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The outcome of the US presidential election is clear, the General Services Administration (GSA) claimed that Biden was able to carry out the transfer of power. President-elect Biden will appoint former Federal Reserve (Fed) Chairman Yellen as Secretary of the Treasury. The market has a positive opinion about it. Futures of US stocks rose on Tuesday (24).
1. Biden began to transition up US equity futures.
The next president of the United States, Biden, was able to formally begin transition work and began organizing cabinet positions. US stock futures rose Tuesday, Dow Jones futures rose 1.06%, futures the S&P 500 were up 0.80% and the Starck 100 were up 0.38%.
The U.S. General Services Administration (GSA) sent a letter to Biden’s team to inform the Trump administration that it is ready to implement the transfer of power, meet with government officials, and receive $ 6 million in funding and other resources. government in accordance with the law. It was the first step for the Trump administration to recognize Biden’s choice.
In recent weeks, Biden’s handover team has privately formed a new government quietly, including establishing a new coronary pneumonia task force and consulting with outside public health officials. However, the Biden administration has been unable to interact with the federal government, mostly seeking experts from academia, state governments and Congress.
Yohannes Abraham, the executive director of Biden’s handover team, later issued a statement on the matter, saying: “The GSA’s decision is a necessary big step for us to begin to address the challenges of the American economy and the epidemic. In the future, the handover team will begin meeting with government officials to discuss the epidemic. Response measures, a comprehensive clarification of national security interests, and a full understanding of the Trump administration’s measures to drain federal agencies. “
2. Yellen is expected to be the US Secretary of the Treasury and Wall Street analyst.
The Wall Street Journal (WSJ) and many other US outlets reported that President-elect Biden will appoint former Fed Chairman Yellen as Secretary of the Treasury. Economists and analysts are happy to see this and think that Yellen is very appropriate. The candidate who appointed Ye Lun on behalf of the Finance Ministry will work with the Federal Reserve to revitalize the economy and repair the economic scars.
The news that Yellen is expected to become Treasury secretary once fueled the surge in US stocks during the intraday market, with the top three indices closing in the red at the end and the Dow Jones rising 300 points. “Doctor Doom” Robini (Nouriel Roubini) praised Yellen on Twitter as an excellent candidate for Secretary of the Treasury. During his tenure as Senior Economist for International Affairs for the White House Council of Economic Advisers (CEA), Yellen was the one who met “The Smartest Boss.”
Michael R. Strain, director of economic policy research at the American Enterprise Institute, said there are many interesting reasons for appointing Yellen, but a big plus is that, as a former Fed chairman, Yellen has had good relations with the world and can repair the last four years. The scars of economic diplomacy.
3. Tesla’s stock price skyrocketed, and Musk’s value jumped to second in the world.
After Tesla (TSLA-US) was included in the S&P 500 index, the price of its shares rose dramatically. The Bloomberg Billionaires Index showed 49-year-old founder Elon Musk was worth $ 127.9 billion on Monday (23), beating Microsoft (MSFT-US founder) Bill Gates (Bill Gates), ranked second in the world. US stocks were up 4.31% pre-market.
Since this year alone, Musk’s value has soared by $ 100.3 billion, an increase that surpasses any of the billionaires on Bloomberg’s list of billionaires. In January of this year, Musk was ranked 35th on the list. About three-quarters of Musk’s value comes from Tesla’s holdings, and the company’s market value has approached $ 500 billion. Tesla closed up 6.56% Monday at $ 521.73, the biggest intraday gain of $ 521.73.
4. The number of cases increased, Goldman Sachs lowered its expectations of economic growth in the US.
Faced with the increase in the number of new cases of coronary pneumonia in the United States, Goldman Sachs lowered its expectations of economic growth for the United States in the next two quarters, saying that the epidemic and the rescue agreement have become the two biggest risks. in the short term outlook.
Goldman Sachs lowered its forecast for gross domestic product (GDP) for the fourth quarter from 4.5% to 3.5%. At the same time, the bank also lowered its economic growth forecast for the first quarter of 2021 from the previous 3.5% to just 1%.
Goldman Sachs chief economist Jan Hatzius said in a report to clients that the new wave of epidemics and new lockdown measures have slowed the economic recovery. One research team noted that there are already clear signs that the epidemic is affecting the economy.
The United States is currently in the most serious pandemic stage. The data shows that the number of recently confirmed cases in the United States on Sunday (22) was 150,098, and the average number on day 7 rose to 167,568. In addition, the death toll from the epidemic approached 250,000 and the number of hospitalizations reached 83,782.
5. When will herd immunity arrive? Citi: needs to wait until the second half of 2021
Recently, good news about vaccine clinical trials has spread frequently in Europe and the United States, and the market has become increasingly optimistic about the epidemic. However, Citi hopes that, based on current vaccine progress, the realization of herd immunity might have to wait until the second half of next year.
The bank claimed that developed economies that have previously purchased the new corona pneumonia vaccine will first reap the economic benefits of herd immunity. The major developed economies are expected to widely distribute vaccines in the second to third quarters of next year, with herd immunity achieved in season 4.
Before the report was released, several pharmaceutical manufacturers successively revealed optimistic vaccine test results. Pfizer and BioNTech, Moderna, AstraZeneca and Oxford University had a vaccine efficacy of 95%, 94.5% and 70% respectively.
The bank predicts that as economic activities return to normal, vaccination will increase the global economic growth rate by 0.7 percentage points in 2021 and another 3 percentage points in 2022. Among them, the growth rate of economies developed will increase by 1.2 percentage points next year and 3.9 percentage points in 2022.
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