1) The cryptocurrency Bitcoin plummets the most since March as a stronger dollar and investor nerves strip off nearly $140 billion in the cryptocurrency market cap, renewing fears that Bitcoin may be a bubble waiting to burst. But Bitcoin is still up roughly 89% over the past month. Other cryptocurrency coins, such as XRP and Litecoin, have shed about 18% each. Bitcoin hit a record high last week above $41,000, driven by the combination a weaker dollar, economic optimism, and a wave of bullish sentiment toward cryptocurrencies as big-name investors and investment banks touted a potential for huge gains this year, with the stronger dollar and higher bond yields triggering a plunge in Bitcoin and gold prices.
2) Trump has been permanently barred from the platform Twitter, resulting in$5 billion dollars in losses in market value, with Twitter stock dropping after the barring of the President. Twitter stated they permanently suspended the account due to the risk of further incitement of violence. Trump, who had about 88 million followers, generated enormous publicity for the platform with his controversial and incendiary tweets over the past six years. As a result, Twitter’s stock fell as much as 12% on Monday thus the decline of $5 billion dollars from Twitter’s market capitalization. Investors are worried that the Trump ban will erode interest in the platform and lead to boycotts among those who see the decision as politically motivated and a way to silence a major conservative voice.
3) Fears are growing that a bigger stimulus may be seen as the ‘peak of this bubble’ resulting in a market correction or worst. Some think that with the Democrats set to take control of both the House and Senate, perhaps President-elect Joe Biden will be less likely to spook markets with tax ambitions. Biden has promised $2,000 stimulus checks if the Senate turned blue, so now the question is what will happen? For millions of Americans, it’s been a painful waiting game already, they having subsisted with minimum money since losing their jobs from the pandemic. Joe Biden made the promise that if Jon Ossoff and Raphael Warnock turned the senate blue that would end the block in Washington and allow the $2,000 stimulus checks to immediately go out the door to people who are in real trouble.
4) Stock market closings for – 11 JAN 21:
Dow 31,008.69 down by 89.28
Nasdaq 13,036.43 down by 165.54
S&P 500 3,799.61 down by 25.07
10 Year Yield: up at 1.13%
Oil: down at $52.18
1) With President Trump signing the COVID-19 relief bill into law, millions of Americans will again have pandemic-related benefits. The COVID-19 relief bill gives those who depend on unemployment benefits some amount of relief. In addition to enhancing unemployment benefits, there is also a $600 check for every adult making less than $75,000 a year.
2) To add to the economic woes of many Americans this year, for a second consecutive week, a massive winter storm is sweeping across the north and east. A new storm system brought heavy rain, gusty winds and thunderstorms to Southern California and will move across the country this week. The new storm system will move across the US during New Year’s Eve leaving heavy snow, winds, severe thunderstorms.
3) With President Trump’s veto of the annual military bill, the House voted to override President Trump’s veto, mustering bipartisan support to enact the legislation over the president’s objections and handing him a rare legislative rebuke in the final days of his presidency. The defense bill also takes steps to slow or block President Trump’s draw down of American troops from Afghanistan. The 322 to 87 vote is the first time a chamber of Congress has overridden one of Trump’s vetoes. The bill also authorizes a pay raise for the nation’s troops. However, the Senate, which must also get a two-thirds vote of its chamber to override vetoes, will take up the legislation later in the week. But the vote is complicated by another separate bill that would increase the size of individual stimulus checks to $2,000. For 60 years, lawmakers have used the annual military bill to bring home wins to their constituents. So far, the Congress has failed to over ride any of President Trump’s vetoes. But for the Senate to gain the two thirds vote to over ride, twelve Republicans must cross over. Other provisions of the bill are new benefits for tens of thousands of Vietnam-era veterans who were exposed to Agent Orange, a 3% increase in pay for service members and a boost in hazardous duty incentive pay. The bill also requires all federal officers enforcing crowd control at protests and demonstrations to identify themselves and their agencies, as well as directing the Pentagon to rename military bases which are named after Confederate leaders.
