31May2019 Market Close: SP 500 Falling Below 2,800 Spells Danger, DOW Closes Down 355 Points, WTI Settles Down At 53.27, US Dollar Slips Fractionally, US Rig Count Gains

New front in trade war means Fed’s dry powder may get burned

The U.S. Federal Reserve’s hesitance to react to world trade tensions may have been dealt a fatal blow Friday by President Donald Trump’s surprise announcement of new tariffs on Mexico, levies that could slam investment and business confidence and leave little doubt the administration’s combative stance is here to stay.

Mexico, U.S. business groups urge Trump to back down on tariff threat

Mexico’s president and the top U.S. business lobbying group called on President Donald Trump to back down from a threat to impose punitive tariffs on Mexican imports, in a dispute over migration that could shock Mexico’s economy.

Chevron says new U.S. tariffs may impair development of Mexican market

Oil giant Chevron Corp said on Friday the imposition of new tariffs may lead to retaliation by Mexico impairing the development of that nation’s recently opened market for imports of U.S. gasoline and diesel.

GE’s CEO ‘stunned’ that factory efficiency drive only just started

(This May 30 story corrects to say GE is cutting power unit headquarters costs 20% and GE plans to cut another $800 mln in power divison costs, not $1.6 bln in the 6th and last paragraph respectively.)

If trade spat worsens, Mexico should target Trump base: farm lobby

The Mexican government should target agricultural goods produced in states that have voted for U.S. President Donald Trump’s Republican Party if the trade conflict between the two neighbors worsens, the head of Mexico’s main farm lobby said on Friday.

Wall St. drops on surprise Mexico tariff threat

U.S. stocks dropped on Friday, putting the S&P 500 on track for its first monthly drop of the year after President Donald Trump’s surprise threat of tariffs on Mexico fueled fears increasing trade wars could lead to a recession.

How tariff hikes are squeezing the U.S. furniture business

When President Donald Trump decided to raise tariffs on Chinese imports earlier this month, Francis O’Brien was left with no choice but to add a 4% fee on every item of furniture he sells.

Global stocks drop on fears of expanding trade war

Global equities tumbled and safe-haven sovereign bonds surged Friday after President Donald Trump’s unexpected threat of tariffs on Mexican goods added to fears that escalating trade wars will push the U.S. and other major economies into recession.

Pompeo tells Germany: Use Huawei and lose access to our data

The United States raised the pressure on Western allies in a war of attrition over next-generation networks on Friday, saying countries that allow China’s Huawei to build their telecoms infrastructure could be cut off from crucial intelligence data.

James Comey Named As Defendant In Sexual Harassment Lawsuit Against FBI

A female group of former FBI recruits filed a lawsuit against the bureau this week alleging that a “good-old-boy network” at its 20-week training academy which discriminated against women. In addition to gender discrimination, race and diabilities are alleged to be a factor in setting candidates up for failure.

Big Win For Tax-Hikes; Big Trouble For Middle-Class Illinoisans

Authored by John Klingner via WirePoints.org,

On Monday, the Illinois House of Representatives voted to amend the Illinois Constitution by adding progressive income tax language. The amendment passed 73-44-1 on party lines. It will now end up on the ballot next year for all Illinoisans to vote on.

Politico Illinois described the House vote as “Pritzker’s big win.” The better way to describe it is “big trouble” for Illinois’ middle class. But you wouldn’t know that from what tax hike proponents say.

Gov. Pritzker went on record saying:

“The commitment is to vote for rates that do in fact protect the middle class and those striving to get there.”

House Speaker Madigan echoed Pritzker:

“Middle-class families bear too much of the burden under the current tax system, and a ‘fair tax’ will enable us to make the wealthy pay their fair share.”

Their rhetoric about protecting the middle class falls short once you look at the math behind the tax. The reality is Pritzker and Madigan are going to come after middle-income residents. Here’s why:

1. Amendment now, rates later. The vote for/against a constitutional amendment will only determine whether a progressive tax structure is allowed or not. The actual progressive tax rates will come later. Support for the amendment means entrusting politicians with what amounts to a blank check. Illinois politicians don’t deserve that trust.

