Wall Avenue Breakfast: State Of The Financial system

State of the Financial system

The financial system was a giant theme in President Biden’s State of the Union tackle final evening, which was broadcast from Capitol Hill at 9 PM ET. There was a lot to debate by way of his economic record, with acquainted partisan finger-pointing on lots of the information factors, particularly on the subject of jobs, commerce, inflation and the federal deficit. The big viewers and viewership additionally provided Biden the power to promote voters a second time period, and maybe of extra curiosity to the market, what his platform would come with because the nation heads into the 2024 common election.

Taxes: “It’s time to raise the corporate minimum tax to at least 21% so every big corporation finally begins to pay their fair share. I also want to end the tax breaks for Big Pharma, Big Oil, private jets, and massive executive pay. That’s why I’ve proposed a minimum tax of 25% for billionaires. Just 25%. That would raise $500B over the next 10 years. Under my plan, nobody earning less than $400K will pay an additional penny in federal taxes.”

Healthcare: “This year Medicare is negotiating lower prices for some of the costliest drugs on the market that treat everything from heart disease to arthritis. Now it’s time to go further and give Medicare the power to negotiate lower prices for 500 drugs over the next decade. That will not only save lives it will save taxpayers another $200B. I want to cap prescription drug costs at $2K a year for everyone.”

Housing: “I want to provide an annual tax credit that will give Americans $400 a month for the next two years as mortgage rates come down to put toward their mortgage when they buy a first home or trade up for a little more space. My administration is also eliminating title insurance fees for federally backed mortgages. For millions of renters, we’re cracking down on big landlords who break antitrust laws by price-fixing and driving up rents. I’ve cut red tape so more builders can get federal financing, which is already helping build a record 1.7M housing units nationwide. Now pass my plan to build and renovate 2M affordable homes and bring those rents down.”

Decreasing prices: “Too many corporations raise prices to pad their profits – charging you more and more for less and less. That’s why we’re cracking down on corporations that engage in price gouging and deceptive pricing. Pass Senator Bob Casey’s bill to put a stop to shrinkflation. I’m also getting rid of junk fees those hidden fees added at the end of your bills without your knowledge. My administration just announced we’re cutting credit card late fees from $32 to just $8. My administration has proposed rules to make cable travel utilities and online ticket sellers tell you the total price upfront so there are no surprises.”

Manufacturing: “Where is it written that we can’t be the manufacturing capital of the world? We are. We will. Instead of importing foreign products and exporting American jobs, we’re exporting American products and creating American jobs – right here in America where they belong. And thanks to our CHIPS and Science Act, the United States is investing more in research and development than ever before. It takes time, but the American people are beginning to feel it.” (108 comments)

Jobs report

The U.S. nonfarm payrolls report due right this moment is predicted to indicate strong development in February, following up on the blockbuster print in January. With that labor market power and strong GDP development, the Federal Reserve can seemingly afford to be affected person in making its subsequent transfer on rates of interest. “It may be time to tune out,” SA analyst Logan Kane writes in You Can Stop Paying Attention To The Jobs Report. “Government statistics around jobs and inflation are becoming less insightful. For those who are macro-inclined, continuing unemployment claims are more useful to track than nonfarm payrolls.” (25 comments)

Weight reduction tablets

Novo Nordisk (NVO) shares hit an all-time excessive on Thursday after the Danish drugmaker reported promising results from an early-stage medical trial of its experimental oral weight-loss drug. Amycretin – a long-acting co-agonist of GLP-1 and amylin – helped sufferers lose 13% of their weight in 12 weeks on the tablet, in comparison with Novo’s extremely well-liked Wegovy, which helped sufferers shed round 6% in the identical period of time. In the meantime, Novo expects Wegovy to be approved in China this yr and is already planning to launch the drug there in capped volumes. (45 comments)

Highway present

Reddit’s (RDDT) path to the general public markets will start on Monday, with the social media platform happening the highway to pitch its imaginative and prescient to potential buyers. It is reportedly in search of a valuation of up to $6.5B, concentrating on an IPO worth vary of $31-$34 a share, and goals to cost its initial public offering on Mar. 20. In its IPO filing, Reddit – which is well-known for its meme inventory boards like WallStreetBets – warned of elevated volatility when buying and selling its shares, particularly given user participation within the IPO. Investing Group Chief Donovan Jones additionally sounded some warning concerning the inventory, as efficiency could also be challenged till Reddit can reach profitability. (2 comments)