Quest: Mr. Trump and the Davos elites

Quest's Profitable MomentPresident Donald Trump is going to Davos for the World Economic Forum -- and he's tak...

Posted: Jan 12, 2018 11:09 AM
Updated: Jan 12, 2018 11:09 AM

Quest's Profitable Moment

President Donald Trump is going to Davos for the World Economic Forum -- and he's taking many members of his cabinet with him. Davos is famous for being a gathering of heads of state as well as CEOs and other high-powered corporate executives. Considering Trump's "drain the swamp" platform, it is a bit eye-raising that he will be attending an event that personifies global elites.

The White House says President Trump will be there to discuss his "America First" policy. What this means exactly is not clear. I think it is safe to assume there will be some carrots and some sticks in his approach. The visit will be part victory lap...reminding the participants that his election was a rejection by U.S. voters of what Davos is all about. Treasury Secretary Steven Mnuchin hinted that would be the case, saying before the trip that the president was not there to rub elbows with the rich.

Sign up for the weekly Quest newsletter in your inbox

I will be watching for evidence of hypocrisy at Davos. CEOs may like the lower tax rates and deregulation Trump has brought about. But many of his policies -- reversing efforts to combat climate change, restricting immigration, and putting up trade barriers -- are antithetical to what Davos attendees support.

If Trump wasn't going to Davos I bet he would have been excoriated by many business leaders and heads of NGOs from liberal Europe. Let's see how many of them raise a voice over Trump's stances on Iran and Russia now that he is attending. Or will they instead "play the game" and keep quiet, happy to be able to brag they are at Davos, with the president, improving the state of the world?

Will China slow down its U.S. bond buys?

China is the biggest foreign holder of Treasuries. That's why a Bloomberg report which suggested China may halt its purchases of U.S. debt sent the bond market into a tailspin. Yields on the 10-Year Treasury spiked to their highest level in nearly a year.

The stock market is shrugging off these concerns for now. But can that last?

Some worry that inflation pressures will return later this year and force the Federal Reserve to raise rates more quickly than expected. That could make it more expensive for consumers and businesses to borrow money, slow down the economy and put a damper on corporate profits.

-- Paul R. La Monica

NAFTA tensions build ahead of talks

Tension is already building among Canada, Mexico and the United States. It's only growing before the sixth round of NAFTA negotiation, which resumes January 23 in Montreal, Canada.

The Trump administration slapped more tariffs on Canada this week, while Canada is fighting against other U.S. tariffs in a court battle at the World Trade Organization.

Every major player in North America is watching how trade relations develop in the coming weeks. Ford CEO James Hackett told CNNMoney that he believes the Trump administration has the right intentions as it renegotiates NAFTA.

But Mexican and Canadian leaders say the administration's proposals so far are dealbreakers. Some U.S. business advocates call the proposals "poison pills" for trade.

-- Patrick Gillespie

Global economy doing great -- even in Europe

The world has suffered from a frustratingly uneven recovery for years. Strong growth in one pocket of the globe would get drowned out by trouble elsewhere.

Finally, the global economy are firing on all cylinders. Even Europe is charging ahead, with growth likely outpacing the U.S. in 2017.

The broad upturn could last for the "next couple of years," the World Bank said. 2018 is projected to be the first since the financial crisis that the world's economy is running at almost its full potential.

The catch: the World Bank thinks growth may soon peak and decelerate in 2019 and 2020 as the U.S., China and Europe cool off.

-- Matt Egan

It's now easier for Gap to open stores in India

India just made it easier for some Western companies to sell goods to the country's 1.2 billion people.

On Wednesday, the Indian government said that global single-brand retailers, such as Gap or Apple, will no longer need permission to own and operate stores on the subcontinent. Previously, companies had to secure government approval to own more than 49% of an Indian retail operation.

The move is part of Prime Minister Narendra Modi's broader push to simplify doing business in India.

-- Julia Horowitz

Quick takes

Trump ending protection for Salvadorans threatens key 'lifeline' for poor nation

NYC deals a blow to Big Oil with climate change suit, promise to dump stocks

Warren Buffett built Berkshire Hathaway. Now it's planning for life after Buffett

South Korea, the epicenter of the bitcoin craze, could ban all crypto trading

Hot stock tip: Grab the companies that Trump bashes on Twitter

Austerity hurts. Saudis reverse tax hikes, subsidy cuts to avoid backlash

What's next

Does steel threaten U.S. national security? The Trump administration could answer that question by Monday. It is investigating whether steel imports are a risk to U.S. national security. The thinking behind the investigation is that the administration wants to slap huge tariffs on steel imports. It's just not clear which countries will be targeted or how high the tariffs will be.

