“Stocks were higher on Friday, July 6, after China and the United States slapped tariffs of $34 billion on one another and the U.S. added more jobs to payrolls in June than expected,” TheStreet reports.
“The state-run China Daily newspaper confirmed the Chinese government responded to the U.S. imposition of a 25% levy on 818 China-made goods with around $34 billion of tariffs on imported U.S. goods including autos and agricultural products,” TheStreet reports. “China’s retaliation essentially ensures that Donald Trump will follow through on his threat to boost those tariffs to $50 billion, and possibly as high as $500 billion, as he continues to press for generational changes in the trade relationship between the world’s two biggest economies.”
“The Dow Jones Industrial Average rose 145 points, or 0.6%, to 24,501, the S&P 500 rose 0.91%, and the Nasdaq was up 1.30%,” TheStreet reports. “The U.S. added 213,000 new jobs in June, topping economists’ forecasts of 195,000. The unemployment rate rose to 4.0% from 3.8%, the Labor Department said. Hourly wages in June rose 0.2% to $26.98. ‘The jump in the unemployment rate, at this stage, is not too alarming, and actually helps to explain why wages haven’t been surging,’ said Kathleen Brooks of Capital Index. ‘This report is generally risk-friendly, as it suggests that the U.S. economy remains in its sweet spot: Employers are hiring, however, wages aren’t rising fast enough to trigger sharper-than-expected rate rises from the Federal Reserve.'”
Read more in the full article here.
“Despite increasing talk about the economy being near full employment, hiring continues to grow. Along with June’s upside surprise, the Bureau of Labor Statistics revised April’s count up from 159,000 to 175,000 and May’s from 223,000 to 244,000, a total of 37,000 more than initially stated,” Jeff Cox reports for CNBC. “The increase in the unemployment rate came due to a rise in the labor force participation rate, which increased 0.2 percentage points to 62.9 percent as 601,000 people came off the sidelines and re-entered the labor force.”
‘The employment-to-population ratio held steady at 60.4 percent, tied for the highest level since January 2009,” Cox reports. “The report comes amid hopes that the economy is beginning to shift into high gear. GDP rose just 2 percent in the first quarter but is widely projected to increase close to 4 percent for the second quarter. CNBC’s Rapid Update tracker of economist expectations is putting the expected gain at 3.8 percent.”
Read more in the full article here.
MacDailyNews Take: A rising tide lifts all boats.
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
Interns: TAP THAT KEG!
Prost, everyone!
SEE ALSO:
What trade war? Markets shrug off US-China dueling tariffs – July 6, 2018
“Employers are hiring, however, wages aren’t rising fast enough to trigger sharper-than-expected rate rises from the Federal Reserve.'”
AVERAGE wages aren’t rising because the Baby-Boomer generation (1945-1965), the largest generation ever and the highest paid employees, are leaving the workforce in droves by way of retirement. Retirement age began in 1992 but didn’t have a measurable impact of average wage until 2002. It’s just in the last few years that Baby Boomer retirement has started to impact average wage.
Not just retirement, but being laid off. The Fortune 300 company I worked for 33 years has been laying off all of us tenured workers over the past several years. Office consolidation or shipping work over to the Philippines were to blame. Even workers with half of my time were let go.
The jobs that weren’t filled overseas, were replaced here at mega centers with new workers starting out at half of what most of us were making. I, along with some of my colleagues, had to train our replacements.
Some are leaving to retire. Some are being laid off with the plan of still working another 15 to 20 years. And at much reduced wages and not by our choice.
The market uptick was a result of Scott Pruitt’s departure from the Trump’s admin!
There are plenty more good people who are available to take on Pruitt’s excellent work dismantling the Environmental Stupidity Agency.
You must have hated the fact that Tricky Dick signed the Clean Air and Clean Water acts. How dare we invest a penny to keep our vital ecosystem healthy. Such an inconvenience to be able to swim or fish in your local lake. Thugs like you assume the next generation will clean up your messes.
What I liked was when the EPA intentionally dumped three million gallons of toxic waste into a pristine Colorado river then refused to do anything to take responsibility or to pay back those harmed by their gross ineptitude. This EPA action was the perfect embodiment of everything Democrats do.
https://www.usatoday.com/story/news/nation-now/2017/01/13/epa-wont-pay-claims-mine-spill-released-3m-gallons-toxic-water/96555846/
Oh, yeah, this was the Obama EPA. Doing to the environment what it did to health care. Fucking it up.
