- In today’s CEO daily: Diane Brady on Trump’s trade dissidents
- The big story: Recession?
- Markets: A brief moment of calm.
- Analyst note of Goldman Sachs, Convera and Ey on the Fed; and Wedbush on Apple.
- More: All the news and the coorus wealth watercooler.
Good morning. As I detailed last week, the ongoing commercial wars of President Trump have held the confidence of at least one block of voters: the CEOs, who are increasingly worried about the economy.
Although some industries can ultimately draw prices, short -term disruption is difficult to sail. My colleague Shawn Tully has taken a closer look at the impact that commercial wars may have on the American economy. First, he examined the accent put by President Trump on the trade deficit and spoke with several noted economists, such as John Cochrane de Stanford, who maintains that “it is not clear why a trade deficit is a problem in the first place, because the nations reinves the dollars that we send them back to the United States”.
Second, Tully highlights certain fundamental truths on prices. They are a tax supported by American consumers, they are likely to harm growth and increase unemployment, they will not reduce the trade deficit or the federal budget deficit, and above all, in my opinion – it demysizes the story that we are stolen by complex and protectionist business partners.
I am delighted to speak tomorrow with the Minister of Transport of Canada and internal trade Chrystia Freeland, who was also recently assistant and Minister of Finance. She will join us at FortuneCEO dinner in New York, where we will also chat with the former Secretary of Transport Elaine Chao and former Secretary of Commerce Wilbur Ross. It will certainly be a lively discussion, with prices and exchanges that are certain on the menu.
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Contact the CEO every day via Diane Brady in Diane.brady@fortune.com
This story was initially presented on Fortune.com
