Foreign market headlines: US election deadlock or Wall Street’s nightmare

His opponent, former Vice President Biden, warned that trump might not voluntarily leave the White House. Trump has yet to confirm whether he will accept an unfavorable election result if he loses. for investors, the protracted debate over the election results will be a nightmare as markets hate uncertainty. What is more uncertain than a controversial election? The election raised questions about the peaceful transfer of power in the world’s largest economy. “There is a disturbing concern,” says David kotok, co-founder and chief investment officer of Cumberland advisors The outbreak has made the situation even more chaotic, with many states voting by mail to ensure that Americans who don’t want to be exposed to coronavirus have a way to get their votes counted. Greg valliere, chief U.S. policy strategist at AGF investments, estimates that “at least” there is a “at least 30% chance” of a “contested” election, ultimately decided by the Supreme Court. According to the latest statistics of Johns Hopkins University, 800000 people have died of the new coronavirus. Bill Gates, co-founder of Microsoft, predicts that “the worst is still ahead” and that the death toll will eventually rise by millions. In a recent interview, he explained that emerging markets, where health care systems and economies are already in trouble, will be the regions that suffer the most from the new outbreak. “we believe in freedom, personal freedom. We have made full use of individual rights. ” Gates believes that trump supporters are waving “freedom” to make political speech, which makes the U.S. response to the new epidemic more complicated. For example, refusing to wear masks is a way for them to vent their anger and resist. Gates further said that even if Joe Biden was elected president, the situation would not change. “I don’t think administrative changes will make people wear masks. It’s hard to see how we build trust networks and improve behavior. It is mainly gradual. ” When the general environment seems to be full of crisis, the U.S. stock market is approaching its historical high. This paradox plagues everyone, including some of the largest asset managers. Top Hedge Fund and public fund managers said looming threats, such as uncertainty over the reopening of schools, the November US election, tensions in international relations and the impact of monetary policy on inflation, could end the historic rally in the US stock market. although the S & P 500 has risen more than 50% from its march low, the unemployment rate is still at double-digit percentages, and the federal government is still struggling to contain the new epidemic. The index’s price earnings ratio has risen to 26 times, well above the average of 18 times in the past decade. Because of this, some market insiders are cautious about asserting a market rebound. “there’s a huge disconnect between fundamentals and the market,” says Brian Payne, investment officer at the Illinois teacher retirement fund. “There is too much money chasing investment, and the Federal Reserve is releasing water into the market, and these leverage funds cannot enter the real economy. As the election approaches, there are growing concerns about a big win, which could be the turning point for bullish sentiment to bearish sentiment. ” According to data released on Thursday, the IRS expects 229.4 million jobs to be classified as employees in 2021, about 37.2 million lower than the pre epidemic estimate of last year. The statistics are used to estimate the W-2 tax form and the amount of withholding tax the agency will receive. The report predicts that the number of W-2 declarations will be lower than previously estimated until at least 2027. The number of declarations in 2027 is expected to be about 15.9 million less than originally estimated. W-2 is an imperfect indicator for assessing employment because it cannot track actual employment. Workers with multiple jobs are required to fill out a W-2 form for each position. Still, the data suggest that it may take years for the U.S. economy to make up for the contraction suffered by covid-19. A group of former Fed officials and staff, including former Vice Chairman Alan Blinder, issued an open letter on Thursday calling on the US Senate to reject president Trump’s nomination of Judy Shelton to the board of Governors of the Federal Reserve. “Ms. Shelton’s views are so extreme and ill considered that they will unnecessarily interfere with the work at hand of the Federal Reserve,” the letter said The letter was also signed by two former reserve bank presidents and three former department heads. A total of 38 people have signed the letter, all of whom have served at the Federal Reserve. The Senate Banking Committee advanced Shelton’s nomination in July, and she is now waiting for full Senate approval. No confirmation vote date has been set for her and Christopher Waller, who was also nominated. As an unofficial adviser to trump’s 2016 campaign, Shelton has been widely criticized for his far from mainstream policy views, including advocating the gold standard and possibly becoming a political loyalist to trump’s will. the California Court of appeal on Thursday temporarily extended the time that Uber and LYFT must comply with the employee reclassification order, which requires the two companies to reclassify their online car Hailing drivers into full-time employees. Uber and LYFT will be able to submit a written statement agreeing to the expedited procedures specified in the order until 5:00 p.m. on August 25. California has previously issued an order requiring Uber and LYFT to reclassify their online car Hailing drivers into full-time employees. A California judge last week issued an ultimatum to the companies to reclassify their online car Hailing drivers into full-time employees by Friday. Uber and LYFT executives warned last week that they may have to suspend services to comply with the order, which means restructuring their businesses and re hiring workers.