“Savings for the top six U.S. banks from President Trump’s signature tax overhaul accelerated last year, now topping $32 billion as the lenders curbed new borrowing, pared jobs and ramped up payouts to shareholders,” Bloomberg reports.
Bridgewater, the world’s biggest hedge fund, has bet more than $1 billion that stock markets around the world will fall by March, the Wall Street Journal reports.
“The wager, assembled over a span of months and executed by a handful of Wall Street firms, including Goldman Sachs Group Inc. and Morgan Stanley, would pay off… if either the S&P 500 or the Euro Stoxx 50 declines.”
“Give me some of that. Give me some of that money. I want some of that money.”
— President Trump, quoted by CNBC, railing against the Federal Reserve Board.
JP Morgan CEO Jamie Dimon told CNBC that Sen. Elizabeth Warren “vilifies” successful people.
“She uses some pretty harsh words, you know, some would say vilifies successful people. I don’t like vilifying anybody. I think we should applaud successful people.”
Wall Street Journal: “The U.K. Parliament’s decision on Saturday to postpone a final vote on the country’s exit from the European Union marks the latest geopolitical development likely to swing financial markets, highlighting the extreme levels of uncertainty that some investors worry isn’t being properly accounted for with U.S. stocks near all-time highs.”
Vanity Fair: “Traders in the Chicago pits have been watching these kinds of wagers with an increasing mixture of shock and awe since the start of the Trump presidency. They are used to rapid fluctuations in the S&P 500 index; volatility is common, of course. But the precision and timing of these trades, and the vast amount of money being made as a result of them, make the traders wonder if all this is on the level.”
“Are the people behind these trades incredibly lucky, or do they have access to information that other people don’t have about, say, Trump’s or Beijing’s latest thinking on the trade war or any other of a number of ways that Trump is able to move the markets through his tweeting or slips of the tongue? Essentially, do they have inside information?”
“Treasury Department officials are considering rolling back a tax rule aimed at preventing American companies from moving money offshore to avoid U.S. taxes,” Bloomberg reports.
“Treasury could narrow regulations aimed at preventing U.S. firms from lowering their U.S. tax bills by borrowing from an offshore branch of the company. The department is also contemplating repealing them entirely to replace them with something more business-friendly.”
President Trump claimed that stock markets would crash if he were impeached.
Said Trump: “If they actually did this the markets would crash Do you think it was luck that got us to the best Stock Market and Economy in our history. It wasn’t!”
“The Federal Reserve looks poised to cut interest rates for a second time Wednesday to help extend the economic expansion in the face of global weakness, President Trump’s trade war with China and geopolitical risks such as the attacks on Saudi Arabia’s oil facilities,” the AP reports.
Elizabeth Warren appeared to enjoy a CNBC segment reporting that Wall Street executives fear her becoming president, tweeting: “I’m Elizabeth Warren and I approve this message.”
“Mr. Trump’s request is extraordinary for several reasons. The United States economy is still growing solidly and consumers are spending strongly, making this an unusual time to push for monetary accommodation, particularly negative rates, a policy that the Fed debated but passed up even in the depths of the Great Recession.”
“Negative rates, which have been used in economies including Japan, Switzerland and the Eurozone, mean that savers are penalized and borrowers rewarded: Their goal is to reduce borrowing costs for households and companies to encourage spending. But they come at a cost, curbing bank profitability.”
“The analysts found that Trump’s tweets have significantly increased volatility. They say the frequency of market-moving tweets from Trump ‘ballooned’ in August, and that US rates markets are paying more attention. This drives the need for a model to spot market-moving tweets and track the results.”
Reuters: “U.S. congressional investigators have identified possible failures in Deutsche Bank AG’s money laundering controls in its dealings with Russian oligarchs, after the lender handed over a trove of transaction records, emails and other documents.”
“The congressional inquiry found instances where Deutsche Bank staff in the United States and elsewhere flagged concerns about new Russian clients and transactions involving existing ones, but were ignored by managers.”
“Federal Reserve officials are gearing up to reduce interest rates at their next policy meeting in two weeks, most likely by a quarter-percentage point, as the trade war between the U.S. and China darkens the global economic outlook,” the Wall Street Journal reports.
Treasury Secretary Steven Mnuchin said issuing ultra-long U.S. bonds is “under very serious consideration” in the Trump administration, possibly setting up a move that would mark a historic revamp of the $16 trillion Treasuries market, Bloomberg News reports.
“President Trump stands to save millions of dollars annually in interest on outstanding loans on his hotels and resorts if the Federal Reserve lowers rates as he has been demanding,” the Washington Post reports.
“In the five years before he became president, Trump borrowed more than $360 million via four loans from Deutsche Bank for his hotels in Washington, D.C., and Chicago, as well his 643-room Doral golf resort in South Florida.”
“The payments on all four properties vary with interest rate changes.”
“President Trump on Monday called for the Federal Reserve to cut its benchmark interest rate by 1 percentage point, a move that would typically be considered only when the U.S. economy is on the brink of a recession, and again criticized his own central bank chairman for a ‘horrendous lack of vision,'” the Wall Street Journal reports.
“The last time the Fed reduced rates by a full percentage point was during the 2008 financial crisis.”