Economists surveyed by Refinitiv expect to learn that only 71,000 jobs were created last month, by far the weakest figure since the labor market recovery began in May.
What’s up: The United States is experiencing another explosion in coronavirus cases. In less than two weeks, the country has recorded its five deadliest days since the pandemic began, and more than 4,000 virus-related deaths were reported on Thursday. This weighs on job creation as business restrictions increase and more people decide to stay home.
“The increase in the number of cases, hospitalizations and deaths of COVID-19 means that our economic and health difficulties are far from over,” said Elise Gould, a senior economist at the Institute for Economic Policy, a group of progressive reflection. “President-elect Biden inherits an extremely problematic economy, with millions of families just trying to stay afloat.”
Wall Street, however, is looking beyond the problems this winter, betting that vaccination programs can boost corporate growth and profits starting this spring. Shares rose to record highs on Thursday despite violence at the Capitol the day before and the pandemic.
This is due in part to the high expectations of Democrats. Now that the party has taken control of the Senate, as well as the House of Representatives and the White House, after winning both seats in Georgia, investors are betting that another stimulus package could be approved quickly.
Deutsche Bank predicts Congress will soon approve a $ 900 billion stimulus package “built around new stimulus controls, funds for state and local governments and improvements in unemployment benefits,” which it sees raising U.S. economic growth to 6.3% in 2021, about two percentage points higher than the bank’s previous forecast.
Look at this space: there’s a good chance the job report is even worse than expected, which could upset investors. Goldman Sachs expects to know that the U.S. economy lost 50,000 jobs in December, which would mean its first month of losses since a devastating April.
Hyundai shares are soaring according to reports that an Apple car could be built
Hyundai shares hit their best day in at least two decades after the South Korean carmaker was reportedly in early talks with Apple to develop autonomous electric cars, according to my CNN Business colleague, Jill Disis.
Details, details: nothing has been completed. But several media outlets reported Friday that Hyundai has confirmed it is in talks with Apple. The news was initially reported by Korea Economic Daily TV, and later confirmed by Reuters and Bloomberg.
CNN Business has not been able to confirm the nature of the discussions. Hyundai said in a statement only that “we have received cooperation proposals from several companies, but no decision has been made yet.” Apple declined to comment.
However, the car manufacturer’s shares are rising. Its stock ran out more than 19% in Seoul.
The two companies have reason to consider a partnership. The discussion about Apple’s interest in electric and autonomous cars has intensified. A Reuters report said last month that Apple plans to produce a passenger vehicle in 2024. Bloomberg reported this week that Apple has begun the first development work on an electric vehicle, but any resulting product would be at least in five years.
In an increasingly Internet-connected world, selling next-generation vehicle services could become a huge business for Apple.
Bitcoin topped $ 40,000 just days after spending $ 30,000
Bitcoin topped $ 19,000 for the first time in December 2017 before falling dramatically to $ 3,200 the following year. But those who have kept the cryptocurrency are likely to feel satisfied.
Prices fell to $ 39,000 Friday morning. But the value of all bitcoins in circulation remains impressive, reaching about $ 738 billion, according to CoinMarketCap. The value of all cryptocurrencies is now close to $ 1.1 trillion.
Investors have flocked to Bitcoin in recent months, with the cryptocurrency increasingly seen as an asset in maturity. Grayscale Investments, the world’s largest cryptocurrency asset manager, says it is growing interest in players from establishments such as pension funds and endowments.
“It’s encouraging to see a more serious consideration of Bitcoin and the asset class in digital currency, as it has real potential to reshape global finance as we know it,” CEO Michael Sonnenshein said in an email to CNN Business .
There are still many questions about price. In a note released Thursday, Bank of America told customers that the Bitcoin rally over the past two years “blows the doors of previous bubbles.” Alex Mashinsky, CEO and founder of Celsius Network, a cryptocurrency asset manager, believes Bitcoin could reach $ 16,000 before the end of the first quarter.
Until next time
The December U.S. jobs report arrives at 8:30 a.m. ET.