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Impeachment Vote, CPI, Couche-Tard/Carrefour - What's up in Markets

Published 01/13/2021, 06:40 AM
Updated 01/13/2021, 06:42 AM
© Reuters

© Reuters

By Geoffrey Smith 

Investing.com -- Donald Trump is set to become the first U.S. president in history to be impeached twice. The dollar’s upward correction stalls after a strong Treasury auction and a more dovish note from Federal Reserve officials. Alimentation Couche-Tard  (TSX:ATDb) is in talks to buy France’s Carrefour (OTC:CRRFY), and Visa (NYSE:V) has dropped its acquisition of Plaid. CPI numbers for December and official crude oil inventory estimates are due. Here’s what you need to know in financial markets on Wednesday, January 13th.

1. Trump set to be impeached again

To be impeached once might be regarded as misfortune. To be impeached twice looks like carelessness, as Oscar Wilde might have said.

Donald Trump is set to make history on Wednesday, with the House of Representatives set to impeach him for the second time, only a week before his term expires.

The chances of a conviction in the Senate also appear to be rising, with increasing numbers of Republican Senators turning on Trump after another incendiary interview on Tuesday, in which he defended his incitement of last week’s violent attack on Capitol Hill. Both Mitch McConnell, the former Majority Leader, and the influential Liz Cheney are now open to voting to convict, according to various reports.

2. Dollar eases after strong bond auction, dovish Fed comments; CPI eyed

The dollar and 10-Year bond yields fell after strong interest at a Treasury auction on Tuesday, along with remarks from Federal Reserve officials that pushed back against talk of tapering asset purchases later in the year.

Kansas City Fed President Esther George, notably, said it was too early to talk of reducing monetary stimulus, while the Boston Fed’s Eric Rosengren refused to be drawn into any talk of tapering. 

The movement in bond yields this week will add a little extra spice to consumer inflation data that are due at 8:30 AM ET (1330 GMT). Analysts expect the headline annual rate to tick up to 1.3%, still well below the Fed’s 2% target, while the core CPI rate is seen staying at 1.6%. The month-on-month change is expected at 0.4%.

There will be more appearances from senior Federal Reserve officials in the course of the day, with Lael Brainard due at 2PM ET and influential vice-president Richard Clarida due at 4PM. Philadelphia Fed president Patrick Harker is sandwiched in between them.

3. Stocks flat; Visa abandons Plaid bid

U.S. stocks are indicated to open mixed later, after a decidedly muted rebound during Tuesday’s session that was overshadowed by the brewing political fight in Washington.

By 6:30 AM ET, Dow Jones futures, S&P 500 futures and NASDAQ Futures were all essentially flat.

Stocks likely to be in focus later include data provider IHSMarkit, which is in the process of being bought by S&P Global (NYSE:SPGI), and Visa (NYSE:V), which said late on Tuesday it has abandoned its planned acquisition of Plaid due to antitrust concerns.

Tesla (NASDAQ:TSLA) stock may also be supported by the news that it has filed to establish a legal entity in India.

4. Couche-Tard in talks to buy Carrefour 

Canada’s Alimentation Couche-Tard, the owner of various store chains including Circle K, is in talks to buy French-based Carrefour in a deal worth over $30 billion, including debt.

The acquisition would substantially boost the Canadian company’s global presence, especially in emerging markets, notably Brazil and Argentina, where Carrefour has invested heavily over the last two decades.

Carrefour (PA:CARR) stock,  which had underperformed most of Europe’s food retailers over the last year, rose over 13% on the news in Paris.

5. U.S. inventory drop keeps oil rally going; EIA eyed

The rally in crude oil slowed but remains intact after data from the American Petroleum Institute on Tuesday showed a steeper-than-expected drop in U.S. crude inventories for the second week in a row.

The government’s data are due at 10:30 AM ET, as usual, and are expected to show a decline of 2.27 million barrels. The API’s estimate fell by over 5.6 million.

By 6:35 AM ET, U.S. crude futures were up 0.2% at $53.30 a barrel, while Brent crude was essentially unchanged at $56.59. Both markers had hit fresh 11-month highs overnight, helped by comments from an International Energy Agency official saying that the pandemic hasn’t massively brought forward the expected peak in world oil demand.

Latest comments

Josh... the question is were have you been, maybe St Petersburg. Donald Trump was impeached by the House January 2020.
An impeachment is the Congressional House of Representatives equivalent (more or less) of a Grand Jury indictment. In both cases, the presumption of innocence is maintained until acquittal or conviction. In an impeachment, the Senate holds the power to acquit or convict. Trump was never found guilty, and the presumtion of innocence is upheld.
impeachment lite
there are a lot of business people in politics the difference is trump and his family are corrupt rip off artists.
That's correct real businessmen it's in the genes they're allergic to politicians ask Alibaba mogul he tryied to stay as far as he could now milking time .
can you state reasonable evidence to support your point? If you can not, I can assure you what goes around will come around. Jus' sayin'.....
ummm.. I don't know what world you're living in but Donald Trump was never impeached..
Trump is not careless. He does not give it a f.
Impeachment now is a show. Meaningless except to liberals who need to feel better about their lives.
The second impeachment is designed to ban Trump from holding public office for the rest of his life. I’m neither a Democrat or liberal, and I share the views of the rising chorus of conservative lawmakers, former cabinet members and armed services general officers who believe Donald Trump is an unstable threat to democracy. People such as yourself who make sweeping generalizations about “liberals” are clearly drinking the disinformation Koolaide.
So you would have the Capitol attacked and nothing happen? And before you counter with “But the blm/antifa riots” that doesnt make it ok what happened at the capitol. Accountability has to start somewhere.
Dollar and Tressury yield going up. very easy and most likely successful trade
this impeachment is a complete farce just like the first. the house is using it to invoke the 25th amendment to get the sheep ready for what will happen in Bidens term.they will invoke the 25th amendment for Biden guaranteed he doesn't finish the 4 years.
so you think a President committing sedition and insurrection is a ok and should be overlook. are you sure you want people to think you support insurrection and a trashing of the Constitution.
The second impeachment has a base. But first one completly redirected attantion from early fight with virus to political theatre in January 2020. Both parties are responsible for consequences of virus. Democrats for basicallly to allow it to enter, and Republicans for failure to stop the spread.
Trump has not been impeached once. Impeachment requires being brought by the House and confirmation by the Senate. Without those two actions it is an impeachment attempt, not an impeachment. No President of the US has ever been fully impeached.
Sorry. Impeachment is equal to an indictment. He was convicted, but still impeached. I support Trump, but you've got to call it as it is.
"Dr" steve... doctor of what misinformation you've been properly instructed.
hi
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