At Marketing Wiz, our team actively monitors global financial markets to contextualize relevant stories for our clients and their stakeholders. This September, here are three themes that can serve as the foundation for a custom long-form article on behalf of your firm:
Payback Time: Court Finds Trump Tariffs Illegal
- In a significant blow to Trump’s economic agenda, a federal appeals court determined that a wide range of the president’s recent tariffs are illegal. The court found that the Trump administration’s use of executive orders to implement tariffs overstretched the authority approved by Congress.
- Most concerningly for the administration, the US government may be faced with the task of refunding over $100 billion in already collected tariffs. Such a scenario would raise further concern about the state of America’s already stretched public finances.
- For now, the court allowed the tariffs to remain in place, giving the Trump administration the chance to further appeal to the Supreme Court. If the tariffs are ultimately found illegal, the president may seek to re-implement them through Congressional legislation.
Hitting Rewind: The Unexpected Commercial Paper Resurgence
- Before the financial crisis of 2008, the commercial paper market was a critical source of short-term corporate borrowing. Companies would issue commercial paper to access unsecured funding for periods of roughly 30 to 90 days.
- In an unexpected comeback, commercial paper activity is soaring once again, with borrowing hitting levels not seen since 2006. As long-term rates have risen, companies have retreated toward the short end of the yield curve to secure lower borrowing costs.
- While reduced interest costs may benefit shareholders, growth in commercial paper could help fuel underappreciated risks. If credit turmoil causes funding markets to freeze, companies could face challenges rolling over their commercial paper borrowing – just as in 2008.
Art of the Deal: US Government Takes Intel Stake
- In a move that could have profound implications for the future of American industrial policy, the Trump administration announced that the US government would take a 9.9% stake in chipmaker Intel. The deal converts about $11 billion in government grants and funding into equity holdings.
- Outside of wartime and national crises, it is highly unusual for the US government to take equity ownership in a private firm. Nonetheless, supporters argue that the Intel deal is critical for national economic security, especially given the firm’s tentative plans to scale back US chip production.
- For investors, the deal results in a complex trade-off. While support from the US government could be invaluable, Intel may soon be asked to sacrifice profitability in pursuit of a public mission.
Interested in building out long-form collateral relating to any of these themes? We invite you to reach out to our team today for a discussion of our custom content capabilities.
Craig Hall is founder and president of Marketing Wiz, a financial marketing firm specializing in the independent wealth management space.
