Trump’s threat to shut down the government if Congress doesn’t vote funding to build The Wall unnerves Wall Street today

Trump’s threat to shut down the government if Congress doesn’t vote funding to build The Wall unnerves Wall Street today

We all know that getting Congress to pass a debt ceiling increase by September 29 and also to pass a budget or at least a continuing resolution to fund operations of the government past September 30 is going to be one long, hard lift.  But there’s nothing like a threat from the President to veto legislation to keep the government running if Congress doesn’t fund the construction of The Wall to focus attention on how hard that task is.

Odds on avoiding a government shutdown improve as White House backs away on demand to fund The Wall.

Odds on avoiding a government shutdown improve as White House backs away on demand to fund The Wall.

Last night President Donald Trump backed off his demand that any deal to fund the federal government include money to start construction on The Wall. At an event with conservative journalists, Trump said he’s okay waiting until September to have this fight. Which would seem to indicate that the President would sign a funding bill that doesn’t include money for The Wall.

Financial markets not willing, yet, to give up on Trump Trade

Financial markets not willing, yet, to give up on Trump Trade

After last week’s defeat of the American Health Care Act, the looming battle over funding the U.S. government past the April 28 deadline is critical. If the package that finally passes doesn’t include anything from the Trump administration’s wish list, then I think a financial market that has climbed on a belief in a big corporate tax cut and some kind of infrastructure plan, will start to lose some of the “animal spirits” that have driven U.S. stocks higher.

Mexico’s President Pena Nieto cancels next week’s meeting with President Trump

Let the negotiations begin! On one side U.S. President Donald Trump who wants to build a wall between Mexico and the United States (and have Mexico pay for it) and to renegotiate NAFTA. On the other side the Mexican government of President Enrique Peña Nieto, who, to generalize, doesn’t. Until today the two leaders were scheduled for a January 31 face-to-face meeting in Washington. And now they’re not.