Market Update

U.S. stock futures (as of 8 a.m. E.T.) are down significantly overnight after reaching highs midweek. The Senate is expected to confirm Janet Yellen as Treasury Secretary today, despite her plan to consider taxing unrealized capital gains to increase government revenues.

In Asia, shares were down as the local economies were hard hit by President Trump's decision last week to add CNOOC, a major Chinese oil and gas company, to the list of Chinese businesses that cannot conduct business in the U.S. The restrictions came into force today. 

European markets (as of 8 a.m. E.T) are down. Many investors are cashing out gains from the hopes brought about by the new Biden administration, indicating a belief that the administration will fail to deliver on its promises. Continued COVID-19 restrictions and the resulting drop in commerce also weigh heavily on investors.

Business Brief

• Dr. Fauci warns that data indicates that COVID-19 vaccines are likely less effective against new, more contagious strains. 
  • There have already been new, more contagious strains found in the U.S., U.K., South Africa, and Brazil. 
  • U.K. doctors have reached out to advise the U.S. after seeing exponential growth in infections following the discovery of a new strain. 
• The Chinese foreign ministry has expressed optimism that U.S. and China relations can "return to the right track" under President Biden. 
  • A ministry spokesperson said that former President Trump's policies compromised China's sovereignty, security, and development.
• President Biden will have his first call with a foreign leader today when he speaks with Canadian Prime Minister Justin Trudeau. White House Press Secretary Jen Psaki said the president's "early calls will be with partners and allies. He feels it's important to rebuild those relationships."
  • Yesterday, Trudeau and the ten premiers of Canada's provinces had a call to discuss future Canada-US relations. Aids report that "Some premiers want to go to war" with President Biden following his refusal to speak with Canadian officials before vetoing the Keystone XL pipeline. 
  • Alberta Premier Jason Kenny spoke on national TV last night, explaining that the portion of the pipeline crossing the U.S. border is already built, and the precedence set by President Biden of retrospectively revoking permissions cannot stand. In addition to pursuing legal action against Biden, he believes that as the U.S.'s largest purchaser of goods and the third-largest supplier of goods, Canada should impose sanctions. 
  • President pro tempore emeritus of the United States Senate Chuck Grassley described President Biden's decision to revoke the permits for the pipeline as a "kick in the teeth to the best friend we have on planet earth."
• Elon Musk announced he would donate $100M to the person with the best carbon capture technology. 
• President Biden will sign executive orders today to provide Americans financial support while Congress passes its COVID-19 stimulus package. He will also sign an order to set federal workers' minimum wage at $15/hr.
• NATO Secretary-General Jens Stoltenberg praised President Biden, stating that the NATO alliance will be stronger with him in office. 
  • He also cited the risks of pulling U.S. troops out of Iraq and Afganistan. Former President Trump had reduced U.S. troops after he signed ceasefire treaties with the Taliban; at the time Trump stated that there was a lack of NATO support. Even with reduced commitments, the U.S. still supplies 25% of the 10,000 troops representing the 38 countries. 

Movers and Shakers

• IBM — Shares are down 8.5% in premarket trading as sales declined. 
• Intel — Shares are down 5.5% as the company plans on moving production in-house. 
• Ford — Shares are down 0.7% after announcing a recall of 3M vehicles expected to cost $610M.  
• Sierra Wireless — Shares are up 10% overnight as the company announced its CEO would retire on June 30th. 
• Tesla — Shares are down 1.5% as numerous investors express public doubts about the stock's future. 

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