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RNZ News
8 hours ago
- Business
- RNZ News
From TACO to FAFO, investors love parodies of Trump acronyms
By Stephen Culp and Suzanne McGee , Reuters US President Donald Trump is seen on a TV screen below a display showing the German Stock Market Index DAX at the stock exchange in Frankfurt, Germany, on 3 April 2025. Photo: DANIEL ROLAND / AFP Four months into US President Donald Trump's second term, market observers have taken a cue from his fondness for condensing slogans into catchy acronyms like MAGA, DOGE and MAHA, and devised a few of their own that have been spreading across trading desks. Even those acronyms that do not directly reflect a specific trading strategy still capture factors that traders say are important in Trump-era markets, such as volatility and uncertainty, that investors need to consider, when making decisions. Some new labels are associated with investment strategies that aimed to capitalise on Trump's economic and trade policies, and international relations goals. Others riff off economic implications or his abrupt U-turns, as markets and trade partners react to his proposals. The 'Trump Trade' that played on the Make America Great Again theme after his November election victory and January inauguration, and contributed to record highs on Wall Street in February, is hardly discussed now that stocks, the dollar and Treasury bonds have succumbed to worries about his tariff policies . "Post the election, we heard a lot about YOLO [You Only Live Once], which seemed to promote taking outsize risks in a concentrated investment theme," B Riley Wealth strategist Art Hogan said. YOLO is an acronym used to describe the tendency that was part of the Trump trade to chase high-momentum strategies, such as cryptocurrency. "While the term YOLO was popular for a period of time, it goes against all traditional advice," Hogan said. Here are of few more acronyms that have played in the investment world in recent weeks: Coined by a Financial Times columnist, this one has been used as a way to describe Trump's to-ing and fro-ing on tariffs after his 2 April 'Liberation Day' speech. When asked about TACO in a recent press conference, the president lashed out, calling the question "nasty". "Where we end up might not be too far from what he promised on the campaign trail, so does he always chicken out?" AllianceBernstein fixed income portfolio manager Christian DiClementi said. "I wouldn't go as far as to say that. "I think he wants to rebalance the economy without pushing it off a cliff and we're watching that being executed in real-time. I think some of the ideas are thought out and some of them change on the fly." First coined last year to address European competitiveness, MEGA has resurfaced this spring as a way to describe the flurry of investor interest in and flows into European markets. Spoofing their MAGA counterparts, MEGA hats are easily purchased online. It's been revived by investors and traders in light of the outperformance of European stocks in the immediate aftermath of Trump's 'Liberation Day' tariffs bombshell. While the original Trump Trade was also known as the MAGA trade, this variation cribbed the president's motto, first appearing in response to Vice President JD Vance's brief and unfruitful visit to Greenland , the autonomous territory of Denmark, which Trump has expressed interest in annexing. At least one Canadian investor says that quip is making the rounds of trading desks in Toronto and Montreal, and sparking "wishful thinking" about simply boycotting US investments. Although the acronym also came into being well before Trump's inauguration, it is heard with increasing frequency in trading desk conversations. It is used to capture the financial market's volatility and chaos that Trump's policymaking process has created. Potomac River Capital LLC chief investment officer Mark Spindel described the market as caught in a "pinball machine as a result of that policymaking process". When reached for comment, White House spokesman Kush Desai said "these asinine acronyms convey how unserious analysts have consistently beclowned themselves by mocking President Trump and his agenda that've already delivered multiple expectation-beating jobs and inflation reports, trillions in investment commitments, a historic UK trade agreement and rising consumer confidence." - Reuters
The Guardian
a day ago
- General
- The Guardian
Chaos on German autobahns as Google Maps wrongly says they are closed
