Quest: Mr. Trump and the Davos elites

Quest's Profitable MomentPresident Donald Trump is going to Davos for the World Economic Forum -- and he's tak...

Posted: Jan 12, 2018 12:09 PM
Updated: Jan 12, 2018 12:09 PM

Quest's Profitable Moment

President Donald Trump is going to Davos for the World Economic Forum -- and he's taking many members of his cabinet with him. Davos is famous for being a gathering of heads of state as well as CEOs and other high-powered corporate executives. Considering Trump's "drain the swamp" platform, it is a bit eye-raising that he will be attending an event that personifies global elites.

The White House says President Trump will be there to discuss his "America First" policy. What this means exactly is not clear. I think it is safe to assume there will be some carrots and some sticks in his approach. The visit will be part victory lap...reminding the participants that his election was a rejection by U.S. voters of what Davos is all about. Treasury Secretary Steven Mnuchin hinted that would be the case, saying before the trip that the president was not there to rub elbows with the rich.

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I will be watching for evidence of hypocrisy at Davos. CEOs may like the lower tax rates and deregulation Trump has brought about. But many of his policies -- reversing efforts to combat climate change, restricting immigration, and putting up trade barriers -- are antithetical to what Davos attendees support.

If Trump wasn't going to Davos I bet he would have been excoriated by many business leaders and heads of NGOs from liberal Europe. Let's see how many of them raise a voice over Trump's stances on Iran and Russia now that he is attending. Or will they instead "play the game" and keep quiet, happy to be able to brag they are at Davos, with the president, improving the state of the world?

Will China slow down its U.S. bond buys?

China is the biggest foreign holder of Treasuries. That's why a Bloomberg report which suggested China may halt its purchases of U.S. debt sent the bond market into a tailspin. Yields on the 10-Year Treasury spiked to their highest level in nearly a year.

The stock market is shrugging off these concerns for now. But can that last?

Some worry that inflation pressures will return later this year and force the Federal Reserve to raise rates more quickly than expected. That could make it more expensive for consumers and businesses to borrow money, slow down the economy and put a damper on corporate profits.

-- Paul R. La Monica

NAFTA tensions build ahead of talks

Tension is already building among Canada, Mexico and the United States. It's only growing before the sixth round of NAFTA negotiation, which resumes January 23 in Montreal, Canada.

The Trump administration slapped more tariffs on Canada this week, while Canada is fighting against other U.S. tariffs in a court battle at the World Trade Organization.

Every major player in North America is watching how trade relations develop in the coming weeks. Ford CEO James Hackett told CNNMoney that he believes the Trump administration has the right intentions as it renegotiates NAFTA.

But Mexican and Canadian leaders say the administration's proposals so far are dealbreakers. Some U.S. business advocates call the proposals "poison pills" for trade.

-- Patrick Gillespie

Global economy doing great -- even in Europe

The world has suffered from a frustratingly uneven recovery for years. Strong growth in one pocket of the globe would get drowned out by trouble elsewhere.

Finally, the global economy are firing on all cylinders. Even Europe is charging ahead, with growth likely outpacing the U.S. in 2017.

The broad upturn could last for the "next couple of years," the World Bank said. 2018 is projected to be the first since the financial crisis that the world's economy is running at almost its full potential.

The catch: the World Bank thinks growth may soon peak and decelerate in 2019 and 2020 as the U.S., China and Europe cool off.

-- Matt Egan

It's now easier for Gap to open stores in India

India just made it easier for some Western companies to sell goods to the country's 1.2 billion people.

On Wednesday, the Indian government said that global single-brand retailers, such as Gap or Apple, will no longer need permission to own and operate stores on the subcontinent. Previously, companies had to secure government approval to own more than 49% of an Indian retail operation.

The move is part of Prime Minister Narendra Modi's broader push to simplify doing business in India.

