The Only Defense Stock You Should Be Watching

In multiple wargames, U.S. forces were overwhelmed and unable to stop Chinese amphibious assaults from seizing the island. With tensions at a boiling point, the economic fallout could be devastating. Get the details on the weapons makers set to boom if war breaks out.

Round 2 in the Trump-vs-Mexico matchup looks ominous for Mexico

MARK STEVENSON and MARÍA VERZA
November 11, 2024

MEXICO CITY (AP) -- Mexico is facing a second Donald Trump presidency, and few countries can match its experience as a target of Trump's rhetoric: There have been threats to close the border, impose tariffs and even send U.S. forces to fight Mexican drug cartels if the country doesn't do more to stem the flow of migrants and drugs.

That's not to mention what mass deportations of migrants who are in the U.S. illegally could do to remittances -- the money sent home by migrants -- that have become one of Mexico's main sources of income.

But as much as this second round looks like the first round -- when Mexico pacified Trump by quietly ceding to his immigration demands -- circumstances have changed, and not necessarily for the better. Today, Mexico has in Claudia Sheinbaum a somewhat stern leftist ideologue as president, and Trump is not known for handling such relations well.

Back in 2019, Mexico's then-President Andrés Manuel Lopez Obrador was a charismatic, plain-spoken, folksy leader who seemed to understand Trump, because both had a transactional view of politics: You give me what I want, I'll give you what you want. The two went on to form a chummy relationship.

But while López Obrador was forged in the give-and-take politics of the often-corrupt former ruling party, the Institutional Revolutionary Party, or PRI, Sheinbaum grew up in a family of leftist activists and got her political experience in radical university student movements.

"Claudia is more ideological than López Obrador, and so the problem is that I see her potentially responding to Trumpian policies, whether it's, you know, organized crime or immigration or tariffs with a much more nationalistic, jingoistic view of the relationship," said Arturo Sarukhan, Mexico's former ambassador to the U.S. from 2007 to 2013.

Sheinbaum made a point of being one of the first world leaders to call Trump on Thursday to congratulate him after the election, but during the call Trump did two things that may say a lot about how things will go.

First, Sheinbaum said, Trump quickly brought up the border to remind her there were issues there. Then he asked Sheinbaum to send his greetings to López Obrador, with whom Trump said he had "a very good relationship." That might suggest that Trump believes that López Obrador -- the new president's political mentor -- is still in charge, a view shared by some analysts.

Sarukhan said he believes the fact that Sheinbaum is a woman and is from Mexico will be "a very important challenge, an issue out there as both of them get going in their relationship."

Not everything has changed for the worse: C ross-border trade has topped $800 billion per year and U.S. companies are more dependent than ever on Mexican plants.

But the U.S.-Mexico-Canada trade agreement, or USMCA, is coming up for review, and Mexico has made legal changes that Trump could seize on to demand a re-negotiation of parts of the deal.

Sheinbaum has suggested Mexico won't give in even if backed into a corner, saying "we obviously are going to address any problems that come up with dialogue, as a collaborative process, and if not, we are going to stand up, we are prepared to do that with great unity."

Standing up hasn't worked particularly well before. In 2018, Marcelo Ebrard was Mexico's top diplomat; former U.S. Secretary of State Mike Pompeo said Ebrard basically bent to U.S. demands to keep asylum seekers in Mexico and accept migrants back even if they weren't Mexicans.

Ebrard just asked that the deal not be made public to avoid embarrassing López Obrador, Pompeo wrote. (Ebrard later claimed he had avoided signing a much worse 'safe third country' agreement.)

Today, Ebrard is Mexico's economy secretary, and would lead Mexico's delegation in the scheduled 2026 review of the U.S.-Mexico-Canada free trade agreement, something that Trump has greeted with mirth ("I've never seen anybody fold like that," Trump once said of Ebrard.)

Ebrard on Thursday downplayed any risks this time around, saying e conomic ties between the two countries would keep Trump from closing borders or imposing tariffs.

"I am optimistic. Unlike other countries, we are the largest trading partner (of the U.S.), so, if you put up a tariff, that will have repercussions in the United States," Ebrard said. "I'm not saying it is going to be easy, because it is not at all easy, but the relationship with President Trump will be good because, what unites us? These numbers, this gigantic economy."

But some former diplomats say any argument that Mexico can avoid friction with the Trump administration is overconfident, and that 2025 is not necessarily going to be like 2019.

Martha Bárcena, Mexico's ambassador to the U.S. from 2018 to 2021, said she doesn't think Trump would back away from campaign promises to deport migrants who are in the country illegally. She said Mexican officials who believe Trump might temper his "campaign promises because Mexican migrants are necessary for the U.S. economy" are being overly optimistic.

"Mexico is looking at it through the lens of economic logic. The logic that the Trump campaign applies on immigration is a logic of national security and cultural identity issues," Bárcena said.

Some of Trump's biggest policy concerns - restoring U.S. jobs and the increasing rivalry with China -- also run through Mexico.

U.S. and foreign automakers have set up dozens of plants in Mexico, and some in the U.S. worry that Chinese companies could do the same to take advantage of existing trade rules to export Chinese cars or auto parts to the United States.

It doesn't help that Sheinbaum has pushed through López Obrador's policies aimed at eliminating independent regulatory and oversight bodies, and laws the U.S. government says could reduce the independence of the judiciary, both of which are required under the USMCA trade agreement.

"If they go ahead with the elimination of independent regulators and autonomous bodies, that's going to be a further violation of the USMCA," Sarukhan said. "And then that's going to make things even worse. Obviously, the big piece is going to be China and the Chinese footprint in Mexico."

That could lead Trump to demand the re-negotiation of all auto industry agreements under the trade pact.

As far as efforts to jointly combat the illegal drug trade -- such cooperation fell to historic lows in 2019 and 2020 -- there have been some modestly encouraging signs. Last week, Mexico announced the seizure in Tijuana of over 300,000 fentanyl pills after months when t he country's entire seizures had amounted to as little as 50 grams -- a couple of ounces -- per week.

Sheinbaum, who took office on Oct. 1, also appears to be tacitly abandoning López Obrador's strategy of not confronting drug cartels. But neither she nor her predecessor and political mentor could ever accept any Trump plan to send U.S. forces to operate independently on Mexican soil.

It remains to see how far Trump might go; he often makes only token gestures to carry through on threats. But Sarukhan noted, "I do think that he will talk loudly and carry a big stick."

Continue Reading...

Popular

Trump Won't Ask Haley Or Pompeo To Join New Administration

Donald Trump has announced that neither former Nikki Haley nor Mike Pompeo will be included in his new administration.

Elon Musk's Mother Does Harris Impression During TV Appearance

Maye Musk, mother of Elon Musk, has sparked a flurry of reactions following her controversial imitation of Kamala Harris on Fox Business.

Wall St Legend: Buy This Stock Before Inauguration - Ad

This is the best election year for stocks since 1936. But according to one 50-year insider, not everything is as rosy as it seems on Wall Street...

Proof Gold Could Hit $3K in 2025 - Ad

Stansberry Research just released a brand-new warning for what they believe will happen to gold in 2025. Even the most prepared Americans - including many retirees - could be blindsided by what's about to happen.

Trump Has Asked Me To Do 3 Things, Says Robert Kennedy Jr.

Robert Kennedy Jr. revealed Trump's directive to tackle health agency corruption, promote science, and end chronic disease.

Facebook and Instagram users in Europe can opt for less personalized ads

LONDON (AP) — Facebook and Instagram users in Europe will get the option to see less personalized ads if they don't want to pay for an , social media company Meta said Tuesday, bowing to pressure from Brussels over digital competition concerns.

