Week of Aug 6, 2021 Weekly Recap & The Week Ahead
“The desire for more, the fear of missing out (FOMO), the tendency to compare against others, the influence of the crowd and the dream of the sure thing—these factors are near universal. Thus they have a profound collective impact on most investors and most markets. The result is mistakes, and those mistakes are frequent, widespread and recurring.”
― Howard Marks
1. NYC to Require Vaccination for Many Indoor Activities Such as Restaurants and Gyms — New York City will require people to show proof of vaccination for indoor activities, such as dining, gyms and events, Mayor Bill de Blasio said Tuesday.
The new policy will be phased in the coming weeks and will be implemented Aug. 16. By the week of Sept. 13, the city will begin inspections and enforcement. Businesses will ask patrons to present their vaccination details in the form of the physical card or via a digital app, such as the Excelsior Pass.
The seven-day average number of confirmed and probable daily coronavirus cases is now over 1,200 in New York City, according to figures this week. That figure was less than 250 at the start of July and peaked at more than 6,400 in early January, according to city statistics.
2. Auto Makers Warn Chip Shortage Will Continue to Impact Vehicle Production — Stellantis STLA 5.24% NV, the maker of Jeep, Ram and Chrysler, reported strong first-half earnings on Tuesday and raised its profitability goal for the year, boosted by a rise in demand and pricing. But the world’s third-largest car company by sales also warned that increases in raw-materials prices are likely to get worse in the second half of the year and the semiconductor shortage would continue to hit production. Rival General Motors Co. separately said Tuesday that the chip shortage will lead next week to idle three North American factories that make large pickup trucks, the company’s biggest moneymakers. The semiconductors are critical for vehicles, used in everything from engines and air bags to touch-screen displays.
3. Biden Sets U.S. Goal for Clean Cars to Be Half of 2030 Sales — Biden unveils an executive order establishing the goal for half of all cars sold to be battery-electric, plug-in hybrid or fuel cell-powered by 2030. “These new actions — paired with the investments in the president’s Build Back Better Agenda — will strengthen American leadership in clean cars and trucks by accelerating innovation and manufacturing in the auto sector, bolstering the auto sector domestic supply chain, and growing auto jobs with good pay and benefits,” the White House said in a statement. The mandates are a centerpiece of Biden’s climate plans and mark his administration’s first major effort to use regulation to stem planet-warming greenhouse gases. Federal agencies are developing additional rules targeting methane emissions from oil wells and carbon dioxide releases from power plants after the Trump administration relaxed requirements.
4. Democrats Release Budget Enabling Biden’s $3.5 Trillion Plan — The budget blueprint is expected to be voted on this week in the Senate soon after final passage of Biden’s bipartisan $550 billion infrastructure package. It allows Democrats to bypass Republicans to expand the social safety net and address climate change, paid for by raising taxes on the wealthy and corporations.
The Democratic plan gives the Senate Finance Committee wide latitude to draft policies that would increase taxes on corporations and those making more than $400,000 a year, and instructs lawmakers to provide tax cuts for those making less. In addition the resolution asks the committee to find additional revenue to pay for the $3.5 trillion in spending from health care savings and a new fee on carbon polluters.
The week ahead — Economic data from Econoday.com:
