By Geoffrey Smith
GossipMantri.com – President Joe Biden speaks harshly about China and Iran; Hyundai and Kia end discussions with Apple (NASDAQ 🙂 on self-driving cars; crypto surges thanks to a pump-up from Elon Musk, Hasbro (NASDAQ 🙂 and Loews (NYSE 🙂 profits are due, and oil hits $ 60 a barrel. Here’s what you need to know about the financial markets on Monday, February 8.
1. Biden sees “extreme competition” with China
The United States is poised for “extreme competition” with China over the next four years, President Joe Biden said over the weekend.
In an interview with CBS, Biden appeared to suggest that US policy towards China will be less confrontational than under its predecessor but will not differ significantly in its goals.
“I’m not going to do it like Trump did. We’re going to focus on the international rules of the road, ”Biden told CBS.
Elsewhere in the interview, Biden said he would not lift sanctions on Iran to bring it back to the negotiating table over its nuclear fuel enrichment. He said Iran should stop getting richer first.
2. Hyundai, Kia tumble after declaring talks with Apple halted
Shares of Korean automakers Hyundai and KIA both fell sharply in Seoul after the former said it was no longer in talks with Apple to develop self-driving electric cars.
Hyundai had confirmed preliminary discussions with the iPhone maker only a month ago. Hyundai (OTC 🙂 stock fell 6.2% in response, while its stake in its subsidiary KIA (KS :), which had also been reported as a likely partner, fell 15%. In total, the moves erased $ 8.6 billion from the valuations of the two companies.
Elsewhere in the automotive sector, Daimler (OTC 🙂 CEO Ola Kallenius said his company would need until the end of the decade for its electric vehicles to be as profitable as traditional gas-powered ones.
3. Stocks ready to run to new highs; Hasbro, Loews, Global payments (NYSE 🙂 due to report
U.S. stock markets are expected to hit new record highs on Monday, amid improving public health and steady progress on President Biden’s $ 1.9 stimulus package.
New Covid-19 infections fell to less than 100,000 for the first time in nearly three months this weekend, while pressure on hospital capacity also eased, with just 81,000 admissions, its lower since the end of November. In contrast, AstraZeneca reported that its vaccine had limited efficacy against the new variant of the virus first identified in South Africa.
At 6:30 am ET (11:30 am GMT), they were up 123 points or 0.4%, while they were up a fraction less and a little more.
The earnings season is starting to wane, but, and all are reporting before the opening while Simon Property (NYSE 🙂 is reporting after the close.
4. Crypto leaps under Musk’s cheerleaders again
Cryptocurrencies continued their strong rise, in a feverish climate supported on social networks, fueled in particular by Elon Musk.
, a relatively new unit that Musk championed in a series of tweets, many of which appeared to be joking, hit an overnight high of 8.4 cents, taking its gains over the past two weeks to around 150%.
, meanwhile, again briefly exceeded $ 40,000, while it rose to $ 1,735.60 before correcting slightly. As always, the momentum rather than any change in fundamentals seemed to be behind the moves.
5. Oil at 60 dollars while Iranian exports fear moderation
prices hit $ 60 a barrel for the first time in a year, as part of a multi-faceted rally of risky assets in global markets. Prices were buoyed by Biden’s harsh remarks on Iran, which allayed fears of a rapid recovery and an increase in Iranian oil exports.
Biden’s comments come amid a tightening market as demand slowly recovers as major suppliers continue to withhold millions of barrels per day of production in the market, an effort that is reducing global crude inventories. .
As of 6:45 a.m. ET, futures were up 0.9% to $ 60.07 per barrel while futures were up 1.2% to $ 57.52 per barrel.