26 January 2021

1) Amid rising doubts, both with the Republicans and Democrats, of passing President Biden’s $1.9 trillion dollar coronavirus relief package, some economists call the bill a good step that will help America’s struggling economy and warning that if not passed, then the nation would likely reverted to a recession in early 2021. The $1.9 trillion dollar coronavirus stimulus proposal is designed to jump-start the nation’s sputtering economy as well as accelerate vaccine distribution to control the deadly pandemic. Presently, the plan calls for a one-time $1,400 direct payment to eligible Americans, which would be in addition to the $600 check sent out this month, making a total payment of $2,000. Additionally, there is a supplemental unemployment benefit of $400 a week, up from the present $300 a week.

2) It’s considered that President Biden’s early actions in office will have effects on oil’s outlook, both short and long term. The first actions were revoking approval of the Keystone XL oil pipeline and rejoined the Paris climate agreement. Biden administration’s aim is to reduce long-term oil demand as the move away from fossil fuels accelerates. But if all the promises made by the President this first year are kept, oil demand in 2021 is expected to get a 350,000 barrel-per-day boost. The cancelling of the Keystone pipeline is likely to be muted as other world markets take up the production, because Iran and Venezuela have removed about three million barrels per day production from the current market, with other middle east producers are also cutting back on their production.

3) As the demand for fossil fuels is being limited, people are wondering if the electric car’s moment has arrived at last? While rapid advancement in electric cars and batteries is evident, a shortage of electric car chargers is one of the hurdles EVs face to displace the gas-powered vehicles. Presently, transportation accounts for more than a quarter of U.S. greenhouse gas emissions. Still, the popularity of EVs and hybrid vehicles is already surging. Yet, despite an avalanche of promising news, the shift away from gas-fueled cars remains stubbornly marginal with green vehicles being just 2 percent of the cars sold in the United States. There are electric Hummers, an electric Mustang, and an electric Harley-Davidson motorcycle, with car manufacturers planning to triple the number of non-gas-powered models by 2024 to 203. Ford Motor Co. plans an electric version of its popular F150 pickup. Still roughly 1.5 billion gas-powered cars and trucks are still in operation.

4) Stock market closings for – 25 JAN 21:

Dow 30,960.00 down by 36.98
Nasdaq 13,635.99 up by 92.93
S&P 500 3,855.36 up by 13.89

10 Year Yield: down at 1.04%

Oil: up at $52.88

6 January 2021

1) With the ravages of the new coronavirus, Los Angeles County has been so overwhelmed it is running out of oxygen. Arizona now has the nation’s highest rate of coronavirus hospitalizations. In the Atlanta area, nearly every major hospital is almost full, prompting state officials to reopen a field hospital for the third time. This last week, new deaths and cases have increased by more than 20 percent, for a total of more than 355,000 fatalities and 21 million infections. But the toll on hospitals is more critical. Southern California is running low on ICU beds, ventilators and morgue space. But the greatest shortage is oxygen. The sheer number of patients has placed such a strain on oxygen systems that some hospitals are struggling to provide adequate air pressure and flow into patients’ lungs. But expanding the oxygen supply doesn’t solve the problems, because of the volume being pumped, some of the pipes start to freeze up. Also you start running out of oxygen tanks that patients need to be discharged and sent home. As cases increase ICU beds get full, ER gets backed up, ambulances have nowhere to take patients. There’s severe, chronic staffing shortages, while elective surgeries get canceled so the ability to care simply degrades.

2) It is being reported that President Trump privately admits his defeat, but he wants to continue brawling for attention, so Trump has kept up a flurry of activities to pressure other Republicans to aid his effort to block Biden’s presidency. But one factor political pundits are overlooking is the state of the economy that Biden will inherit. Many are expecting the economy to make a strong quick recovery, but with the whole western economies going into massive deep debt, the likelihood of sever economic problems, that are worst than the 2008 downturn, looms large. The chances of Bidens new administration turning things around for America are very, very slim. And when there are economic problems, the President gets blamed even if it’s not his fault, so the new President will soon be in trouble with the people turning against him. Whether by design or accident, the charges of election fraud will most likely become an ‘albatross’ tied around Biden’s neck. For while the people now want to ignored the questions of voter fraud and corruption, as public opinion diminishes, that ‘albatross’ will hang heavy pulling his presidency down.

3) Communist China continues its backslide into a repressive totalitarian regime with the arrest of dozens of Hong Kong democracy activists and opposition politicians for violating the city’s controversial national security law, in what appears to be the largest roundup yet under the China imposed legislation. The Chinese justify the law which bands subversion, terrorism, secession and collusion with foreign forces, but the law has mainly been used against non-violent political opponents and dissidents.

