Master Of The House

Last week, markets reacted positively to a meeting between Presidents Trump and Xi, leading to a détente in the US-China trade war. Key agreements included the US halving fentanyl tariffs and China delaying export controls on rare earths, while resuming soybean purchases. The US, however, secured no concessions on advanced chip access or Taiwan. Treasury Secretary Bessent criticized China's threat to withhold rare earths, highlighting US efforts to build alternative supply chains with allies. Deals have been struck with countries like Australia, Japan, and Vietnam, and a potential agreement with Brazil is being explored. The EU is also pursuing similar rare earth supply diversification strategies. In parallel, President Trump secured commitments from Japan and South Korea for capital investment in US shipbuilding, aimed at countering China's naval expansion. This initiative is seen as a "reverse Marshall Plan" to revitalize the US industrial base. Discussions are also underway to encourage other nations to adopt the US Dollar as their official currency, challenging the Renminbi's internationalization. The UK is contemplating a 20% "settling-up" tax on assets of emigrants to address budget deficits, exacerbated by projected productivity growth downgrades. This policy faces challenges due to Labour's manifesto pledges and difficulties in securing support for spending cuts. The UK's fiscal situation is approaching a critical point, potentially mirroring the Laffer Curve's economic principles. Meanwhile, New York City is considering electing Zohran Mamdani, a candidate advocating for price controls on essential goods and services, to be its next Mayor. This proposal, to be funded by taxing corporations and the wealthy, has drawn criticism from Donald Trump and concerns from Governor Kathy Hochul regarding potential outmigration. This situation also raises questions about the applicability of the Laffer Curve in an urban context.