trump impeachment Archives

1. Global Stocks Hit Record as Bonds Slip; Oil Rises

Investors are taking comfort from the continued rollout of vaccines and data suggesting a declining trend in infections in countries like the U.S. A Citigroup gauge of global risk aversion dropped to its lowest since the pandemic first roiled markets last year. Weaker-than-forecast U.S. jobs data Friday reinforced economic risks as the pandemic lingers, but also highlighted the case for further stimulus. President Joe Biden is pushing for a mammoth $1.9 trillion economic relief measure. Some commentators, such as former Treasury Secretary Larry Summers, have raised questions about the size of the package and risks such as much faster inflation.

Futures on the S&P 500 Index increased 0.4% as of 8:24 a.m. New York time.

The Stoxx Europe 600 Index gained 0.7%.

The MSCI Asia Pacific Index rose 0.7%.

The MSCI Emerging Market Index climbed 0.2%.

2. Trump’s Impeachment Trial a Day Away With Few Details Settled

The U.S. Senate is a day away from starting former President Donald Trump’s second impeachment trial with many of the details still to be ironed out even as the outcome — an acquittal — is all but assured. “We’re planning as well as we can based on the briefs in the case, but we don’t know how it’s going to proceed at all.” Trump’s defense team, led by Schoen and Bruce L. Castor Jr. is due to file its trial brief on Monday. They previewed their case in an initial response to the Jan. 13 House impeachment that argued the trial is unconstitutional because Trump is no longer in office, and said his fiery Jan. 6 speech to a crowd of supporters near the White House didn’t incite the violence and is protected by the First Amendment.

3. Bitcoin Jumps to Record $44,000 as Tesla Invests $1.5 Billion

Bitcoin surged to an all-time high after Tesla said it’s invested $1.5 billion, becoming the biggest company yet to back the controversial cryptocurrency. Bitcoin jumped as much as 15% after Tesla made the disclosure in a regulatory filing, with prices exceeding $44,000 for the first time. Tesla also said it would begin accepting the digital token as a form of payment for its electric cars. That Tesla, one of the world’s most influential companies, and billionaire Elon Musk have thrown their weight behind Bitcoin is a massive sign of support for the cryptocurrency, which has been criticized by policymakers for facilitating money laundering and fraud.

4. Dogecoin Hits Another Record After Musk, Snoop Dogg Tweets

Dogecoin, the tongue-in-cheek cryptocurrency featuring a Shiba Inu dog as a mascot, briefly touched a record Monday after billionaire Elon Musk, rapper Snoop Dogg and Kiss bassist Gene Simmons tweeted about it. The token climbed to a peak of about 8.2 U.S. cents and a market capitalization of $10.5 billion during Asian trading hours Monday before pulling back. The coin was ranked among the top 10 cryptocurrencies by market value. Dogecoin’s surprising social media-fueled rally is just one instance of the revival in cryptocurrencies over the past year. The two biggest tokens, Bitcoin and Ether, both scaled fresh peaks in recent weeks.

5. Putin’s Once-Scorned Vaccine Now Favorite in Pandemic Fight

President Vladimir Putin’s announcement in August that Russia had cleared the world’s first Covid-19 vaccine for use before it even completed safety trials sparked skepticism worldwide. Now he may reap diplomatic dividends as Russia basks in arguably its biggest scientific breakthrough since the Soviet era. Countries are lining up for supplies of Sputnik V after peer-reviewed results published in The Lancet medical journal this week showed the Russian vaccine protects against the deadly virus about as well as U.S. and European shots, and far more effectively than Chinese rivals. At least 20 countries have approved the inoculation for use, including European Union member-state Hungary, while key markets such as Brazil and India are close to authorizing it. Now Russia is setting its sights on the prized EU market as the bloc struggles with its vaccination program amid supply shortages.

6. London Finance Takes Another Hit as Carbon Market Goes to EU

Intercontinental Exchange plans to move its 1 billion-euro ($1.2 billion) daily market for European carbon emissions contracts to the Netherlands from London in a blow to the U.K.’s attempts to build a green finance powerhouse after Brexit. Stuart Williams, president of ICE Futures Europe, said the decision to shift the business into the European Union will help traders and investors “manage climate price risk in the most cost-effective and seamless manner.” The market is a key plank of the EU’s efforts to combat climate change. The shift comes after the Brexit transition period ended on Dec. 31, cutting off access to most London trading from the bloc and jolting several major markets.

