James GordonThis is what you need to know:.
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Wall Street shares reached record highs on Tuesday, as key countries confirmed Joseph R.’s victory. Biden Jr.’s victory in the presidential election and the news that Janet L. Yellen will be the next Minister of Finance raised hopes of a significant increase in government spending to support the economy.
The S&P 500 rose by 1.6%, surpassing its peak at the beginning of this month. The Dow Jones Industrial Average broke the 30,000 mark for the first time, which is also the best recent record.
This month S&P 500’s stocks increased by around 11%, which can be explained by a number of factors. Biden’s clear victory in both the referendum and the electoral college and the unsuccessful attempts of the Trump campaign to undermine that result mean that the political uncertainty that once feared the troubled investors has largely disappeared. And promising developments in the race for a coronavirus vaccine – three companies are currently presenting conclusive studies – are forcing investors to focus on the prospects for a return to normal economic growth next year.
These growth expectations were reinforced by the news that Yellen, a former chairman of the Federal Reserve and supporter of government intervention in the economy, had selected Biden as Secretary of the Treasury.
In October, Yellen said the economy was in urgent need of domestic help during the pandemic. Analysts say that after two decades of work at the central bank, the central bank will be able to establish close ties between the two institutions.
The former chairman of the U.S. Federal Reserve is a welcome choice for investors and increases the likelihood of strong coordination of financial and monetary policy, – wrote in a note from analysts at UBS Global Wealth Management. Relations between the Fed and the Ministry of Finance have recently come under pressure due to the Trump administration’s efforts to close part of the Fed’s emergency credit funds.
Tuesday’s growth on Wall Street reflects optimism about the growth outlook. The Russell 2000 Small-Cap Index, which focuses on US economic expansion, rose by almost 2%, while the Bank Index rose by more than 5%.
In addition, stocks of companies that will benefit from the pandemic once the vaccine is effectively used increased sharply on Tuesday, including cruise ships, airlines and casino operators.
In the energy markets, Western Texas Interim crude oil futures contracts rose by more than 4 percent to nearly $45 a barrel as oil producers’ stocks were higher.
Although shares were already higher on Tuesday, they hit a record high shortly after Pennsylvania confirmed the election results in Biden’s favor. Another state where Trump’s campaign has been difficult did the same in Michigan on Monday, and President Trump said his government would allow a transition period.
Trump, who repeatedly warned that the markets would collapse if he lost his re-election, said Tuesday that was a record.
The stock market just collapsed to 30,000 – never a number, Trump said in a brief speech for the White House, referring to the Dow Jones Industrial Average for medium-sized companies. It’s a sacred number, 30,000, that no one ever thought they’d see.
Stocks in Europe and Asia were also higher on Tuesday. The Stoxx Europe 600 index rose by 0.8% due to an increase in financial and energy reserves. In the UK, the FTSE 100 index increased by 1.6%.
The aviation and hospitality sector was one of the main winners of the FTSE 100 after England announced that it would reduce quarantine from 14 days to five if newcomers reacted negatively to the coronavirus.
Janet Yellen spent nearly 20 years with the Federal Reserve, including four years as President of the Central Bank. A loan… Eric Thayer for The New York Times.
Janet Yellen knows Wall Street, and Wall Street knows Janet Yellen.
Yellen worked in the public service for decades, both at the Federal Reserve and at the White House Council of Economic Advisers. After the financial crisis and the deep recession of 2007-2009, the Fed focused on a series of unconventional measures, such as its bond purchase programme, known as quantitative easing. And he served as president of the central bank from 2014 to 2018 because he was very slow to withdraw that support – a warning that many analysts believe has laid the foundations for a strong labour market that has reduced the unemployment rate to its lowest level in 50 years before the coronavirus pandemic undermined the economy.
Now that President-elect Joseph R. Biden Jr. is expected to elect a secretary of the Treasury, she is accepted by economists as the person who will advocate an active role for the government in the fight against the economic damage caused by the pandemic.
