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UK Tories riding high, US-China deal ‘done,’ but stocks remain confused

Written By | Dec 13, 2019
UK Tories, US-China deal

President Donald J. Trump, joined by G7 Leaders, attends the G7 Closing Session at the Centre de Congrés Bellevue Monday, Aug. 26, 2019, in Biarritz, France, site of the G7 Summit. (Official White House Photo by Shealah Craighead). Public domain.

WASHINGTON – US stocks continue to hover around the flatline Friday. In fact, as of approximately 1:30 p.m. ET, all three major averages are up (or down) less than 0.25%. The US-China deal is allegedly done. Boris Johnson’s UK Tories have nearly obliterated the UK Labour Party and its anti-Semites – for now. But US traders seem reluctant to enter the weekend with too many commitments on the books.

Also read: Trump claims China deal nearly in the bag. Mr Market jumps for joy

UK Tories, Boris Johnson, give Marxist Labour Party a Texas-style whooping

The Tories continue to celebrate their resounding victory in Thursday’s latest snap election for parliament virtually assures Great Britain’s Brexit is now for real and will take place on January 31, 2020 as Tory leader and PM Boris Johnson promised. This has already caused considerable shuffling in European markets, which for the most part headed for the upside Friday. The British pound is up nicely, and all’s right with the world.

Or at least with those who voted to confirm the already registered opinion of the UK’s stalwart Brexiteers. As for the rest? Namely, the defeated hard-core UK lefties in the Labour Party and elsewhere? Cue in the British version of America’s die-hard #NeverTrumpers and we get an unsurprising rerun of our own Election 2016 shenanigans. But this time, the Tories are in the radicals’ sights, as the Tylers of ZeroHedge duly note.

Is Britain’s Extinction Rebellion extinct? Probably not…

“Apparently, the British people have ignored the anguished shrieks from the Extinction Rebellion protesters, Stand Up To Racism rabble and other myriad constituencies of the British far-left about how ‘people WILL die!’ unless Jeremy Corbyn’s vision of society is imposed on Great Britain. Instead, the Tories have carried the biggest majority in decades,  …  and Corbyn has already announced his plans to quit, joining predecessor Ed Milliband on the scrap-heap of British political history.

“Yes, the people have spoken. And the result was a resounding rejection of Corbyn’s left-wing populist agenda. Though they wield a loud microphone on social media, the far-left doesn’t have the support of a majority of the people – or even a majority of the working class that young ‘democratic socialists’ claim to represent.

“Sadly, one of the traits of the modern-day left is that they are terribly sore losers. And instead of wishing Johnson luck and acknowledging and accepting that mistakes were made on their end, the radical left is encouraging everyone angry with the election results to join them in the street for a protest of ‘racist’ Johnson – and of democratic values themselves.… [A]lmost as soon as the results were official, Facebook events called for anti-Tory marches.”

ZH adds the following tweet to emphasize point.

Leftist dead-enders on both sides of the pond can’t stand democracy

Anti-democracy leftist clowns – on both sides of the Atlantic – are the sorest losers that ever lived. But it’s probably too much to hope that the dead-enders who keep voting for these Marxist-Socialist hacks will ever wake up and switch sides. That might permit both the exhausted Labourites and US Democrats alike to re-form their respective parties into something respectable. Not to mention becoming more representative of their constituencies.

It’s this near total Civil War situation throughout much of today’s Anglosphere that’s slowing to a crawl the West’s much needed and wanted robust economic recovery from its flirtation with socialism and globalism. But, having come so close to absolute victory on both sides of the Atlantic, both America’s and the UK’s Marxist Idiocrats just keep it up, ignoring the concerns of voters and businesses alike. This could drive even more disgusted, mostly “moderate” independents to throw in their lot with the Tories or Republicans. That certainly seems to be what happened in the UK vote Thursday.

Back to the impeachment circus in Washington, D.C.

