Trump versus the media
This morning in a tweet, President Donald Trump continued his fight with the media, branding it “the Corrupt Media.” This time he also attacked US tech giants such as “Facebook, Google, and Twitter” for being “on the side of the Radical Left Democrats.” He added, “But fear not, we will win anyway, just like we did before!“
Trump says, “Economy is Great”
A couple of hours before targeting Facebook (FB), Google (GOOG), and Twitter (TWTR), Trump slammed news media, saying “The Fake News Media has NEVER been more Dishonest or Corrupt than it is right now. There has never been a time like this in American History.”
In another tweet, he also attacked negative media coverage about the economy, saying, “The Economy is Great!” and, “You can’t dispel this mood of positive energy.”
An increasing pile of allegations
Trump has always been a controversial figure, even before becoming US President. According to a recent New York Times report, the Germany-based banking giant Deutsche Bank loaned “well over $2 billion” to Trump before his election.
The report alleges that he used these loans “to finance skyscrapers and other high-end properties, and repeatedly cited his relationship with the bank to deflect political attacks on his business acumen.” At the same time, “Deutsche Bank used Mr. Trump’s projects to build its investment-banking business, reaped fees from the assets he put in its custody and leveraged his celebrity to lure clients.”
The US-China trade deal
After a massive sell-off in the fourth quarter of 2018, the broader market (QQQ) has largely traded on a positive note in 2018 so far. Apart from the Federal Reserve’s dovish tone, investors’ high expectations for the ongoing US-China trade talks could be another reason for the broader market recovery in the first quarter so far. Despite criticism from many large US companies for triggering a trade war with China, Trump expects China to accept all his conditions for a trade deal.
A prolonged negotiation process could take a heavy toll on investor sentiment (SPY) and drive the stock markets down. As of March 18, the S&P 500 Index and NASDAQ Composite Index have risen 13.0% and 16.3% year-to-date, respectively. Apple (AAPL), Alphabet (GOOG), Facebook (FB), Amazon (AMZN), and Twitter (TWTR) have risen 19.2%, 13.7%, 22.4%, 16.0%, and 8.1%, respectively.