Afternoon Coffee: Trump Has Global Trade on 2 Paths, WSJ Says; Retail Faces Worst December in Years, But New Year Looks Up

The Wall Street Journal takes an overall look at global trade under President Donald Trump, and it has concluded that he hasn’t killed it — but has split it in two. Our allies continue on a traditional approach, albeit with Trump tariffs and counter-tariffs by them. With U.S.-China trade, the second approach is a combative stance that puts the countries on a Cold War road to decoupling their economic interests, the WSJ reports in its overview of the issues.

Overall Slump Hounds Retail

One indicator of retail health shows retail is down 17% this month, which would be the worst December since the XRT retail ETF began in 2006, according to CNBC. But the blame may rest in the overall market’s recent slide. If that’s the case, retail may have some upside.

"Earnings growth for retailers are almost about twice the rate of the S&P 500," Erin Gibbs, portfolio manager at S&P Global Market Intelligence, said on CNBC. "This actually looks like a really good entry point, valuations look attractive, so I'd say use this as an opportunity."

CNBC said the XRT ETF's earnings are expected to rise by 17% in 2019, according to FactSet estimates, and the S&P 500 profit growth is forecast to rise by 8%.

Government Shutdown Has First Full Day

The partial government shutdown that began Friday at midnight is facing its first full weekday Wednesday. Government business was off for the weekend and Christmas Eve and Christmas. Some 800,000 federal workers are affected, and it doesn’t appear that funding for a U.S.-Mexico wall is close to being supported, the Associated Press reports, which says the shutdown affects 25% of federal operations.

AI in Mining?

And finally, an update on artificial intelligence in mining: Some mining companies have boasted that AI is the future of mining, but for an industry that spends so little on R&D, it may be difficult to pull off, The Wall Street Journal says in its reporting about 2018 updates on AI in the industry.

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.