Confusion reigned on German autobahns and highways at the start of one of the busiest holiday breaks of the year on Thursday, after Google Maps indicated wrongly that vast swathes of them were closed. People using the navigation service around major conurbations such as Frankfurt, Hamburg and Berlin on motorways between western, northern, south-western and central Germany were confronted with maps sprinkled with a mass of red dots indicating stop signs. The phenomenon also affected parts of Belgium and the Netherlands. Those relying on Google Maps were left with the impression that large parts of Germany had ground to a halt. The situation was compounded by the fact that large numbers of Germans were on the road at the start of a four-day break for the Ascension holiday. The closure reports led to the clogging of alternative routes on smaller thoroughfares and lengthy delays as people scrambled to find detours. Police and road traffic control authorities were forced to answer a flood of queries as people contacted them for help. Drivers using or switching to alternative apps, such as Apple Maps or Waze, or turning to traffic news on their radios, were given a completely contrasting picture – reflecting reality – with traffic mostly flowing freely on the apparently affected routes. In ganz DeutschlandChaos bei Google Maps: Dienst zeigt unzählige falsche Sperrungenhttps:// Users took to social media to query the situation, as well as to vent their frustration. 'They can't have closed ALL the motorways,' one user said. 'It's like the autobahn system has suffered an acne outbreak,' quipped another. Some speculated over whether there had been a major terror incident, others suspected the intervention of a foreign state in a hack attack. The cause of the digital navigation breakdown is still unclear. Sign up to This is Europe The most pressing stories and debates for Europeans – from identity to economics to the environment after newsletter promotion A spokesperson for Google told German media it was sifting through the information trying to ascertain what had happened. He said once alerted to the irregularities by users, who are able to report suspected errors, the service started checking on and removing incorrect closure signs. He said: 'We cannot comment on specific cases.' He emphasised that the information is gathered from three main sources – a mix of third-party providers, public sources such as transport authorities, and the input of individual users. The map data is updated constantly, though the speed of this varies, he said. 'In general, these sources yield a strong basis on which comprehensive and up-to-date map information is based,' he said. Road users were advised to check more than one source of information when planning future journeys.
Daily Mail
a day ago
- Business
- Daily Mail
Chelsea are STILL 'hoping to sign £84m-rated Bundesliga star' despite closing in on Liam Delap - as Blues seek to bolster attacking options
Chelsea are reportedly keen to still sign Eintracht Frankfurt striker Hugo Ekitike despite closing in on a deal for Liam Delap. Mail Sport reported on Thursday how the Blues, still riding high off their Conference League triumph, are set to win the race to sign Ipswich forward Delap. The 22-year-old had major interest from Man United, Newcastle, Nottingham Forest and Everton, but he will link up with his former Man City youth coach Enzo Maresca and sign a long-term contract after Chelsea reached an agreement over his £30million release clause. With the pending addition of Delap to complement Nicolas Jackson in attack, it was expected in some quarters that Chelsea's summer business would now focus on other areas after they had been linked to Ekitike. However, according to Sky Sports Germany's Florian Plettenberg, the Delap transfer does not impact their interest in the young French striker. The report claims Chelsea are still pushing to sign Ekitike, although they face competition from several clubs, including Liverpool, who have held talks over his signing. Ekitke joined PSG as a 20-year-old after impressing at Reims, although he struggled for gametime at the Parc des Princes. But since moving to Germany, Ekitike has shown just why he is so highly rated - and he has scored 22 goals and added 12 assists in 48 games this season. Chelsea are believed to be ahead of their domestic rivals in the battle for Ekitke, who is valued at €100million (£84m) by Frankfurt. This is because Liverpool are focused on completing the additions of Bayer Leverkusen pair Jeremie Frimpong and Florian Wirtz. Meanwhile, despite Maresca favouring a system that has just one striker, Ekitike may not be the only addition on top of Delap. The Blues are also reportedly attempting to complete a deal to sign Strasbourg forward Emanuel Emegha. Emegha, a Netherlands Under 21 international, has netted 14 times in 27 Ligue 1 matches in 2024-25 and a potential move to Chelsea could come in 2026. Meanwhile, as part of the Delap transfer, talks are also ongoing over the possibility of Chelsea forward Marc Guiu going to Ipswich on loan in a separate deal. Maresca is believed to have spoken with Delap as Chelsea pitched their project after he was given permission by his club to speak with suitors. Personal terms are expected to be a formality. Ipswich paid £20m when they signed Delap from City last summer, and Pep Guardiola's side will bank 30 per cent of the fee as per their sell-on clause. The Blues are keen to get their business done early, with FIFA having introduced a June 1-10 transfer window before the Club World Cup. That tournament clashes with the Under-21 European Championship in Slovakia this summer, but Chelsea would have the power to keep Delap with them if he is signed. Delap scored 12 Premier League goals for Ipswich as they were relegated to the Championship.