Sooo, are you praising the Obama EPA and saying that Trump should follow his lead because of how wise he was OR are you saying that the current administration’s EPA is doing far better at protecting the environment?
I’m guessing (C) I LAK TROLLEN DEMS!
Every time you say Trump’s administration is just doing what Obama’s did, and you LIKE what Trump’s administration is doing, you’re praising Obama. Don’t fall into their trap.
Re BeoG: History says you are wrong.
Nixon gets credit for creating the EPA, but he was mandated to do so by a Congressional action passed over his veto which was written by Ed Muskie (D) of Maine. The Clean Water Act was written by Democrats and Nixon VETOED the Clean Water Act- Democrats in both houses overrode his veto. The Clean Air Act was passed by Democrats in Congress and signed into law by Lyndon Baines Johnson – Democrat.
Get your facts straight.
Comprehension : boeg said “signed” the acts. He never said Dick Nixon had anything to do with originating the bills. There would be no clean air or water on the planet outside of their private gates if thuglicans had their way. The USA would be an industrial wasteland or just as bad a trump style overpriced condo development made of imported chinese junk materials, specially exempted from trade tariffs by the orange despot if you kiss the ring.
He did not sign either one. Johnson signed one and Nixon vetoed the other. The congress overrode his veto.
The “Jobs Report…bs” post above was submitted purely in jest. I have to admit, it’s essence was hijacked from a post from another person Friday_thanks Mike. The absolute absurdity just needed to be given another day to live.
This post is to “spin the top” a bit further because it’s really possible that many here actually agree with the statement and, or their rage towards Trump completely prevents them from rationality. Big conclusion, I know and the path there is hardly empirical, but….
1st glance, the “approval rate” of the comment is well above average and except for one post (Toms’ Orange Baboon post…) that received the greatest number of replies), it received the 2nd largest number of positive replies. Perhaps:
1). people are just up/down voting aimlessly, or
2). do believe the statement, or like me,
3). revel in absurdity and “tongue and cheek” comments
4). despise Trump and unable to give him credit, even if false.
5). read underground news sources, or those not readily available
6). fill in the blank
Just to further support the thinking in this very unscientific analysis…
Kent almost always gets more down votes than up. He’s either an R, I, or surfing on the conservative end of the wave. I assume he supports Don more than not? His votes on all posts are median, or below. He received the lowest ratings of all re: to this article. Why is this, especially in light of Tom’s post, which politically, is just “the other side” and it received the greatest number of votes and the 2nd highest count of positive. Per my perception, they both were acerbic and bomb-throwing (Orange Baboon) and one gets highest and the other lowest. Curious and interesting.
First off, people are amazingly voting “yes” in the highest count to “that” content (Tom’s)! It’s clearly placcard-waving partisan mindlessness, having nothing to do with thoughtful, truth-seeking communication and it gets the greatest number of positive votes? It’s also, anti-trump.
Back to the orig thought and conclusion….
The hatred of Trump is clearly, in my mind, affecting rational thought. There is a fervor that’s causing people to say yes to my post, and Tom’s, that manifests this thought. Both posts are absurd in different ways, but people here are embracing them…either the truth stated, or the implication…F-Trump at all costs.
I believe it’s the latter.
MDN are avowed Trump supporters, thus they post irrelevant articles on here that mitigate the damage of the Orange Baboon.
Some people are here for Apple, some for AAPL and some are here for both. With that in mind, the countries financial status , macro and micro, is pretty interesting and of value to those that are investors in APPL
Is it possible the animus towards President Trump is affecting your interpretation as to why certain reports are posted on this site? Further yet, it seems good economic news absolutely rots your gut because attribution to Trump is possible and or natural?
I’ve heard and read people use the phrase “Trump Derangement Symptom” and I’ve always thought it was ridiculous form of flame throwing. Even though I don’t embrace it, I’m starting to think there’s some truth to the phrase. The hatred towards Trump is astonishing and clearly is affecting civil thinking and action. A little snippet of the air irrationality manifests itself regularily here. The key part of this scenario is the word “irrationality”, not hatred….
For those that like to misconstrue …
No, I’m not saying hatred is good, just that sometimes there’s an explanation behind that’s more or less rational.
I’m not saying all of the good economic news is absolutely as a result of Trump…nor do I think he’s the savior.
I am not saying that President Trump is without any blame or w/o fault..
By Orange Baboon I assume you mean Barack Obama, the Original Baboon.
What exactly is irrelevant in the articles mentioned? Seriously, could you please make a point with the logic you used?