4) Stock market closings for – 29 DEC 20:
Dow 30,335.67 down by 68.30
Nasdaq 12,850.22 down by 49.20
S&P 500 3,727.04 down by 8.32
10 Year Yield: unchanged at 0.93%
Oil: up at $48.25
1) Just went everyone thought the second stimulus was a done deal, President Trump has made vague threats not to pass it. The President is asking Congress to amend the bill that has passed both chambers, with Trump decrying the bill’s $600 payments and its failure to properly support small businesses. He is now urging lawmakers to boost the $600 check to $2,000 for every American earning less than $75,000 per year. Furthermore, a veto would leave the threat of a government shutdown and expiring Covid-19 protections looming over the holiday season. The President said the bill contains too many provisions unrelated to the pandemic.
2) Threats of a second stimulus bill veto was reinforced with Trump’s veto of the defense bill, in part because of the requirement for renaming bases honoring Confederates and restrictions on the executive’s ability to bring troops home from overseas. Both the House and the Senate are already making plans for a post-Christmas session during which lawmakers plan to override the veto. Congress has until noon on January 3 to do so.
3) There are emerging new signs of economic distress. With the fate of a federal aid package suddenly thrown into doubt by President Trump, economic data on Wednesday shows why the help is so desperately needed. Personal income fell in November for the second straight month, and consumer spending declined for the first time since April, with a worsening pandemic continuing to take a toll on the U.S. economy. Applications for unemployment benefits remained high last week and have risen since early November. Experts know that things are going to get worse, the question is how much more worse. Many economists view direct payments to people as among the least effective measures, because much of the money goes to households that don’t need it. Spending on restaurants and hotels fell with transportation, clothing and gasoline also in declined. The decline in spending is spilling over into the labor market, with about 869,000 people filing new claims for state jobless benefits last week. The relief bill is smaller than many economists say is needed to carry the economy through the pandemic and ensure a robust recovery.
4) Stock market closings for – 23 DEC 20:
Dow 30,129.83 up by 114.32
Nasdaq 12,771.11 down by 36.80
S&P 500 3,690.01 up by 2.75
10 Year Yield: 0.96%
Oil: up at $48.06
By: Economic & Finance Report
Well folks, history has been made again. The Associated Press & other media networks have declared former VP Joe Biden and California US Senator Kamala Harris as the new President Elect and Vice President Elect.
Biden-Harris ticket earned 290 electoral votes, while Trump-Pence ticket earned 214 electoral votes. With a select “swing states” tilting to the Democrats in this presidential election cycle.
It was a very close race with both sides earning praises and criticizing. The 2020 presidential cycle will go down in the history books as one of the most epic presidential races in the history of the United States. Congrats to all parties involved. Congrats to Mr. President Elect Biden and Madam Vice President Elect Harris. -SB
Image Credit: Wsls.com
By: Economic & Finance Report
The USA Presidential Elections 2020 is in a dead heat, the stakes could not be higher. Only a few states are now the determining factor in deciding the next U.S. President, for the next 4 years. Both candidates, President Donald Trump and former Vice President Joe Biden need 270 electoral college votes to become the president of the United States.
There have been a pendulum of states going back and forth for each candidate, and a few “swing states” will be the determining factor on who becomes the next president of the United States of America. Stay Tuned-SB
Image Credit: ABCNews.com
1) The Federal government is moving to address the record deficits that America has amassed. One method is to stretch out the time over which the deficit is paid off. Part of that plan is the reinstating of the 20 year bond, which was last issued in 1986. The Feds will auction off $20 billion dollars worth of bonds Wednesday, with an expected return of 1.21% verses 0.70% for the 10 year bonds and 1.42% for the 30 year bonds. The government is also considering 50 and 100 year bonds, but there doesn’t seem to be any demand for such financial instruments. It’s expected that the deficit will be $3.4 trillion dollars for fiscal 2020 and $2 trillion dollars for 2021.
2) The CBO (Congressional Budget Office) estimates the nation’s unemployment rate will exceed 15% through September then remain above 11% for the rest of the year. For 2021, they estimate an average of 9.3%. For the second quarter of 2020, the labor market is projected to see the steepest declines since the 1930’s. These high unemployment rates are expected to persist despite lawmakers’ efforts to counter with injections of cash into the economy. Further layoffs are expected despite the $660 billion dollar Paycheck Protection Program, but a partial rebound is possible in the last three months of the year, with as much as 30% of laid off workers being rehired.