Heineken Balks After Baseball Team Depicts AOC As “Enemy Of The People” In Patriotic Ad

A second major sponsor has dropped the Fresno Grizzlies after the team aired a Memorial Day video during a recent game which compares Democratic Socialist Rep. Alexandria Ocasio-Cortez to other “enemies of freedom” such as Antifa, Kim Jong Un and Fidel Castro.

The Netherlands-based Heineken International told the Fresno Bee on Thursday that both Dos Equis and Tecate – brands it owns, will no longer sponsor the team following the broadcast.

“Both Tecate and Dos Equis were sponsors of the Fresno Grizzlies,” said the company, adding “We do not support those views expressed in the video, that was aired during the Fresno Grizzlies game on Memorial Day. For that reason, we have ended this relationship, effective immediately and have let the team know of our decision.”

We are disheartened to learn of the views expressed in the video that aired during Monday’s Fresno Grizzlies game, as they do not reflect our core values. We have ended our relationship with the team, effective immediately, and we have informed them accordingly.

– Dos Equis (@DosEquis) May 30, 2019

The first sponsor to drop the Grizzlies following the video was Sun-Maid, which said in a statement: “We are deeply disappointed by the Memorial Day tribute video the Fresno Grizzlies aired on Monday,” adding “Sun-Maid does not support the views or sentiments expressed in the video, nor does it condone the airing of it.”

…

Professor Accused Of “Hostile Learning Environment” For Assigning Male Authors

Authored by Christian Schneider via The College Fix,

A 22-year old female University of Utah student reported her business professor to campus administrators for, among other things, assigning too many historical texts written by influential male economists of the past.

“I understand the importance of studying the work of those before us and the importance of context,” wrote the student in a complaint to the university’s bias reporting system, where she labeled the professor’s transgressions “derogatory,” “degrading,” and “intimidating,” thereby causing a “hostile learning environment.”

The report also accused the professor of frequent sexist language, but the bulk of the complaint centered on his assigned readings for the business course.

“I believe it to no longer be necessary when teaching the foundations of our country’s economic system and those who helped build [its] ideals to be presented in conjunction with their sexist beliefs that have already planted their roots within our global and local communities,” the student stated in her complaint, filed in December 2018 and recently obtained by The College Fix through a public records act request.

The complaint was among 27 bias reports lodged at the public university in the Fall 2018 semester, according to the results of the request. The documents provided by the University of Utah redact all personal identifying information.

Big bang moves on cards, Modi 2.0 set to hit the ground running

Big bang moves on cards, Modi 2.0 set to hit the ground runningThe reforms could include changes in labour laws, privatisation moves, and creation of land banks.

FM Sitharaman to present Budget on July 5

FM Sitharaman to present Budget on July 5The Economic Survey, which gives the status of the country’s economy, will be presented on July 4.

Why Big Four in Modi govt won’t have it easy

Why Big Four in Modi govt won’t have it easyShah, Sitharaman, Jaishankar and Rajnath have to steer ship at a difficult time for economy & global environment.

24 May 2019 ECRI’s WLI Growth Rate Now Marginally In Contraction

Written by Steven Hansen

ECRI’s WLI Growth Index which forecasts economic growth six months forward declined and now is marginally in contraction.

IPO Report: Entertainment giant Endeavor is going public: 5 things to know ahead of its IPO

Endeavor Group Holdings Inc., an entertainment powerhouse, is planning an initial public offering that will give investors a rare chance to buy shares in a talent agency.

In One Chart: Stock market on track for ‘key’ monthly reversal that ‘presages deeper declines’, technician says

A rough May is set to leave the S&P 500 a black eye, with the benchmark index on track to log a “bearish key reversal” on the monthly chart.

The Tell: Trade wars costing U.S. stock market $5 trillion so far, estimates Deutsche Bank

$5 trillion – that’s the amount the U.S. stock market has left on the table in terms of foregone returns as trade tensions have contributed to a flat performance by equities over the past 17 months, says Deutsche Bank’s top equity strategist.