Wyllian Capucci
02/08/2021
Bill waves
The US Senate looks set to pass an infrastructure bill this weekof $550 billion that would provide the largest injection of federal spending on worksdecades and a boost to President Joe Biden’s economic agenda.Democratic and Republican senators examined the text of the 2,702-page billbefore sending it to the Senate on Sunday night, with majority leader Chuck Schumersaying it would be approved “in a matter of days”. Includes about $110 billion innew spending on roads and bridges, $73 billion on power grid upgrades, $US66 billion in railroads and Amtrak and $65 billion in broadband expansion. The billfalls short of a clean energy standard and tax credits for electric vehicles.Controversially, it would extend some tax reporting rules to brokers.cryptocurrencies. In Monday’s trading, Bitcoin retreated to less than $40,000after rising over the weekend to the highest value since May
Fed leadership
Federal Reserve Governor Lael Brainard defended different terrain of authoritymonetary policy led by Jerome Powell on some regulatory issues ahead of the decisionof Biden on Fed leadership. Brainard, considered one of the top candidatesin an expected succession decision not before September, said it is much moreinclined to use regulatory tools to avoid financial excesses such asactive. In comments on Friday to the Aspen Economic Strategy Group, she tooexhibited a greater willingness to adopt a central bank digital currency and moreinclination to make a decision than Powell. However, she aligned herself with Powellin monetary policy, saying that a further notable improvement in the labor market isneeded for the Fed to start cutting back on bond purchases.
Delta blues
China is facing its biggest Covid-19 outbreak since the late 2019 outbreak, withthe delta variant spreading to places declared to be virus free for months, includingthe original Wuhan epicenter. Although the total number of infections – more than 300 so far -still much smaller than Covid’s resurgence elsewhere, it’s a challengefor China’s pandemic strategy as the highly infectious strain becomeswidespread. Israel is seeing signs of diminishing vaccine effectiveness among the elderlyinoculated. India is likely to see a new, albeit smaller, wave of infections thatmay peak in October, according to the analyst who accurately predicted the peakof Covid in the country earlier this year
Markets go up
After recording its longest winning streak since 2018 in July, the sharesGlobals are in family rally territory. Overnight, the MSCI Asia Pacific indexincreased 1.45%, while Japan’s Topix index closed up 2%. In Europe, the IndexStoxx 600 gained 0.6% at 6:10 am EDT. The S&P 500 futures pointedfor a decent pop at the opening, the 10-year Treasury yield was at 1.23%,oil fell to $73 a barrel and gold was lower.
Coming
Economic return barometers will come with July PMI manufacturing at 10:45 am, followedby ISM manufacturing and employment for the month at 11am. The earning season continues withreports by Williams Cos., Loews Corp., Global Payments Inc. and ON Semiconductor Corp
Source:https://wintrademarkets.com/
