In recent developments, the political landscape in the US is facing significant changes following the Capitol riot. Here are key headlines summarizing the current situation:
- * Trump pledges to prepare for a smooth transition to the Biden administration.
- * Democrats are moving towards initiating a second impeachment of Trump.
- * There are increasing calls for Trump’s resignation following the chaos at the Capitol.
- * US adversaries are looking to exploit the political turmoil in the country.
- * The US envoy to the UN is set to visit Taiwan, a trip that may provoke China.
- * A sharp slowdown is anticipated in today’s US payrolls report for December.
- * The US trade deficit reached a 14-year high in November.
- * Tesla’s Elon Musk has now become the world’s wealthiest individual.
- * Eurozone unemployment unexpectedly fell to 8.3% in November.
- * The US ISM Services PMI increased in December, indicating a solid rate of growth.
- * Jobless claims in the US remained unusually high last week.
The January 6th assault on the US Capitol ultimately failed to obstruct Congress from certifying Joe Biden’s election victory, despite the chaos that unfolded in Washington. Nonetheless, the hurdles confronting the US economy remain prominent.
Here are some additional important news items:
- * Congress certified Biden’s election victory following the assault on the Capitol.
- * Trump promises an ‘orderly’ transition after the Capitol riot.
- * Democrats have successfully secured Georgia’s Senate seats, gaining control of the Senate.
- * Experts warn the US is ill-equipped for genetic variations of the coronavirus.
- * Global economic growth remained ‘solid’ at the end of 2020, according to survey data.
- * Eurozone economic confidence improved in December.
- * The 10-year Treasury yield increased by 1% in November.
- * Growth in the US services sector has hit its slowest rate in three months as of December.
- * US private payrolls declined in December, marking the first monthly drop since April.
Since May, the world’s reserve currency has been weakening. Recent trends indicate that this decline has the potential to continue, suggesting it may be beneficial to revisit the implications and outlook regarding what could become a significant driver of investment performance in 2021.
Recent updates suggest significant changes are underway in the political landscape:
- * Democrats appear to have won the Georgia runoff elections, gaining control of the Senate.
- * Congress is expected to officially certify Biden’s victory today.
- * VP Pence is not anticipated to take action against Biden’s certification today.
- * Trump has prohibited transactions with eight Chinese applications.
- * Two-thirds of US households have received their second stimulus payments.
- * Hong Kong authorities arrested 53 pro-democracy lawmakers and activists.
- * Bitcoin surged above $35,000, marking a new record high.
- * GMO’s Jeremy Grantham raises concerns about ‘epic bubble risks.’
- * The 10-year US Treasury yield climbed to 1% in overnight trading, the highest since March.
- * In December, China’s services sector expanded at a slower pace, as indicated by recent survey data.
- * US manufacturing activity picked up, reaching a 2-1/2-year high in December.
The anticipated risk premium for the Global Market Index (GMI) has seen a continued increment in December. The latest estimate has risen to an annualized 5.5%, based on current data, up from 5.3% last month. These forecasts project the index’s performance relative to the “risk-free” rate through a risk-based model (details below).
As the Georgia runoff election approaches, control of the US Senate is clearly at stake. Key updates include:
- * The outcome of today’s Georgia runoff election will determine control of the Senate.
- * A South Korean tanker was diverted to Iran by Iranian forces.
- * Chicago Fed president notes that monetary policy will remain supportive for the foreseeable future.
- * The NYSE has halted the delisting of Chinese telecom firms.
- * Current retail and jobless data suggest that the German economy remains resilient despite the pandemic.
- * The threat of recession in the UK has increased due to ongoing lockdown measures.
- * Global manufacturing growth has remained near decade highs, as per PMI survey data.
- * US construction spending hit a record high in November.
- * US manufacturing recovery from the pandemic persisted in December according to PMI survey data.
The previous year left a profound impact on both humanity and the global economy. However, notable resilience was reflected in the 2020 performance of major asset classes. Apart from commodities and real estate shares, both domestic and foreign markets saw commendable gains throughout the year.
In a recent phone call, Trump urged officials in Georgia to overturn the election results. Meanwhile, US officials are considering administering half doses of the vaccine to accelerate the vaccination process. Economists are anticipating difficult Q4 data for the US, but expect a rebound in 2021.
- * Pelosi has been re-elected as House Speaker.
- * A recent survey highlights that the US political divide is the largest risk facing the global stage in 2021.
- * Smaller cryptocurrencies have seen price increases following Bitcoin’s recent surge.
- * Eurozone manufacturing growth strengthened in December.
- * The UK Manufacturing PMI rose to a three-year high in December.
- * US Treasury inflation forecasts opened 2021 trading at two-year highs.
Welcome to the New Year! This article follows up on last week’s first installment featuring notable titles highlighted in The Capital Spectator’s weekly Book Bits column for 2020. May your reading be rewarding!
