Monday, January 18, 2021

BREW AND HEADLINES

 

Daily Brew

TOGETHER WITH

Policygenius

Good morning. US financial markets are closed today to honor the life of Dr. Martin Luther King Jr. And we are celebrating Dr. King’s legacy with a top story exploring the Federal Reserve’s recent shift to take a more active role in combating racial economic inequality. 

Hope you have a reflective day.

MARKETS YTD PERFORMANCE


NASDAQ

12,998.50

+ 0.86%

S&P

3,768.25

+ 0.32%

DOW

30,814.26

+ 0.68%

GOLD

1,827.70

- 3.89%

10-YR

1.090%

+ 17.10 bps

OIL

52.04

+ 7.48%

*As of market close

  • Covid-19 update: US hospitalizations are finally trending downward. However, the new, highly contagious variants “may change everything,” per former FDA commissioner Scott Gottlieb. They could represent 30% of all cases in 5–6 weeks, he said, up from <1% currently.
  • Markets: When the major indexes resume trading tomorrow, they’ll try to build on minimal gains for 2021 thus far (see above).

Alex Wong/Getty Images

For the Federal Reserve, 2020 was a YOLO year. In response to the coronavirus crisis, the central bank quickly dropped interest rates to near-zero and, in unprecedented fashion, provided up to $2.3 trillion of financing to support businesses and markets. 

It also confronted issues of racial inequality far more than it had since its founding in 1913. The killing of George Floyd last spring spurred calls for the Fed, the most powerful economic policymaking body in the world, to reflect on the ways its own actions have reinforced racial inequality—and use its influence to help address it.

The backstory 

Historically, the Fed has acted like a football player under Bill Belichick—it just tried to do its job. And that job, as mandated by Congress, is very clear: to 1) keep prices stable and 2) achieve maximum employment.

But by pursuing those goals like a horse with blinders, critics say, the Fed ignored racial economic inequality and perhaps made it worse.

  • One example: In the 1950s and 1970s, the Fed raised the cost of borrowing to slow down inflation growth (and fulfill job #1). According to Howard University economics professor Williams Spriggs, that tightening of credit disproportionately harmed Black Americans and inflated Black unemployment relative to the national average.   

The nowstory 

The Fed is swapping its “do your job” approach in favor of a “with great power comes great responsibility” approach. In the fall, the Fed kicked off a series of events that explored the central bank’s role in racial economic inequality. 

  • First came the reckoning. The Fed “absolutely has to know, be passionate about, be interested in not just the wealthiest or the median, but all the people," said Ursula Burns, the former CEO of Xerox and the first Black female CEO of a Fortune 500 company.  
  • Then came the pledge to do better. “We need to step forward and be present in this conversation and own that we have a role to play,” said Atlanta Fed President Raphael Bostic, the first Black person to lead a regional Fed bank.

Not everyone thinks the Fed should step outside its traditional job description. As Minneapolis Fed President Neel Kashkari pointed out, some people will say it’s Congress’s role, not the Fed’s, to tackle issues of racial inequality. The WSJ editorial board argued a greater focus on race would lead to “ultraloose” monetary policy (inviting more inflation).

Looking ahead…the Fed’s greater attention to racial inequality is now being written into actual policies. Following a 20-month review, the Fed released new guidelines stating that maximum employment is a “broad-based and inclusive goal.” That’s central bank-speak for signaling it’ll consider the unemployment rate among minorities when making decisions.  

+ Optional homework: A Brew deep dive into the diversity of the Fed’s leadership.

        

Gage Skidmore from Surprise, AZ, United States of America, Joe Biden (49554623208)CC BY-SA 2.0

On Saturday, President-elect Joe Biden’s chief of staff, Ron Klain, outlined Biden’s plans for his first few days in office.

The primary theme: Donald who? The measures Biden plans to enact are geared toward undoing some of President Trump’s most controversial policies. That includes 1) scrapping the travel ban on majority-Muslim countries 2) rejoining the Paris Agreement and 3) establishing a path to citizenship for 11 million undocumented immigrants. Biden also plans to cancel the Keystone XL pipeline permit on his first day, CBC News reported yesterday.

The second theme: addressing the pandemic. To that end, Biden plans to 1) issue a mask mandate for all interstate travel and on federal property and 2) push for a meaty new round of stimulus. 

  • Last week, he outlined plans for a $1.9 trillion stimulus bill. But remember, Congress controls the governmental purse strings, so Biden and his entourage will have to work with folks on Capitol Hill, including members of the opposing Republican Party. 

Zoom out: The average fingernail among Biden staffers probably isn’t in great shape. The administration will take office amid a triple threat of economic, public health, and social crises. 

        

Stellantis

Fiat Chrysler and PSA Group, the maker of Peugeot and Citröen cars, completed their merger on Saturday, creating a brand new car company. The combo was first announced in October 2019, but Covid slowed down the i-dotting and t-crossing. 

  • It will begin trading in Milan and Paris today, and in New York tomorrow. 

The new automaker’s name: Stellantis. 

The game: combining the two legacy automakers’ resources to compete in a brave new electric world. Stellantis will be the world’s third-largest automaker by sales, per the latest available data, worth over $51 billion as of Friday’s close. 

  • Current PSA CEO Carlos Tavares will attempt to steer the great ship Stellantis through squalls including underperforming factories, a sputtering Chinese presence, and overcapacity. 

Bottom line: Stellantis enters the world with massive scale, which is key in the low-margin auto biz. But it will also need to invest billions to compete in the EV market, now a crowded field with both startups and legacy players hitting the accelerator. 

        

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Francis Scialabba

Recent decisions by social media companies to ban or temporarily block President Trump’s accounts have sent Maui-size waves rippling across the world. Here’s the latest:

How Twitter made the decision: Thanks to this play-by-play in the NYT, we know that CEO Jack Dorsey was on an island in French Polynesia “working remotely” (sure…) when he got a call from the company’s top lawyer and safety expert saying execs had decided to lock the president’s account following the attack on the Capitol. After initially hesitating, Dorsey later concluded that Trump crossed the line that meant a permanent suspension. 

Less fake news? After social media sites suspended President Trump’s accounts, online misinformation about US election fraud dropped as much as 73% (from 2.5 million mentions to 688,000), according to research by analytics firm Zignal Labs. 

Backlash: The decision by social media companies to simultaneously “deplatform” Trump has raised questions over their power to police online speech. Last week, leaders in Mexico and Poland said they’d favor new regulations that would ensure what happened to Trump can’t happen to them.

        

Al Drago/Getty Images

Inauguration: On Wednesday, Joe Biden will be sworn in as the 46th US president. It’ll be a very different type of inauguration—the nation’s capital has effectively shut down in response to more threats of violence. Storefronts are boarded up and 25,000 National Guardsmen in total are arriving by Wednesday to secure the city. 

  • In lighter news, Lady Gaga, J.Lo, and Bruce Springsteen will perform over the course of the day. 

Earnings: This week’s slate features banks (Bank of America and Goldman Sachs), tech (Intel and IBM), and your favorite streaming giant (Netflix).

Everything else:

  • Janet Yellen’s confirmation hearing for Treasury Secretary is set for Tuesday. 
  • A UN treaty banning nuclear weapons goes into effect on Friday. However, the five permanent members of the UN Security Council (the US, Russia, Britain, China, and France) haven’t signed it.
  • Dolly Parton turns 75 tomorrow.
        

Francis Scialabba

You know bitcoin as the crypto that ate the internet in 2017 before...plummeting. But its latest rally, which rendezvoused above $40,000, shows it has more room to run.

At least according to Tyler and Cameron Winklevoss, the billionaire twins behind crypto exchange Gemini and the spiciest scenes in The Social Network. Their prediction? Bitcoin to $500,000.

Today on Business Casual, the Winklevii explain their prediction and argue that widespread adoption of bitcoin will lift our economy out of its analog past and into a modern, digital future where inflation, wealth gaps, and currency constraints all shrink...at least in theory.

  • They’d like widespread adoption to start with their new Gemini crypto rewards credit card. Because according to the Winklevii, bitcoin > airline miles just as much as Twitter > F*cebook.

There’s so much more in the pod. 

Listen now: Apple / Spotify / everywhere else

WHAT ELSE IS BREWING

  • China’s GDP in the fourth quarter grew 6.5% from a year ago, and its GDP for the entirety of 2020 rose 2.3%. It’s the only major economy to grow last year.   
  • GitHub, the Microsoft-owned code hosting platform, said it erred when firing a Jewish employee following comments he made over rioters at the Capitol. Its head of HR resigned.
  • Phil Spector, influential music producer and convicted murderer, died at 81.
  • Alexey Navalny, the Russian opposition leader, was detained after he returned to his home country Sunday. Navalny has recovered from being poisoned by a Soviet-era nerve agent.
  • Nestlé is recalling more than 762,000 pounds of pepperoni Hot Pockets because they might be contaminated with “extraneous materials, specifically pieces of glass and hard plastic.” 

