Stocks jump, the temperamental peso, and other election aftermath indicators
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This is the indicator from planet money. I'm willing wong here with .

darren woods.

E hello, and visiting us today from the planet money orbit. AManda iranic.

I have just landed here from planet money.

I hope you come in peace.

I do.

I peace. AManda, you are here at a pivotal time.

I would be talking about them.

Well, let me tell you what happened this .

week and stuff happened this week.

And awe.

are you .

joining us in the aftermath of the election? You're joining us for indicators of the week.

So you've walked up from your co sleep just in time, AManda, on the show, we've got stocks jumping.

Yes, the pio drop down into the dump .

s and we ve got some more jumping this time .

in the minimum wage. That's a lot of the break.

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Indicators of the week durian woods, you are at first.

my indicator is two and a half percent. That's how much the S, M, P, five hundred index of stocks jumped the day after the election. IT is the biggest post election day Spike ever, according to bloomberg.

I want to have to sell like .

that much mana. yeah. Doesn't impress me much.

yeah. Whatever .

have obama like? Dont truff has promised lower corporate tax rates in coming a Harris. So IT makes sense that this would have boosted share Prices. But you know, some industries have done especially well, like banking. You got investors that trump would be loser on financial regulations, making banks more profitable, at least in the short run before any crisis.

right? The prospect of the regulation seems to be driving share Prices in all sorts of sectors.

Yeah, gross. The board trump has promised to remove ten old regulations for every new one at less. Regulation is generally good for profits. If you don't have to be as careful with the environment or labor or consumer safety.

that is going to be a big shift from the bin administration that was putting up a lot of barriers. The department of justice, yes, the federal trade commission under lacon, I mean, they were really taking on big businesses a lot yeah.

And now wall street is celebrating over which companies they might be able to merge or acquire. And again, that is good for profits. Whether it's through economies of scale, you know where it's cheaper to make stuff because you're bigger or by using market power to raise Prices is in keeping Prices high because this less competition .

IT is interesting that the stock market has gone up so much given all of the warnings that we heard from economists about the potential costs of huge, sweeping, terrifying and deportations under a trumpet administration.

Yeah, it's right. But you know, not every companies did well. The share Price of some retail companies did poorly on wednesday like smaller discount outlets that really depend on china for cheap goods companies like dollar general. And five below, they saw their share Prices sink. You know, it's also a reminder that this share market bump was just one day, and the real proof will be what actually happens over the next four years.

IT has been a wild week to watch a, what went up, what went down, and actually a perfect segway into my indicator of the week, which is twenty point eight for a brief moment, that after the election, that was how many mexican peso you could buy with one U. S. dollar. And IT was the weakest, th Epace e h ad b een a gainst t he d ollar i n m ore t han t wo y ears.

Of course, this is during a time when the dollar rose against A A lot of currencies, around one point six five percent overall. So is a week that's so good or bad? No.

of course, that depends on who you are and whatever your relationship is to the border. So let us say you are a company that exports laptops from the U. S.

To mexico. Then this is bad for you. Those laptops will be more expensive in mexico. You're not gonna sell less of them. But if you are importing, let's say, you import razberries from mexico when the mexican peso weakens, those rasberries are cheaper for you so you can be able to turn around and sell them and you're truly going to sell more rasberry.

And this isn't just an issue for a few companies. We do a lot of trade of mexico. Yes.

we do a lot of trade. Over the past year, mexico beat out canada and china became the U. S. Is largest trading partner.

Trump has said that he is considering tacking on a twenty five percent type on all goods imported from mexico. I mean, trump says a lot of things at various times. He is also said he is going to add a hundred percent tariff, or he something .

like two hundred to two thousand percent tariff on cars coming from mexico.

He deserves a new word, a jumbo tariff, maybe .

terrific. A mega is not bad.

Anyway, there's actually no firm percentage that has been set yet. But large haves will mean that car parts, computers, electrical equipment, food boot, all the stuff that mexico exports to the U. S.

Would have a tax on them. This would be partly paid for by american consumers. Mexico goods would become more expensive in the U. S. And that is going to be bad for american consumers and very bad for mexico.

Does IT seem like the value of the peso that will just continue to fall?

No, no, this did actually last very long. IT recovered quickly, but IT just was like for a moment there, th Epace I w ent a nd o f, like baLanced itself out to back to what IT was before the election.

So the mexican peso had a very emotional week.

a long week. What is your indicator of the week? Well.

in my indicator is fifteen dollars. That is the new minimum wage. In two states, alaska and missouri, voters in both states approved ballot measures to these, their minimum wages.

And you might know this, but the federal minimum wages has been stuck at seven dollars and twenty five cents since two thousand and nine. So since then, dozens of states have taken their own action. And that cribs states includes alaska .

and missouri. Oh, so does that mean that every minimum wage worker in those states is going .

to get fifteen box an hour, make alaska the current medium m wage? There is eleven dollars in some monty, three cents hour. It's gonna up gradually over the next few years and get to fifteen dollars in twenty twenty seven.

And then missouri, their current minimum wage is twelve dollars and thirty cents. That will also go up in increments. They're gonna to fifteen dollars .

in twenty twenty six. How many effect for?

I saw one estimate from the economic policy institute that says the increase will affect about ten percent of workers and more than half that group is women. In missouri, it's about twelve percent. And one estimate from a group called the missouri budget project says workers will get an extra thousand bucks every year.

That's not bad. That is a hopeful .

prediction. Yeah I mean, who's going to turn down in extra thousand? Six year? Certainly not me. So low wage workers in missouri and alaska are probably feeling pretty good about this. And these ballot measures actually passed with quite a bit of support in both states.

And california had a vote on raising its minimum wage too, right from sixteen dollars.

Now, yes, they are voting on whether to take their minimum wage to eighteen dollars an hour by twenty twenty five. But as of this recording, that vote is still too close to call.

Okay, california minimum wage workers glued to the T, V screens.

They haven't left the couch since tuesday.

So that was the night fidge election we .

were waiting for all yeah single ballot measure. This episode was produced by injected data, as with engineering by scene of rado IT was fetch by septa and edited by party harsh caking. Cnn's is our shows editor, and the indicator is a production of npr.

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