Trump orders cancellation on multibillion Air Force One order

Trump to Twittersphere, starting to join the dots

Another extraordinary day and another comment from President Elect Trump. Trump lit up the Twittersphere with his comments about Boeing and how they are overpricing the new Air Force 1 and other possible tenders. It was interesting as once again instead of making a news release Trump went to the people with Twitter. The use of Twitter is really interesting as Trump has been able to control the message in 140 characters and for the media this is a real problem because Trump has been able to exclude the Press from policy and comments of interest.

For the Media they have to work out how they get back into Trump’s commentary. For Trump, I presume this is exactly what he wants as the Press was largely seen as not supporting Trump and had largely written him off top their peril. For the Press now, they have to look through Trump’s commentary and sift the misstatements, lies from the truth.

A good example is the Pizzagate story, where during the election it was stated that Clinton was running a child porn ring from a Pizza Shop in New Jersey. The consequence was that someone took the comment as gospel and turned up at the Pizza Shop with a shotgun and used the shotgun in the shop before he was arrested. The other being of course the comment about Ted Cruz’s father being an accomplice in President Kennedy’s assignation.

In a relatively quiet day volume wise, where the bonds paused an equities hit a new high, Bill Gross made comments about the Fed and how the markets will react to a Fed hike. His thesis was that markets had grown rather used to falling rates, but how would they react to a rising market. This could be complicated further if on Thursday (European time) the ECB reveals that no further rate cuts will occur and that its credit purchases will further slow or stop.

The market will be waiting with bated breath for Trumps economic announcement due soon. It will be interesting to see if the announcement is made as a series of twitters or as a press announcement. Given policy to date has been announced as a twitter I think this may well be the way he delivers his policies. That way the message is simple and will not be subjected to any rigorous commentary. For markets this could be an interesting juxtaposition, just what to do especially with little information.

In other things productivity has risen slightly and this is a good signal for the US Economy. For Trump it is a great start to his tenure.

Aussie Market Today.

Commodities were mixed and US equities hit new highs, so all is good with the world. Aussie equities should continue that trend despite a slight pullback in commodities. US Treasuries had a slight improvement however I don’t think this will translate into any real improvement in Aussie Bonds. The negative trend will continue for Aussie Bonds as the trend toward higher rates globally increases. Credit saw a slight improvement as swaps tightened to bond

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