Although the pandemic continues to seriously affect the economy, we must continue to provide emergency financial aid, Yellen told Bloomberg in October.
In the near future, this may mean reviewing programmes to help businesses, communities and financial markets survive the pandemic – which Stephen Mnuchin, the current secretary, is working on. It could also mean negotiating with Congress to resume public spending to support the economy.
Yellen, 74, has argued in the past that Congress should consider giving the Federal Reserve the power to buy a broader range of assets such as corporate bonds or even equities – a move sometimes described by progressives as business-friendly. Investors might see this as a sign that she is probably a political activist.
But it could also argue for a slightly stricter financial regulation, as it did recently in its criticism of the lifting of the restrictions imposed on banks at the time of the Trump affair.
That’s what people should have said about the news of their probable appointment and possible confirmation:
- It is clear that she is incredibly capable, experienced and someone else we know well. It eliminates any element of surprise. ” – Michael Feroli, chief economist at J.P. Morgan.
- Especially in times of crisis, it is important to have a common front between financial and monetary policy, and President Yellen understands this better than anyone. – Michelle Mayer, chief economist, Bank of America Merrill Lynch.
- She is an extraordinary person – she has an incredible intelligence, an incredible work ethic that puts us all to shame, and she cares a lot about what she does. It’s important. – John K. Williams, president of the Federal Reserve Bank of New York.
- Yellen will probably work well with Fed Chairman Jay Powell. Powell was governor of the Fed when Yellen was president. And although they may have small differences, they agree on the need for economic incentives. Yellen’s experience as Fed Chairman should also reassure markets that she knows how the Fed works and will not undermine it. – Jan Katz, Financial Policy Analyst at Capital Alfa Partners.
- Her appointment is historic for many reasons, from the fact that she broke another glass ceiling to the difficult economic situation she will inherit on her first day. Probably the most important thing is how well Yellen is able to meet this challenge. – Tim Adams, Executive Director of the Institute of International Finance.
- Ellen has a difficult task, but she has the experience, talent, credibility and relationships with members on both sides of the aisle to make a real difference. – Henry M. Paulson, Jr., Chancellor of the Exchequer of President George W. Bush.
- Janet Ellen would be an excellent choice for the position of Secretary of the Treasury. She’s smart, strong and principled. As one of the Fed’s most successful governors, she rejected Wall Street banks and blamed Welles Fargo for, among other things, cheating on working families. – Senator Elizabeth Warren, Massachusetts Democrat.
- Janet Ellen will be a thoughtful and caring leader that our country needs as Minister of Finance. She understands that an economy under great pressure, with a shortage of manpower, is the best social programme. – Lawrence Summers, President Bill Clinton’s Secretary of the Treasury.
- Janet Ellen is a good choice for the Secretary of the Treasury. Now that I have the opportunity to work with Ellen, the then president, I have no doubt that she will be the strong hand we need to promote an economy that works for everyone, especially in these difficult times. – Gary Cohn, former economic advisor to Trump and chairman of Goldman Sachs.
Changes to the S&P 500 after the 2016 elections
Up to eight percent
after the election
Day 2020.
at the following address:
Coronavirus
Pandemic
In the midst of fear.
up to
Rate increases
Up to eight percent
after the election
Day 2020
Changes to the S&P 500 after the 2016 elections
In the midst of fear.
up to
Rate increases
at the following address:
Coronavirus
Pandemic
8% more than election day 2020
Changes to the S&P 500 after the 2016 elections
In the midst of fear.
up to
Rate increases
at the following address:
Coronavirus
Pandemic
As inauguration day approaches, President Trump seems to have less control over the collective psyche of investors.
Investors of all political stripes say they are ready to turn the tide, a profitable but highly politicized and stressful time for financial markets, in light of an unpredictable force whose statements have often shifted share prices, reports Matt Phillips of the New York Times.
