President Trump's Strategic Policy Council To Disband; Pence Ends LatAm Trip Early

While the CEOs within the gvarious administration councils had decided to disband, President Trump has tweeted over the top to give the appearance that he decided to shut them down...

Rather than putting pressure on the businesspeople of the Manufacturing Council & Strategy & Policy Forum, I am ending both. Thank you all!

— Donald J. Trump (@realDonaldTrump) August 16, 2017

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As we detailed earlier, with CEOs dropping like flies from Trump"s manufacturing councel, with 3M and Campbell Soup CEOs announcing they are out, CNBC reports that President Trump"s Strategic and Policy Forum has agreed to disband.  The business advisory council is, or rather was, made up of top business leaders is separate from Trump"s manufacturing council, which several business leaders left this week.

The Strategic and Policy Forum, led by Blackstone CEO Steve Schwarzman, featured, among others:

• JPMorgan Chase"s Jamie Dimon


• BlackRock"s Larry Fink


• Wal-Mart"s Doug McMillon


• IBM"s Ginni Rometty

"The thinking was it was important to do as a group," a member told CNBC. "As a panel, not as individuals because it would have more significant impact. It makes a central point that it"s not going to go forward. It"s done."

Bloomberg confirms that Trump’s council of senior business leaders who advise on strategy and policy is disbanding, according to a person familiar with the matter.

The executive council, which is led by Blackstone Group LP’s Stephen Schwarzman, planned to inform the White House Wednesday before making the announcement public, according to the person, who wasn’t authorized to discuss the matter publicly.

The strategy group is one of several the White House convened earlier this year to advise the president.

Several CEOs from a manufacturing council have quit this week, following blowback over Trump’s remarks about racially charged violence in Virginia on Saturday.

This follows the mass exodus of CEOs, most recently 3M and Campbell CEOs. Inge Thulin, the chairman and CEO of 3M , on Wednesday announced his resignation from President Donald Trump"s manufacturing council.

"Sustainability, diversity and inclusion are my personal values and also fundamental to the 3M Vision. The past few months have provided me with an opportunity to reflect upon my commitment to these values," he said in a statement. "I joined the Manufacturing Jobs Initiative in January to advocate for policies that align with our values and encourage even stronger investment and job growth - in order to make the United States stronger, healthier and more prosperous for all people. After careful consideration, I believe the initiative is no longer an effective vehicle for 3M to advance these goals. As a result, today I am resigning from the Manufacturing Advisory Council. At 3M, we will continue to champion an environment that supports sustainability, diversity and inclusion. I am committed to building a company that improves lives in every corner of the world."

And Campbell Soup Company CEO left shortly after:

NEW: Inge Thulin, Pres. and CEO of 3M, resigns from Trump’s manufacturing council: “We will continue to champion...diversity and inclusion.” pic.twitter.com/914A2G2Z9z

— ABC News (@ABC) August 16, 2017

They join Merck CEO Kenneth Frazier, Under Armour"s Kevin Plank, Intel"s Brian Krzanich, Alliance for American Manufacturing president Scott Paul and AFL-CIO president Richard Trumpka in exiting the council, which is headed by Dow Chemical CEO Andrew Liveris. Thea Lee, former deputy chief of staff of the AFL-CIO, said on Twitter she is quitting the council as well.

Tesla"s Elon Musk and Disney"s Bob Iger in June dropped out of a strategic and policy forum to the president following his decision to withdraw the United States from the Paris climate accord. Since-ousted Uber CEO Travis Kalanick quit the council in February over employee backlash.

As a reminder, President Trump tweeted yesterday:

"For every CEO that drops out of the Manufacturing Council, I have many to take their place. Grandstanders should not have gone on. JOBS!"

That remains to be seen, meanwhile VP Pence just made statement confirming he will be returning early from his LatAm trip:

• PENCE: WILL END TRIP A BIT EARLY AFTER PANAMA VISIT


• PENCE SAYS HE"S RETURNING TO U.S. TOMORROW FROM LATIN AMERICA

...

Trump Slams "Grandstanding" CEOs Who Have Quit His Council

Well, on the bright side, it took him around 12 hours to respond to last night"s resignations...

For every CEO that drops out of the Manufacturing Council, I have many to take their place. Grandstanders should not have gone on. JOBS!

— Donald J. Trump (@realDonaldTrump) August 15, 2017

The remaining CEOs on Trump"s council had the following to say (via Business Insider)

• Andrew Liveris, Dow Chemical Company, will remain on the council. "I condemn the violence this weekend in Charlottesville, Virginia, and my thoughts and prayers are with those who lost loved ones and with the people of Virginia," Liveris said in an emailed statement. "In Dow, there is no room for hatred, racism, or bigotry. Dow will continue to work to strengthen the social and economic fabric of the communities where it operates — including supporting policies that help create employment opportunities in manufacturing and rebuild the American workforce."


• Bill Brown, Harris Corporation, did not respond to a request for comment.


• Michael Dell, Dell Technologies, will remain on the council. "While we wouldn"t comment on any member"s personal decision, there"s no change in Dell engaging with the Trump administration and governments around the world to share our perspective on policy issues that affect our company, customers, and employees," a spokeswoman said.


• John Ferriola, Nucor Corporation, did not respond to a request for comment.


• Jeff Fettig, Whirlpool Corporation, will remain on the council. "Whirlpool Corp. believes strongly in an open and inclusive culture that respects people of all races and backgrounds," the company said in a statement. "Our company has long fostered an environment of acceptance and tolerance in the workplace. The company will continue on the Manufacturing Jobs Initiative to represent our industry, our 15,000 US manufacturing workers, and to provide input and advice on ways to create jobs and strengthen US manufacturing competitiveness."


