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Wall Street is finally catching up with reality – MM spoke positively about the risks of the delta variant of Covid-19 and the impact of the United States staying for weeks. Only about 49 percent It is fully vaccinated and well below what is needed for herd immunity. The obvious fact is that unvaccinated people will undoubtedly die for no good reason, and inflation will undermine wage growth and at the same time undermine consumer confidence.
The fall in the stock market on Monday was therefore not surprising.. In fact, it arrived quite strangely late. And it continued overnight in AsiaVia Reuters: “Asian stocks fell early on Tuesday as the spread of the delta variants of the coronavirus hurt the global economic recovery and increased the risk of a fall. in high risk assets like oil. ….
“Japan’s Nikkei 225 hit a six-month low early in trading and increased losses to 1.05%. The Hang Seng index fell 0.3% and the Chinese benchmark CSI300 fell 0.7% at the start. … “The market is clearly in risk mode,” said Edison Pan, senior market analyst at Saxo Market, adding that the uptrend on Wall Street is weakening.
Oh, infrastructure spending is always confusing – – Via Burgess Everett and Marianne Levine: “Senate Republicans… were opposed to holding infrastructure talks while the bipartisan bill was still being drafted, and against squeeze play by majority leaders. Chuck Schumer ..
“Schumer and Senate Democrats agree to make unwritten deals to spend roughly $ 600 billion on roads, bridges and broadband in a vote scheduled for Wednesday, at least 10. That requires a Republican, but Republican leaders and GOP senators are working on bipartisan infrastructure. package issued the same warning to Schumer. ”
In other words … Democrats can make smaller bipartisan deals and pour roughly $ 600 billion into a unilateral settlement bill of up to $ 3.5 trillion. But he’s not certain to keep all Democrats in line with them (which the White House and Schumer really care about).
So to make a drawing … Delta variants threaten economic recovery. Inflation is poised to force the hand of the Fed. And other fiscal stimulus measures are always questioned (and if they pass, they may cause further inflation). The economy continues to recover. And it all can work. But it’s also at the end of a sort of knife right now.
good Tuesday morning – Please send me an email [email protected] Follow us on twitter @The morning money Ben.. Send an email to Aubree Eliza Weaver [email protected] Follow her on Twitter @AubreeEWeaver..
House Financial Services holds housing hearing with HUD Secretary Marcia L. Fudge at 10 am… Senate Bank hearing at 10 am on “21st Century Communities: Climate Change, Resilience, Reinsuranceâ€â€¦ Under -Senate Bank Committee There will be a hearing at 2:30 pm Federally Supported Housing… President Biden will hold a cabinet meeting at 3:15 pm to commemorate his six months in office…
Top Dem Lips bipartite infrastructure agreement – Our Heather Cagle, Sarah Feliz, Nicholas Wu: “Top House Democrats privately burned bipartisan Senate infrastructure negotiations… 48 hours of Senate attention test vote, I hope negotiations will fail before.
“Person in charge. Peter Defazio The House Transport Safety Board (D-Ore.) Has abandoned measures negotiated by the bipartisan Republican Party in a fierce appeal with other Democrats, according to three sources in the appeal. better than it all collapsed, “Defazio said on a Senate appeal. He… has Biden’s backing. Defazio’s frustration has been echoed over the phone by several other members.
Delta changes the equation – Mohammed A. El Elian on Bloomberg Opinion: “The surge in delta variants of Covid-19 around the world raises concerns about the robustness of what was already an uneven and uncertain global economic recovery…
“Let’s start with two things that most people agree on. The first is that the Delta variant is much more contagious than the previous iterations. Second, the link between infection, hospitalization and death is a happy one. We also know that if the world continues with its continuous, uncorrelated approach to tackling Covid, the risk of new variants will continue. ”
New treasury features – Via Ed Mills by Raymond James: “[T]The Biden administration has announced the appointment of Graham Steell, assistant secretary of finance for the Treasury Department. This is an influential role that is the latest signal of gradual policy changes in banking, wealth management and housing policy.