The president’s speech about the record performance of the market, the speech of the director who disapproves of his decisions and the unexpected political statements on Twitter contrast sharply with the behaviour of the previous presidents.
Since taking office, he has sent more than 200 tweets or retweets with links to the stock market, as well as dozens of statements about the upturn in the market under his leadership.
Trump unveiled market information after private conversations with business leaders, urged the Fed to cut interest rates to support the market, and announced its new positions in the trading war with China in a hail of unexpected tweets that plunged stock prices.
He publicly threatened and condemned large U.S. companies and denounced Amazon.com for its tax payments and its transactions with the U.S. post office; with General Motors, Ford and Carrier, then a subsidiary of United Technologies, for its plans to close factories; and with Lockheed Martin and Boeing for its expenditure on fighter jets and the replacement of Air Force One.
For some investors, this means that @realDonaldTrump has become an unwanted distraction that they will hopefully soon ignore.
I just want my life back to normal, said Barry Ritoltz, the New York-based asset manager who didn’t vote for Mr. Trump. I just want the noise level to be low.
Mark Calabria, Director of the Federal Housing Finance Agency, regulator of the mortgage giants Fannie Mae and Freddie Mac.Credit….Win McNamee/Pool on REUTERS.
The Wall Street Trade Association wants to put an end to all Treasury officials’ plans to privatise Fannie Mae and Freddie Mac at a time when the Trump administration is in decline.
The Structured Finance Association, which represents some 400 institutional investors, banks and other market players, wrote to Finance Minister Stephen Mnuchin on Monday, explaining that the political calendar should not lead to changes affecting two government-controlled mortgage companies.
Mnuchin must avoid the potentially devastating consequences of the privatization of Fanny and Freddy too soon, according to a letter signed by Michael Bright, the association’s CEO.
On Friday, the Wall Street Journal reported that the Federal Housing Finance Agency – the regulatory agency Fanny and Freddy – has asked Mr. Mnuchin to end conservation as soon as possible. The agency spokesperson refused to comment.
Fanny and Freddy, who came under government control during the worst financial crisis in September 2008, are the main driving forces behind the country’s mortgage market. In fact, they guarantee about half of all mortgages against default, thus controlling interest rates.
The business group is campaigning for the final liberation of mortgage credit companies from state control. But, as Mr Bright wrote, a hasty exit from the conservatory, depending on the political agenda, threatens to negate the positive work that has been done.
The Obama and Trump administrations have discussed various plans to bring Fanny and Freddy back to private business, but no decisive action has been taken.
The wisest thing is not to scare the markets along the way, Bright, who previously served as acting president of Ginny May, another state mortgage company, said in an interview.
Mark Calabria, director of the F.H.F.A., has long advocated a plan to end conservation, but he risks losing his job after the inauguration of President-elect Joseph R.. Biden Jr. on March 20th. January. Next month, the Supreme Court will hear oral arguments in a case that could determine the new president’s ability to remove the head of the F.H.F.A. before the end of his five-year term. Mr Calabria’s term started in April 2019.
Last week, the F.H.F.A. approved a plan that requires mortgage financing companies to raise more than $200 billion in capital. Many see this as a harbinger of the end of the conservatory, but Mr Calabria said that Fanny and Freddy should be protected from too much risk and the need for more help.
Some supporters of housing policy reject the so-called main rule, arguing that it would limit Fanny and Freddy’s ability to condition loans in collateralised securities and make it difficult for them to keep mortgage rates low.
The White House may introduce new restrictions on exports and investments in China this week. Credit… Marc Schiffelbein/Presse Associée.
The trump card board weighs up various policy actions to prevent China, as president trump card and its advisors in office, from using their last weeks in office to try to curb the U.S.’s economic ties with the country.
The measures, which could be announced this week, could impose new restrictions on Americans wanting to sell products or invest in certain Chinese companies, although the extent of these restrictions cannot yet be predicted and, according to those who are aware of these plans, may be relatively limited.
