“It’s frightening to think that you might not know something, but more frightening to think that, by and large, the world is run by people who have faith that they know exactly what’s going on.” ― Howard Marks

1. New York to Lift Mask Mandate for Businesses as Omicron Ebbs — New York Governor Kathy Hochul is lifting a mask mandate for businesses that don’t check Covid-19 vaccination status, citing high inoculation rates and low transmissions across the state. Mask mandates will remain in place in schools, health-care facilities and nursing homes, although Hochul said dropping masks in March is a “strong possibility.”. Local municipalities can continue to determine their own rules, including New York City, which requires vaccination for theaters, restaurants and other businesses. A spokesperson for New York City Mayor Eric Adams said the city will continue these requirements.
2. Disney+ Subscriptions Near 130 Million — Disney+ reported 129.8 million subscribers at the end of the holiday quarter, up from 118.1 million subscribers in the prior quarter. Analysts polled by FactSet expected 124.7 million subscribers to the platform. Sales at its theme parks and consumer products division—which includes Walt Disney World and Disneyland resorts—were $7.23 billion, buoyed by increasing strength in outdoor travel. Analysts expected $6.36 billion. The company said its domestic parks and resorts reported record revenue and operating income.
3. U.S. Households Took On $1 Trillion in New Debt in 2021 — Americans took on more new debt in 2021 than in any year since before the 2008-09 financial crisis.
Total household debt rose by $1.02 trillion last year, boosted by higher balances on home and auto loans, the Federal Reserve Bank of New York reported. It was the largest increase since a $1.06 trillion jump in 2007. Total consumer debt now sits at around $15.6 trillion, compared with $14.6 trillion a year earlier. The increase is largely a function of a sharp rise in prices for homes and cars. The price of the average U.S. home rose close to 20% in 2021, boosting mortgage balances and pricing out many middle-class buyers. Rising prices for new and used cars drove auto-loan originations to a record $734 billion.
4. U.S. Inflation Rate Accelerates to a 40-Year High of 7.5% — The Labor Department reported the consumer-price index—which measures what consumers pay for goods and services—in January reached its highest level since February 1982, when compared with the same month a year ago. That put inflation above December’s 7% annual rate and well above the 1.8% annual rate for inflation in 2019 ahead of the pandemic.
The so-called core price index, which excludes the often volatile categories of food and energy, climbed 6% in January from a year earlier. That was a sharper rise than December’s 5.5% increase and the highest rate in nearly 40 years. High inflation is the dark side of the unusually strong economy that has been powered in part by government stimulus to counter the pandemic’s impact. January’s continued acceleration increased the likelihood that Federal Reserve officials could speed up a series of interest-rate increases this spring to ease surging prices and cool the economy.
5. Turkey’s Sovereign-Debt Rating Cut Further Into Junk by Fitch — Fitch lowered Turkey’s score to B+ from BB-, making it four notches below investment grade and on par with Egypt and Bahrain. The outlook for Turkey is negative, the rating company said. The lira lost as much as half its value against the dollar before the government intervened at the end of December to stem the currency’s decline. Some of the government measures — including a lira deposit plan that protects savers from swift bouts of depreciation — introduced a level of stability to the lira but inflation climbed to 48.7% in January, the fastest pace of increases in two decades.

The week ahead — Economic data from Econoday.com: