As Nuno Rodrigo notes, the writer “El Pais” in his article suffered the biggest losses after a customs bomb. The marketplace capitalisation of the “Great Sevens” has totalled 1.5 trillion dollars since Thursday. Overall, what Rogrigo called a customs bomb resulted in the removal of $10 trillion from the market, which, according to his estimates, meant half of the European Union's GDP. He besides compared what happened to the 1987 analogy erstwhile the Black Monday crisis occurred. The losses were greater than during the announcement of the Covid-19 pandemic, the bankruptcy of Lehman Brothers or the year 1998.
Great 7 licks wounds
It turns out that the decline in the stock marketplace has spread in a variety of ways in the planet if you look at the scale of losses. And so the largest companies of the above mentioned “Great Seven” suffered. These include Apple, Google, Nvidia, Meta, Amazon, Microsoft and Tesla. What is even more interesting, as the author of the article points out – 5 of them participated in Trump's inauguration. There was Jeff Bezos – Amazon's director, Sundar Pichai from Google, Mark Zuckerberg from Meta, Tim Cook from Apple and close contributor Trump or Elon Musk. Only these 5 companies lost 1.26 trillion euros in 3 days. Apple suffered a failure of half a trillion dollars, Nvidia $385 billion, Amazon $262 billion. Tesla turns out to be the least lost due to the fact that it is the least valuable, not due to the fact that Musk is now closest to Trump. The percent of Apple lost a lot and in absolute value. This is logically linked to the increase in the price of equipment, produced entirely in Asia.
He besides loses the conventional economy
The MEGA customs policy besides hit the conventional economy. Before them, however, the Saudi oil company Aramco had lost 126 billion euros. And the conventional American economy includes JP Morgan, Eli Lilly, Berkshire Hathway, Visa, Exxon Mobil, Walmart, Bank of America. And yet they believe their advocate is Trump. All these companies lost €50 billion in full in 3 days. A Europe with smaller companies than these American companies has suffered little losses, specified as the British HSBC or Shell. Later is Siemens, Total, Novo Nordisk, Accenture and ASML. She was besides hit by Asia, including Alibaba from China, Toyota and Mitsubishi from Japan or TSMC from Taiwan.
Necessary negotiations and concessions
The author naturally argues that negotiations should be conducted and concessions should be made as this may lead to nervousness and instability. He concludes that "investors now face the anticipation that Pax Americana, an era of comparative stableness and global order under the influence of the United States after planet War II is coming to an end". And he quoted Muzinich & Co, an investment company whose CEO was the Undersecretary of Treasury in Trump's first term. It is so said that globalisation is at an end, due to the fact that if specified customs shocks can origin so much damage, we are besides going back to the fact that the Americans boast that representatives of 50 countries are coming to them with a proposal for bilateral agreements, most likely as an effort to show that China can be cut off from the influences, because, here, large America becomes the main direction for them again. However, this blow itself in digital revolution companies shows that the policy of MAGA alternatively of offering stability, unlimited profits, coupled with the profits of America itself, offers life at an even greater hazard and does not number on anyone, as Elon Musk himself reacted negatively to specified proposals.
Bartłomiej Doborzyński (Polish Barometer)