One of the most likely measures is the inclusion of dozens of other Chinese companies, including the International Semiconductor Manufacturing Corporation, on the Ministry of Defense’s list of companies with ties to the Chinese military, they said.
This month, Trump issued an executive order prohibiting listed companies from receiving U.S. investments and found that the financing posed a threat to national security. Only a few of these companies are listed on American stock exchanges, but some are parts of stock exchanges founded after the 11th century. This means that listed companies must be excluded from US portfolios from 1 January.
The Government is also considering other measures, including additional sanctions related to action in Hong Kong or restrictions on imports of goods from Xinjiang, where Beijing is detaining and investigating the local Muslim population.
The government may also designate 89 Chinese companies in the aerospace and other sectors as military end-users, which will limit their ability to acquire certain US products and technologies. The proposed list, which included the Chinese aircraft manufacturers Commercial Aircraft Corp of China, known as Comac, and China Aircraft Industrial Corporation, was first presented by Reuters.
This measure will not be as far-reaching as the inclusion of companies in a list of entities that will impose greater restrictions on exports from the US, an issue that has also been raised at meetings of the Department of Commerce in recent weeks. And the rules do not impose any restrictions on U.S. companies supplying goods to Chinese companies through their foreign subsidiaries.
As President Trump has always said, economic security is national security, Trade Secretary Wilbur Ross said Tuesday in a statement that neither confirms nor denies this policy.
The Department of Commerce ensures that the U.S. economy continues to grow by coordinating with our partner agencies to bring foreign opponents to justice, the statement said. An active and constructive dialogue with the industry is an important step in this process.
Mary Barra, CEO of G.M., and President of Trump in 2017. A loan… Stephen Crowley/New York Times.
Over the past four years, General Motors has become one of President Trump’s most popular business goals. He repeatedly attacked the company in connection with the closure of the Ohio plant and even attacked it when the car manufacturer proposed to produce fans in response to this spring’s coronavirus pandemic.
And Mr. Trump laughed at the CEO of Mary T. Barra, one of the few women who runs a large American company. Still messing with Mary B., he tweeted in March.
The company and Ms. Barra did not respond to the president’s anger, but on Monday, G.M. broke off with the White House on an important issue on which they agreed. The automaker said it would no longer support the Trump government in its fight against California’s clean air standards.
California has been trying to tighten emission standards to combat climate change. The Trump administration relaxed the standards of the Obama era and deprived California and other states of the power to make their own rules, leading to lawsuits in several states. G.M., Toyota Motor and Fiat Chrysler intervened on behalf of the administration in the lawsuit. Several other car manufacturers, including Ford Motor, BMW and Volkswagen, have sided with California.
G.M.’s support for the Trump administration came as a surprise to many automotive experts in light of the president’s repeated attacks on the company and Ms. Barra. This position also seemed strange to G.M., as the car manufacturer had ambitious plans to include about 20 electric models in its programme.
In a letter sent on Monday to the leaders of some of the country’s largest environmental groups, Barra noted that J.M. currently supports President-elect Joseph R. Biden Jr. in his plan to reduce emissions and promote the use of electric vehicles.
We believe the ambitious goal of electrifying the elected President of California and General Motors is to combat climate change by drastically reducing car emissions, she wrote. To better encourage the necessary dialogue, we avoid immediate legal disputes as orders get closer and invite other car manufacturers to join us.
The letter came a week after Barra announced its intention to spend $27 billion over the next five years on the development of electric vehicles, 20 of which will be sold in the United States. On the same day, Michigan confirmed Biden’s victory in the state election, which helped consolidate his victory.
McCormick’s agreement to take over Cholula is a gamble on the growing popularity of spice flavors around the world. A loan… Charles Sheehan/Associated Press.
Spice maker McCormick & Company will buy Cholula Hot Sauce for $800 million, the companies announced Tuesday.
