Wall Street on Delta: Who cares? — Biden flips again on evictions — Cuomo hangs by a thread

From: POLITICO's Morning Money - Wednesday Aug 04,2021 12:03 pm
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By Ben White

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Quick Fix

Wall Street on Delta: So what? — The Covid-19 Delta variant continues to plague many U.S. states and spark new mask mandates and calls for vaccination card proof requirements. So far Wall Street has almost completely blown it off outside a couple of down days last month.

Seems like investors are totally out of touch with the risks from the variant and the possibility that variants of the variant will prove even more damaging and adept at evading vaccines. But perhaps not. Maybe Wall Street has it right?

Via Cresset Asset Management’s Jack Ablin : “So far, investors have shrugged off the outbreak news. … That said, reopening stocks have struggled since mid-March. While the Delta variant is a risk factor, the mask mandate didn’t move the needle. Grocery stores have outpaced airline stocks by nearly 50 percentage points over the last three months.

“We agree with the market: We don’t believe the latest revelations concerning ‘breakthrough’ infections will dampen demand. … Notwithstanding the headlines, the most recent Covid spike is all about the unvaccinated.”

Cuomo hammered — New York Governor Andrew Cuomo is clinging onto office for the moment amid almost universal calls for his resignation (including from President Biden) in the face of NY Attorney General Tish James’ damning report alleging the governor sexually harassed 11 women in violation of state and federal law. Cuomo is a street fighter and likely won’t quit unless it becomes absolutely impossible to hang on. Which it might.

And per CNBC’s Brian Schwartz, Cuomo’s big business and Wall Street allies are NOT coming to his defense: “CNBC reached out to many of the governor's top donors and corporate associates …

“Almost all of the donors, allies and advisors contacted refused to comment either on the allegations levied against the governor or on whether they would continue to associate themselves with him. … ‘I think it all crumbles,’ one longtime Cuomo advisor said regarding the governor's support in the business community”

GOOD WEDNESDAY MORNING — How great was it to see Simone Biles back out there on the beam? All we can ever do when knocked down. Get up and try again. Email me on bwhite@politico.com and follow me on Twitter @morningmoneyben.

 

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Driving the day

NYC TO REQUIRE COVID PROOF — Reuters: “New York City will become the first major U.S. city to require proof of COVID-19 vaccination at restaurants, gyms and other businesses, Mayor Bill de Blasio said … as the nation grapples with the rapidly spreading Delta variant.

“With vaccines widely available, political leaders were combating the latest surge in infections with shots and masks rather than ordering businesses to close and Americans to stay home as they did last year.”

NEW YORK ASSEMBLY MOVES CLOSER TO IMPEACHMENT — Our Bill Mahoney: “The state Assembly’s Democratic majority is moving even closer to impeaching … Cuomo if he does not resign.

“That outcome become clear after an emergency meeting of legislators on Tuesday afternoon … The state Assembly's Judiciary Committee has been looking into impeachment since March. … The Judiciary Committee has a preplanned meeting on Monday to discuss the next steps in its impeachment investigation."

BIDEN FLIPS TO NEW EVICTION BAN — Our Katy O'Donnell, Laura Barrón-López, and Heather Caygle: “The Biden administration … announced a new, targeted federal eviction ban to replace the one that expired over the weekend, setting up a potential clash with the Supreme Court.

“The Centers for Disease Control and Prevention’s new ban will apply to ‘counties experiencing substantial and high levels of community transmission levels’ of Covid-19 and will last until Oct. 3, the agency said. … The announcement comes after a dayslong standoff with Congress in which Speaker Nancy Pelosi and other top Democrats … waged an intense public campaign to goad the White House into action. …

“The new ban would give state and local programs additional time to distribute rent relief and to increase vaccination rates, the agency said. The moratorium is expected to affect 80 percent of counties and 90 percent of the U.S. population, according to Democrats familiar with the details.”