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Dive back into the week: 

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GAMES

Naming Conventions

This chart from Baby Name Wizard shows the dramatic rise in popularity of a particular boy's name...that also happens to be a trendy vegetable. What's the name? 

 

Baby Name Wizard  

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Columnists
No Thanks, I’ll Be Skipping the Inauguration

Kurt Schlichter


The ‘System’ Is Not Rigged

Derek Hunter


Sue Jack, Save Freedom

Kevin McCullough


Senator Manchin Could Be Bulwark Against Radical Environmental Legislation

Gabriella Hoffman


What Should You Do When You’re Surrounded By a Mob?

Scott Morefield



Martin Luther King’s Faithful Voice More Important Than Ever

Terry Paulson


Why New Hampshire Is Suing Massachusetts

Jeff Jacoby


Martin Luther King, Jr. and the Infallibility of Leftist Idols

Jeff Davidson


Did Truth Matter on January 6th? Will It Ever Matter Again?

James McCoy


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Our Presidential Election Wasn’t Too Different from Third World Uganda’s

Rachel Alexander


If We Are to Be Hated, Let It Be for the Right Reason

Michael Brown



Video
Gov. Evers: Saying Abortionists 'Execute Babies' Is 'Blasphemy'
Trump blasts Schiff as 'political hack'

Pelosi's condescension offers some laughs
Pelosi open to border infrastructure
INVESTING
Is Europe Really Better For The Poor?

Pioneer Natural Resources Stock Quote | Stock Price for PXD | Personal Finance, Financial Advice, Mo

Three Cheers For “Neoliberalism”


Tipsheet
Did You Notice the Issue With the News Report About an 'Insider Attack' on Inauguration Day?

Matt Vespa


High School Principal Placed on Leave After Speaking Out Against Censorship

Bronson Stocking


Biden Reportedly Putting Keystone Pipeline on the Chopping Block on Day One

Bronson Stocking


Freshman Congressman Peter Meijer Believes He May Have Committed 'Political Suicide'

Beth Baumann


Two Charged with Hate Crime for Attack on Caucasian Man

Bronson Stocking


Why the State Department Is Raising New Concerns About COVID's Origination

Beth Baumann


Facebook Takes Aim at the Firearms Industry Ahead of Inauguration Day

Beth Baumann


WATCH: Former Facebook Exec Shares Orwellian Plan to Purge Conservatives

Bronson Stocking


Here's When Kamala Harris Will Resign from the Senate

Beth Baumann


Incoming-WH Comms Director Lists Off the Key Policies Biden Will Address with Executive Action

Beth Baumann


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Political Cartoons
Bearing Arms
No, The Storming Of The Capitol Wasn't A Gun Control Success Story | Cam Edwards

Democrat House Already Planning Gun Control Bills | Patrick Richardson

The Left's New Lie: 2A "Scare Tactics" Leading To Gun Sales Surge | Cam Edwards

Second Amendment Foundation Launches Lawsuit Against ATF | Cam Edwards

Come & Take It: Texas Gov Says State Should Be 2A Sanctuary | Cam Edwards

January 18th, 2021

Free speech social media website Parler revived with new message from CEO
Authored by Jack Phillips via The Epoch Times (emphasis ours)Parler’s website suddenly appeared online Sunday with a message from its CEO,... Read More ›
[Exposed] Federal Loophole Grants You "Universal" Concealed
Did you know that you can pick up a 'universal' concealed carry permit in under 5 minutes without ever going to a gun range? It's true as long as you live in one of THESE States. Read More ›
New immigrant caravan heads to US border amid Biden's promises
As the incoming Biden administration prepares immediate action on the most far-reaching amnesty bill for illegal immigrants since the 1980s, a nearly 10,000-strong caravan of migrants in Guatemala... Read More ›
Pro-Trump protest turns into 'a non-event' amid massive Police presence
HARRISBURG, Pa./LANSING, Mich., Jan 17 (Reuters) - Law enforcement officers far outnumbered protesters at state capitol grounds on Sunday,... Read More ›
Stanford study: No evidence lockdowns were effective in stopping COVID
Liberals may be able to argue with Fox News or even Republican politicians. But what happens when a peer reviewed study comes out of one of... Read More ›
Evidence on COVID lab escape theory – Credibility of Shi Zhengli questioned
Nearly a year to the day that ZeroHedge raised suspicions over the origins of the COVID-19 outbreak - and were called 'conspiracy theorists'... Read More ›
This Will Make You Feel Helpless...
In less than 30 minutes, one man's life turned into a nightmare... And not even the police could do anything about it! Unsuspecting Americans have never been more vulnerable, and it's only going to get worse! Read More ›

