Latest news with #Essaye
AU Financial Review
6 days ago
- Business
- AU Financial Review
ASX to rise, S&P 500 resets record high, bitcoin tops $US113,000
Australian shares are set to open higher, with relatively modest gains in New York helping the S&P 500 reset its record high as it edged closer to the 6300-point level. In a social media post, President Donald Trump took credit for Nvidia's push to a $US4 trillion market cap and pressed the Federal Reserve anew to 'rapidly' lower interest rates. In contrast, Sevens Report author Tom Essaye said Trump's current tariff negotiation strategy could result in the Fed 'delaying' a rate cut past September. 'There's zero chance we'll have tariff clarity by August 1, which makes a July rate cut impossible. Additionally, it's entirely unclear at what point we will have tariff clarity because while President Trump says the August 1 deadline won't be moved again, most believe that it will be moved a week or so later if high tariffs hit markets.' Essaye said that's important because 'until tariff rates are stable (which won't happen until at least early August), the Fed will want to wait at least a few months to see what impact these new (and possibly higher) tariff rates have on the economy before being comfortable cutting'. If rates are higher for longer, that increases the risks of a slowdown in the US as well as an escalation in Trump's displeasure with Jerome Powell, Essaye also said. Market highlights ASX futures are pointing up 40 points or 0.5 per cent to 8613. All US prices near 2.30pm New York time. Today's agenda Friday is poised to be a quiet end to the week, with a continued focus on the Trump administration's ever-evolving trade policy and as investors position for reporting season. Top stories Solar farms forced to 'switch off' due to energy grid logjam | Delays to critical poles and wire projects will force some solar farms to shed more than two-thirds of the power they produce. We're losing companies offshore': ASX dual-class shares bid finds backer | UniSuper's chief investment officer said the right safeguards were needed, but investors should have an 'open mind' to the changes. Chanticleer: PE's third act: Carlyle swallowing a Santos whale | Other than for deals expertise, is it helpful having private equity in Santos' $36.4 billion bid? Australian oil and gas hasn't been a happy hunting ground. Tennis and pandas: Albo's China charm offensive | Anthony Albanese will turn on some soft power moves as part of his planned China trip, but he has been urged not to ignore hard issues.
Yahoo
08-07-2025
- Business
- Yahoo
Investors are hoping the TACO trade saves them from Trump's tariffs again
Stocks fell on Monday as Trump announced updates on tariffs. Investors are hoping the TACO trade—short for Trump Always Chickens Out—will prevail. Trump has backed down or pivoted from other announcements that shook markets this year, sparking big relief rallies. Stocks dropped on Monday with Donald Trump's tariff tough talk back in the spotlight. Now, investors are hoping it's TACO Tuesday. The so-called TACO trade — a term coined by Financial Times columnist Robert Armstrong that's short for Trump Always Chickens Out — is back in the market zeitgeist with Trump announcing 25% tariffs on Japan and South Korea set to go into effect on August 1, as well teasing steep tariffs on a handful of other countries. The S&P 500 dropped almost 1% and the Dow lost more than 400 points on the news as investors fretted over the trade war again after weeks of positive developments, including progress with key trading partners like China. The TACO acronym caught on with investors because of how frequently Trump has backed down or pivoted from policies that roiled markets (see the April 2 to April 9 "Liberation Day" pivot or his backing down from threats to fire Fed Chair Jerome Powell). When Trump has backed down, investors have piled into stocks. The market's increasingly sanguine attitude about Trump's trade war pushed the S&P 500 back to all-time highs after a near-20% drop from February to April. Now, investors are waiting to see if Trump walks back his latest threats. According to Tom Essaye, founder of Sevens Report Research, who has clients including advisors at UBS, Morgan Stanley, JPMorgan, and more, Trump will likely ease his latest aggressive tariff talk again. And if he doesn't initially, investors feel confident that he will eventually, Essaye said. The decline on Monday was pronounced relative to the staid moves in stocks in recent weeks, but they were nothing compared to the plunge that rocked the market in April. For the most part, investors have stopped reacting so intensely to trade updates, preferring to focus on things more immediately relevant to stock prices, like earnings. "Regardless of what sort of shocking headline or confusing headline comes out of the administration, the administration will not purposefully do something that really hurts the economy," Essaye told BI. "They can come out tomorrow and say that all of the reciprocal tariff rates are in force for the forseeable future, and I don't think the market would go down all that much because the market would not believe for one minute that it was going to last very long, and defnitely not long enough to hurt the economy," Essaye continued. In the medium-term, however, Trump risks hurting economic growth and profits due to the uncertainty he's creating for business owners, Essaye said. Investors making capital allocation decisions around Trump's trade rhetoric is different than a business owner making planning decisions, he said. "There's this idea that the administration will not purposefully do anything they think will hurt the economy, but that doesn't mean that their policies won't ultimately hurt the economy," he said. "There's a whole pile of history that says that the things they are doing do not turn out well for the economy, and they are sort of flying in the face of that, and we're going to have to see what happens." