Transcript
Donald Trump (0:00)
This is an iHeart podcast.
Advertiser (0:04)
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Donald Trump (0:35)
Did you get to see my driver? The first hole, you hit it straight. Pretty long. Pretty long. That's, that's no Joe Biden, let me tell you. That's not Biden. Right? That was a good drive.
Ben Ferguson (0:49)
You're listening to the 47 Morning Update with Ben Ferguson. Good Wednesday morning. Nice to have you with us on the 47 Morning Update. We've got two major stories for you this morning coming out of the White House. First up, the media finally having to tell the real story. Yes, there isn't just a recovery, it is a boom. Bank of America now saying the key tail risk is, well, that the Trump economy will actually start to take off. We're going to break that down for you in just a moment. Also, the President of the United States shocking the world saying that Xi Jinping wants me to go to China, will most likely be going and maybe this year as more tariff agreements have been agreed to by the White House yet again proving the media wrong. We'll have that. Also, it's the 47 Morning Update and it starts right now. Story number one, not just a cycled recovery, but a boom. That is how bank of America is talking about Donald Trump's economy in a market landscape that is fixated on fear or stagnation and modest recoveries because Donald Trump's in office and the they want everything to be doom and gloom. The bank of America is now having to tell us the truth. They're sounding the reality and even deciding that they are bullish on where we are headed. According to a new note from a Bank of America research analysts, the next phase for the U. S economy and equities might not be a routine recovery but quote, an outright boom. Today, a confluence of factors argue that the key tail risk that may not be priced in is not just a cyclical recovery but a boom. The note says. Exactly. So why is this happening? Well, there's five reasons they state, for a boom. The bank of America analysts citing these five pillars, they say Support this more than bullish case. First is political will. They argue that the U. S Midterm elections a few quarters away policymakers have strong incentive for near term pro growth initiatives. Why? Because everybody in congress right on the house side is up for reelection and there's a lot of members of the senate that are up as well. Second, they say is Washington's one big beautiful bill act. Yes, you may remember the media said it was going to destroy our economy. Nope. Now they're saying the one big beautiful bill. Well, it is targeting domestic manufacturing and having a huge impact. The third thing they say is the massive overseas jolt gathering now with Germany recently enacting the largest stimulus package in EU history while global reflationary forces are building elsewhere. Bank of America says fourth they see a broad expansion of capital expenditures in the U. S. Companies like Amazon, Meta, Microsoft and Alphabet set for nearly 700 billion in capital expenditures between 2025 and 2026 alone. They also said in addition, more non U S companies plan to expand manufacturing capacity in the U. S while municipalities are focused on updating aging infrastructure. Now this goes back to what Donald Trump promised. If you put American workers in manufacturing first and in these tariff agreements that you're doing, these trade deals, you're, you make sure that companies are forced to come back and do work in the United States of America, it could explode our economy. Bank of America is saying that is actually working and a reality. Finally, the last thing on the list the bank of America cited is proprietary regime indicator. That is a blend of macro signals including corporate revisions to earnings per share as well as g DP forecasts and other emerging signals. They say it's on the verge of flipping from a downturn to a quote, recovery, a change that historically means a rally in value stocks. Now the dominant narrative in the indicator remains conservative. According to the bank of America team, it is one they say in June, 70% of fund managers still predicted stagflation with only 10% foreseeing a boom and a above trend growth and inflation. Yet bank of America argues the catalyst for an upside breakout is real and now imminent. If the regime indicator does indeed flip to recovery in early August, historical precedent suggests a rapid rotation is quote, likely. So these are the big factors that even the banks are now saying are going to have a huge impact on your life. This also is going to be a major issue come the midterm elections. This is exactly why so many people trusted Donald Trump and voted for him the first time. Well, let's be clear. The midterms, the referendum on the president's agenda. And many conservatives have been supporting and advocating for the president voting for things like the big beautiful bill. If they run on it, there's a very good chance the president will have even more power after the midterms. And that's good for all American. Now, story number two, President Donald Trump in Scotland sitting down, talking about how it's time for a meeting with Chinese President Xi Jinping. He also said that Xi Jinping has been clamoring for a meeting in person with him soon, and that that may happen as soon as sometime this year either in China or at the White House in the United States of America. Now, President Trump sitting down for an exclusive interview with Breitbart News and said not only am I willing to meet with G, who I've had a long and cordial personal relationship with, despite the rising tensions between the US And China, he also went into detail about the tariffs and how it worked and Chinese factories shutting down after the tariffs he put on the country that lasted 30 days at extremely high level. And now China is moving forward with a very good deal for American workers because Trump has all the leverage to. Trump has also made it clear he's in no rush to accommodate what China is doing right now. He said we've got the leverage. I'm a dealmaker in chief. I want to cut several other massive trade deals as well. And so we're working with China, having these meetings. I want you to hear what the president had to say. And you may notice he's telling a story. He's very calm, he's not that excited. He's explained this takes time. And he's putting American workers and manufacturers for first yet again.