Also, if the articles simple serve to “mitigate the damage” done by the President, then the actual source is complicit in the “plan” as well, or is MDN simply cherry-picking from the right sources to serve their own narrative? Btw, you might want to do a little scan of various news outlets to confirm the same conclusion has been broadly reported. From that we are to conclude then, there are many news sources involved in the “mitigation?”
Are you big on conspiracies, Tom, or has the hatred for Trump reached a level that’s affecting your thinking?
Well, Tom… let me remind you that you can see, read, and hear the lies you love to consume pretty much everywhere else. It’s just that they’re lies, ya know?
calling someone names is your way of beefing up your point of view and being persuasive. It’s fine if you do it in your own head, but it doesn’t do much for your cred, nor your transmission of ideas in public. That’s right, it’s about concrete ideas and not baby talk. Don isn’t orange and Barrack isn’t a baboon.
You are correct. Obama is not really a baboon. But he is really a hard core communist. Much worse than a baboon.
is a communist, I’m uncertain. He did find it ok to have confirmed communists and or appreciators on his staff…which I find disconcerting.
More relevant to present day, imo, is the Dem Party, as a whole, doing their “progressive” best by taking one big step to the left. The Party Chairman Perez has stated the recent victor in NY (still has to win general in fall), Ocasio-Cortez, is the future of the D Party. It’s a full embrace of the Dem Socialist Party. What’s more valuable to know is what she and her supporters stand for…..
abolition of ICE, removal of borders, free edu, health care, universal jobs guarantee, housing as a human right, and more.
It all amounts to a step towards central control, diminishment of private rights/ownership, and as the DSA values, lessening of capitalism. Go statism!
Wow, Kent. Watch Fox News much? You realize that Fox is only GOP propaganda and they do not report the truth. I know, I know. You will say, “I don’t watch Fox.” But wherever it is that you get your data – you are brainwashed. You might be a follower of Alex Jones or Breitbart or any of the others. Fact is – you believe lies and conspiracy theory nonsense. Apparently you do not have the ability to think critically or to discern fantasy from reality. You probably even think that Trump speaks the truth – when every reasonable person can plainly see that he is a pathological liar and conman. OK… insult me now, because thats all you’ve got. You don’t have facts or reality, you only have – ad hominem attacks.
*Parents of Minor Children*
As Zag has reported, Fox News reports no truth, therefore please program your devices to not receive their broadcasts….for the children’s sake–please
Just today Fox News (or Faux News-thanks Sarah for the very original transfiguration) that 4 of the Thai boy soccer players have been rescued from the flooded cave. Causing quite a stir, the same report has emerged from MSNBC and people are left near speechless with only, “how could that be” the same report was on the No-Truth Network?
While the reports mirror each other, the citizenry conclude that there’s error in the Fox report–it’s just not apparent on the surface. There are numerous other reports on the two bureaus, all seemingly the same, but it’s acknowledged Fox has a very special deception skill and the lie will be revealed soon.
It is known, or assumed rather, that Kent, reader of MDN, is a rabid Fox reader, supporting the notion that no thinking person would read the No-Truth news bureau. We can also reasonably extrapolate that Kent, and other Non-Truthers, drink wine and nibble biscuits with conspiracy theorist Alex “The Nutcase” Jones and regularly hold vigils over Mr. Breitbart’s resting place, furthering Zigging’s Zag’s Zhinking that Fox News and the National Enquirer are essentially one in the same.
Per Zag’s commendable suggestion, let’s not get caught in the web of ad hominem attacks. A more effective way to deal with difference of opinion is to just go “Whole Hog” (got that phrase from The Rodeo Network in my city) which I believe Zag advocates, in respect to accusations, judgements and maintenance of stereotypes.
In other words, all of the other guy’s conclusions are wrong and mine are correct. It’s so easy cause you really don’t have to think and we all know that’s a better way compared to mean ad hominem attacks because it’s so, well, umm, rational. Just say “it” and you’re done!
Disclaimer: reporter does not know or support Ken, have a preference for Fox news, does consume reports from MSNBC, is puzzled and confused that zag received well above avg voting for such vapid and mindless comments, is starting to believe that TDS is a real mental condition.
https://finance.yahoo.com/news/trump-apos-tariffs-led-layoffs-161811827.html
Trumpists are out of their minds if they think Donny’s twitter war against everyone is going to end well for the USA. They apparently don’t think things through any more than Faux News addict Trump does.
when you use “Faux News.” to get your point across, Sarah. That’s stands for Fox News, right?
