Trump’s Economic Blueprint: A Four-Year Plan?

China wrapped up its “Fourth Plenum” this Thursday, outlining its developmental blueprint for the next half-decade. The focus is on bolstering domestic consumption, achieving technological self-sufficiency, and fortifying the agricultural and manufacturing sectors – a strategic pivot amidst ongoing global economic shifts.

Meanwhile, in the U.S. – traditionally seen as the bastion of free-market capitalism – subtle but increasingly visible signs of government influence are emerging. These interventions, while perhaps less overt than China’s centralized planning, are nonetheless reshaping the economic landscape.

For example, Intel recently announced third-quarter revenue that exceeded analysts’ predictions, fueling a 7.7% jump in after-hours trading. The chipmaker cited a recovery in processor demand as a key driver. However, market analysts are carefully watching the implications of the U.S. government’s recently acquired 10% stake in Intel, a move aimed at bolstering domestic semiconductor production.

The government’s investment, while potentially beneficial to Intel’s long-term growth and U.S. technological competitiveness, also introduces complexities. Some analysts express concerns about potential conflicts of interest, the impact on Intel’s operational independence, and the accounting challenges stemming from government equity participation. The initial surge in Intel’s stock price following the investment has led to substantial paper gains for the government, a factor that President Trump has publicly highlighted.

In other news, President Trump issued a pardon to Binance founder Changpeng Zhao, who was convicted in April 2024 for facilitating money laundering on the cryptocurrency exchange. The pardon has ignited controversy, given the ongoing debate about regulatory oversight of the crypto industry and concerns about illicit financial flows.

When questioned about the rationale behind the pardon, President Trump stated, “A lot of people say that he wasn’t guilty of anything. And so I gave him a pardon at the request of a lot of very good people.” This statement has drawn scrutiny and fueled speculation about potential connections between the Trump administration and the crypto industry.

Furthermore, reports surfaced earlier this year highlighting ties between the Trump family’s crypto venture and a trading platform reportedly connected to Binance. This raises questions about potential conflicts of interest and the intersection of political influence and the rapidly evolving digital asset market.

These developments, including the government’s strategic investments in key industries and the President’s actions regarding individuals in the tech and crypto sectors, prompt a fundamental question: are we witnessing the emergence of a new, more interventionist U.S. economic model under President Trump?

Intel Outperforms Expectations: The semiconductor giant reported third-quarter sales of $13.65 billion, surpassing the consensus estimate of $13.14 billion. The company attributes the strong performance to robust demand that outstripped supply, indicating a potential rebound in the chip market.

Trump Pardons Binance Founder: The President’s pardon of Changpeng Zhao adds another layer to the ongoing debate about cryptocurrency regulation and its potential links to political influence. The move follows reports earlier in the year detailing connections between the Trump family’s crypto venture and a trading platform with reported ties to Binance.

China Prioritizes Domestic Consumption: Beijing signaled a focus on boosting consumption as a key pillar of its economic strategy for the next five years. This shift comes amid heightened geopolitical tensions and underscores China’s desire for greater economic self-reliance.

S&P 500 Gains Ground: The S&P 500 rebounded, climbing 0.58% on Thursday after Wednesday’s decline. European markets also saw positive momentum, with the Stoxx Europe 600 adding 0.37%. Kering shares surged 8.7% following a strong earnings report, fueled by robust performance from its luxury brands.

Investment Strategy: Dividend Stocks in Focus: With interest rates expected to decline, analysts suggest that dividend-paying stocks could become increasingly attractive to investors seeking stable income and potential capital appreciation.

Moscow Reacts to Trump’s Shift on Russia.

Just days after what was described as a “very productive” phone call between President Trump and Russian President Vladimir Putin, the tone shifted abruptly. President Trump expressed his frustration with Moscow, leading to the cancellation of a planned meeting.

Pro-Kremlin media outlets, including TASS, Radio Sputnik, and RIA Novosti, gave little to no prominence to Trump’s criticism or the cancellation of the meeting, reflecting a calculated strategy to downplay the diplomatic discord.

— Holly Ellyatt