| | | | | |  | | By Ben White and Aubree Eliza Weaver | Presented by Harry's | Editor's Note: Morning Money is a free version of POLITICO Pro Financial Services' morning newsletter, which is delivered to our subscribers each morning at 6 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro. | | | Uncertainty goes global — It's not just the U.S. suffering through an existential crisis in confidence, though we are leading the world in abjectly failing the largest test of our era. The U.K. is also STILL struggling with Brexit, further highlighting the sharp fractures coursing through the western world that threaten growth for many years ahead. Imagine how much these fundamental breakdowns have already cost us? Hard to fathom. Via Reuters: "Asian shares rose on Friday as progress on COVID-19 vaccines boosted investor sentiment, but tricky Brexit negotiations and U.S. stimulus talks capped gains in riskier assets. …
"Investors bet on stronger economic growth next year as more countries prepare for vaccinations. U.S. authorities voted overwhelmingly to endorse emergency use of Pfizer's coronavirus vaccine while doses of a COVID-19 vaccine made by China's Sinovac Biotech SVA.O are rolling off a Brazilian production line. … No deal – "Buying fizzled out in some markets as talks on U.S. stimulus failed to make progress and after British Prime Minister Boris Johnson said there was 'a strong possibility' Britain and the EU would fail to strike a trade deal. Britain and the EU have set a deadline of Sunday to find an agreement" Short shutdown ahead? — Via our Andrew Desiderio, Connor O'Brien, and Burgess Everett: "Rand Paul is at it again. And his moves could force another brief government shutdown.
The Kentucky Republican is objecting to swift passage of the annual defense policy bill, forcing senators to remain in Washington for an extra day as he filibusters the $740 billion legislation. "But the government needs to be funded past Friday — and the short one-week spending bill can't be passed before then without agreement from all 100 senators to vote. The Senate adjourned on Thursday night without a resolution to this and other impasses" GOOD FRIDAY MORNING — Happy weekend everyone! There is an end to all this out there, don't worry. We're getting there. Keep the faith. Email me on bwhite@politico.com and follow me Twitter @morningmoneyben. Email Aubree Eliza Weaver on aweaver@politico.com and follow her on Twitter @AubreeEWeaver. | | | | A message from Harry's: Introducing Harry's new, sharper blades: From past experience with other brands, we've grown used to razor innovations often leading to higher price tags. Not this time around. Men's grooming startup Harry's just came out with their sharpest blades ever—without raising prices, breaking the traditional pattern of upcharging used by many razor companies. Learn more about Harry's new, sharper blades and how you can give them a try, 100% risk-free. | | | | | | Producer Prices at 8:30 a.m. expected to rise 0.1% headline and 0.2% core … Univ. of Mich. Consumer Sentiment at 10:00 a.m. expected to dip to 76.0 from 76.9 … HOUSE GOP WARNS POWELL ON CLIMATE EFFORTS — Our Zachary Warmbrodt:
"Dozens of House Republicans are warning Federal Reserve Chair Jerome Powell against proceeding with climate risk regulations for the financial system, in the first major political rebuke of the Fed's new efforts. "In a letter … to Powell and Fed Vice Chair for Supervision Randal Quarles, the 47 GOP lawmakers discouraged the central bank from imposing stress tests on lenders to measure their vulnerability to climate change — a move that they said could spur banks to cut ties with the oil and gas and coal industries." CRYPTO COMPANIES LINING UP FOR NATIONAL BANK CHARTER — Our Victoria Guida: "Two crypto companies announced their interest in pursuing a national bank charter this week, answering Acting Comptroller of the Currency Brian Brooks's invitation for payments firms that don't take deposits to be federally regulated. "Paxos and BitPay have put in applications to become national trust banks, which would allow them to keep custody of cryptocurrency-related assets with a single set of rules across state borders. They join Anchorage, which applied to convert to a national charter last month, in seeking OCC approval. None of the firms are seeking to take insured deposits or make loans." | | | |   | | | | | | STOCKS END THURSDAY MIXED — Reuters' Chuck Mikolajczak: "Major averages closed on Thursday with a rebound from early lows as investors looked for signs of progress in fiscal stimulus talks to support the economy after labor market data showed a jump in jobless claims. "Stocks on Wall Street opened lower on the heels of weekly initial jobless claims data that spiked by 137,000 to a seasonally adjusted 853,000, well above expectations for 725,000 and the highest level since mid-September, underscoring the need for fresh stimulus measures to support a flagging economy." BLOCKBUSTER IPO MARKET STILL CALLS FOR CAUTIOUS APPROACH — AP's Alex Veiga: "Wall Street has rolled out the welcome mat for companies going public this year, boosting proceeds from initial public offerings to the highest level in six years. IPOs slowed sharply in the spring due to the pandemic, but they surged in the summer as the market recovered from a steep slump and rallied to new highs. "And so far, betting on IPOs has paid off. Companies that have gone public this year have averaged a return of 53.8 percent above their IPO price, including a return of 23.4 percent after their first day of trading, according to Renaissance Capital, an IPO research provider." | | | | A message from Harry's: Harry's just came out with its sharpest blades ever. But what do sharper blades mean for you? Well, guys who shave four times a week say that, with Harry's new blades, their eighth shave is as smooth as their first. And yet, Harry's didn't raise prices—not even a little. Harry's new, sharper blades are (still) just $2 each for an 8-pack. But you don't have to take our word for it. Snag a Trial Set