The pulse of Wall Street: Big banks and institutions report earnings Friday, including JPMorgan, Wells Fargo and BlackRock, which manages $5.7 trillion. It's the first round of earnings since the GOP tax reform passed and will be an opportunity for America's top financial CEOs to comment on what they intend to do with the savings from the corporate tax cut. Citigroup, Bank of America, Goldman Sachs and Morgan Stanley are all on tap to report results next week.

China's growth: We'll find out how much the Chinese economy grew in 2017 on Wednesday evening ET when the People's Republic reports fourth quarter GDP. One of the major tailwinds behind the global economy last year was stabilized growth from China after a couple years of slowing growth.

U.S. markets closed Monday: There will be no trading in New York in observance of Martin Luther King, Jr. Day.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 14372

Reported Deaths: 693
CountyConfirmedDeaths
Hinds95924
Lauderdale71358
Madison69422
Scott63010
Neshoba58937
Jones56622
Forrest52338
DeSoto5036
Leake40012
Rankin3856
Holmes38524
Jackson30313
Copiah2904
Attala28415
Newton2564
Monroe25225
Leflore25130
Lincoln25024
Harrison2477
Lamar2315
Yazoo2274
Pearl River20631
Pike20311
Adams19015
Lowndes1899
Noxubee1736
Washington1667
Warren1597
Bolivar15411
Wayne1540
Oktibbeha15411
Jasper1524
Smith14511
Covington1431
Clarke13818
Kemper13611
Chickasaw13012
Lafayette1274
Lee1245
Carroll11511
Coahoma1144
Marion1149
Clay1084
Winston1051
Lawrence1021
Simpson950
Hancock8711
Wilkinson859
Yalobusha855
Grenada853
Itawamba847
Montgomery811
Union805
Sunflower783
Jefferson Davis772
Marshall773
Tate741
Tippah7111
Claiborne692
Panola643
Calhoun634
Webster611
Humphreys587
Amite561
Tunica533
Walthall520
Perry503
Prentiss423
Jefferson400
Choctaw342
Stone300
Pontotoc293
Tishomingo280
Franklin282
Tallahatchie261
Quitman250
George211
Benton150
Alcorn141
Greene91
Sharkey70
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 16530

Reported Deaths: 591
CountyConfirmedDeaths
Mobile2124112
Jefferson1712100
Montgomery154134
Tuscaloosa67813
Marshall6689
Lee53332
Franklin5147
Shelby48419
Tallapoosa41864
Butler39213
Chambers34924
Madison3184
Elmore3137
Walker2991
Baldwin2819
Etowah24411
Dallas2443
DeKalb2413
Morgan2311
Coffee2241
Lowndes22210
Sumter2136
Autauga2053
Houston1884
Bullock1833
Pike1790
Colbert1612
Russell1590
Marengo1556
Lauderdale1532
Calhoun1523
Hale1517
Choctaw1488
Wilcox1347
Barbour1321
Clarke1292
Randolph1257
Marion11911
St. Clair1161
Pickens1014
Talladega1003
Dale990
Chilton971
Cullman960
Greene924
Limestone870
Winston820
Covington771
Jackson752
Crenshaw722
Bibb711
Henry712
Macon712
Washington666
Blount581
Escambia493
Lawrence460
Geneva400
Conecuh351
Coosa351
Monroe352
Perry350
Cherokee342
Clay272
Lamar210
Fayette130
Cleburne131
Unassigned00
Tupelo
Overcast
66° wxIcon
Hi: 83° Lo: 63°
Feels Like: 66°
Columbus
Overcast
67° wxIcon
Hi: 86° Lo: 64°
Feels Like: 67°
Oxford
Few Clouds
64° wxIcon
Hi: 81° Lo: 59°
Feels Like: 64°
Starkville
Scattered Clouds
63° wxIcon
Hi: 85° Lo: 60°
Feels Like: 63°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather