Jan 9, 2017

Big in Business

1) GM CEO Mary Barra stands up to the Tweeter-in-Chief

Barra kicked off the Detroit Auto Show by pushing back against Trump's criticism of GM importing its Chevy Cruz model from Mexico. The Wall Street Journal quotes Barra as arguing that these sorts of decisions are carefully made over long time horizons and can't be abandoned on a dime.

Chrysler Fiat, meanwhile, made a show of a planned $1 billion invest in its U.S. production capacity.

2) Analyst: The job market will only get better from here

Expect job growth to rise above a monthly pace of 200,000, argues Ian Shepherdson of Pantheon Macroeconomics in a research note. That's enough to force the Federal Reserve to raise interest rate at their next meeting in March, in an effort to head off subsequent higher inflation.

3) Markets prep for a "hard" Brexit

British Prime Minister Theresa May told Sky News this weekend that closing its borders to EU immigrants means losing access to the coveted European single market. The pound fell to the lowest level since October on the news, as traders expect British companies to suffer.

4) What to watch for today:

Markets are convinced recent Fed minutes have suggested a cautious approach to further interest rate hikes. Bond traders will be keeping a close eye at 9 a.m. on the minutes released by Fed Governor Eric Rosengren. He has favored low rates in the past.

Go deeper