Today's Top Headline

New Study Finds Evidence of Water Ice Clouds on the Moon

 

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The 32-year tradition could be in peril this year. President Trump has vowed not to attend President-elect Biden’s inauguration on Wednesday. That makes it less likely Trump will leave behind any handwritten, friendly advice for Biden.
'Rooting hard for you': Will departure notes end with President Trump? »

U.S. defense officials say they are worried about an insider attack or other threat from service members involved in securing President-elect Joe Biden’s inauguration.
FBI vetting National Guard troops in DC amid fears of insider attack at inauguration »


FOX
Daily update January 18, 2021


NEWS

Fox Settled a Lawsuit Over Its Lies. But It Insisted on One Unusual Condition.
Fox's decision to settle with the Rich family came just before its marquee hosts, Lou Dobbs and Sean Hannity, were set to be questioned under oath in ...
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Starbucks closes New York City locations amid protest concerns
Starbucks closes New York City locations amid protest concerns. NYPD confirmed to FOX Business that there are protests planned for Sunday.
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Apple CEO Tim Cook Tells 'Fox News Sunday': No Intersection Between Free Speech And ...
And so, if they get their moderation together, they would be back on there,” he said. John Martze, the CEO of Parler, also spoke to Fox today, and ...
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Sasse says QAnon 'destroying the GOP' in new op-ed
Nebraska senator called Rep. Marjorie Taylor Greene 'cuckoo for Cocoa Puffs'. By Evie Fordham | Fox News.
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Fox News schedule shakeup rewards opinion over news
Brian Stelter discusses Fox's ratings slump and CNN's surge with Nicole Hemmer and David Folkenflik. Hemmer says Fox's recent schedule changes ...
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California city removes 'racist' 'White Lives Matter' banner, declares it 'despicable act of vandalism'
Fox News Flash top headlines are here. Check out what's clicking on FoxNews.com. Officials in a Northern California city on Saturday ordered the ...
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Good night and good luck
Chad Pergram currently serves as a congressional correspondent for FOX News Channel (FNC). He joined the network in September 2007 and is ...
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How To Win $250000 & More On Bucs-Saints
By Jason McIntyre FOX Sports betting analyst · The final game of the NFL's divisional round of the playoffs needs little introduction. · (6:40 p.m. ET ...
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Parler CEO barred from platform backend amid Big Tech crackdown: 'We don't have any more ...
'They shut off our ability to work and our ability to even access our own code,' CEO says. By Yael Halon | Fox News.
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City of Savannah, Fox & Weeks to join in national memorial for COVID-19 victims
On Monday at 7 p.m., the Fox & Weeks funeral home will hold a prayer vigil in remembrance of those who have died in the pandemic. Mayor Van ...
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WEB





Fox News Channel to launch revamped daytime programming lineup
Fox News · 12 mins ·. TUNE IN: It's a new year, with an exciting new daytime lineup. 9a ET: “America's Newsroom” with Bill Hemmer and Dana Perino
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Problems at Fox News
User reports indicate Fox News is having problems since 3:12 PM EST. Are you also affected? Leave a message in the comments.
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See more results | Edit this alert

 

‘LASER-FOCUSED’: Nikki Haley launches PAC to support conservative 2022 midterm candidates
Read More


CA Gov. Newsom Enlists National Guard, Chain Fence and Social Media Companies for Inauguration Security
Read More

What’s The True Agenda Behind The Movement To Abolish The Electoral College?

Looking over at how news media describes the US Capitol insurrection

Sen. Lindsey Graham: Liberals worst nightmare, ‘Should We Impeach Barack Obama’

Amazon Bans Parler for “Violence” But Allows Kill All Republicans Merchandise

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