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Headline News For December 23rd Through 28th 2024
A vivid overview of the country, its businesses, and its economy, as a whole, over the period from December 23 to 28 has been presented below:
American News
Government Shutdown Avert:
- The risk of the US government shutting down was averted on the 21st day of the 12th month of the year 2024.
- This was possible because the representatives had signed a spending amendment bill that Biden later enacted.
- As I have stated above, the US was on the brink of a government shutdown as there was a lot of discord over the signing of the bipartisan bill and the subsequent amendments.
- The bill was not signed, while the spending amendment was enacted to prevent the US from shutting down.
Biden’s Death Sentence Commutes
On December 23, 2024, President Joe Biden commuted the death sentences of 37 federal inmates. The main goal behind this act was to reflect the current president’s stance on capital punishment in the US and widen the scope of justice in the legal system.
American Airlines Flight Delays
On September 24, 2024, Amer American faced a technical issue that delayed over 900 flights. The issues were resolved later that day, but the travel season was massively disrupted due to the holiday season, as flights were grounded nationwide.
Business News
Retail Store Closures:
- 2024 proved to be the year when America officially disintegrated into a retail apocalypse, as it saw the closure of hundreds, if not thousands, of retail stores and chains.
- Estimates suggest that in November, about 7,100 stores in the US closed, a considerable 69% jump from the previous year.
- Some notable closed stores included Family Dollar, CVS Health, Big Lots, and Walgreens, which closed 677, 586, 580, and 259 stores, respectively.
- Big Lots closed all 963 remaining stores because the deal between them and Nexus Capital Management LP did not go through.
- Furthermore, CVS and Walgreens have also shut down multiple stores and are planning to expand the closures.
- The stock market’s performance was unsatisfactory for the S&P 500, which lost 1.1% on Friday, resulting in a loss of yet another 1% for the month.
- The index rose 25% throughout the year, with a 5.7% increase in November.
- The tech sector performed extremely well, especially the Magnificent Seven, which includes Apple, Tesla, Alphabet, Amazon, and Nvidia.
- Apple’s valuation reached close to $4 trillion.
- Strong software and AI performers, including Palantir Technologies and AppLovin, brought growth stocks to the forefront of 2024.
- Sezzle topped the performer’s list after its stocks rose beyond 1000% because of its rising revenue.
Broader stock market leadership, compared to 2023, was observed, with several industry groups performing well.
Economic News
Consumer Confidence Data:
- Compared to November, the American consumer confidence level has decreased with a ratio of 81.1, where 80 would be recession indicative.
- This depicts a recessionary trend due to the steep decline in short-term expectations of over a dozen points in income, business, and the upcoming job market.
- The Conference Board’s consumer confidence index dropped to 104.7 from 112.8 beating analysts expectations for 113.8.
- However, despite consumer confidence declining over the three months, retail store sales increased by 0.7%, indicating that consumers could still be positive for the economy.
US Productivity Improvement
The United States seemsseemsis following on the edge of potential productivity improvement, similar to the internet boom in the mid-1990s. Worker productivity lately has started showing positive growth trends and has recorded over 2% growth. Further, investments in labor-saving technologies and post-COVID better job-role matches also contribute to the growth. Economists have predicted further advances in these developments, especially in AI, improving productivity growth in the 1990s era from 2.5% to 3%. This increase in productivity is essential for the country in managing its debt and economic well-being.
US Economic Policy Forecast
If the US Republican party wins the 2024 elections, as they appear to do, the economic outlook will change noticeably.
Donald Trump, the president-elect, has plans to grow the American economy through policies such as lowering taxes, tightening immigration laws, raising tariffs, and loosening regulations. Thanks to the Republican majority in Congress and in the Senate, there will be very few problems implementing these policies. It is a crucial juncture to predict since the facets of the policies after the election can vary. However, the economy will be impacted greatly by the elections.
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Provided below are the highlights from the US National news, business, and economic news dated 23rd to 28th December of 2024:
US National News
TSA Holiday Surge Announcement:
- According to TSA reports, the passenger aircraft load has approached pre-COVID levels as several families traveled to spend the holidays together, marking a TSA surge.
Weather havoc around the Northeast:
- Severe storms around winter, affecting the Midwest to the Northeast, led to several power outages and disruptions in travel.
- Several authorities issued advisories permitting harsh travel conditions.
Political scene shift:
- The budget for the following year and potential government funding are actively discussed.
- Bipartisan talks are ongoing, recognizing areas such as infrastructure and healthcare that need stabilization.
Business Highlights
Retail Sales Increase:
- Heavy online shopping marked the holiday season, and several retailers reported hefty sales, which contributed to an optimistic forecast for the upcoming year.
Corporation Earnings
Most companies exceeded expectations when it came to their quarterly earnings reports. Several businesses within the technology and consumer goods sectors saw steady growth, showcasing the economy’s good health.
Market Trends
Mixed economic information again made stock market trading choppy. Still, three of the four major indices registered a weekly gain. Investor confidence remained slightly optimistic regarding 2025.
