Trump

The Fed has finally delivered a second rate hike a year after the last one in this cycle.

“What’s more interesting is their guidance on where interest rates might go from here. This time last year the Fed turned out to be wildly off mark in what they were predicting. But this year there are reasons for thinking the Fed’s guidance is more realistic. The economy is in a more advanced stage of recovery and market pricing reflects this. We can expect rates to slowly climb through next year and beyond.”

The point of view of A.M. Spence, Nobel Prize in Economics Sciences, about the new global economic scenario after Trump election

The Fed is almost certainly going to hike, so this meeting is more about the guidance on interest rates next year.

Donald Trump, the US President-elect who bitterly divided his nation, has been named TIME magazine’s Person of the Year.
In fact, the cover of the magazine called him the "President of the Divided States of America."

Time editor Nancy Gibbs explained: “For all of Trump’s public life, tastemakers and intellectuals have dismissed him as a vulgarian and carnival barker, a showman with big flash and little substance. “But what those critics never understood was that their disdain gave him strength.”

Trump was described by the magazine as having “upended the leadership of both major political parties and effectively shifted the political direction of the international order."

President-elect Donald Trump said Wednesday that he’s leaving his “great business in total in order to fully focus on running the country” in the White House.

The Manhattan billionaire made the announcement on Twitter and said he will hold a formal press conference to discuss it further on December 15.
His tweet said that “I will be holding a major news conference in New York City with my children on December 15 to discuss the fact that I will be leaving my,” Trump wrote on social media, breaking his announcement up into multiple posts. “Great business in total in order to fully focus on running the country in order to MAKE AMERICA GREAT AGAIN! While I am not mandated to ….do this under the law, I feel it is visually important, as President, to in no way have a conflict of interest with my various businesses.”

The rise in the U.S. interest rates is a major concern for the financial community. The leading topic is structural: return of inflation and a Central Bank far less dovish than before. Furthermore, the Trump election and his proposals to cut taxes and boost spending via tax credits on infrastructure has fuelled strong reactions in the bond market.

The media has credited Trump for the rally in yields and the recent swoon in the equity market. The argument goes that Trump’s policies notably with higher spending, lower taxes and less regulation will be positive for growth and inflation.

When it became clear that Donald Trump would win the US presidential election, markets initially turned very red, ironically the color of the Republican Party. The day after the election in the US, futures were down about 4%, the dollar lost about 2% and the oil price lost about 4%. Gold, in our opinion, was the only winner… Markets don’t like uncertainty and while there will certainly be winners and losers over the short term, it is too soon to determine any long-term effect. The price of risk is certainly going up, which we believe explained the majority of the fall.