U.S. Senate could open infrastructure debate this week

 WASHINGTON (Reuters) - The U.S. Senate could vote again this week on whether to begin debating a key piece of President Joe Biden's agenda, a $1.2 trillion bipartisan infrastructure plan to rebuild the nation's roads and bridges, if negotiators can finalize the details of the measure.

Senators from both parties worked over the weekend to try to finish the deal so that Senate Majority Leader Chuck Schumer could try again as early as Monday to open floor debate on the measure. Republicans blocked https://www.reuters.com/world/us/work-in-progress-us-infrastructure-bill-faces-test-senate-floor-2021-07-21 the Democrat's effort to start floor action last week, complaining they lacked the details of the deal.

Although negotiators and the Biden administration expressed optimism on Sunday, it was unclear how soon they could finalize the fine print of a complex measure in a tense political atmosphere.

The framework the senators and Biden announced a month ago, with $1.2 trillion in funding over five years, includes about $579 billion in new spending on roads, bridges, broadband and other public works projects.

"It's going to happen. ... This is what the American people want," Commerce Secretary Gina Raimondo said Sunday on CBS' "Face the Nation."

Democrat Biden has said the plan is essential, but he also wants it to be followed by a much larger $3.5 trillion budget framework that would allow for spending on some of his other priorities, including climate measures and social spending. Republicans say they won't support the larger measure.

Senator Rob Portman, the lead Republican negotiator on the bipartisan infrastructure plan, said Sunday on ABC's "This Week" that spending on mass transit was the only issue outstanding, and agreement could be reached this week.

"We're about 90% of the way there," he said.

Democrat Mark Warner, also a negotiator, told Fox News Sunday the text of the infrastructure proposal could be ready on Monday.

But a Democratic source close to the talks, speaking on condition of anonymity, said that in addition to mass transit, the two sides also remained apart on ensuring safe drinking water, expanding broadband internet access, repairing highways and bridges, and using unspent COVID-19 relief money to pay for the program. Another unresolved issue was a provision to lift workers' wages https://www.reuters.com/world/us/exclusive-democrats-may-scrap-20-bln-matching-funding-spending-bill-amid-2021-07-23.

Other stresses continued to bedevil the process. Portman warned that House of Representatives Speaker Nancy Pelosi could sink the entire effort with her insistence, which she repeated on Sunday, that the Senate also pass the larger, $3.5 trillion spending measure before the House even takes up the bipartisan infrastructure bill.

"What she has just said is counter to what President Biden has committed to. ... It's the way we ought to be doing things here in Washington to get stuff done, and I can’t believe the speaker of the House would be blocking it," Portman told ABC

Latest updates of Financial Markets

 Bitcoin prices surge on speculation that Amazon (NASDAQ:AMZN) is getting involved in crypto. China redoubles its onslaught against the country's tech sector, with fresh pressure on education technology and food delivery companies. Tesla (NASDAQ:TSLA) reports second-quarter earnings after the close. Stocks are set to open the week lower amid a sustained rise in Covid-19 cases in the U.S., and coffee futures hit fresh seven-year highs after last week's frosts in Brazil. Here's what you need to know in financial markets on Monday, 26th July.

1. Bitcoin surges on Amazon speculation, short-covering

Bitcoin settled into a range just above $38,000, up over 20% from a week ago and its highest level in over a month, as the market digested the implications of Amazon possibly adopting a strategy for payments in cryptocurrency.

It emerged last week that the U.S.’s biggest e-commerce company had advertised a vacancy for a digital currency product lead, sparking speculation that it may be planning to allow the use of crypto to settle transactions. The ad comes only weeks after a change at the top of Amazon, with founder Jeff Bezos handing over to Andy Jassy.

The move higher was amplified by some extreme short-covering: data from Bybt showed that $700 million in short positions were closed over the weekend, according to newswire reports.

2. China confirms new rules for EdTech, takes aim at food delivery

Hong Kong and mainland stocks tumbled as China widened its campaigned on the tech industry over the weekend.

Chinese regulators confirmed plans to force the lucrative online learning business to become ‘non-profit’, in what many interpreted as an attempt to drive down tuition fees. That in turn appears driven by concern at the country’s low birthrate and its looming demographic problems.

In addition, China’s State Administration for Market Regulation published a notice warning food delivery companies to ensure they pay at least the minimum wage and respect the rights of workers.

Local shares in Meituan (OTC:MPNGY), the country’s biggest food delivery company, fell 14% to a 10-month low. Its biggest shareholder Tencent (OTC:TCEHY) fell 7.7% to its lowest in over a year. The Hang Seng index fell 3.9% and the Shanghai Shenzhen CSI 300 fell 2.7%

3. Stocks set to open lower; Tesla  earnings eyed

U.S. stock market are poised to open lower, as the ongoing spread of Covid-19 across the U.S. (see below) raises fears of renewed restrictions on business and social life.

The onslaught against Chinese tech companies, meanwhile, continues to put pressure on their American Depositary Receipts.

By 6:15 AM ET (1015 GMT), Dow Jones futures were down 94 points, or 0.3%, just off the record high close of last week. S&P 500 futures were down 0.2% and Nasdaq 100 futures were down 0.1%.

The day’s earnings highlight comes after the bell when Tesla reports its second-quarter figures. Lockheed Martin (NYSE:LMT), LVMH and Hasbro (NASDAQ:HAS) will all report before that. The only data release of note is new home sales at 10 AM ET, which are expected to have rebounded from an 11-month low in June.

4. U.S. Covid-19 cases hit three-month high; signs of wave peaking in U.K.

The number of Covid-19 cases in the U.S. hit its highest level since April, while the 7-day average rose to a two-month high, with the greatest concentrations of infections now in the south and south-east of the country.

Anthony Fauci, President Joe Biden’s chief medical adviser, said at the weekend that the country is “going in the wrong direction”, as the delta variant of the virus spreads rapidly in communities with low vaccination rates.

Some 30 states still have less than half their population fully vaccinated, according to the Centers for Disease Control and Prevention,

There were also reports over the weekend of fresh outbreaks – albeit far smaller ones – in parts of China. There was more encouraging news from Europe, where the end of the Euro 2020 soccer tournament led to case number falling in the U.K. and the Netherlands, and flattening out in Spain and Portugal.

5. Oil struggles on signs of weak Chinese demand; coffee hits new highs

Crude oil prices started the week poorly, after newswires reported that China will cut official selling prices for diesel and gasoline by nearly 100 yuan a ton, or some $2 a barrel.

The move, which comes after a loosening of monetary policy by China’s central bank, is the latest indication of economic momentum starting to flag in the country that was the first to recover from the initial wave of Covid-19.  It also comes after devastating floods hit various parts of China, threatening a dip in near-term demand levels.

By 6:15 AM ET, U.S. crude futures were down 49c, or 0.7% at $71.53 a barrel. Brent futures were down 0.6% at $72.99 a barrel.

Elsewhere in commodities, however, the tone was stronger, with US Coffee C Futures hitting fresh seven-year highs and copper futures rising 1.4%.

 

Bitcoin Surge, China Tech Onslaught, Tesla Earnings - What's Moving Markets

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