Skip to main content

Is there anyone left to piss off?

Ok Donald Trump is not yet president (four more days...).  Despite that fact, he's manage the piss-off the following:


  1. Mexico:  First, Trump said that he wanted to limit immigration -- so first was the wall, then when asked how he would pay he said it was the Mexican who would pay.  Then tariffs on imported goods (that story not over yet)
  2. China:  So far the Chinese have been playing cool, but really they may take a different view if he continues; smartly enough they've decided to wait until the "Pres" is sworn into office.  Rumbling are starting and the cost of an economic war with China could be steep
  3. NATO:  Trump wants Europe to pay a bigger share -- maybe he's right, but once they pay they will ignore America -- he wants to be the boss but not pay as the boss
  4. France:  Clearly Tump team is actively pushing the National Front to win the presidential...talk of hacking and False news... French just asked Facebook to implement an algorithm to deal with fake news
  5. Germany:  In a concentrated attack over the weekend, it's tariffs on German cars (Most BMW sold in America are assembled in the US), and a substantial percentage of spare parts come Europe (and Canada too).  Also attached Germany for the Syrian immigration -- of course no responsibility with regards to two wars in Iraq...
  6. Canada:  OK he's not really started there, but Trump has a problem, Canada has a MASSIVE trade deficit with the US, and the major culprit is the car industry that is now nearly 100% in the US...  Canada would be more than happy to reopen NAFTA -- not sure Trump gets that at all.

Evidently, Trump was the whole world against him before he even takes office.

It takes a certain talent to piss off the entire world without even yet being "THE GUY".

Comments

Popular posts from this blog

Trucker shortage? No a plan to allow driverless rigs

There are still articles on how America is running out of truckers -- and that its a huge problem, except its not a problem, if it was a problem salaries would rise to so that demand would clear. Trucking is one of those industry where the vast majority of participants are owner/operators and therefore free agents.

Salaries and cost are extremely well know, "industry" complains that there are not enough truckers, yet wages continue to fall... Therefore there are still too many truckers around, for if there was a shortage of supply prices would rise, and they don't.

What there is though is something different; there is a push to allow automatic rigs to "operate across the US", so to encourage the various authorities to allow self driving rigs you talk shortage and hope that politicians decided that "Well if people don't want to work, lets get robots to do the work" or words to that effect.

This has nothing to do with shortage of drivers, but every…

Every punter says oil prices are on the rise: Oil hits $48/bbl -- lowest since September 2016

What the hell?

How could this be, punters, advisors, investment bankers all agreed commodity prices  in general and oil prices in particular are on the rise...its a brave new era for producers and exporters -- finally the world is back and demand is going through the roof, except not so much!

What happened?  Well energy is complicated, the world operates in a balance -- 30 days of physical reserves is about all we've got (seriously) this is a just in time business.  So the long term trend always gets hit by short term variations.

Global production over the past 12 months has risen by somewhat less than 1.5% per annum.  As the world market changes production becomes less energy intensive (maybe), but the reality is that the world is growing more slowly -- America Q4 GDP growth was around 1.9% (annualized) Europe is going nowhere fast (the GDP growth in Germany is overshadowed by the lack of growth in France, Italy, Spain (lets say 27 Euro members generated a total GDP growth of 1.2…

Paying for research

This morning I was reading that CLSA -- since 2013 proudly owned by CITIC -- was shutting down its American equity research department -- 90 people will be affected!

Now the value of a lot of research is limited, that is not to say that all research is bad. In fact, I remember that GS's Asia Aerospace research was considered the bible for the sector.  Granted, there was little you could do with the research since the "buy" was for Chinese airlines...that were state owned.  Still it was a vey valuable tool in understanding the local dynamics.  It seems that the US has introduced new legislation that forces brokers to "sell" their research services!  Figures of $10,000 an hour have been mentioned...

Now, research can be sold many times; if GS has 5000/6000 clients they may sell the same research 300x or 400x (I exaggerate) but this is the key -- Those who buy the research are, I presume, prohibited from giving it away or selling it, at the same time the same rese…