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Investors are hoping the TACO trade saves them from Trump's tariffs again
Stocks fell on Monday as Trump announced updates on tariffs. Investors are hoping the TACO trade—short for Trump Always Chickens Out—will prevail. Trump has backed down or pivoted from other announcements that shook markets this year, sparking big relief rallies. Stocks dropped on Monday with Donald Trump's tariff tough talk back in the spotlight. Now, investors are hoping it's TACO Tuesday. The so-called TACO trade — a term coined by Financial Times columnist Robert Armstrong that's short for Trump Always Chickens Out — is back in the market zeitgeist with Trump announcing 25% tariffs on Japan and South Korea set to go into effect on August 1, as well teasing steep tariffs on a handful of other countries. The S&P 500 dropped almost 1% and the Dow lost more than 400 points on the news as investors fretted over the trade war again after weeks of positive developments, including progress with key trading partners like China. The TACO acronym caught on with investors because of how frequently Trump has backed down or pivoted from policies that roiled markets (see the April 2 to April 9 "Liberation Day" pivot or his backing down from threats to fire Fed Chair Jerome Powell). When Trump has backed down, investors have piled into stocks. The market's increasingly sanguine attitude about Trump's trade war pushed the S&P 500 back to all-time highs after a near-20% drop from February to April. Now, investors are waiting to see if Trump walks back his latest threats. According to Tom Essaye, founder of Sevens Report Research, who has clients including advisors at UBS, Morgan Stanley, JPMorgan, and more, Trump will likely ease his latest aggressive tariff talk again. And if he doesn't initially, investors feel confident that he will eventually, Essaye said. The decline on Monday was pronounced relative to the staid moves in stocks in recent weeks, but they were nothing compared to the plunge that rocked the market in April. For the most part, investors have stopped reacting so intensely to trade updates, preferring to focus on things more immediately relevant to stock prices, like earnings. "Regardless of what sort of shocking headline or confusing headline comes out of the administration, the administration will not purposefully do something that really hurts the economy," Essaye told BI. "They can come out tomorrow and say that all of the reciprocal tariff rates are in force for the forseeable future, and I don't think the market would go down all that much because the market would not believe for one minute that it was going to last very long, and defnitely not long enough to hurt the economy," Essaye continued. In the medium-term, however, Trump risks hurting economic growth and profits due to the uncertainty he's creating for business owners, Essaye said. Investors making capital allocation decisions around Trump's trade rhetoric is different than a business owner making planning decisions, he said. "There's this idea that the administration will not purposefully do anything they think will hurt the economy, but that doesn't mean that their policies won't ultimately hurt the economy," he said. "There's a whole pile of history that says that the things they are doing do not turn out well for the economy, and they are sort of flying in the face of that, and we're going to have to see what happens." Read the original article on Business Insider
Business Insider
08-07-2025
- Business
- Business Insider
Investors are hoping the TACO trade saves them from Trump's tariffs again
The so-called TACO trade — a term coined by Financial Times columnist Robert Armstrong that's short for Trump Always Chickens Out — is back in the market zeitgeist with Trump announcing 25% tariffs on Japan and South Korea set to go into effect on August 1, as well teasing steep tariffs on a handful of other countries. The S&P 500 dropped almost 1% and the Dow lost more than 400 points on the news as investors fretted over the trade war again after weeks of positive developments, including progress with key trading partners like China. The TACO acronym caught on with investors because of how frequently Trump has backed down or pivoted from policies that roiled markets (see the April 2 to April 9 " Liberation Day" pivot or his backing down from threats to fire Fed Chair Jerome Powell). When Trump has backed down, investors have piled into stocks. The market's increasingly