7. Hong Kong Stocks Are About to Lose Biggest Source of Funds

Hong Kong’s stock traders are about to find out whether the $7.3 trillion market can hold its own without its biggest source of flows. Starting Tuesday, trading links via Hong Kong’s exchange operator allowing mainland traders to buy domestic stocks will halt through Feb. 17 due to the Lunar New Year holiday. The stock connect closure will slam the brakes on record levels of inflows that helped propel Hong Kong’s equities market to its best start to a year since 1985. Investors north of the border turned bargain hunters in late 2020 after valuations in some sectors onshore reached the highest in more than a decade. Mainland investors net bought nearly $48 billion worth of Hong Kong stocks in the first five weeks of this year, which is already more than half of 2020’s total.

8. SoftBank’s Vision Fund Posts Record $8 Billion Profit

SoftBank Group reported a record profit in its Vision Fund as a surging stock market lifted the value of its portfolio companies, but founder Masayoshi Son wiped out a significant chunk of those gains with his controversial trading in derivatives. The Vision Fund reported a 844.1 billion yen ($8 billion) profit in the December quarter, surpassing record numbers set just a quarter earlier. A global rally in technology shares has boosted the value of SoftBank’s stakes in publicly traded firms like Uber and paved the way for IPOs from the likes of DoorDash. Those gains, which had been widely expected, were offset by fallout from Son’s decision last year to start dabbling in trading stocks and options. SoftBank posted a 285.3 billion yen derivatives loss in the period.

9. Facing Resistance, China Pushes Back 50 Million Vaccine Target

China has pushed back a target to inoculate 50 million people against Covid-19 by almost two months amid concerns over supply and hesitancy among the population around vaccines. The new plan, which was recently communicated to health officials, shifted the timeline for reaching 50 million shots to the end of March. People in key groups, including frontline medical workers, will continue to be the focus of the rollout — which has seen just over 31 million doses administered as of Feb.3 — with vaccination then widened to the general population in April.

10. Taiwan’s Exports Hit Record High on 5G and Holiday Demand

Taiwan exported a record amount in January, fueled by rising demand for computer chips and by companies rushing to get components ahead of the Lunar New Year holidays in February. Shipments surged almost 37% to $34.3 billion, the most in data going back to 1981. Imports also hit a record over the same period, up almost 30%. Taiwan’s economy was one of the strongest performers globally in 2020, with quick domestic suppression of Covid-19 and booming overseas demand for its goods driving strong exports and company profits. That trend looks to be extending into 2021.

Curated from Bloomberg.com

1. Dollar Rises as Stocks, U.S. Futures Retreat

After a buying frenzy swept across global markets last week, investors are starting Monday in a cautious mood. The dollar climbed against all its major peers, with demand supported by elevated US bond yields. European stocks pulled back from a 10-month high and S&P 500 futures dipped. Weighing on the minds of investors are worries that equities are running too hot and valuations are stretched at a time when major parts of the world are grappling with the worst of the pandemic.

Futures on the S&P 500 Index decreased 0.9% as of early morning New York time.

The Stoxx Europe 600 Index fell 0.2%.

The MSCI Asia Pacific Index declined 0.2%.

The MSCI Emerging Market Index increased 0.2%.

2. Democrats Eye Fast Trump Impeachment Days Before Biden Sworn In

House Speaker Nancy Pelosi is readying Democrats for a lightning-fast second impeachment of President Donald Trump this week that risks consuming Congress in a bitter political fight just as President-elect Joe Biden’s administration is attempting to get off the ground. With a groundswell of anger among Democrats over the storming of the Capitol on Jan. 6 by a mob encouraged by Trump, Pelosi said Sunday night the House would take up a resolution to impeach Trump for the second time in less than two years unless Vice President Mike Pence and the cabinet invoke the 25th Amendment this week to remove Trump from office.

3. Wall Street Cuts Campaign Spending to Condemn U.S. Politicians

Wall Street will use the power of its campaign-giving to broadly condemn U.S. politicians, including those whose attempt to overturn the November presidential election spurred last week’s attack on the Capitol. Goldman Sachs Group will probably curtail donations to leaders who tried to block the election result, and Morgan Stanley similarly singled out members of Congress who withheld their votes to certify President-elect Joe Biden’s win in November, pausing its contributions to them. JPMorgan Chase & Co., the largest U.S. bank by assets, said it’s planning a six-month suspension to both Republicans and Democrats, and Citigroup said it intends to temporarily stop all political contributions this quarter.