The deal is a gamble on the growing popularity of spicy flavors around the world, three years after McCormick acquired Frank’s RedHot brand as part of his $4.2 billion acquisition of the Reckitt Benckiser grocery store. As people eat more at home – and prepare for more adventures – during the pandemic, sales and profits increased for McCormick, a company based in Hunt Valley, Maryland, USA. At the beginning of Tuesday’s trading session, the company’s price rose by more than 1%, and this year it has risen by around 10%.
In September, the company’s CEO, Lawrence E. Curzius, told analysts that the company hopes to achieve about a third of its growth through acquisitions. With Cholula, McCormick, who describes himself as a world leader in flavour, has added another flavour mark to his wardrobe, including French mustard.
Hot sauce is an attractive and growing category, and as an iconic premium brand, Cholula has been poised to grow into this category, Kurzius said in a statement Tuesday.
The private investment company L Catterton bought Cholula at the end of 2018 from investors, including tequila producer Jose Cuervo. Under his leadership, Cholula has expanded its distribution through retailers and partnerships with restaurants. This sauce, produced in Mexico and packaged in bottles with wooden lids, arrived in the United States in 1989. It is now sold with flavors like green pepper, chipotle and Chilean lime.
On Monday the passengers were waiting for a flight at La Guardia airport in Queens. The AAA predicts an overall decrease of 10% in the number of Thanksgiving trips compared to the previous year.
This year on Thanksgiving Day, Americans were tormented by the CDC’s growing number of cases and rude warnings about the need to reunite with their families in a traditional carbohydrate-filled ritual after a dark and scary year.
Approximately 27 percent of Americans plan to eat with people outdoors, according to interviews conducted by data collection and research firm Dynata for the New York Times.
Opinions about the need to take a risk on Thanksgiving seem to be closely linked to political views, with respondents describing themselves as Democrats, who are much less inclined to plan a holiday with multiple dwellings.
Megan Baldwin, 42, wanted to travel from New York to Montana to spend time with her parents, but she cancelled her plans last week.
I thought I’d get tested and take every precaution to be safe, but how could I risk giving it to my parents who were over 70 years old? she said, adding that they weren’t happy with the decision.
They just want to see their grandchildren, she said, but I can’t forgive myself if we infect them. It’s not worth it.
Others decided to take the plunge and concluded that the common emotional increase outweighed the risk of infection.
We all agree that we need it – we need to be together in these crazy, lonely times, and we’re just going to be careful and hope for the best, said Martha Dillon, who will meet parents from four different states at her Kentucky home.
Compared to 2019, the number of Thanksgiving trips has been significantly reduced.
The AAA predicts an overall 10% decline in Thanksgiving travel, the largest annual decline since the 2008 recession. However, for those who travel by car, which makes up the vast majority of travel planners – around 47.8 million people – the variation is much smaller, at around 4.3%.
On Monday, the road safety authority inspected about 917,000 people, less than half of the number observed on the same day in 2019, according to federal data released Tuesday.
The airlines are facing a sharp drop in demand that has forced them to abandon flights and make significant capacity reductions, said Catherine Estep, spokeswoman for the Airlines for America industrial and commercial group. Today, the number of cancelled payments has increased dramatically, and carriers are burning $180 million in cash every day just to keep working, she said. The economic impact on U.S. airlines, their employees, passengers and shipping companies is staggering.
Demand for train travel has fallen more sharply, by about 20 percent from last year, said Jason Abrams, spokesman for Amtrak.
Susan Katz, 73, said she cancelled plans to spend Thanksgiving with her daughter last Friday after seeing a monologue by MSNBC host Rachel Maddow describing her partner’s coronavirus outbreak and her fear that it could prove fatal.
They made her emotions, Rachel Maddow’s emotions, so real they just hit us, Katz said. I must have called him a few hours after I saw this.
Mrs. Katz, who lives in Raleigh, North Carolina, said she would spend the holiday alone with her husband. She’s trying to decide whether to melt the turkey breast.