4) Stock market closings for – 5 JAN 21

Dow 30,391.60 up by 167.71
Nasdaq 12,818.96 up by 120.51
S&P 500 3,726.86 up by 26.21

10 Year Yield: up at 0.96%

Oil: up at $49.81

4 January 2021

1) The prospects of approving the $2,000 stimulus checks have dimmed further. The legislation was scrambled in the final days of the 116th Congress. Democrats rapidly passed a bill with some Republican support and attempted to approve it in the GOP-led Senate. But the Senate Majority Leader blocked a vote on the checks, by eliminating Section 230 liability protections for social-media companies and reviewing purported voter fraud in the 2020 election. These contentious measures cut off Democratic support for the bill and avoided holding a vote directly on the larger checks. While a half dozen Senate Republicans have expressed support for larger checks, most have opposed additional spending on top of the $900 billion in aid.

2) There are eleven GOP senators who plan to object to certification of the election results, with Vice President Pence welcoming their move on January 6. So far, every state has certified their election results. The senators’ opposition to official certification is considered to only stall Congress by a matter of hours in finalizing the results. Nearly one-quarter of the Senate Republicans have broken with GOP leaders to join the effort to invalidate Biden’s win. Meanwhile, in the House, over half of the Republican members have said that they will vote on January 6 to block certification of the election results.

3) Nancy Pelosi has been reelected speaker of the house despite a narrow majority, for a fourth non-consecutive term, to lead the House of Representatives, despite suffering a handful of defections in a narrow vote. After serving for 17 years in charge of the House Democrats, Pelosi ran unopposed in her election. The Democrats’ had their smallest majority in decades and a pandemic that has hindered attendance. Some in her caucus have agitated for new leadership, and Republicans were unified against her. She received 216 votes, compared to House Republican leader Kevin McCarthy 209 votes.

4) Stock market closings for – 31 DEC 20:

Dow 30,606.48 up by 196.92
Nasdaq 12,888.28 up by 18.28
S&P 500 3,756.07 up by 24.03

10 Year Yield: down at 0.92%

Oil: up at $48.42

31 December 2020

1) President Donald Trump’s efforts for a $2,000 Covid-19 relief check for each American has run into a road block, which the Senate Republicans have made unsurmountable, even as pressure builds to approve the bigger checks. A growing number of Republicans oppose more spending, despite bucking Trump. The showdown over the $2,000 checks has thrown Congress into a chaotic year-end session which is preventing action on overturning Trump’s veto on a sweeping defense bill. McConnell is trying to provide an off ramp for GOP senators to avoid a tough vote. Republicans are split between those who align with Trump’s populist instincts and those who adhere to what had been more traditional conservative views against government spending. New legislation is proposing linking the president’s demand for bigger checks with repealing law suit protections for tech companies like Facebook or Twitter , as well as establishment of a bipartisan commission to review the 2020 presidential election for possible fraud.

2) There is another casualty of the coronavirus pandemic . . . the ringing in of the new year at Times Square in New York, which in the past draws millions of visitors to Midtown, but not this year. This year, the visitors are out, the traditional dropping of the crystal orb will be viewed only on television. There will still be the night performances, with disco diva Gloria Gaynor singing her “I Will Survive”, a rather appropriate anthem for 2020. Other cities across the globe are also curbing their traditional celebrations of the new year.

3) The new strain of Covid-19 virus has been discovered in Colorado and California which alarms scientists because it is a more contagious Covid-19 strain. It is expected that the new strain will quickly spread to other states. In San Diego County a 30-year-old man in the county, with no travel history, has tested positive for the new strain on Tuesday. Because there is no travel history, this is not an isolated case in San Diego County. Furthermore, on Tuesday, Southern California’s Intensive Care Unit availability is now at zero percent. Meanwhile, Colorado reported its first known case of the variant on Tuesday too, and was investigating a second possible case Wednesday. Both of the cases are National Guard soldiers who were deployed to support staffing at a nursing home in Simla, Colorado, outside Denver. While the new variant continues to spread fast in the UK, it is more contagious than previously identified strains but not more severe. The English virus spreads at a rate of 70% compared with other variants in the U.K.

4) Stock market closings for – 30 DEC 20:
Dow 30,409.56 up by 73.89
Nasdaq 12,870.00 up by 19.78
S&P 500 3,732.04 up by 5.00
10 Year Yield: down at 0.93%
Oil: up at $48.30

30 December 2020

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

29 December 2020

1) President Trump has signed the coronavirus relief bill which includes the $600 stimulus checks. The stimulus is $900 billion dollar relief bill, which was delayed by Trump’s reluctance to sign the bill into law as the coronavirus pandemic continues to range while millions of people have lost their jobs. The stimulus legislation was flown down to Trump’s Mar-a-Lago resort in Florida where the President spent his Christmas holiday. But on Sunday, Trump sign the mammoth, 5,593-page product of months of congressional negotiations.

