Donald Trump picks his treasury secretary, Mexico tries to protect its car exports and wellness gadget valuations
November 2024
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We’re only a handful of weeks away from saying farewell to 2024.
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AMERICA’S NEW MONEY MAN
After securing an emphatic victory on 6th November, President-elect Donald Trump is getting to work by shaping his new cabinet. As his previous administration revealed, the property tycoon has no qualms about picking people from the private sector who have zero government experience (example: oil executive Rex Tillerson as Washington’s chief diplomat).
Since the cost-of-living crisis remains a top priority among voters, Trump’s choice for treasury secretary is crucial - it’s also the position that took him the longest to announce. The treasury secretary is an economic policymaker and financial mastermind, as well as fifth in the line to the Oval Office.
In hedge fund mogul Scott Bessent, Trump says he’s found someone to “help me usher in a new golden age for the US”. If confirmed by the Senate, Bessent will implement the White House’s push for tax cuts and trade tariffs.
Behind the scenes, though, the search for a new treasury secretary was dramatic. Many speculated that JPMorgan CEO Jamie Dimon was in the running, despite the billionaire banker’s neutral stance during the 2024 campaign. [However, Bloomberg reported that Dimon’s wife canvassed for Kamala Harris.]
A respected and influential figure on Wall Street, Dimon is frequently courted by Democrats and Republicans. But when asked about joining Trump’s team at a recent event, Dimon said, “I haven’t had a boss in 25 years and I’m not about ready to start.”
MEXICO’S AUTOMOBILE ADVANCES
When it comes to international trade, Trump’s name is synonymous with tariffs. The incoming president has already said that he’ll impose hefty levies on goods from Mexico, Canada and China. Trump accuses the US’s main trading partners of failing to clamp down on drug trafficking and illegal migrants.
The side effect of these tariffs is expected to be increased prices for Americans on a range of products. Mexico, notably, is a major automobile manufacturer and supplier. Nissan, Ford, Volkswagen, Toyota, Stellantis and others produce cars in the country.
Ironically, it was the North American Free Trade Agreement (NAFTA) that transformed Mexico into an auto hub. The regional integration allowed US carmakers to relocate part of their factory and assembly processes south of the border where skilled labour was cheaper.
Mexican President Claudia Sheinbaum has warned Trump of inflation risks and job losses, saying the tariffs would “put our common businesses at risk”. In a different statement, following a phone call with Trump, Sheinbaum said she’s confident a tariff war can be averted, without specifying what concessions were offered to the next occupant of the White House.
WELLNESS WEARABLES
Wellness is a thriving multi-trillion-dollar industry and tech companies are jumping on the bandwagon.
The health-tracking Oura ring is now valued at more than US$5 billion following a $75 million investment from glucose device maker Dexcom. The ring, which can be worn on any finger, monitors different metrics such as body temperature, heart rate and sleep duration. Oura’s pairing with Dexcom will enable data sharing and app integration, plus add blood sugar levels as a variable.
Oura rings are popular among athletes and celebrities, and endorsements from Jennifer Aniston, Odell Beckham Jr. and Lindsey Vonn have helped the Finnish brand sell 2.5 million units worldwide.
Although the market is dominated by Apple Watch, its high price point does leave room for competitors. Start-ups and established names are experimenting with AI, VR and unique designs (including clothing and mirrors) to bring medical information into consumer’s daily lives.
Thanks for reading! Take care and stay curious, Sara x