What Are You Hiding Elon?? (Tesla's Secret 69% Dividend) - Ad

Tesla doesn't pay a traditional dividend.... But I just discovered a secret backdoor to collect a secret 69% dividend from Tesla... Which could put up to $7,013 in your pocket every month... Starting NEXT MONTH! But if you want in, you better hurry... A new income opportunity like this won't fly under the radar for long.

Who will buy Infowars? Both supporters and opponents of Alex Jones interested in bankruptcy auction

Infowars broadcasts could end next week as he faces a court-ordered auction of his company's assets to help pay the more than he owes families of victims of the Sandy Hook Elementary School shooting.

Sam Altman, Bill Gates and More Are Making Some Strange Investments - Ad

As a Silicon Valley insider, Michael Robinson's uncovered an even bigger story than AI... A mysterious investment that could be the savior of the tech industry. Big Tech executives -- including Sam Altman, Bill Gates and Mark Zuckerberg -- are throwing large sums of money at it. This is the next frontier of tech investing...

LA County sues Pepsi, Coca-Cola over plastic bottles

LOS ANGELES (AP) — Los Angeles County is taking on Pepsi and Coke for their role in plastic pollution.

If You Invested $1,000 In Apple A Decade Ago, Here's How Much You'd Have Now

A recent analysis looked at how a $1,000 investment in Apple Inc. would have fared, following the tech giant's latest earnings report and the launch of its new AI-driven features.

50-Yr Wall Street Vet: "Everything Just Changed" - Ad

50-year Wall Street legend reveals the exact stocks to buy -- and SELL -- before Inauguration Day.

What's Going On With Oklo Stock Tuesday?

Oklo Inc. (NYSE:OKLO) shares are moving lower on Tuesday, pulling back from a recent surge in which several nuclear stocks rallied for multiple trading sessions. Despite the pullback, Oklo shares are still up approximately 175% over the past month. Here's what you need to know.

Microsoft fires employees who organized vigil for Palestinians killed in Gaza

Microsoft has fired two employees who organized an unauthorized vigil at the company's headquarters for Palestinians killed in Gaza during Israel's war with Hamas.

Wall Street Insider Issues Crash Prediction - Ad

As AI stocks stumble/swing, Whitney Tilson just went on camera once again with his latest crash warning. If you have money in a single stock right now -- especially a tech stock -- you need to see what he's calling for today.

Warren Buffett's Apple Stake Reduction Spurs $97B Cash Surge—Analysts Speculate This Could Be The Reason Behind Berkshire Hathaway's Massive Cash Pile

Warren Buffett, the legendary investor, has made a significant move by reducing his stake in Apple Inc. (NASDAQ: AAPL) and other stocks, generating a whopping $97 billion in gains for his company, Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B).

Will people leave Florida after devastating hurricanes? History suggests not

ORLANDO, Fla. (AP) — The news rippled through Treasure Island, Florida, almost like a third storm: The mayor planned to move off the barrier island a month after flooded tens of thousands of homes along the Gulf Coast and two weeks after also ravaged the state.

Is This Nvidia's Secret Weapon? - Ad

You've likely heard about Nvidia's incredible success in AI. But without this startup's technology, Nvidia's groundbreaking AI chips simply wouldn't be possible. It's still flying under the radar. That could change very soon with a major announcement on the horizon.

US Stock Market's Equity Risk Premium Disappears: Should You Sell Now?

"We are now just 10 basis points away from the Equity Risk Premium shifting negative," David Rosenberg says.

What's Going On With Shopify Stock Monday?

Shopify Inc. (NYSE:SHOP) shares are trending and moving higher on Monday. The company is due to release earnings before the market opens on Tuesday. Here's what you need to know.

Forget Nvidia, Apple, Tesla, and Google - Ad

Market Wizard Larry Benedict: "Forget 99% of stocks: It's possible to make all the money you need for a happy retirement with just this one."