4. Tech Under Attack After Parler Goes Dark, Twitter Drops

Tech firms tried to contain a mounting backlash against their social media sites, with shares of Twitter and Facebook falling in early trading and rival platform Parler forced offline by Amazon.com. Twitter fell 7.8% in pre-market trading in New York after it banned President Donald Trump permanently for risking incitement to violence, citing posts referring to riots in the U.S. capital last week, removing one of Twitter’s biggest accounts. Facebook’s shares were down 2%. Free-speech-centric network Parler was taken offline early on Monday after Amazon Web Services shut down access to its servers, leaving it without an online home. Both Google and Apple kicked Parler from their stores, making it almost impossible to download the app.

5. Bitcoin’s Biggest Plunge Since March Shakes Faith in Crypto Boom

A steep selloff in Bitcoin is fueling concern that the cryptocurrency bubble may be about to burst. Bitcoin slid as much as 21% over Sunday and Monday in the biggest two-day slide since March. While the digital token recovered some of the losses during the European session, it was still down for the day. “It’s to be determined whether this is the start of a larger correction, but we have now seen this parabola break so it might just be,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. Bitcoin has more than quadrupled in the past year, evoking memories of the 2017 mania that first made cryptocurrencies a household name before prices collapsed just as quickly. Prices almost reached $42,000 on Jan. 8 with retail traders and Wall Street investors clamouring for a piece of the action.

6. China Stocks Slump Most in Three Weeks on Valuation Concerns

Chinese stocks fell the most in three weeks, led by consumer shares and commodity producers, amid concern valuations for the most popular stocks were stretched and as metal prices slumped. The CSI 300 Index dropped as much 1.5% before paring losses to 1% at the close. Gauges tracking energy, consumer staples and materials producers slumped more than 2%. Mainland investors appeared to flock to Hong Kong equities instead, buying a record HK$19.5 billion ($2.5 billion) of the city’s shares through trading links Monday. Jitters are appearing in China’s $11 trillion equity market after the gauge surpassed its bubble peak in 2015.

7. Hedge Funds Head for Cover as Dollar Rebound Gathers Pace

The dollar rebound is picking up pace, with signs that speculative traders are busy covering short positions after U.S. Treasury yields surged. Traders are reporting strong demand from leveraged funds for the dollar on Monday, with the greenback leading major currency advances. That adds to data released from the Commodity Futures Trading Commission that showed them trimming long positions on major currencies including the euro and the pound. “The dollar is so extremely oversold, over-hated, and over-shorted that it all but has to rally for a while at some point soon,” said Matt Maley, chief market strategist at Miller Tabak + Co. “The dollar is getting very ripe for a tradable bounce — one that will last at least several weeks and maybe even a couple of months.”

8. Brexit Drags U.K. Below U.S. in Global Business Location Ranking

Britain is significantly less attractive as an international business location because of Brexit but remains well positioned compared with other major economies. The U.K. slipped behind the U.S. to second place in the latest rankings, though it remains ahead of the rest of its Group of Seven partners. Canada was fourth, followed by Germany in 17th, France in 18th, Japan in 20th and Italy in 21st and final spot. “Brexit has been a major liability for the U.K.,” the authors of the study wrote. “Future British governments have a long road ahead if they wish to regain their economic dynamism, as promised by Brexit advocates.”

9. T-Mobile to Borrow Up to $2 Billion in Heated Spectrum Bid

T-Mobile US Inc. is borrowing as much as $2 billion as the mobile carrier engages in an expensive battle to buy more spectrum assets. The company will issue the debt in three parts, maturing as late as 2031. Communications providers are amping up their bids in a 5G airwaves auction in the U.S., which may see T-Mobile’s peers such as Verizon and AT&T tap the debt markets as well. The auction — which still has several more rounds of bidding ahead — has now surged past $80 billion, well above analysts’ estimates of $47 billion. The frenzy underscores how crucial these mid-band frequencies are to companies trying to seize global leadership in emerging 5G technology. The airwaves are expected to drive a yearslong surge of profits when deployed for next-generation mobile devices, autonomous vehicles, health-care equipment and manufacturing facilities.

10. Staples Seeks to Buy Office Depot Parent in $2.1 Billion Deal

There could be consolidation ahead in the office-products space, with Staples outlining Monday a proposal to acquire the parent company of Office Depot in a deal that would value the target company at $2.1 billion. A deal would bring together two of the biggest names in office supplies at a time when brick-and-mortar retailers are struggling to cope with broad economic shutdowns in the pandemic. Staples had previously tried to buy Office Depot, but the $6.3 billion acquisition was called off in 2016 amid antitrust scrutiny.