“Steel can be seen as a powerful and progressive ally in financial regulation and has advocated the active use of a wide range of regulatory tools to reduce the size and market power of financial firms. ”
Stocks skid as virus scare shakes market – AP’s Stan Choe, Alex Veiga, Damian J. Troise: “Concerns about the pandemic rekindled and stocks fell from Wall Street to Tokyo on Monday.
“The S&P 500 fell 68.67 (1.6%) to 4,258.49 after setting a record just over a week ago. Another sign of concern is that investors are investing in safer places. As a result of the jamming, 10-year government bond yields hit their lowest levels in five months. ”
“Many very young” try to buy dips in stock – Vildana Hajric and Claire Ballentine of Bloomberg: “One day, the post-pandemic stock rally will end. When this happens, it will require many newly baptized stock bulls.
“They have refused to turn has been a feature of the stock market for at least 12 months, and looks like what has fallen almost 3% against the S&P 500 Index since Thursday in 2021 alone. one sale. Whether the dedication of individual investors is enough to turn the tide is the biggest question in the market today. ”
Regulators Prepare to Respond as Stablecoin Gets More Popular – NYT’s Jeanna Smialek: “Leading US financial regulators met on Monday to discuss Stablecoin, an asset-backed digital currency that is growing in popularity so rapidly that the government is struggling to catch up.
“Stablecoin is a cryptocurrency that pulls value from the currency or basket of underlying assets and has long been a unique concern. News that Facebook is planning to create stablecoin 2018 and when this happened in 2019, the Federal Reserve and other regulators were concerned about the project’s potential for rapid growth. ”
Yellen urges early adoption of stable rules in US – Reuters Pete Schroeder: Treasury Secretary Janet Yellen told regulators on Monday that the U.S. government needs to act quickly to establish a regulatory framework for stablecoin, a fast-growing class of digital currencies. The Treasury said in a statement that a group of US regulators will issue recommendations to close the regulatory gap on stablecoin in the coming months. ..
Regulators try to fix money that failed in final crisis – Paul J of the WSJ. Davies: “The onset of the Covid-19 pandemic has caused a wave of stress that is common to money market funds that businesses and consumers use to store money, such as checking accounts. Had to step in to keep the money running. It was an unforeseen dysfunction. Several rounds of global reforms took place during the 2008 financial crisis. It aimed to strengthen money market funds after they were tied up.
“Currently, the Financial Stability Board, which brings together regulators from around the world, has proposed another change to minimize the possibility that central banks will have to enter and support the market.”
Robin Hood receives up to $ 35 billion valuation – AP’s Michelle Chapman: “Robinhood, an online brokerage firm involved in this year’s memetic stock phenomenon, will be released next week for a market cap of up to $ 35 billion. He said he hopes to price 55 million shares in the $ 38 to $ 42 per share range as part of the public offering. If the shares are sold at the upper end of the range, it is possible to raise around $ 2.3 billion. Robinhood offers approximately 52.4 million shares. ”
Biden says inflation is temporary – Reuters Steve Holland and Andrea Sharal: “On Monday, US President Joe Biden expected the price increases to be temporary, but his administration said long-term rampant inflation would hit the economy. Be vigilant, understanding that this will bring you a “real challenge”. Biden recently told Federal Reserve Board of Governors Jerome Powell that the Fed is independent and should take whatever steps are necessary to support a strong and lasting recovery. ..
Official Arbitrator Says COVID Recession Ended April 2020 – Hannah Lang and Bryan Mena of the WSJ: “The United States officially came out of recession in April 2020, ending the two-month pandemic economic contraction and becoming the shortest on record.
“Monday’s announcement from the National Bureau of Economic Research also marks April as the official start of an economic recovery from the first shock of the coronavirus pandemic last spring. Unemployment.”
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