News Related to the Economy
Mortgage Trends
- Economic news pointed towards the possibility of less heating inflation, which further prompted a drop in mortgage interest rates to 6.25%.
- During this period, many homeowners showed signs of refinancing.
Employment Trends
New jobless claims dropped to a three-month low, indicating a healthy job market. Economists seemed more than confident about the continuing job additions trend as the economy gears into a new year.
Trends In Inflation Rate
Recent reports further suggested that inflation pressures were softening, which was good news for economic growth and made it rather optimistic. These days, market analysts are watching consumer prices closely for directional guidance on future Fed actions.
Between December 23 and December 28, 2024, the US witnessed a combination of holiday-related news, very good business performance, and promising economic indicators. Inflation, the employment rate, and political deal-making were to blame as the US began preparing itself for a new year.
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Can you elaborate on the bipartisan negotiations in Congress?
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Here’s an expanded overview of the ongoing bipartisan talks inCongress focusing on the last few days of December 2024:
Topics on their desk Funding the government
A budget deal is currently under discussion so that the government doesn’t take a pause. Divisions delve into funding amounts for sectors like healthcare, education, and defense.
Investing in infrastructure
Further investment in infrastructure has received bipartisan support, which has served to build up on the bills passed recently. Discussions are ongoing regarding spending on transport projects, renewables, and expanding broadband services.
Healthcare reforms
Potential changes in healthcare are on the table, including making prescription drugs cheaper and affordable care more accessible. The changes include discussions around the amount spent on Medicare and Medicaid programs.
Reforms In Tax Policy
The amendments to individual and corporate taxes and the proposal to make middle-class families eligible for tax relief are still under discussion.
Concerns of a Debt Ceiling
Steps to tackle a prevalent debt crisis and borrowing limits are being discussed to ensure the national debt doesn’t exceed its ceiling.
Negotiation Challenges
Partisan Politics:
- Aside from negotiation red flags, there is an agreement on negotiating replenishment.
- However, there are still major partisan spending and policy priorities.
- Republicans and Democrats often disagree on how much the government should intervene in various industries.
Time Pressure
There is a constant last-minute rush to sign deals as deadlines approach, which, if reached, may disrupt government services. Any disagreements may force temporary funding measures or, if prolonged, lead to government shutdowns.
Third Parties
Public feelings, economic status, and elections play a role during the negotiation phase. Policymakers observe the consequences of their actions due to the pressure of unfavorable elections.
Current Affairs
Congress leaders have conducted Crystal Ball meetings with committee members on the pressing agenda and agreement scope. They have also held public hearings to seek advice from stakeholders and their officials.
The gap as parties are trying to fill the gap through some of the targeted funding proposals developed to appeal to both Republican and Democratic agendas with some of the proposals.
In the bipartisan discussions Congress is currently engaged in, a center remains to Identify the country’s pressing issues. The final outcome of these discussions will determine many operations alongside the policy direction of the new year. Such negotiations form a rapidly changing political landscape and warrant close watching.
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How are the debt ceiling concerns affecting other negotiations?
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The debt ceiling negotiations are heavily impacting other congress matters in multiple ways, and that includes:
Setting Priorities:
- As the need to address the debt ceiling gets out of hand, other legislative matters are overshadowed.
- Negotiations regarding the debt ceiling being crossed may become even more dire, with far-reaching implications for the economy.
Bargaining and Linkage:
- Some lawmakers use the debt ceiling as a bargaining chip regarding government spending and taxation or entitlement reforms.
- This is largely shared by the Republicans, who are keen on increasing the debt ceiling so they can cut spending.
Political Cuts:
- During the debt ceiling negotiation, there is a likelihood of differences in opinions on spending.
- This further leads to haggling on multiple issues, creating an even more complex scenario.
- This also makes reaching a bipartisan consensus on the negotiation points even more difficult, raising tensions.
Impacting Budget Agreements
Raising the Debt ceiling sets the bar high, and therefore, dealing with the budgetary constraints of spending and appropriating becomes far more intricate, leading to a slowdown of the entire economy.
Market Factors and Economic Pressure Based on Market Factors
In light of the Greater Takeover Sector’s sentiments towards increasing the debt limit, the concern can potentially impact the existing uncertainty in the financial markets. Many lawmakers feel that allowing the debt limit to stay unaddressed could result in higher borrowing costs and economic instability, fundamentally affecting how they approach other negotiations.
Pressure from the Public and the Stakeholders.
Voter Sentiment:
- The fear of an economic collapse and irresponsible financial behavior could pressure lawmakers to strike a compromise deal on the debt limit alongside other issues.
- Stakeholders, business heads, and advocates may also participate in negotiations by asking for control and predictability.
In conclusion, the current standoff is exacerbating the issue of raising the debt ceiling and the worrying economy, rendering congressional negotiations multifaceted, altering priorities, making discussions difficult, and increasing aggression. When addressed, these negotiations regarding raising the debt ceiling and other potential shortcomings will soon affect economic policy-making and processes within the government.
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