President Trump pauses tariffs on Canada and Mexico for 30 days while China announces its own duties on certain US exports. Beijing also says it is adding two American firms to its so-called unreliable entities list, saying they “violated normal market trading principles” and is investigating Google. “These moves are warnings that China intends to harm US interests if need be but still give China the option to back down,” writes Julian Evans Pritchard, head of China economics at Capital Economics in a note.
US construction spending rose more than expecgted in December. A key driver of the gain was an increase in residential construction activity, which rose 1.5% in the final month of the year vs. a low 0.1% increase in non-residential spending.Climate change is expected to reduce home values by nearly $1.5 trillion over the next three decades, predicts a study by First Street Foundation. “Climate change is no longer a theoretical concern; it is a measurable force reshaping real estate markets and regional economies across the United States,” advises Jeremy Porter, First Street’s head of climate implications research.President Donald Trump on Monday signed an executive order that plans to establish a government-run sovereign wealth fund that could be used to buy TikTok. “We’re going to stand this thing up within the next 12 months. We’re going to monetize the asset side of the U.S. balance sheet for the American people,” U.S. Treasury Secretary Scott Bessent advised. “There’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people.”US manufacturing activity expanded in January, posting the first month of growth in nearly two years, according to the ISM Manufacturing Index. Another measure of US manufacturing activity also indicates growth last month via the S&P Global US Manufacturing PMI. “A new year and a new President has brought new optimism in the US manufacturing sector,” says Chris Williamson, chief business economist at S&P Global Market Intelligence. More By This Author:This Trade War Might Be The Straw That Breaks The U.S. Dollar’s Back.
Total Return Forecasts: Major Asset Classes – Tuesday, Feb. 4
Macro Briefing – Monday, Feb. 3