SO WHAT CHANGED? — Nothing changed on the legal front. The ban could still get tossed by the Supreme Court. It just became politically untenable for the White House not to at least take a shot at it given the negative Covid news and outrage on the left. If it gets knocked down, the White House figures, the conservative court can take the blame.

DEM ESTABLISHMENT WINS IN OHIO — Our Ally Mutnick: “The Democratic establishment dealt a crushing blow to the progressive movement Tuesday, with Shontel Brown, the preferred candidate of party stalwarts, triumphing over Nina Turner, a face of the insurgent left, in a special congressional primary election. …

“Brown’s victory in the primary, which is tantamount to the general election in this deep-blue, Northeast Ohio seat, brings an end to a contentious summer of internecine squabbling for Democrats over the direction of their party”

SO DOES TRUMP CANDIDATE — Our Marissa Martinez: “Mike Carey … won the Republican primary for a vacant House seat south of Columbus, vaulting to the top of a crowded special election field with support from former President Donald Trump.

“Carey’s win affirms Trump’s ability to influence Republican primaries with endorsements even while out of office during the Biden administration. Trump advisers were eyeing the Ohio primary after Susan Wright, another Republican House candidate backed by the former president, lost her own special election for a district in Texas last week.”

Fly Around

ONE MORE RIDE FOR BIPARTISAN GANG — Our Marianne LeVine and Burgess Everett: “The Senate’s most successful bipartisan gang in years is undergoing a final rite of passage: protection of the infrastructure bill at all costs.

“The ten senators who negotiated the physical infrastructure deal are vowing to collectively block any effort that would endanger the bill’s odds of reaching … desk. …

"Senators often try to attach amendments containing their pet priorities to bills that have a strong chance of presidential approval — but that process can scuttle carefully crafted agreements. This time, the 10 senators who directly negotiated the bill have forged a pact to make sure that doesn’t happen.”

To view online click here.

SENATORS LOOK TO NARROW CRYPTO TAX — Via our Victoria Guida: “Senate Finance Chair Ron Wyden and Sen. Pat Toomey said … they were working together to narrow cryptocurrency tax requirements proposed in the bipartisan infrastructure bill after industry groups complained they were too expansive.

“Toomey (Pa.), the top Republican on the Banking Committee and a member of the Finance Committee, told reporters … that Wyden has ‘a very constructive amendment in mind.’ Wyden (D-Ore.) separately said he was working with both sides of the aisle to try to achieve consensus on a language change that could potentially be included in a broader amendment package.”

VA GOP GOV CANDIDATE STRUCK IT RICH AT CARLYLE — WP’s Gregory S. Schneider: “The first thing most Virginians know about Republican gubernatorial nominee Glenn Youngkin is that he is rich. Very rich. Youngkin has so much money that when he retired last year as co-chief executive of the Carlyle Group, he could afford to turn his back on more than $100 million in unvested stock options.

“With a fortune that already topped $300 million, he’s using those resources to help bankroll his run for governor, blanketing the airwaves with early and frequent advertising. Less widely understood is how Youngkin built that wealth. … Youngkin’s successful career at the company is both a political strength — the central credential for a candidate with no record in public office — and a potential liability.”

Transitions – Via email: “Tom Orlik and I are delighted to announce two new additions to Bloomberg Economics, both highly respected figures in the world of economics and finance.

First, David Wilcox – formerly the Director of the Division of Research and Statistics at the Federal Reserve Board and advisor to Fed Chairs from Ben Bernanke to Janet Yellen and Jerome Powell – has this week joined the team as Director of U.S. Economic Research. …

“In addition, Bill Dudley – former President of the Federal Reserve Bank of New York and Vice Chair of the FOMC – has agreed to serve as Senior Advisor to Bloomberg Economics.” …

“Nora Richardson will join MFA as Director of Membership Development. Richardson bring more than a decade of hands-on alternative investment industry experience and joins the association from Bank of America Securities.”

 

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