sanguine attitude about Trump's trade war pushed the S&P 500 back to all-time highs after a near-20% drop from February to April. Now, investors are waiting to see if Trump walks back his latest threats. According to Tom Essaye, founder of Sevens Report Research, who has clients including advisors at UBS, Morgan Stanley, JPMorgan, and more, Trump will likely ease his latest aggressive tariff talk again. And if he doesn't initially, investors feel confident that he will eventually, Essaye said. The decline on Monday was pronounced relative to the staid moves in stocks in recent weeks, but they were nothing compared to the plunge that rocked the market in April. For the most part, investors have stopped reacting so intensely to trade updates, preferring to focus on things more immediately relevant to stock prices, like earnings. "Regardless of what sort of shocking headline or confusing headline comes out of the administration, the administration will not purposefully do something that really hurts the economy," Essaye told BI. "They can come out tomorrow and say that all of the reciprocal tariff rates are in force for the forseeable future, and I don't think the market would go down all that much because the market would not believe for one minute that it was going to last very long, and defnitely not long enough to hurt the economy," Essaye continued. In the medium-term, however, Trump risks hurting economic growth and profits due to the uncertainty he's creating for business owners, Essaye said. Investors making capital allocation decisions around Trump's trade rhetoric is different than a business owner making planning decisions, he said. "There's this idea that the administration will not purposefully do anything they think will hurt the economy, but that doesn't mean that their policies won't ultimately hurt the economy," he said. "There's a whole pile of history that says that the things they are doing do not turn out well for the economy, and they are sort of flying in the face of that, and we're going to have to see what happens."
Business Insider
08-07-2025
- Business
- Business Insider
Investors are hoping the TACO trade saves them from Trump's tariffs again
Stocks dropped on Monday with Donald Trump's tariff tough talk back in the spotlight. Now, investors are hoping it's TACO Tuesday. The so-called TACO trade — a term coined by Financial Times columnist Robert Armstrong that's short for Trump Always Chickens Out — is back in the market zeitgeist with Trump announcing 25% tariffs on Japan and South Korea set to go into effect on August 1, as well teasing steep tariffs on a handful of other countries. The S&P 500 dropped almost 1% and the Dow lost more than 400 points on the news as investors fretted over the trade war again after weeks of positive developments, including progress with key trading partners like China. The TACO acronym caught on with investors because of how frequently Trump has backed down or pivoted from policies that roiled markets (see the April 2 to April 9 " Liberation Day" pivot or his backing down from threats to fire Fed Chair Jerome Powell). When Trump has backed down, investors have piled into stocks. The market's increasingly sanguine attitude about Trump's trade war pushed the S&P 500 back to all-time highs after a near-20% drop from February to April. Now, investors are waiting to see if Trump walks back his latest threats. According to Tom Essaye, founder of Sevens Report Research, who has clients including advisors at UBS, Morgan Stanley, JPMorgan, and more, Trump will likely ease his latest aggressive tariff talk again. And if he doesn't initially, investors feel confident that he will eventually, Essaye said. The decline on Monday was pronounced relative to the staid moves in stocks in recent weeks, but they were nothing compared to the plunge that rocked the market in April. For the most part, investors have stopped reacting so intensely to trade updates, preferring to focus on things more immediately relevant to stock prices, like earnings. "Regardless of what sort of shocking headline or confusing headline comes out of the administration, the administration will not purposefully do something that really hurts the economy," Essaye told BI. "They can come out tomorrow and say that all of the reciprocal tariff rates are in force for the forseeable future, and I don't think the market would go down all that much because the market would not believe for one minute that it was going to last very long, and defnitely not long enough to hurt the economy," Essaye continued. In the medium-term, however, Trump risks hurting economic growth and profits due to the uncertainty he's creating for business owners, Essaye said. Investors making capital allocation decisions around Trump's trade rhetoric is different than a business owner making planning decisions, he said. "There's this idea that the administration will not purposefully do anything they think will hurt the economy, but that doesn't mean that their policies won't ultimately hurt the economy," he said. "There's a whole pile of history that says that the things they are doing do not turn out well for the economy, and they are sort of flying in the face of that, and we're going to have to see what happens."