Democrats are insane to think their Antifa throw pop in teenagers faces and hate America is going to prevail. But then Democrats are insane.
It works like this:
A cow and the farmer got into a disagreement. The cow said “I’m not going to give you milk anymore.” The farmer said “Okay. I’m not going to feed you anymore.”
In a week the cow rethought it’s position.
In case you don’t get this, China, with a $370 billion trade surplus with the US is the cow. The US is the farmer. We sell so little to China, yet they are amazingly dependent of selling us goods it’s staggering.
No. I do not like increased taxes in the form of tariffs to battle countries to make this a fairer playing field.
It is true actually, that the US has been a door Matt on trade for decades. Trump is the bull in the China shop (excuse the pun) who is going to get some concessions at the end of the day, new and better tariffs will allow US goods and services to sell abroad more easily, and it will only further help strengthen our country, our dollar (buying power), and get closer to “fare” trade. It will never be flat out free trade with anyone, but it will be better.
How long will it last? China will be stubborn and Justin will likely be a stupid as Bieber, but already Merkle of Germany is lowering tariffs on US made cars…
The timing for this is well orchestrated by the White House. China is tamoing for massive shipment to the US for the Christmas. Using season. Those goods hit our docks September – late October… China and others won’t want economic pain… this will go on 6-18 months.
looking at “$370 billion trade surplus” as big advantage for China is simplistic.
for example Apple products make up some of that 370 billion as iPhones etc come from China. But the PROFITS from those iPhones mostly go to Apple USA, only a little bit to the Chinese contract manufacturer — some parts of the iPhone are also made in USA, just assembled in China. So how much is the iPhone part of the deficit really a deficit for USA ? Likewise other parts of the deficit are from products brought in by Dell, HP etc. Same as trade surplus from Canada, a lot of it is from USA car companies building cars (with many parts btw. imported from USA). The trade deficit isn’t as bad as some make it as lot of that ‘trade deficit’ profit has actually always ended up in USA.
The trade deficit also doesn’t take into account ‘services’. For example American car companies in Canada use lawyers, accountants etc based in USA. Much of Apple Chinese operations are run in USA like by Tim Cook, Apple engineers etc . USA is actually EXPORTING services to these countries. This changes the ‘deficit’ dollar numbers again.
This is not a pro or anti Trump post , i”m just pointing out facts. Also it’s not addressing USA jobs etc, I’m just looking at the deficit.
————–
I post here regularly under a different name but as this is Trump article I don’t want a flame war. So people just look at what I’m saying and check them yourself before flaming.
I didn’t even add those USA car companies in Canada which is feeding the [trade deficit’ are ALSO SELLING CARS in Canada, (Canada does not have a ‘Canadian’ Car) . A large chunk of this profit also comes back to the USA. Just like Apple sales in China ,which is a large as the whole of Europe for Apple, filter back to USA (especially now with the tax cuts).
I think you are forgetting the profits from those phones are at the final sale and actually account mainly for handling them.
In other words, even though some retail and delivery etc jobs are created by the iPhones the real impact jobs are the actual building of the phones for the number of jobs including all the suppliers (some American and others).
But when it comes down to it, what difference does that make when you can turn that around and say the Chinese are making profits off of what we sell there?
In the end, the Chinese STILL are taking too much in trade imbalance due to unfair regulations. Once these are corrected I’m sure there will STILL be a trade imbalance because of the labor cost but at least WE will get a larger market there and elsewhere.
Then you may say ‘but all that trouble just to increase our sales to China by only x amount?’ Yes, but add that to ALL the trade routes we have and it adds up big time for our economy.
The only ‘simplistic’ fact in all this is how easy it is to just ignore it like we have for over 40 years, keep telling ourselves ‘those jobs are gone and never coming back’, ‘the service sector is the future’, ‘renewable resources will stimulate jobs’.
It’s common sense. Apple could sell each phone it builds for 1 billion dollars but that profit doesn’t lower the trade deficit one bit.
I wrote very clearly that my post: “Also it’s not addressing USA jobs etc”
Also I think you are completely misunderstanding the gist of my argument.
Here’s another example:
A USA company makes widgets in China and sends 1 million worth back to USA.
that is calculated as Chinese EXPORTS to USA i.e a part of 370m imbalance . But most of that 1 million of those widgets coming into the USA the profits actually comes to the USA as the USA company owns them. the chinese only make money from the manufacturing jobs. Too many people assume the Chinese exports into USA come from CHINESE OWNED companies which is not true. The manufacturing part of the equation is actually a small percentage of the cost and profit of most products.