On the US side of the pond, Jerry Nad-less, the portly, brain-dead, current chair of the House Judiciary Committee, sneaked in a late night vote which effectively sends his asinine pair of “Articles of Impeachment” out to the full House, presumably for a full vote next week. Like the UK’s Labour Party, the House Dems keep holding up important economic legislation to leave room for their ongoing and highly fake kabuki theater impeachment farce.

Sara Carter, Cocaine Mitch, Hannity, and a likely stillborn impeachment trial

Where’s it all going? Sarah Carter knows.

“In a rare interview on Fox News’ ‘Hannity’ Thursday night, Senate Majority Leader Mitch McConnell (R-KY) expressed certainty that President Donald Trump would stay in office despite the fact that there has yet to be a vote on impeachment. ‘There’s no chance the President’s going to be removed from office,’ McConnell told Hannity. Further, McConnell said he expects all Republicans and even some Democrats to vote against impeachment.

“‘This is a thoroughly political exercise. It’s not like a courtroom experience, it’s a political exercise. They’ve been trying to do this for three years. They’ve finally screwed up their courage to do it,’ McConnell said.

“He continued, ‘It looks to me like it may be backfiring on them particularly in swing districts that the Speaker’s party managed to win in order to get the majority. Most of the nervousness I see on this issue with politicians since it’s a political process is on the Democratic side.’

“House Democrats charged the President with abuse of power and obstruction of congress earlier this week.”

But even Cocaine Mitch probably can’t wrap up the latest insanity until sometime after the year-end holiday season. So it continues to haunt us. And traders and investors in US stocks.

More on that alleged US-China deal on trade

Those same traders and investors remain perplexed by the absolutely certain but continuously vague pronouncements and speculations surrounding the latest version of the US-China deal on bilateral trade issues. Or at least “Phase I” of that US-China deal. Which, I hope, is not going to turn out like the endless “phases” of the perpetual motion machine known as the Middle East “peace process” between Israel and what’s left of the fake country of Palestine.

Yet that’s probably what also concerns Friday’s traders and investors. As is often the case, between (among?) the UK Brexit election fallout for the Tories, the ongoing impeachment farce in Washington and the as-yet unsigned but for-sure US-China deal – “Phase I” – who really wants to lay down big bets that could get clobbered by some weekend surprise?

What are investors to do over another uncertain, headline-risk-likely weekend

We remain fully invested, but are holding on to some cash, pending whatever fresh surprise hell the headlines will hurl forth over the weekend. Maybe a new #NeverBoris movement in the UK. Maybe a new bimbo eruption on either side of the aisle here in Washington. Or maybe even some good news for a change.

Who knows? But headline risk still thwarts any attempt by rational investors to place informed bets on stocks with otherwise positive trajectories. Some political nonsense or a few fake headlines could obliterate those bets in a New York minute. Even as the Dow and the NASDAQ hit new record highs Thursday, we continue to see a nervous lack of confidence on Wall Street.

Maybe Santa can bring back a convincing rally before December 25. But it’s not happening today. So we’ll see you Monday. Or earlier if something breaks.

– Headline image: President Donald J. Trump, joined by G7 Leaders, attends the G7 Closing Session at the Centre de Congrés Bellevue Monday, Aug. 26, 2019, in Biarritz, France, site of the G7 Summit. (Official White House Photo by Shealah Craighead).
In the public domain.


Terry Ponick

Biographical Note: Dateline Award-winning music and theater critic for The Connection Newspapers and the Reston-Fairfax Times, Terry was the music critic for the Washington Times print edition (1994-2010) and online Communities (2010-2014). Since 2014, he has been the Senior Business and Entertainment Editor for Communities Digital News (CDN). A former stockbroker and a writer and editor with many interests, he served as editor under contract from the White House Office of Science and Technology Policy (OSTP) and continues to write on science and business topics. He is a graduate of Georgetown University (BA, MA) and the University of South Carolina where he was awarded a Ph.D. in English and American Literature and co-founded one of the earliest Writing Labs in the country. Twitter: @terryp17