US: Trump Considering National Emergency To Enact Universal Tariffs, CNN
Jan-08 11:55
CNN reporting that US President-elect Donald Trump is considering, “declaring a national economic emergency to provide legal justification" to enact universal tariffs on "allies and adversaries” citing four sources who confirmed that no final decision has been made.
- According to CNN, the “declaration would allow Trump to construct a new tariff program by using the International Economic Emergency Powers Act [IEEPA] which unilaterally authorizes a president to manage imports during a national emergency.”
- A source said, “Nothing is off the table,” acknowledging a “robust discussion over declaring a national emergency [...] has taken place.”
- A trade attorney who served in Trump’s first administration said: “I think the president has broad authority to impose tariffs for a variety of reasons, and there are a number of statutory bases to do so. IEEPA is certainly one of them.”
- CNN notes: “If Trump opted to declare a national economic emergency... it’s unclear what evidence he would cite,” but it should be noted that Trump’s team has previously floated declaring a national emergency to carry out deportations.
- The report comes in the wake of market volatility prompted by a Washington Post report on Monday suggesting that Trump is investigating a softer universal tariff plan - appearing to confirm a common view that Trump is likely to pursue more pragmatic, targetted tariffs.
- Trump nixed the WaPo report on Truth Social, suggesting that the new report may be strategically released to maintain a hardline tariff posture ahead of trade talks when Trump takes office on January 20.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US TSYS: PBOC Stimulus Sees Bear Steepening But On Low Volumes
Dec-09 11:53
- Treasuries are mostly lower on the day after selling impetus following a dovish monetary policy tweak from the PBOC, although volumes have been light as US CPI on Wednesday and approaching year-end seems to weigh on activity.
- Cash yields are unchanged (2s) to 2bp higher (30s).
- 2s10s has steepened to 6.3bps (+1.2bp) but remains within last week’s range.
- TYH5 trades at 111-13 (- 01+) off session highs of 111-18+ but has remained within Friday’s range throughout the overnight session, all on very low cumulative volumes of 235k.
- Friday’s post-payrolls high of 111-20+ cleared the 50-day EMA and strengthens a bull cycle. It’s now an initial resistance level after which lies 111-23 (38.2% retrace of Sep 11 – Nov 15 bear leg). To the downside, support at 110-18 (Dec 4 low).
- Data: Wholesale inventories, trade sales Oct F/Oct (1000ET), NY Fed 1-Yr Inflation Nov (1100ET)
- Fedspeak: FOMC media blackout
- Bill issuance: US Tsy $81B 13W & $72B 26W bill auctions (1130ET)
OUTLOOK: Price Signal Summary - Bear Threat In Oil Futures Remains Present
Dec-09 11:50
- On the commodity front, Gold is unchanged and continues to trade inside a tight range, for now. The long-term trend condition remains bullish and the Oct 31 - Nov 14 bear leg appears to have been a correction. Moving average studies are in a bull-mode position, highlighting a dominant uptrend. Resistance to watch is $2721.4, the Nov 25 high. Clearance of this level would highlight a bullish short-term development. Key support to monitor is $2536.9, the Nov 14 low.
- In the oil space, a bearish threat in WTI futures remains present and recent weakness reinforces this theme. A continuation down would open $65.74, the Oct 1 low, and $63.90, the Sep 10 low and key support. For bulls, a stronger reversal to the upside would instead refocus attention on the key short-term resistance at $77.04, the Oct 8 high. Initial firm resistance to watch is unchanged at $72.41, the Nov 7 high.
EQUITIES: S&P 500 & NASDAQ 100 E-minis Tick Lower As China Probes Nvidia
Dec-09 11:47
Fresh session lows for S&P 500 & NASDAQ 100 e-minis following news that Nvidia is being probed by the Chinese authorities on anti-monopoly grounds.
- The tech giant is now indicated 2.1% lower pre-market.
- E-mini moves are relatively limited at this stage.
- Contracts had already traded away from session highs as optimism surrounding the dovish tweak in the Chinese monetary policy stance proved short-lived.
- Marginal outperformance in the DJIA e-mini since the headlines, given relative sensitivity to tech.
