Breakfast on Wall Street: State of the Economy
State of the economy
The economy was a major theme in President Biden’s State of the Union address last night, broadcast from Capitol Hill at 9 p.m. ET. There was much to debate in terms of the economic record, with the usual partisan criticism on many data points, including jobs, trade, inflation and the federal deficit. The large audience and audience also offered Biden the opportunity to sell voters on a second term, and perhaps greater market interest, that his platform would include as the country heads into the election general elections of 2024.
Taxes: “It’s time to increase the minimum corporate tax to at least 21% so that every big business finally starts paying its fair share. I also want to end the tax breaks for Big Pharma, Big Oil , private jets and massive executive pay packages. That’s why I proposed a 25% minimum tax on billionaires. Just 25%. That would raise $500 billion over the next 10 years. According to my plan, no one earning less than $400,000 will pay an extra cent in federal taxes.
Health care: “This year, Medicare is negotiating lower prices for some of the most expensive drugs on the market that treat everything from heart disease to arthritis. Now is the time to go further and give Medicare the power to negotiate lower prices for 500 drugs over the next decade. “Not only will this save lives, it will also save taxpayers an additional $200 billion. I want to cap the cost of prescription drugs at $2,000 a year for everyone.”
Accommodation: “I want to offer an annual tax credit that will give Americans $400 a month for the next two years, as mortgage rates fall, to use when they buy a first home or trade in for a little more space. My administration is also eliminating title insurance fees for federally backed mortgages. For millions of renters, we are cracking down on large landlords who violate antitrust laws by fixing prices and raising fees. rents. I cut red tape so more builders could get federal funding, which is already helping build a record 1.7 million homes nationwide. Now embrace my plan to build and renovate 2 million affordable housing units and lower rents. “
Lower the costs : “Too many companies raise prices to increase profits – charging you more and more for less and less. That’s why we’re cracking down on companies that engage in price gouging and misleading pricing. Adopt the Project bill from Senator Bob Casey to stop the price squeeze. I’m also getting rid of junk fees, those hidden fees added to the end of your bills without your knowledge. My administration just announced that we’re cutting fees late on credit cards from $32 to just $8. My administration proposed rules to make cable travel services and online ticket sellers tell you the total price up front so it doesn’t There are no surprises.”
Manufacturing: “Where does it say we can’t be the manufacturing capital of the world? We are. We will. Instead of importing foreign products and exporting American jobs, we are exporting American products and creating jobs Americans – right here in America where “They have their place. And thanks to our CHIPS and Science Act, the United States is investing more than ever in research and development. It takes time, but the American people are starting to feel it. ” (108 comments)
Jobs Report
The U.S. nonfarm payrolls report, due today, is expected to show solid growth in February, following January’s blockbuster report. With the strength of the job market and robust GDP growth, the Federal Reserve can probably afford to be patient with its next interest rate decision. “Maybe it’s time to unplug,” writes SA analyst Logan Kane in You can stop paying attention to the jobs report. “Government statistics on employment and inflation are becoming less relevant. For those with a macro bent, continuing unemployment claims are more useful to track than nonfarm wages.” (25 comments)
Weight loss pills
Shares of Novo Nordisk (NVO) hit a record high Thursday after the Danish pharmaceutical maker announced promising results from an early clinical trial of its experimental oral weight loss drug. Amycretin – a long-acting co-agonist of GLP-1 and amylin – helped patients lose 13% of their weight in 12 weeks on the pill, compared to Novo’s popular Wegovy, which helped patients lost about 6% of their weight for the same amount of pill. time. At the same time, Novo expects Wegovy to be approved in China this year and is already planning to launch the drug there in capped volumes. (45 comments)
Road show
Reddit’s (RDDT) path to the public markets will begin on Monday, with the social media platform on its way to presenting its vision to potential investors. It is reportedly seeking a valuation of up to $6.5 billion, with an IPO price range of $31 to $34 per share, and aims to price its IPO on March 20 . In its IPO filing, Reddit – which is well known for its meme stock forums like WallStreetBets – warned of increased volatility when trading its shares, especially given user participation in the IPO. The head of the investment group, Donovan Jones, also expressed some caution towards the stock, as performance could be in question until Reddit can achieve profitability. (2 comments)
