Trump’s travel ban – another shakeup amongst many
Trump’s executive order, signed last Friday, known as the ‘travel ban’, is designed to temporarily suspend travel to the U.S. from ‘high risk’ countries; a summary of the above video, originally posted by The Telegraph is as follows:
- The travel ban bars citizens from Libya, Sudan, Somalia, Yemen, Syria, Iraq and Iran from entering the U.S. for 90-days
- Refugee admissions suspended for 120 days with exceptions
- Preference for christians over muslims
- 50,000 refugees allowed into the US in 2017
- Indefinite suspension of Syrian refugees
- Aims to keep ‘radical islamic terrorists’ out of the US
Aside from widespread domestic and global protest, the move has put markets back into a state of uncertainty. The gold price, and market indicators, have been in constant flux since Trump’s election, moving in reaction to every administration policy announcement.
Following the weekend lull the gold price saw gains on Monday. The Comex division of the New York Mercantile Exchange rose 0.4% by early trade hours, as confidence was shaken by Trump’s controversial ban, decried by business figures and politicians alike.
The financial pages have reported on the reaction to the ban. Sir Martin Sorrell, CEO of the world’s biggest advertiser, WPP, was quoted in City AM as having ‘an instinctive dislike of such measures’. The paper also reported on Amazon and Expedia backing a lawsuit brought by the state of Washington to challenge the travel ban and Starbuck’s boss Howard Schultz’s statement that he would ‘hire 10,000 refugees over the next five years’. The report also mentioned the concerns of Citi boss Michael Corbat.
The pattern of unnerving presidential announcements since Trump’s inauguration 11 days ago, has left markets largely unsettled.
Policies such fiscal stimulus plans, the repealing of two regulations for every one implemented, and corporate tax cuts are exciting them. However, trade protectionism, the travel ban and inflammatory diplomatic rhetoric are causing uncertainty. It’s true that the S&P 500 and the dollar both rallied upon his electoral victory, but dissonant economic policies seem to be confusing investors each time a new one is revealed, and the macro indicators reflect this.
The gold price has risen and fallen depending on the nature of the policy. The hope, held by many market commentators, that Trump’s presidency would not mirror his rhetorical and reactionary campaign appears unfounded.
In fact, his outlandish and incongruent campaign promises are now coming to pass realised although some have been tempered by outcry.
Like much else, the gold price is currently hostage to Trump’s presidential decrees. Until a greater variety of policies are unveiled to provide a gauge of the new administration, it will be difficult to tell what the US economic climate will look like overall. Until then, another controversial proposal will just be one shakeup amongst many, and speculation about the direction of commodities and precious metals will have to remain tentative in either direction.
Link to this article: : http://www.goldmadesimplenews.com/analysis/trumps-travel-ban-another-shakeup-amongst-many-12885/