Daily Mirror
a day ago
- Business
- Daily Mirror
Liverpool dealt transfer blow after Chelsea reach striker agreement over rivals
Liverpool are keen to add new faces to their side this summer with Florian Wirtz and Jeremie Frimpong among those who could be signed but the Reds have stumbled into an issue with another Bundesliga star Chelsea are not ready to shelve their transfer interest in Hugo Ekitike, despite agreeing a deal to sign Liam Delap. Liverpool manager Arne Slot had already identified the Eintracht Frankfurt striker, with talks progressing over a move. He was seen as a possible replacement for Darwin Nunez - the Uruguayan striker having been linked with an Anfield exit over the coming months. But it appears that a move to Merseyside is no longer the only option for Ekitike if he wants to make the move to England. According to Sky in Germany, the forward is being eyed by Premier League rivals Chelsea. It is suggested that the Blues are still pushing for his signing despite also being on the verge of sealing a deal for Liam Delap. Chelsea have decided to activate a £30m release clause written into his contract at Portman Road. Manchester United were previously credited with an interest but now appear to have fallen behind in the race for Delap. The former Manchester City forward has enjoyed a productive debut campaign with Ipswich having netted 12 goals despite the club's instant return to the Championship. Ekitike, 22, has also shone this term having netted on 22 occasions in all competitions for Eintracht Frankfurt. Speaking recently, former Frankfurt CEO and current board member, Axel Hellmann, confirmed there was Premier League interest in Ekitike. He said: 'I would love to have him at Frankfurt for another ten years, if possible. 'But we are realistic. He is one of the best high-potential players in Europe at the moment and he is only 22. That means he has a great future. 'He is a clever guy. He loves to listen and learn. I would love him to stay another couple of years. But the market is the market and half of the Premier League clubs are interested in signing him.' He added: 'Besides the Premier League, there are other markets for him that he has opened doors to with his performances. I think he would also fit in other leagues and with big clubs in Southern Europe.' Ekitike started his career with French side Reims before he made a big-money move to Paris Saint-Germain. He was loaned to Frankfurt last term, with the German club activating a permanent option in the deal. He still has four years left to run on his contract. Away from Ekitike, Liverpool look set to sign two of his Bundesliga colleagues. Jeremie Frimpong has flown to the UK to undergo a medical, while his Bayer Leverkusen team-mate Florian Wirtz has also been identified as a major target.
