Happy Wednesday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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THE BIG DEAL–Trump touts China actions on trade one day after markets crumble: President Trump on Wednesday tried to reassure jittery investors by touting his trade ceasefire with China, expressing confidence a broader deal will be reached.
The messages come one day after Trump’s warning to Beijing that he is a “Tariff Man” sent stocks tumbling and raised fresh doubts about his truce with Chinese President Xi Jinping.
“Not to sound naive or anything, but I believe President Xi meant every word of what he said at our long and hopefully historic meeting. ALL subjects discussed!” Trump tweeted, referring to their trade negotiations at the Group of 20 summit last weekend in Argentina.
The president pointed to a Bloomberg News report that China agreed to begin implementing certain trade reforms and purchasing U.S. products, such as soybeans and liquified natural gas. Beijing also confirmed for the first time that there is a 90-day timeline for negotiations with Trump.
“Very strong signals being sent by China once they returned home from their long trip,” Trump tweeted. The Hill’s Jordan Fabian tells us what it means here.
Trump’s declaration was met with a positive sign from Beijing, as the Chinese Commerce Ministry on Wednesday said that it’s “confident” it will be able to implement new trade terms negotiated with the U.S., though it provided few other details.
Reuters reported that the ministry posted a statement on its website noting that China and the U.S. will work to “actively promote the work of negotiations within 90 days,” adding that the two sides have a “clear timetable and road map.”
But don’t forget – Trump also doubled down on this threats in a tweetstorm Tuesday night, insisting “We are either going to have a REAL DEAL with China, or no deal at all – at which point we will be charging major Tariffs against Chinese product being shipped into the United States.”
Let’s see which Twitter string fits the situation on Thursday.
LEADING THE DAY
GM chief kicks off Capitol Hill blitz: General Motors CEO and Chairman Mary Barra on Wednesday kicked off two days of high-stakes meetings with lawmakers as she defends her company’s plans to close up to four U.S. factories and lay off almost 15,000 employees
Barra on Wednesday met with Ohio Sens. Sherrod Brown (D) and Rob Portman (R), and Rep. Tim Ryan (D), who are fighting to prevent GM from closing its Lordstown, Ohio factory. The company plans to shutter the Lordstown plant in March, jeopardizing 1,600 Northeast Ohio jobs.
Her packed schedule also included meeting with Senate Minority Leader Charles Schumer (D-N.Y.) and Democratic Reps.-elect Rashida Tlaib, Elissa Slotkin and Andy Levin from Michigan. During her two-day visit, she is also meeting with lawmakers from Maryland.
Barra’s visit is a very public step in what promises to be an arduous battle for the iconic American automaker as it looks to tamp down the backlash from politicians, including President Trump, over the planned cuts.
Barra walked into a lion’s den on Capitol Hill amid widespread public anger and with lawmakers and Trump floating proposals that would seek to block GM from its cuts or even punish the company if it follows through.
On Wednesday, she stuck by the company’s plans even as she tried to calm the anger from lawmakers. I’ve got the details here.
Wages rising moderately, but tariffs hitting businesses: Fed: Wage growth in the United States has “tended to the higher side of a modest to moderate pace,” according to a new report from the Federal Reserve, even as tariffs have begun to bite into businesses’ bottom lines.
The central bank’s “Beige Book,” a compilation of economic reports from the 12 Federal Reserve district banks, found that businesses were facing a tight labor market, and having trouble attracting and retaining workers.
As a result, wages were starting to heat up. Businesses were also putting more money toward other benefits, such as health insurance, vacation and profit-sharing.
Some workers are even ghosting their bosses.
“Several Chicago firms reported that some employees have simply quit — with no notice nor means of contact,” the report noted in a pointed example. The Hill’s Niv Elis breaks down the report here.
GOOD TO KNOW
- The chief financial officer of China’s Huawei Technologies, who faces extradition to the U.S. for charges she violated trade sanctions against Iran, was reportedly arrested in Canada.
- Rep. Peter DeFazio (D-Ore.), who is expected to be chairman of the House Transportation and Infrastructure Committee next year, said Wednesday that Democrats are willing to work with President Trump on an infrastructure package, even if a deal on transportation would give the GOP president a win.
- The Department of Justice (DOJ) on Tuesday charged four people, including one U.S. citizen, with an array of financial crimes in connection to the Panama Papers, the 2016 leak of documents involving various powerful people around the globe.
- A majority of New Yorkers surveyed say they support Amazon’s plan to build part of its new headquarters in Queens, though city residents are divided over how they feel about the nearly $3 billion incentive package that city officials offered to attract the tech giant, according to a new poll.
- Lawmakers are fired up after Marriott International suffered what is believed to be the nation’s second-largest data hack, in which hundreds of millions of its customers had their personal data stolen.
ODDS AND ENDS
- A Saudi-funded lobbyist paid for 500 rooms at Trump’s D.C. hotel after the 2016 election, according to the Washington Post.