2) With President Trump public statement that he wanted $2,000 stimulus checks spurred the Republicans and Democrats to pursue a new offering with a special bill. Trump has repeatedly criticized the $900 billion bipartisan stimulus bill calling it a disgrace for only including a “measly $600” in direct payments. He tweeted Saturday “I simply want to give our great people $2000”. The president opposed the bills, but backed down on Sunday and signed it narrowly avoiding a government shutdown. However, the Republicans have agreed to a new vote on $2,000 stimulus checks with a new bill to increase payments to individuals from $600 to $2,000.

3) Star Trek’s Scotty, the chief engineer on the fictional U.S.S. Enterprise, has finally beamed up to the International Space Station. The ashes of James Doohan, the actor who portrayed the original Star Trek character Montgomery “Scotty” Scott, have been interred for a dozen years on the International Space Station (ISS). The actor died in July 2005 at age 85, and portions of the actor’s ashes had previously been officially launched into space a couple of other times. Citizen astronaut and entrepreneur Richard Garriott, who was one of the first private citizens to fly to space, smuggled Doohan’s ashes during a 12-day mission in 2008 and were left hidden on board the station. Doohan’s ashes have now traveled 1.7 billion miles in space, orbiting Earth more than 70,000 times.

4) Stock market closings for – 28 DEC 20:

Dow 30,403.97 up by 204.10
Nasdaq 12,899.42 up by 94.69
S&P 500 3,735.36 up by 32.30

10 Year Yield: down at 0.93%

Oil: down at $47.69

AMERICANS THAT ARE WEALTHY; ARE CLOSELY MONITORING THEIR FINANCES UNDER TRUMP PRESIDENCY OR BIDEN PRESIDENCY

By: Economic & Finance Report

Wealthy Americans are monitoring their finances and tax proposals from both candidates as the 2020 presidential election gets closer.

Money managers, financial advisors and accountants across the United States spectrum, have been advising their wealthy clients about what they may expect from either a Trump reelection presidency or a Biden presidency.

Some experts have advised their clients on what they will be paying in taxes under a Biden Democratic Presidency and Congress; what to expect with the current Trump Presidency and a full Republican Congress.

Things may be mightly different in comparison, opposed to exemptions and what the rich/wealthy will have to shell out and what they will save in either presidency. -SB

BUSINESSMAN & FMR PRES. CANDIDATE HERMAN CAIN HAS DIED….

By: Economic & Finance Report

Businessman and former Republican presidential candidate Herman Cain has died from corona virus (Covid-19) at age 74 years old. Mr. Cain was a Republican presidential candidate in the 2012 elections. He came up with the 9-9-9 Plan which was tax proposal for fixing the USA tax code. It was a paramount plan for his campaign. He was a former chairman of the Federal Reserve Bank of Kansas City.

Before his journey into politics and monetary policy, Herman can was CEO and President of Godfather Pizza (subsidiary of Burger King). After his stint at Godfather Pizza he became the CEO of the National Restaurant Association. He was also on various company board of directors as well. -SB

Image Credit: CBSNews.com

LATEST TRADE WARS: MEXICO IMPOSES TARIFFS ON U.S. IMPORTS!!!!!!!!!!!!!!!!!

By: Economic & Finance Report

Mexico has imposed tariffs on American imports such as pork, apples, grapes, cheese and steel. This is in connection to the tariffs President Trump imposed on steel and aluminum, which affects NAFTA countries Mexico and Canada.

The effects will alter the relationship on NAFTA; one which President Trump has already expressed is in unfair to American workers. He has stated he either wants to renegotiate a fair agreement amongst the NAFTA countries (USA, Canada, Mexico) or independently negotiate with Canada and Mexico, as  separate individual countries. Mexico and Canada have both denounced such a proposal by Trump.

This is coming at a critical time for NAFTA, as Mexico gears for presidential elections on July 1, 2018 and US congressional midterm elections are in November 2018. -SB

 

PRESIDENT TRUMP’S PICK AS NEW FEDERAL RESERVE CHAIRMAN: JEROME POWELL

By: Economic & Finance Report

President Donald J. Trump has chosen Mr. Jerome Powell to head the US Federal Reserve Bank. 

Mr. Powell is a member of the Federal Reserve Board, born in Washington DC and educated at Princeton University, with a law degree from Georgetown University.

He is a Republican and has extensive experience working within the Federal Reserve system and in the private sector, in investment banking. He has tended to be more moderate in voting on Federal Reserve monetary policies, and since becoming a Federal Reserve Governor, he has voted on every monetary policy bill that has been accounted for.

Mr. Powell will replace US Fed Chairwoman Janet Yellen in February 2018, when her four year term expires. -SB