-- Julia Horowitz

Quick takes

Trump ending protection for Salvadorans threatens key 'lifeline' for poor nation

NYC deals a blow to Big Oil with climate change suit, promise to dump stocks

Warren Buffett built Berkshire Hathaway. Now it's planning for life after Buffett

South Korea, the epicenter of the bitcoin craze, could ban all crypto trading

Hot stock tip: Grab the companies that Trump bashes on Twitter

Austerity hurts. Saudis reverse tax hikes, subsidy cuts to avoid backlash

What's next

Does steel threaten U.S. national security? The Trump administration could answer that question by Monday. It is investigating whether steel imports are a risk to U.S. national security. The thinking behind the investigation is that the administration wants to slap huge tariffs on steel imports. It's just not clear which countries will be targeted or how high the tariffs will be.

The pulse of Wall Street: Big banks and institutions report earnings Friday, including JPMorgan, Wells Fargo and BlackRock, which manages $5.7 trillion. It's the first round of earnings since the GOP tax reform passed and will be an opportunity for America's top financial CEOs to comment on what they intend to do with the savings from the corporate tax cut. Citigroup, Bank of America, Goldman Sachs and Morgan Stanley are all on tap to report results next week.

China's growth: We'll find out how much the Chinese economy grew in 2017 on Wednesday evening ET when the People's Republic reports fourth quarter GDP. One of the major tailwinds behind the global economy last year was stabilized growth from China after a couple years of slowing growth.

U.S. markets closed Monday: There will be no trading in New York in observance of Martin Luther King, Jr. Day.

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 324537

Reported Deaths: 5594
CountyCasesDeaths
Marion44186858
Lake28094462
Allen18660301
Elkhart17663230
St. Joseph17256234
Hamilton13612170
Vanderburgh10028121
Tippecanoe896729
Porter855386
Johnson6718169
Hendricks6412158
Vigo625889
Monroe550450
Clark531078
Madison5239122
Delaware5075103
LaPorte481196
Kosciusko475941
Howard364177
Bartholomew335365
Warrick335372
Floyd329478
Wayne325678
Marshall311846
Cass303931
Grant287150
Hancock272957
Noble264946
Henry256437
Boone255054
Dubois245631
Dearborn228231
Jackson226334
Morgan221243
Gibson194926
Knox193021
Shelby192656
Clinton185421
DeKalb183932
Lawrence183849
Wabash172821
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Decatur132543
Putnam131128
White131022
Wells130130
Clay130023
Randolph128121
Posey125816
Jefferson124116
Scott114520
Greene106053
Sullivan102716
Jay101913
Starke95022
Jennings90414
Spencer8908
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Perry85121
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Washington8127
Franklin73427
Carroll71913
Orange70028
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Owen6468
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Parke6026
Newton57812
Rush5708
Blackford56612
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Pulaski41815
Martin3705
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Brown3574
Crawford3081
Union2782
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Ohio Coronavirus Cases

Data is updated nightly.

Cases: 399808

Reported Deaths: 6346
CountyCasesDeaths
Franklin52652672
Cuyahoga39132746
Hamilton31491372
Montgomery21355242
Butler15768149
Lucas15301420
Summit14667330
Stark9780209
Warren878777
Mahoning7985301
Lake752566
Lorain7149106
Clermont622953
Delaware597337
Licking589977
Trumbull5867148
Fairfield576464
Greene559568
Clark5438129
Allen518389
Medina496557
Marion489359
Wood4861108
Miami456268
Pickaway410548
Portage385574
Columbiana376599
Tuscarawas360567
Richland349639
Wayne340894
Mercer299248
Muskingum262510
Hancock257240
Ross251259
Darke246160
Auglaize243935
Erie240868
Ashtabula240454
Putnam234549
Geauga227051
Union20838
Scioto204316
Lawrence201139
Shelby199917
Athens19984
Seneca192919
Belmont176729
Madison172019
Sandusky166429
Huron163022
Preble162521
Defiance149923
Holmes146939
Knox139719
Logan139018
Jefferson138113
Fulton135826
Crawford134417
Washington133427
Ottawa128830
Ashland117328
Williams11479
Clinton113115
Highland108118
Brown10755
Hardin107019
Henry105423
Champaign10535
Jackson102012
Van Wert99918
Fayette97317
Guernsey96814
Morrow9682
Coshocton91015
Perry86613
Adams83813
Gallia81615
Pike7921
Wyandot76118
Paulding70012
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Noble65124
Carroll53210
Meigs41712
Monroe34921
Morgan2925
Harrison2433
Vinton2326
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