The LABOUR COST OF AN IPHONE IS ESTIMATED TO BE AROUND $5 (five bucks).
FORTUNE : “The company estimated that actually building the iPhone 7 costs Apple $5”
and one more time I’m not addressing the jobs issue just the trade deficit numbers.
———–
my posts also praised the tax cuts which brings foreign profits back to USA which is trump thing but I think his handling of tariffs to please his base is overly simplistic, using misleading data points. I praise and criticize based on facts as I understand them, I’m neutral.
Thanks for the note of sanity, Neutral Dude. In addition:
1. The US has a trade surplus in goods and services with Canada, not a deficit. To the extent that the reciprocal tariffs reduce overall trade between the two nations, it is likely to reduce that surplus and make the total US balance of payments picture worse, not better. As a side effect, it is poisoning relations with our closest ally.
2. The US exports more steel to Mexico than they export to us. So tariffs that reduce trade in both directions will harm American steel producers more than Mexican. It will harm steel-consuming industries on both sides of the border. Those industries employ more people, contribute more to the GDP, and sell more overseas than the steel producers, by at least an order of magnitude. Again, we have the side effect of poisoning relations with a neighboring nation whose cooperation we want to have on a wide range of subjects.
3. The whole debate exagerates the significance of trade deficits generally. When I go to the grocery store, I leave with less money. I’m happy with that because I now have an equal value in food. After an American buys something from Canada, he has less cash but is happy because he has an equivalent value in goods. What’s wrong with that?
“As a side effect, it is poisoning relations with our closest ally.”
this is sort of interesting as I was just reading “158 members of the Canadian Forces were killed serving in the Afghan war.”
Canada went into it as aid USA against Osama. Afghan war had nothing to do with Canada. Hundreds more wounded.
I’m in Canada, BC right now just across the border . Because of things like the Afghan war effort etc. Canadians aren’t too pleased with the current trade war. Canada also exports a lot of gas to USA (more than Saudi Arabia) , otherwise USA would be even more dependent on the middle east and gas prices would be way higher.
Your point is great…tariffs levied b/c of a surplus is simplistic…for both China and all others involved. IMO, the real issue re: China, is intellectual property and “fixing” their currency. No wonder Trump has “arranged” that Apple not get dinged with tariffs (so far). Good for both countries b/c of the income/US and for wages & employment/China, but how stupid to cherry-pick who gets dinged by a tariff.
The EU and Canada don’t have the IP, or currency matter, but the surplus issues are real. In addition, EU has a much higher level of regulation that hike the price of imports…they act just like a tariff, or a subsidy paid by the importing company.
I read an article recently noting that Germany’s imbalance is negatively affecting their own economy…they have lot’s of exports, but the lack of imports translates to “outside’ countries not wanting to invest in-country. The same article in Bloomberg called it “Merklelisation” of the EU because it’s a situ that’s spreading. Protectionism isn’t free trade and the effects land on the protector eventually…this includes tariffs in my opinion.
When the G-7, or 8 Meeting (not sure what number fits) happened last month Trump suggested clearing all tariffs from the board. The fact that it wasn’t well received says something about who’s truly benefitting.
BTW, I long stopped tagging my name to posts for the same reason. Thanks Citizen X…who needed a powerful vaccination and probably still does.
you make some interesting points.
the whole trade thing is so complex.
I agree there are pressing issues including IP etc.
“It works like this”
Except that it doesn’t… most importantly because cows don’t talk, but secondly because in the real world, there are other farmers MORE than happy to feed the cow. So the farmer ends up with no milk BUT with lots of feed with no cow that wants it.
Feel free to use an example potentially in your favour and ignore another that is not. The US has a trade surplus wi Canada yet Trump insults us by saying we are a threat to National security and or PM is a weakling and then increases Tariffs against us. You had a trade SURPLUS. You were taking advantage of us. Trump admitted he didn’t even know whether the US has a deficit or a surplus so he simply lied. He ADMITTED he lied.
And yet people believe everything he says….what is WRONG with you?
A judge was asking a 1 year old immigration questions. A ONE year old!!!
And so many people, like Kent or GoeB are numb to this.
Fascism is sweeping the globe. I pray that it ends soon as this cannot end well.
Wall Street is not the economy, please be careful to not connect the two blindly.
In the economy, things are going sideways and a recession is looming if you look at the 2 & 10 yields. Just wait till the full impact of the GOP Tax Scam hits the markets and the Fed starts tightening the money supply- both are in the hopper for later this year and beyond.