Tim Cook Underscores 'Several Positive Signs' In Apple's China Performance, Refrains From Talking About Economic Stimulus: 'Don't Want To Ad-Lib On The Effect Of It'

Apple CEO Tim Cook expressed cautious optimism about Apple's stable performance in China, highlighting record-high active devices and strong sales, while declining to speculate on the impact of China's economic stimulus.

Florida Rejects Cannabis Legalization Amendment Supported By Trump, Detested By DeSantis

Florida voters reject marijuana legalization initiative with 55.8% yes votes, despite star-studded endorsements. Industry responds: progress still needed.

Warning: New Tech Breakthrough Threatens to Send Stock Market Tumbling - Ad

Apple, Microsoft, Amazon, Alphabet, Meta, NVIDIA, and Tesla could be in a world of pain because of this new shocking discovery. In this new exposé, Porter Stansberry shares everything you need to know.

Retrial of military contractor accused of complicity at Abu Ghraib soon to reach jury

ALEXANDRIA, Va. (AP) — A jury could begin deliberations as soon as Thursday on whether a Virginia-based military contractor bears responsibility for the abuse of detainees 20 years ago at Iraq's infamous Abu Ghraib prison.

Elon Musk Wants Uranium... But This $3 Million Miner Could Beat Him to It! - Ad

While tech giants like Elon Musk are pouring billions into nuclear energy, a tiny firm selling for less than $1 has quietly secured land in Canada holding some of the richest uranium deposits ever discovered. With energy demand skyrocketing, this tiny company could soon make big waves in the market.

Colorado teen fights kidney failure after eating McDonald's Quarter Pounders

A 15-year-old high school freshman is hospitalized with severe complications of food poisoning after eating McDonald’s Quarter Pounder hamburgers three times in the weeks before was detected.

This Weight Loss Drug Loophole Is Set to Make Investors Incredibly Wealthy - Ad

Thanks to this rare FDA loophole, the world's most in-demand weight loss drugs have effectively just gone "off patent" for a short amount of time... Creating a once-in-a-lifetime profit window for investors.

At least 11 employees injured in explosion at Kentucky business

LOUISVILLE, Ky. (AP) — At least 11 employees were taken to hospitals and residents were urged to shelter in place on Tuesday after an explosion at a Louisville, Kentucky, business.

For nearly a decade, climate talks have been hashing out so-called Article 6. But what is it?

BAKU, Azerbaijan (AP) — After nearly a decade of negotiations, leaders during the United Nations climate conference's first day decided on some of the finer points of much-debated sticking point aimed at cutting planet-warming emissions from coal, oil and gas.

AI Warning: A Strange Force Overtakes U.S. Stocks - Ad

As AI stocks stumble/swing, Whitney Tilson just went on camera once again with his latest crash warning. If you have money in a single stock right now -- especially a tech stock -- you need to see what he's calling for today.

A New York City law used to padlock suspected illegal pot shops is ruled unconstitutional

A law that New York City has relied on to padlock scores of suspected unlicensed marijuana shops is unconstitutional because it violates the rights of store owners, a judge ruled Tuesday.

Why Is Elon Keeping This Tesla Income Strategy Under Wraps? - Ad

Elon Musk has a lot of secrets... but here's one you won't believe: While Tesla doesn't pay a traditional dividend, there's a hidden way to collect up to 69% income from this stock every single year. Wall Street's just starting to catch on to this income opportunity, and it's only a matter of time before everyone else follows.

Elon Musk Is Already Eyeing 2026 Midterms, Plans To Expand Pro-Trump PAC Beyond Current Election: 'There's A Sea Change In The Country'

Elon Musk announced plans to extend his pro-Trump super PAC beyond the 2024 election, aiming to influence the 2026 midterms and local races, signaling his continued political involvement and vision for change in U.S. governance.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright activatrade.ca
Privacy Policy | Terms of Service