President Trump pulls the US out of the Paris Climate Accord; Markets Up
Today, despite a torn inner circle, President Trump announced his decision to pull out of the Paris agreement. World leaders quickly condemned Trump’s action, with Emmanuel Macron calling the agreement “irreversible”. Markets took the news surprisingly well with other macroeconomic data hitting the streets today and tomorrow. Here’s what we know…
$1 Departure from the Paris Climate Accord confirms Trump’s concentration on fossil fuels jobs. The attempted travel bans and today’s decision mark the single biggest wealth transfer the US has seen. Tech jobs on the west coast stand to considerably lose support as resources move to the midwest. Volatility may appear in both areas.
$2 Private payrolls came in today higher than forecasts. With the overall jobs report due tomorrow, most sectors ended higher. A positive report will add further fuel to the June rate hike speculation, high priority for banks.
$3 On Tuesday, shareholders won a fight against Exxon Mobile ($XOM), forcing the company to offer more transparency on climate change. This is a big example of the direction of industry running directly counter to this administration’s policies. With Elon Musk also quitting Trump’s advisory councils over the Paris Accord, we’ll how much sway CEOs have in Washington.
That’s all for now.