3) Housing sales are way down, the lack of inventory has propped up prices with bidding wars from the limited availability of properties. The health guidelines have made it more difficult to market homes, another fallout of the pandemic. Since the pandemic began, the demand has fallen off, with the number of sellers also contracting, therefore the limited availability of properties. Despite the economic uncertainty, the supply shortage prior to the Covid-19 crisis still remains. Nevertheless, the housing market has cooled, with sales of existing homes projected to fall 20% in April compared to March, which had a 8.5% drop. Construction of new houses is down as contractors wait out the virus. While loan interest rates are low, lending institutions have tightened up their loan standards.
4) Stock market closings for – 20 MAY 20:
Dow 24,575.90 up 369.04
Nasdaq 9,375.78 up 190.67
S&P 500 2,971.61 up 48.67
10 Year Yield: down at 0.68%
Oil: up at $33.52
1) The American trucking industry is in trouble with many major trucking firms such as J.B. Hunt, Knight-Swift and Schneider cutting their annual outlooks. In a growing wave of trucking firms bankruptcies, 3,000 truck drivers have lost their jobs. One positive point is the trucking volume seems to be rising, although trucking is a highly cyclic business with wide swings in high and low peaks. With about 1.8 million American truckers, there is the rising threat of automated robot trucks, which the automatic driving technology industry is eyeing and experimenting already with UPS and the post office.
2) More troubles for Tesla’s SolarCity solar-panels and fires with people’s houses being set on fire resulting in extensive damage. Both Walmart and Amazon.com are suing, claiming Tesla’s solar energy systems have caused fires at their stores and warehouses. Tesla is telling home owners their need to do preventive maintenance on their solar power systems, but with 400,000 solar customers, one of the largest customer bases in America, this may not be a strategy to avoid law suits.
3) Disney’s Disney+ is penetrating NetFlix market share with very aggressive pricing and promotion programs that undercuts NetFlix rates, offering with rates that are as much as one third of NetFlix, while locking customers into contracts for as long as three year. When Disney+ announced its entry into the streaming market, Netflix grew its customer base by 2.7 million, instead of the 5 million that had been forecast. The increased competition from Disney+ and other streaming services is forcing NetFlix to use large amounts of capital to create new video content and so remain a viable competitor.
4) Stock market closings for – 29 AUG 19:
Dow 26,362.25 up 326.15
Nasdaq 7,973.39 up 116.51
S&P 500 2,924.58 up 36.64
10 Year Yield: up at 1.52%
Oil: down at $56.61
1) Ikea, the pioneer of inexpensive self-assembled home furniture is adapting its manufacturing and marketing methods to inexpensive housing. Sections for homes will be built in factories, then quickly assemble into ready to move-in houses. Bringing the factory manufacturing techniques to homes would significantly reduce the cost as compared to the hand built housing techniques now used. This could open the way to home ownership by the younger generations.
2) Despite the continual upsurge of the markets, Americans aren’t convinced the economy is doing well. A survey shows 39% of U.S. consumers believe the economy is ‘not so good’ or even poor. Lower income Americans are not doing as well as macro indicators would suggest, despite getting more raises recently. These gains don’t offset years of high unemployment and stagnant wages.
3) A huge drop in U.S. crude oil inventories and the outlook for demand has pushed oil futures prices up to near $60 dollars a barrel. Domestic stockpiles fell by 12.8 million barrels last week, the biggest drop in supplies since September 2016. In the past week, oil futures have jumped 10%, with the traditional expected increase in oil demand with summer driving. Gasoline reserves are further aggravated by the fire at Philadelphia Energy Solutions, the East Coast’s largest refinery.
4) Stock market closings for- 26 JUN 19:
Dow 26,536.82 down 11.40
Nasdaq 7,909.97 up 25.25
S&P 500 2,913.78 down 3.60
10 Year Yield: up at 2.05%
Oil: down at $59.21