Wall street reduce losses and register mixed sign after the World Health Organization (WHO) He has ruled out declaring the international alert for the Chinese coronavirus, although he has requested that the global community "be prepared." So far there are 18 dead and 634 infected in China. Beijing has New Year celebrations canceled and has quarantined the city of Wuhan, epicenter of the outbreak.
In the results chapter, the insurer Travelers 3% falls in the Dow Jones despite presenting better than expected results.
Other companies that fall after posting their accounts are Procter & Gamble, whose numbers have been mixed; and the communication conglomerate Comcast.
In macro matter, the initial requests for unemployment in the US they have risen to 211,000 from 205,000, although they remain at low levels and have been below the anticipated 215,000. Continuous requests, meanwhile, have fallen to 1.73 million. The analysts of Pantheon Macroeconomics comment that "there is nothing to worry about"because the labor market continues to send signs of strength.
Another point of attention is the meeting of the European Central Bank (ECB), which has kept the rates unchanged, as expected. Christine Lagarde commented that "" the signing of the China-US agreement has reduced uncertainty "and that"the risks continue to hamper growth, but we see that they are less pronounced"and a" stabilization of the economy. "
JAMIE DIMON'S NOTICE FROM DAVOS
From the World Economic Forum from Davos, Jamie Dimon, president and CEO of JPMorgan Chase, has commented that the current financial bubble is not in the stock markets or in bitcoin. "It is in sovereign debt".
"At this time, People think that central banks around the world can do whatever they want. But can not. They are intelligent, observe all the facts and try to figure out what to do. But inflation can be the big negative surprise".
If inflation soars unexpectedly, it could force these entities to raise interest rates to help cool the economy. But that would also cause a rebound in bond yields and create problems to governments to deal with the cost of your debt.
"I think it is very difficult for central banks to always make up bad policies (of governments). And that puts them in a trap Do you know someone who has bought a bond at a negative interest rate? I would never buy a bond with negative performance. No, unless forced. In history, every time you see something like that, it doesn't necessarily end well.", he explained in an interview with CNBC.
NEW TAX CUT
For his part, the secretary of the US Treasury, Steven Mnuchin, has been directed to Greta Thunberg to remind you that "you can tell us what to do after studying economics". However, Mnuchin has commented on something much more important in anticipating that he is working on a "tax cuts for the middle classes".
"The president has asked us to start working on what we call 'tax 2.0', and that will be an additional tax reduction. They will be tax cuts for the middle class, and we will also analyze other incentives to stimulate economic growth, "he said, despite acknowledging that the US public deficit is" on an unsustainable path. "
In other markets, oil West texas falls 2.8%, to $ 55.16, while the ounce of gold up 0.1%, to 1,557 dollars. Crude oil discovers that the coronavirus crisis will reduce global demand in the short term. For its part, the euro 0.2% is depreciated and changed to $ 1.1066. Finally, the profitability of 10-year American bond falls to 1.74% and the 2-year bond falls to 1.50%.
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