The problem with having two news narratives running in the country simultaneously, is that real problems aren’t getting the attention that they deserve. Trump’s idiotic game with China and tariffs is causing an economic slowdown. MarketWatch:
The business environment is deteriorating — fast.
That is according to a gauge of business conditions tracked by Morgan Stanley, which said in a recent note that its proprietary Business Conditions Index, or MSBCI, fell 32 points last month, marking its sharpest collapse since the metric was formulated. The gauge touched its lowest point since the 2007-08 financial crisis. A separate composite business-condition index also fell by the most since 2008 and hit its lowest level since February of 2016.
Morgan Stanley’s report comes as stocks in June have mostly drifted higher in turbulent trading, with the Nasdaq Composite Index COMP, -0.70% entering correction territory on June 3, but gaining 6.3% since that point as of Friday morning trade, according to FactSet data.
Swirling anxiety around the U.S.’s trade relationship with China and other major international counterparts has hurt the confidence of business leaders because the unresolved tariff battles have made it difficult for corporate chieftains to develop business strategies and forced many companies to alter their supply chains.
Trump crows to his supporters about “billions of dollars coming in from China” because he flat out doesn’t know how a tariff works. His ignorance may insulate him for the moment but in the real world the games he’s playing have consequences, that other people will pay, in true Trumpian form.