Investing.com -- President Trump has implemented several executive orders, including ones that could potentially impact immigration and tariffs, according to market watcher Louis Navellier. The President has asked Congress to present him with a reconciliation bill, and the impact of these orders on Treasury yields and the U.S. dollar is yet to be seen.
"President Trump implemented a slew of executive orders that can best be described as “shock and awe," Navellier commented.
The President's approach to tariffs, particularly with China, remains a wildcard. There is potential for tariffs to be implemented by February 1st, which could lead to negotiations with other countries. The British pound, Canadian dollar, Mexican peso, and euro have all decreased in value relative to the U.S. dollar due to tariff uncertainty.
If undocumented migration and fentanyl flows are not halted to the satisfaction of the Trump Administration, 25% tariffs are set to be imposed on Canada and Mexico starting February 1st. This follows a recent incident where a U.S. border agent was killed after a traffic stop on the Canadian border. Delegations from both Canada and Mexico are expected to negotiate with the Trump Administration before the deadline.
President Trump is scheduled to address the World Economic Forum in Davos, Switzerland on Thursday. His speech is expected to touch on trade policies and the conflict between Russia and Ukraine.
One of the President's executive orders withdrew the U.S. from the Paris Climate Accord. In response to this, the World Economic Forum's reaction was muted. Concurrently, President Trump signed executive orders to increase natural gas production and boost LNG shipments and crude oil exploration.
In other news, the ZEW Indicator of Economic Sentiment in Germany, which tracks expectations for the next six months, fell over 5 points to 10.3 in January, indicating a negative sentiment in the country's economy after two consecutive years of contraction. The upcoming German election in February might influence this sentiment.
In the automotive industry, Toyota (NYSE:TM), the world's largest auto manufacturer, has chosen Nvidia (NASDAQ:NVDA)'s Orin chip to power its next generation of driver assist features. The Orin system, which debuted in 2019, provides the computing power and intelligence of AI inside a car. Other manufacturers, including BYD (SZ:002594) and Mercedez Benz, have also adopted the Orin system.
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