Trump Administration To Extend Huawei Reprieve On Monday: Reports
In what looks like yet another effort to calm markets and ease tensions, the Commerce department is set to extend Huawei's "temporary general license" for 90 days when it expires next week.
The reprieve was put in place in May, days after the US blacklisted the company as part of the Trump administration's maximum economic pressure campaign on Beijing, which, for a time, leaned heavily on the excuse that "national security" is at stake. Following the truce in Osaka in late June, the president
This is called playing hardball when one presumes to have a winning hand….Problem is…….do you ever really know how the cards will fall..
Meantime it is market friendly and somebody just said BOO ! (credit to Harvey on the boo)
Seems like a 2nd blink in one week by Knucklehead, with the first being the partial tariff delay. Granted, both are designed to benefit US interests, but China has to be sensing his nervousness and his unwillingness to withstand meaningful economic pain in this trade war. They are going to eat his lunch in upcoming negotiations. I’m thinking he’s going to fold on the river, to use Hold’em parlance.
With sentiment so bad, markets so oversold or overbought, and every mass media outlet printing recession stories, the risk of a stock rebound (and bond/gold pullback) has to be protected against.
That can happen with no improvement at all in fundamentals. It’s not about fundamentals.
The bigger risk is the Rip-Up scenario where the Fed caves to Trump and Trump caves to Xi, and SP50 soars 10-15% (and yields jump) on “Recession Averted” headlines. Which may not prove true but that won’t stop the market reaction.
The more Trump shows his anxiety and vulnerability, the more the Rip-Up scenario has to be protected against.
unless you are long equities….
Most individual investors and most institutional managers are long equities all the time. The question is how long and what equities.
Sorry, wasn’t logged in. Anyway, I’m going to stay calling that the DoubleCave scenario.