Andrew here. Lots of news this a.m. We dive into the latest in the U.S.-China trade battle, and JPMorgan Chase just announced a huge new financial commitment in the U.S.
I also spoke to Stan Druckenmiller by phone about the U.S.’s $20 billion bailout of Argentina’s economy. Some critics conjectured that Treasury Secretary Scott Bessent did this to rescue the investments of his friends on Wall Street. One of the people who was reported to have been a big holder of Argentina’s debt was Druckenmiller, who worked with him at George Soros’s investment firm. That speculation was wrong, Druckenmiller told me.
He had been a large holder of Argentina’s debt — past tense — in the spring and the summer, as indicated in a regulatory filing. But he told me that he sold out of his position before the U.S. government injected money, and therefore wasn’t a beneficiary of the rescue. Indeed, he said that unfortunately for him, he sold the very last part of his stake just before the announcement. “While I did not have a position in Argentina when the Treasury currency intervention was announced, I am rooting for Milei as a beacon of capitalism and think his success is absolutely in America’s interest,” Druckenmiller told me, referring to President Javier Milei of Argentina.
Trade trouble
S&P 500 futures, crypto and oil prices have all rebounded this morning as investors again pin their hopes on Washington and Beijing dialing back trade tensions.
That is a stark reversal from Friday’s sell-off after President Trump spooked markets by threatening to impose steep tariffs on China, apparently in retaliation for Beijing erecting new trade barriers on exports of rare earth materials and magnets.
The latest: Trump tried to calm nerves yesterday, writing “Don’t worry about China, it will all be fine!” on social media. He added that President Xi Jinping of China “doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”
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The post Investors Fear the Return of the U.S.-China Trade War appeared first on New York Times.
