies, damn lies, and then there are statistics. Now do total cases. https://t.co/kzI3Dcv63W — Drew Dickson (@AlbertBridgeCap) June 18, 2020 Literally killing the base. Pretty stupid. Latest polls: Betting: With 200k dead by the election, Trump is going to need a VERY LARGE distraction to win. Cue Green Day:

57

Biden stretches lead over flailing Trump

And this won’t help, via the NYT: Mr. Bolton describes several episodes where the president expressed willingness to halt criminal investigations “to, in effect, give personal favors to dictators he liked,” citing cases involving major firms in China and Turkey. “The pattern looked like obstruction of justice as a way of life, which we couldn’t accept,” Mr. Bolton writes,

15

Trumpland crashes into virus

The US is still in deep virus trouble and getting more so. Via NYT: It’s not all rising curves in Trumpland, but it’s mostly so: To wit, red states suffering more: Thankfully, death rates are still falling is the north east pandemic subsides: But for how long as other state hospital systems crash into overload?

6

Trump to cut work visas

Via WSJ: The Trump administration is weighing a proposal to suspend a slate of employment-based immigration visas, including the coveted H-1B high-skilled visa, according to administration officials familiar with the talks, among several possible measures amid the economic fallout of the pandemic. The proposed suspension could extend into the government’s new fiscal year, beginning Oct.

25

US reopens into Trump’s virus disaster

It’s so horribly predictable. Six weeks ago Texas took the bit in its mouth way too early: This Friday, Texas will start getting back to work. In an address this afternoon, Governor Greg Abbott announced that his “stay-at-home” order would expire as intended on April 30, 2020. After which he said, “We move forward to

22

What will kill off USD dominance? Nothing

Via Scope: Global currencies are widely used in cross-border monetary operations, finance and trade. For the issuing sovereigns, these currencies come with both benefits and costs and can therefore have significant implications for creditworthiness. In this report, we explore the drivers of global currency status and the prospects for change in the international monetary system,

13

US virus second wave takes shape

It’s just the first wave ongoing really. States increasing: Stable(ish): Decreasing: In better news, despite rising caseloads in some places, the spread has not overloaded hospitals so deaths are down more: Not that it matters much. There is enough death to spook. The US recovery is going suck the big one for as far as

78

Trump has jumped the shark this time

Republicans are joining the backlash, via FT: The US defence secretary opened a rift with Donald Trump, saying he did not agree with the president about sending the army on to the streets to clamp down on protests that have erupted across the country since the death of George Floyd. Mark Esper’s remarks came amid

18

What would a Biden Administration do to markets?

Time to take the possibility of a dementia president seriously: Here are the key policies affecting markets, material via Politico. Double the minimum wage: There’s broad support among Democratic presidential candidates for doubling the hourly minimum from $7.25 to $15, and then allowing it to rise automatically with inflation, as proposed by House Democrats in

157

God bless America!

Paul Kelly thinks it’s the end of America: The most powerful nation on Earth is being brought undone from within by its pent-up governance and moral failures. The crisis has multiple triggers — abuse of police power, entrenched disadvantage of black Americans, mounting anger in American hearts, cultural schisms across the nation and political polarisation

59

Will riots help or hinder Trump re-election?

If America were a society of browbeaten conformists like Australia then riots would unquestionably favour the opposition. But will it be so in a state defined by personal power? Recent polling has Biden with a comfortable lead as Trump slides on the COVID-19 policy disaster: But the lead is far from huge. Trump is actually

2

US households save like the end of the world

Via the excellent Damien Boey at Credit Suisse: US household saving rate at 33%! A lot happened in April. There was a very sharp downtun in the labour market, households received an enormous boost to disposable incomes from fiscal stimulus, and consumers significantly pared back their spending amid shutdown restrictions. The net balance of these forces

13

AEP: No v-shaped recovery for the West

Via Ambrose Evans-Pritchard: The V-shaped recovery in East Asia is sadly no template for the blundering West. The near euphoric rally on global equity markets is based on a fundamental fallacy. Most of Europe and North America are not pursuing the policies that enabled China and the Pacific Rim – with big variations – to

68

The US is losing the virus war

Via Calculated Risk: On March 31st, I wrote: This is a healthcare crisis, and the economic outlook is based on presumptions about the course of the pandemic.Unfortunately the course of the pandemic has been worse than I expected. Although social distancing clearly worked in slowing the growth rate of infections, many people have recently relaxed their