Yesterday we asked in lieu of actual details in today’s Trump speech, what adjective(s) would Trump pick to spark S&P and USDJPY momentum igniition algos, while overemphasizing his fiscal plan and deflecting from the lack of substance:
What adjective in Trump’s speech tomorrow will algos react most strongly to
— zerohedge (@zerohedge) February 28, 2017
The answer at first glance, according to a leaked draft of select speech excerpts, appears to be “historic” and “massive” as in “historic tax reform” and “massive tax relief for the middle class.” Alas, as so many traders have dreaded, there does not appear to be any actionable detail how Trump will achieve this “historic”, “massive” tax relief.
Among the other topics discussed are immigration laws, Obamacare (which Trump calls to repeal and replace), child care, promoting clean air and water, rebuilding military infrastructure, and of course, plain old rhetoric.
Here are the select excerpts from the speech which while they may lead to a kneejerk reaction higher in risk assets, will – absent elaboration – likely result in a disappointment market shortly thereafter:
My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone. At the same time, we will provide massive tax relief for the middle class.
* * *
By finally enforcing our immigration laws, we will raise wages, help the unemployed, save billions of dollars, and make our communities safer for everyone.
* * *
Tonight, I am also calling on this Congress to repeal and replace Obamacare with reforms that expand choice, increase access, lower costs, and at the same time provide better healthcare.
Mandating every American to buy government approved health insurance was never the right solution for America. The way to make health insurance available to everyone is to lower the cost of health insurance and that is what we will do.
* * *
My administration wants to work with members in both parties to make child care accessible and affordable, to help ensure new parents have paid family leave, to invest in women’s health, and to promote clean air and clean water and rebuild our military infrastructure.
* * *
The time for small thinking is over, the time for trivial fights is behind us, we just need the courage to share the dreams that fill our hearts, the bravery to express the hopes that stir our souls, and the confidence to turn those hopes and dreams to action. From now on, America will be empowered by our aspirations not burdened by our fears.
* * *
But we know that America is better off when there is less conflict not more. We must learn from the mistakes of the past. We must have seen the war and destruction that have raged across our world. The only long-term solution for these humaniatrian disasters is to create the conditions where displaced persons can safely return home and begin the long process of rebuilding. America is willing to find new friends and to forge new partnerships were shared interest aling.
* * *
As promised I directed the department of defense to develop a plan to demolish and destroy ISIS, a netrosk of lawless savages that have slaughtered Muslims and Christians and men women and children of all faiths and beliefs. We will work with our allies including our friends and allies in the Muslim world to extinguish this file (sic) enemy from our planet.
* * *
And so on. For the full speech tune in at 9pm ET.
via http://ift.tt/2mqJJHY Tyler Durden