US Briefing - Wednesday 13.01
  • Johnson & Johnson Expects Vaccine Results Soon But Lags In Production
  • Pence Won’t Invoke 25th Amendment, Setting Stage for Impeachment
  • Biden Aims For Deal With Republicans On Another Covid Relief Package
  • Two FOMC Officials Push Back On Talking Bond Taper Any Time Soon
  • Eurozone Industrial Production Stronger Than Expected In November
  • ECB President Lagarde: Economic Outlook Still Valid Despite Lockdowns
  • Italian Coalition Risks Collapse; Matteo Renzi Press Conference In Focus
  • US Yields Slip Following Strong 10-Year Sale; 10Y Back Below 1.13%
  • Oil Prices Rise After Larger-Than-Expected Inventory Draw; Gold Gains
  • European Stocks Struggle; M&A News Lifts Carrefour And Telefonica
  • US Stock Futures Fall Slightly As Wall Street Struggles For A Direction
Biden, Democrats, Plot 'Aggressive' Covid Response, Without GOP


President-elect Joe Biden has spent months pledging to work with Republicans to advance his agenda. But Senate Democrats are now gearing up to pass Biden’s first major legislative package without them.


Key Senate offices are coalescing around a plan to pass another round of coronavirus legislation soon after Biden takes office using a process called reconciliation, which would allow them to move forward without any Republican support, five Senate aides tell POLITICO.


The package, which Biden said late last week will be “in the trillions of dollars,” is expected to provide direct relief to Americans through stimulus checks and give federal funding to help cash-strapped state, local and tribal governments distribute a vaccine and survive the most dire phase of the pandemic to date. (Politico - Continue Reading)

Fed Talk Of Taper Rekindles Specter Of Wrenching 2013 Tantrum


Federal Reserve officials are beginning to split over when they may need to start pulling back on their massive monetary stimulus, drawing nervous glances from investors who remember how markets were roiled during the 2013 taper tantrum.


In the past week, four of the Fed’s 18 policy makers have publicly raised the prospect they may discuss reducing bond buying -- currently running at $120 billion a month -- by year’s end. In contrast, several others have called the debate premature and Fed Vice Chairman Richard Clarida, the most senior central banker to weigh in, has said he doesn’t expect any changes before 2022.


Investors, taking no chances, have pushed up yields on longer-duration Treasuries, steepening the spread between rates on two- and 10-year debt to around the widest in more than three years. They may get more guidance in coming days. Clarida and Governor Lael Brainard both speak on Wednesday, followed a day later by Chair Jerome Powell in his first comments of the year. (Bloomberg - Continue Reading)

Goldman Warn A Pullback For Stocks Could Be Coming Soon


Goldman Sachs Chief Economist Jan Hatzius said that U.S. stocks and bond markets could possibly “take more of a breather” in the near term, after hitting record highs last week.


U.S. stock markets have had a bumper start to 2021, despite ongoing concerns about the coronavirus pandemic.


On Friday, markets closed at record highs. Since the trough in late March, the S&P 500 and Dow Jones Industrial Average have both added nearly 70% and the Nasdaq has soared over 80%. (CNBC - Continue Reading)

J&J Expects Vaccine Results Soon But Lags In Production


Johnson & Johnson expects to release critical results from its Covid-19 vaccine trial in as little as two weeks — a potential boon in the effort to protect Americans from the coronavirus — but most likely won’t be able to provide as many doses this spring as it promised the federal government because of unanticipated manufacturing delays.


If the vaccine can strongly protect people against Covid-19, as some outside scientists expect, it would offer big advantages over the two vaccines authorized in the United States.


Unlike those products, which require two doses, Johnson & Johnson’s could need just one, greatly simplifying logistics for local health departments and clinics struggling to get shots in arms. What’s more, its vaccine can stay stable in a refrigerator for months, whereas the others have to be frozen. (New York Times)

Files & Links