Musk-Trump Tensions & Lagarde Warnings Jolt Global Markets: The global economic and political landscape witnessed
Notable turbulence on June 11.
Elon Musk publicly apologized to U.S. President Donald Trump following
a heated dispute rattling stock markets.
Meanwhile, Christine Lagarde warned of rising trade protectionism that could undermine global growth.
The following report highlights the key developments and their potential economic implications.

Contents:
Musk Apologizes to Trump

Lagarde Warns of Rising Protectionism

Musk Apologizes to Trump After Major Dispute Threatens His Businesses: “I Crossed the Line

Following a loud public fallout, billionaire Elon Musk regretted
his comments toward President Donald Trump in a surprising turn of events.
The tensions, which worried investors and sent Tesla shares tumbling,
led Musk to post on his X platform: “I regret some of my posts about President Trump last week… They crossed the line.”

The dispute erupted after Musk voiced opposition to a tax-cut bill backed by Trump,
triggering public tension between the two.
The situation escalated when Trump hinted at possibly terminating government contracts with Musk’s companies
a potential blow to SpaceX, a key pillar of Musk’s business empire.

Markets reacted swiftly to the drama, with Tesla’s stock plunging 14%,
wiping out over $150 billion in market value in a single session.
It marked Tesla’s worst week in over a year and the
weakest performance among the so-called “Magnificent Seven” tech giants.

The conflict deepened when Musk claimed credit for Trump’s electoral
success and voiced support for his impeachment, remarks that Trump considered a red line.

Lagarde Warns of Rising Trade Protectionism: Tariffs Undermine Global Growth

In a notable warning from Beijing, European Central Bank President Christine Lagarde
urged countries to rethink their trade policies, stressing that rising protectionism,
such as tariffs and trade restrictions,
exacerbate rather than solve economic imbalances and pose serious risks to global growth.

During her visit to the Chinese capital on Wednesday,
Lagarde emphasized that such measures could result in mutual economic harm and weaken the world’s ability to recover.
Reuters reported on her remarks.

She noted that government interventions aimed at boosting domestic production,
particularly through large-scale subsidies like those seen in China, have surged significantly.
However, she clarified that this trend is not unique to China and is also observed in many emerging markets.

Lagarde also pointed to the United States’ expansionary fiscal policies
as a contributor to global economic imbalance,
noting that increased public spending has significantly raised its share of global demand in recent years.

She concluded her remarks by calling on countries to take collective responsibility
in addressing these structural distortions through policy reform,
rather than engaging in escalating trade barriers and retaliatory measures.

Musk-Trump Tensions & Lagarde Warnings Jolt Global Markets

Musk-Trump Tensions &#038; Lagarde Warnings Jolt Global Markets

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Musk-Trump Tensions & Lagarde Warnings Jolt Global Markets