Trump’s Boeing 747 Gift from Qatar – a diplomatic gesture or controversial play?

It's just a gift!

It’s just a gift?

Former U.S. President Donald Trump is set to receive a luxury Boeing 747-8 from the Qatari royal family, a move that has sparked debate over its implications.

The aircraft, valued at $400 million, is expected to serve as a temporary Air Force One until the U.S. government receives its long-delayed replacements.

Trump has been vocal about his frustration with Boeing’s delays in delivering the new presidential aircraft, originally scheduled for 2022 but now pushed to 2027.

The Qatari government’s offer provides an interim solution, allowing Trump to use the jet for official travel.

However, critics argue that accepting such a gift raises ethical and legal concerns, particularly regarding the U.S. Constitution’s emoluments clause, which restricts officials from receiving gifts from foreign states without congressional approval3.

The White House insists the arrangement is legal, stating that the aircraft will be transferred to the U.S. Air Force rather than Trump personally.

Upon completion of his term, the plane will reportedly be donated to his presidential library.

As Trump prepares for a Middle East visit, the controversy surrounding the aircraft continues to unfold.

Will this be seen as a practical solution or a diplomatic misstep?

And anyway, why can’t the U.S. provide its own presidential plane?

Early Christmas present as the U.S. 10-year Treasury yield pullback after Fed’s ‘shift’

Christmas gift

The 10-year Treasury yield slipped further on Monday 18th December 2023, as the final full trading week of 2023 gets underway.

Traders are attempting to digest the ‘dovish’ tone of the U.S. Federal Reserve. The central bank held its key interest rate at 5.5% and revealed that policymakers were pencilling in at least three rate cuts in 2024 marking a more aggressive series of cuts than what was previously expected.

The yield on the 10-year Treasury was marginally lower at 3.913%. Last Thursday, the yield fell below the 4% level, hitting its lowest since July this year.

Bank strategists described the Fed’s move as a ‘big shift’

Guessing game starts

The question now is when will these rate cuts happen, and on Friday we had some mild pushback from Fed officials against the market excitement.