The evolution of Biden’s policy, Netflix’s profits, the German price blow

Author: Geoffrey Smith

Investing.com – Joe Biden has admitted that his economic reform agenda is at a standstill, but said he supports the Federal Reserve’s plans to lower inflation. It was not clear what Russia intends to do if it invades Ukraine for the second time in eight years, a scenario that was likely to be accepted. German producer prices rose 5% in December and 24% year-on-year, but ECB President Christine Lagarde still believes eurozone inflation dynamics are not as threatening as in the US China has cut its one-year primary lending rate, and the US government is releasing unemployment claims and oil inventory data. Netflix (NASDAQ 🙂 tops the list of companies that report profits. Here’s what you need to know about the financial markets on Thursday, January 20th.

1. Biden accepts the stagnation of politics

President Joe Biden acknowledged that attempts to pass the “Build Better” bill, which is at the heart of his economic agenda, have been effectively halted.

At his first press conference of the year, Biden also admitted that he was unlikely to achieve the intentions of Republicans pushing for changes in voting laws after two Democratic senators rejected plans to weaken the Senate’s weakening powers.

Biden also expressed his support for the Federal Reserve’s plans to raise interest rates significantly this year in order to reduce inflation.

2. Russia saw the possibility of invading Ukraine; There is no clear answer to West

In addition to feeling the drift from the White House, Biden also gave a clear answer when asked about possible answers to the Russian invasion of Ukraine.

Biden has said he expects Russia to “move” on Ukraine, but has not given a clear answer. He suggested reducing the ability of Russian banks to process dollars, a step that has been too much of a shake-up for the global dollar-driven financial system.

Biden reiterated his threats that Russia would suffer serious consequences, but could not say whether to stop the new Russian gas pipeline to Germany from the start of operations. European leaders have also been unable to reject the Nord Stream 2 link due to concerns about energy security.

3. The shares will open higher; Netflix, watching the railroad profits

US stock markets will open with a modest rebound, as they did before they opened on Wednesday, before overcoming fears of inflation and higher interest rates.

By 6:20 a.m., they were up 151 points, or so. 0.4%, 0.6% and 0.9%, respectively.

Among the stocks that will be in focus later is Amazon (NASDAQ :), which announced the opening of its first brick fashion store in California, and United Airlines agreed on Wednesday night that it will need another year to return to 2019. skill levels.

Netflix’s profits are in the final session, while rail operators are Union Pacific (NYSE 🙂 and CSX (NASDAQ 🙂 reported earlier, as did Travelers (NYSE :), Baker Hughes, and American Airlines (NASDAQ :).

4. Unemployment claims to show the effect of Omicron. Lagard outperforms rising German prices

The U.S. will release initial data on last week’s unemployment claims at 8:30 a.m. ET, which will be of greater interest than usual after last week’s report showed signs of the latest wave of Covid-19 by employers in the end.

The data calendar has already caused a stir abroad, with German producer prices rising 5% month-on-month and 24.2% year-on-year in December due to rising energy prices and other supply chain disruptions. ECB President Christine Lagarde has reiterated that the dynamics of eurozone inflation are different from those in the US.

In China, on the other hand, the central bank reduced its one-year lending rate to 3.7%, as expected, and promised more support in the coming months.

5. Oil stops after the US inventory is built

Crude oil prices have changed little since a recent U.S. inventory report removed steam from this week’s rally.

The American Petroleum Institute reported on Wednesday that crude inventories rose 1.40 million barrels in the first week instead of the expected 1.4 million barrels. This is after a surprisingly strong two weeks in gasoline inventories suggesting a weakening of final demand. Government data will arrive at 10:30 p.m.

At 06:30 for ET, futures were up 0.15 at $ 85.87 a barrel, while futures were down 0.2% at $ 88.28 a barrel.