• Alex Gorsky, Johnson & Johnson, did not respond to a request for comment.


• Greg Hayes, United Technologies Corp., did not respond to a request for comment.


• Marillyn Hewson, Lockheed Martin, declined to comment.


• Jeff Immelt, General Electric, will remain on the council. "GE has no tolerance for hate, bigotry or racism, and we strongly condemn the violent extremism in Charlottesville over the weekend," a GE representative said in a statement. "GE is a proudly inclusive company with employees who represent all religions, nationalities, sexual orientations, and races. With more than 100,000 employees in the United States, it is important for GE to participate in the discussion on how to drive growth and productivity in the US, therefore, Jeff Immelt will remain on the Presidential Committee on American Manufacturing while he is the chairman of GE."


• Jim Kamsickas, Dana Inc., did not respond to a request for comment.


• Rich Kyle, The Timken Company, did not respond to a request for comment.


• Richard Trumka, AFL-CIO, said the group was aware of Frazier"s decision and assessing its role. "The AFL-CIO has unequivocally denounced the actions of bigoted domestic terrorists in Charlottesville and called on the president to do the same," Trumka said in a statement. "We are aware of the decisions by other members of the President"s Manufacturing Council, which has yet to hold any real meeting*, and are assessing our role. While the AFL-CIO will remain a powerful voice for the freedoms of working people, there are real questions into the effectiveness of this council to deliver real policy that lifts working families."


• Thea Lee, formerly AFL-CIO, departed as the group"s deputy chief of staff, and it is unclear whether she will remain a member of the council.


• Denise Morrison, Campbell Soup Company, will remain on the council. "The reprehensible scenes of bigotry and hatred on display in Charlottesville over the weekend have no place in our society," a company representative said. "Not simply because of the violence, but because the racist ideology at the center of the protests is wrong and must be condemned in no uncertain terms. Campbell has long held the belief that diversity and inclusion are critical to the success of our business and our culture. Our commitment to diversity and inclusion is unwavering, and we will remain active champions for these efforts. We believe it continues to be important for Campbell to have a voice and provide input on matters that will affect our industry, our company and our employees in support of growth. Therefore, Ms. Morrison will remain on the President"s Manufacturing Jobs Initiative."


• Dennis Muilenburg, Boeing, will remain on the council.


• Doug Oberhelman, formerly Caterpillar, did not respond to a request for comment.


• Scott Paul, Alliance for American Manufacturing, was unavailable for comment.


• Michael Polk, Newell Brands, did not respond to a request for comment.


• Mark Sutton, International Paper, will remain on the council. "International Paper strongly condemns the violence that took place in Charlottesville over the weekend — there is no place for hatred, bigotry, and racism in our society," an International Paper representative said. "We are a company that fosters an inclusive workforce where all employees are valued and treated with dignity and respect. Through our participation on the Manufacturing Jobs Council, we will work to strengthen the social and economic fabric of communities across the country by creating employment opportunities in manufacturing."


• Inge Thulin, 3M, did not respond to a request for comment.


• Wendell Weeks, Corning, did not respond to a request for comment.

Who will be "the last CEO standing"?

Trump Warns "We Are Going To Be Imposing A Very Major Border Tax", Will "Cut Regulations By 75%"

One look at the Dollar Index in the last week and it"s clear just how "variable" President Trump"s position has been on trade and so-called "border adjustments". In the space of a few days, he has swung from being against a border adjustment, to possibly being for it, and now today confirming that "we are going to impose a major border tax."  Yen, Peso, and Loonie are all sliding further on the headline.

Specifically, as the clips below show, Trump promised business leaders a "very major" border tax and said he would cut regulations by 75%. Trump held a breakfast meeting with the business leaders he named to an advisory panel on manufacturing, led by Andrew Liveris, chief executive officer of Dow Chemical Co. Other business leaders at the morning meeting with Trump included Michael Dell, chairman and CEO of Dell Inc.; Jeff Fettig, chairman and CEO of Whirlpool Corp.; Mark Fields, president and CEO of Ford Motor Co.; and Marillyn Hewson,chairman and CEO of Lockheed Martin Corp.

BREAKING: President Trump tells business leaders meeting he wants to cut regulations by 75% or perhaps more. https://t.co/ty8uXDkp2s pic.twitter.com/WIbIC0RsQ4

— CNBC Now (@CNBCnow) January 23, 2017

Some highlights:

• “We’re trying to get it down to anywhere from 15 to 20 percent, and it’s now 35 percent, but it’s probably more 38 percent than it is 35”


• “What we want to do is bring manufacturing back... It’s what the people wanted”


• “What we want is fair trade”


• “That doesn’t mean we don’t trade because we do trade”


• “If you go to another country” and cut thousands of jobs, “we are going to be imposing a very major border tax” on the product the comes in


• “You are great people,” Trump tells CEOs


• “I’m a very big person when it comes to the environment,” Trump says


• “But some of that stuff makes it impossible to get anything built”

Later in the day, Trump will meet with a group of labor leaders and U.S. workers, according to his public schedule. In between, he’ll sign executive orders related to trade and labor issues, an administration official said. The official didn’t provide further detail on the orders.

And the instant reaction is a jolt higher in the dollar.

While Yen knee-jerked lower on his statement, it is still the Peso and the Loonie that are hardest hit so far.