When the Levies Break

The on again off again tariffs blew in a direction the market liked this morning and then seem to shift to a more cautious position. WSJ (Gift Article): White House Considers Slashing China Tariffs to De-Escalate Trade War. “Levies could be cut by more than half in some cases although Trump hasn’t yet made final decision.” Trump also indicated that he wouldn’t take the insane step of firing Fed chair Jerome Powell. (I want the market to rebound as much as anyone, but I think these swings—in addition to providing massive opportunities for insider gains for anyone who knows when one of these Trump shifts is coming—represent a level of denial in the market. The levers may shift in in different directions, but the problem is guy pulling the levers.)

+ “Factories are being automated across China at a breakneck pace. With engineers and electricians tending to fleets of robots, these operations are bringing down the cost of manufacturing while improving quality.” NYT (Gift Article): China Has an Army of Robots on Its Side in the Tariff War. (America has one guy repeatedly yelling “Me Want Tariffs” at a TV playing Fox & Friends on a loop.)