U.S. Economy Shows Signs of Strain From Trump’s Tariffs and Spending Cuts [NYT]
While Mr. Trump has acknowledged that his policies could bring some initial pain, the early warning signs suggest that his blunt approach could come with more ominous risks to the economy.
“There’s more uncertainty than I think is widely appreciated,” said Michael Strain, an economist at the conservative American Enterprise Institute. “All the uncertainty around trade policy, uncertainty around some of the things that the Department of Government Efficiency is doing, I think will have a chilling effect on investment plans and expansion plans.”
Trump Risks American Consumer Backlash Over Tariffs, Poll Shows [Bloomberg]
Almost 60% of US adults expect Trump’s tariffs will lead to higher prices, according to a Harris Poll conducted for Bloomberg News. Some 44% say the levies are likely to be bad for the US economy — compared to 31% who say they’d be a boost…. Only half of Republican respondents said the tariffs would be an economic boon…./According to the Peterson Institute for International Economics, the tariffs that Trump has already imposed on Chinese products this year and threatened against imports from Canada and Mexico would cost the typical US family more than $1,200 per year.
Republicans Gamble on a Regressive Economic Agenda [NYT]
The economic agenda Republicans are now putting together on Capitol Hill would by and large help rich Americans, all while teeing up cuts to programs that provide health care and food to the poor.
The disconnect has left some Republicans nervous about whether they are abandoning their newfound base of support…. Some House Republicans who supported the budget outline this week said they hoped that the Senate would ultimately tear up their plans.
A Union Takes On Musk via Tesla’s Stock [DealBook]
The A.F.T.’s leader, Randi Weingarten, is writing to the C.E.O.s of six asset managers…. Weingarten argues that Tesla is overvalued, potentially weighing on the investment portfolios of its 1.8 million members. The union chief writes that she’s acting on behalf of an estimated $4 trillion in retirement assets — both through pension funds and other collective vehicles and members’ individual accounts….
“If it were to decline to the price target of $135 that some analysts have projected, the resulting loss would be 1.2 percent of asset owners’ total S&P 500 indexed portfolio,” she writes.
Europe Waters Down Flagship Climate Accounting Policy [WSJ]
Under regulations that were due to be implemented this year, companies had been expecting to report in detail on their environmental, social and corporate-governance performance while making significant cuts to the emissions from within their supply chain…. “If approved, the new sustainability reporting obligations will only apply to 0.02% of European companies. This will risk creating a disastrous lack of ESG data across the region: a nightmare for responsible investors and consumers. This new package guts corporate accountability,” [Transport and Environment sustainable finance manager Giorgia] Ranzato added.
Why Paul Singer, the octogenarian founder of $72 billion Elliott Management, does not have fun at work [BI]
Investing, managing risk, never losing his investors’ capital — these are challenges he’s enthusiastic about, he said, but not what he does for fun. “If I want to be risk averse, I have to be risk averse all the time,” because markets never sit still, he said, adding, “You can’t get bored by not losing serious money.”