Forbes
a day ago
- Business
- Forbes
The End Of Privilege - Has The Dollar Peaked And Can The Euro Replace It
A bunch of American dollars banknotes (1$), US, circa 1985. (Photo by) In the last week, I have fielded questions from audiences in Frankfurt and Dublin on the net effect of Donald Trump's economic policies on investment portfolios. Such is the day to day rhythm of policy chaos that many investors likely overestimate the effect of Trump on markets, and the oddity is that as I write, US equity and bond markets are at roughly the same levels they traded at in March….though investor confidence has taken a battering. Indeed, the luxury of financial markets is that some of the risks that Trump has unleashed can be hedged, whereas it is harder for societies, economies, and the body politic to offset the implications of his behaviour on foreign direct investment flows and the quality of political debate for example. From an investment point of view, I term the net effect of Trump on portfolios as 'The End of Privilege' which is to say that the idea of US assets in general and the dollar in particular befitting from what Giscard d'Estaing had famously referred to as 'exorbitant privilege' is coming to a slow end. In concrete terms we can expect investors to question the role of US Treasuries as a safe haven, and for the dollar to slowly weaken (from a very expensive level) over time. The set of economic policies that Trump is pursuing are confusing and damaging to long term American growth and the fabric of its society (his 'big, beautiful' budget bill will disproportionately favour wealthy over poorer households). Moreover, any sense of accountability has been snuffed out and corruption is shamelessly creeping into public life (Evan Osnos' article in the New Yorker on this topic is excellent). In short, America risks taking on the economic traits of a badly run emerging economy (look at how the Turkish lira and bond market have performed in the past five years as an extreme comparison). To take the long view, Trump has decisively smashed the Bretton Woods system that had elevated the US financial system to be first amongst equals. The Bretton Woods conference was a tussle between Britain and America to shape the new world financial order and with it, bodies like the IMF. The US was very much the winner, and effectively the meeting formalised the transfer of 'world power' from Britain to the US, or as Keynes (Britain's chief negotiator) wrote to his mother 'In another year's time we shall have forfeited the claim we had staked out in the New World and in exchange this country will be mortgaged to America'. Keynes job was to negotiate a deal for Britain that would rescue it from 'losing face altogether and appearing to capitulate completely to dollar diplomacy.' From this point onwards, American financial dominance grew, manifested in the broad international use of its currency which has risen to a very particular place as the linchpin of the financial system. Indeed, one of the most important tenets of the twentieth-century world order and the rise of globalization has been the position of the dollar as the international reserve currency. The dollar has become so important to the financial system, that two economists (Pierre-Olivier Gourinchas and Hélène Rey) have taken the notion of 'exorbitant privilege' a step further in a relatively recent paper, and introduced the idea of 'exorbitant duty', which refers to the role that the dollar and US financial system play in times of crisis as the provider of a safe haven, even when those crises emanate from the US itself. Alarmingly, there is a section in the trump budget (sec. 899) that permits the administration to tax holders of US assets in certain circumstances, which can only erode confidence further. The question then is which assets and currencies stand to benefit from a less 'privileged dollar'. First, my sense is that when something goes wrong in emerging countries like Turkey, capital flows to countries like Switzerland (simply because much of it is held by a small number of individuals). As far as much greater institutional flows are concerned, the obvious destination should be the euro-zone. But, this is not the case. At the end of 2024, I spent a week in Singapore and also the UAE and was surprised by the number of investors who considered the euro-zone as barely investable, this might reflect some ignorance on their part, but it is also redolent of a greater problem of international credibility for the euro-zone. In that context I was interested to see that Christine Lagarde, the president of the ECB gave a very good speech on currencies in Berlin on Monday 26th, entitled 'Earning Influence – lessons from the history of international currencies'. In the speech she noted three properties of dominant currencies – they are issued by large economies (zones), they have deep pools of financial assets which foreigners can buy and they are backed by sound legal systems. There are two important contemporaneous facets to the speech – the first is the expectation that the actions of the Trump administration will structurally weaken the dollar and the second is the very grown-up admission by the ECB president that the euro-zone (Bulgaria will become a member in 2026) has failed to deepen its capital markets and become the provider of safe assets in an increasingly unsafe world. The backdrop to these comments is a renewed push by the euro-zone on capital markets union, or the savings and investment union (SIU) as it is now called. In essence it has three components – single regulators across EU financial services, the creation of poles of expertise in different EU financial capitals (i.e. Amsterdam is the equity hub, Paris is where PE is, etc) and the sanctioning of retail savings and pensions flows into private assets. In many respects, SIU is a strange phenomenon – a policy critical to the future of Europe that most Europeans have very little attention span for (who would blame them). Apart from the releasing of hundreds of billions of euros in German savings banks for example, into private and private investments, what Europe also needs is a structural shift in the appetite for risk. For that to happen, we might need a European Donald Trump.