and decide for yourself. (And remember: if you don't love your shave, just let them know and get a full refund. That's their 100% Quality Guarantee at harrys.com). | | | | | | UNEMPLOYMENT CLAIMS JUMP, CASTING NEW SHADOW OVER ECONOMY — NYT's Ben Casselman: "When coronavirus cases began rising across the country this fall, economists sounded a warning: Without government aid, layoffs were sure to follow. Now those dire predictions are coming true. More than 947,000 workers filed new claims for state unemployment benefits last week, the Labor Department said Thursday. "That was up sharply from the week before, more than reversing a one-week dip that many economists attributed to the Thanksgiving holiday. Applications have now risen three times in the last four weeks, and are up nearly a quarter-million since the first week of November." SURVEY: RECOVERY WILL COOL FURTHER — WSJ's Harriet Torry and Anthony DeBarros: "The U.S. economic recovery is likely to slow further before the impact of expected approvals of Covid-19 vaccines makes itself felt in the second quarter of 2021, a new Wall Street Journal survey shows. "In the latest monthly survey of business and academic economists, forecasters slashed their projections for economic growth and job creation in the first quarter, amid a surge in coronavirus cases. A number of economists said they expect coronavirus caseloads to remain high in the first quarter of 2021 because vaccines will take time to be distributed across the U.S." EUROPEAN CENTRAL BANK STEPS UP ITS STIMULUS — NYT's Jack Ewing: "The European Central Bank delivered another dose of stimulus to the eurozone economy on Thursday, warning that the economic crisis caused by the pandemic is likely to linger well into 2022 despite the rollout of new vaccines. "The bank's Governing Council, which met on Wednesday and Thursday, extended and expanded programs intended to keep borrowing costs low for eurozone businesses and consumers reeling from heightened lockdowns and mounting job losses." CONSUMER WATCHDOG FINALIZES NEW MORTGAGE RULES — Reuters' Katanga Johnson: "The U.S. consumer watchdog on Thursday finalized two rules relaxing mortgage-lending requirements regarding a borrower's ability to repay, in a bid to boost the range of products available to lower-income, riskier customers. "The changes from the Consumer Financial Protection Bureau are part of a broader push by President Trump's administration to boost affordable mortgage products by reducing lenders' liability and compliance risk, although some consumer advocates say the changes could hurt vulnerable borrowers." | | | | LISTEN TO THE NEW SEASON OF GLOBAL TRANSLATIONS PODCAST: Our Global Translations podcast, presented by Citi, examines the long-term costs of the short-term thinking that drives many political and business decisions. The world has long been beset by big problems that defy political boundaries, and these issues have exploded over the past year amid a global pandemic. This podcast helps to identify and understand the impediments to smart policymaking. Subscribe for Season Two, available now. | | | | | MNUCHIN DEFENDS COVID-RELIEF LOAN TO TROUBLED TRUCKING FIRM — WSJ's Kate Davidson: "Treasury Secretary Steven Mnuchin defended the government's decision to lend $700 million in coronavirus-relief funds to trucking firm YRC Worldwide Inc., telling a congressional oversight panel Thursday that taxpayers will profit from the loan. "Members of the bipartisan Congressional Oversight Commission, the watchdog group monitoring Treasury loan programs, have questioned how the Overland Park, Kan.-based firm was able to qualify for government aid despite its precarious financial position before the pandemic." BUDGET DEFICIT UP 25 PERCENT IN FIRST TWO MONTHS OF FISCAL YEAR — AP's Martin Crutsinger: "The U.S. government's deficit in the first two months of the budget year ran 25.1 percent higher than the same period a year ago as spending to deal with the COVID pandemic soared while tax revenues fell. The Treasury Department reported Thursday that with two months gone in the budget year, the deficit totaled $429.3 billion, up from $343.3 billion in last year's October-November period." But household net worth is up, too — Bloomberg's Reade Pickert: "Household net worth continued to increase in the third quarter, hitting a fresh all-time high as the upward trend in stocks boosted Americans' wealth and offset a pullback in savings. "Household net worth increased by $3.8 trillion, or 3.2 percent, to $123.5 trillion in the July to September period, according to a Federal Reserve report out Thursday. Meanwhile, household debt increased at an annual rate of 5.6 percent, driven by the biggest quarterly increase in mortgage debt since 2007, according to data compiled by Bloomberg." CORPORATE AMERICA'S BORROWING BINGE MAY BE ENDING — WSJ's Matt Wirz: "The record corporate borrowing boom fueled by the Federal Reserve's pandemic response may be coming to an end. Wall Street bankers and investors are preparing for a sharp drop in corporate bond sales next year. "Companies with investment-grade credit ratings will likely issue $1.1 trillion of new bonds in 2021, a 32 percent reduction from this year, according to research by Barclays. Many are flush with cash after borrowing to bolster their balance sheets through the pandemic's economic shutdowns." | | | | JOIN TODAY - A PATH TO CLEANER SKIES: Before the pandemic, increased demand for air travel resulted in rising global emissions. Then, Covid-19 changed everything. As airlines start to recover from the resulting financial fallout, what is happening with the use of cleaner jet fuel, investments in technology, and international pacts to cut the airline industry's carbon footprint? Join POLITICO for a conversation on the future of air travel, climate change, and sustainability, as well as an executive conversation between POLITICO CEO Patrick Steel and United Airlines CEO Scott Kirby. REGISTER HERE. | | | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
No comments:
Post a Comment