Expert warnings have prompted Laura Bult, 33, to cancel her Sunday flight to St. John’s, Newfoundland. Louis two days before his scheduled departure.
I’m on Twitter – that’s a lot of embarrassing travelling, she says. A small part of what is one less is circulating at the airport and seems very important to me.
Her decision, she says, means her mother will be alone during the holidays.
I really wanted to be with my mother, she said. I tried to be careful because of her. She doesn’t care about her interests because she just wants to see me.
Interest in travel has generally increased following recent claims by pharmaceutical companies that their candidates for a coronavirus vaccine are effective in preventing infections based on preliminary data.
Travel orders increased by about 25% after Pfizer reported in early November that the vaccine it is developing with BioNTech was more than 90% effective, according to travel search engine Skyscanner.
Dr Anthony Fauci, the country’s leading expert on infectious diseases, has strongly recommended holiday travel as the number of new infections is increasing throughout the country.
Do you really want this meeting? He said in an interview with PBS. Or should you say that it hurts me not to do it because it’s such a beautiful traditional season, but to hold on to us because there will be times in the future when you can do it?
- JPMorgan Chase will pay a $250 million fine In the case of the United States of America, the regulator, the Office of the Comptroller, has stated that it does not properly manage the conflicts of interest it faces in handling the client’s funds. The fine relates to the trillions of dollars that the bank manages on behalf of its clients in investments and other related assets. Although the S.C.O. stated that JPMorgan had corrected the problems, they were serious enough to justify the fine. In recent years we have invested heavily and improved our monitoring platform to address the problems identified, Darin Oduyoye of the bank says in an e-mail.
- Dick’s Sporting Goods, one of the nation’s largest sports stores, announced Tuesday that Edward W. Stack will make his debut in the first edition of Dick’s Sporting Goods. February as President and CEO. Lauren R. Hobart, President of the Company, would assume these duties, while Mr. Stack would remain with the Company as Executive Chairman. Stack, who has been running Dick’s since 1984, was regarded as a role model for social business leaders after he ousted the company from arms sales in 2018 after a fatal shooting in Parkland, Florida. Under Stack’s leadership, Dick’s has grown to more than 850 stores and annual sales of nearly $9 billion, the company said.
The workers are building one of the highest warehouses on the east coast of Brooklyn’s Red Hook District. Hiroko Masuicke/The New York Times.
Retailers are succumbing to the dominance of e-commerce and are trying to save more and more irrelevant physical sales space by turning it into an order and return centre instead of a shop where shoppers can browse and shop.
The driving forces behind the online shops were already present long before the pandemic. But in the future, 2020 will be seen as a major turning point in retail, according to a report by Michael Corkery and Sapna Makheswari of the New York Times :
- Online sales are expected to experience the fastest growth in the sector over the next 12 years, with 20% of all retail purchases this year. According to Forrester Research, this will be more than 16% by 2019.
- Earlier this month, the number of stores announced to close by 2020 increased to 10,991, according to CoStar Group, a data provider for the real estate sector. Many shopping centres are struggling because tenants reduce the number of shops, do not pay rent or leave due to bankruptcy.
- According to CBRE, a real estate service provider, rents in Manhattan fell by 31% in the third quarter compared to a year ago and rents in the main shopping centres fell by 13%.
- But in the third quarter, warehouse rents increased 70% quarter-over-quarter, and more than a dozen e-commerce warehouses are under construction to meet New York City’s insatiable same-day delivery needs.
- In June, Amazon signed a lease for a 285,000 square metre supply station on Maspet’s premises in Queens. Amazon has also significantly increased its rental space in a number of huge warehouses on Staten Island. In addition to the 855,000-square-foot center that the company opened in 2018, Amazon added 1.4 million square feet of space to Staten Island this fall. In the Bronx, the company takes over a building recently cleared by competitor Walmart.
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