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An
Apple
car is probably years away, but rumors of an iCar, it seems, impact the auto sector almost daily.
This past Friday, stock in
Hyundai Motors
jumped 19.4%—another 8.7% on Monday—following reports that Apple might pick the Korean auto maker as an electric-vehicle partner.
The chatter didn’t stop there. Last night, the Verge reported that Apple held talks with electric-vehicle start-up
Canoo
about a possible investment or even a takeover—and Canoo stock is up by almost 30% in premarket trading Wednesday.
Canoo plans to build an avant-garde looking, autonomous-driving ready vehicle. It also has a connection with Hyundai: The pair have agreed to develop an EV platform.
The Apple-as-EV maker has brought even more attention to EV stocks, if that’s possible.
Tesla
shares, which jumped more than 740% in 2020, are up another 20% in 2021. Even
General Motors
stock is up 15% year to date, boosted by the company’s CES presentation Tuesday.
Apple stock, in fact, seems to be the only one that isn’t benefiting from the speculation. Its shares are down about 2% since Apple-car plans surfaced in December.
—Al Root
*** Join MarketWatch’s Robert Schroeder for a discussion with presidential studies scholar Barbara Perry on Joe Biden’s inauguration and the new president’s first 100 days today at 12 p.m. EST. Sign up here.
***
Pence Won’t Invoke 25th Amendment, Clearing Way for House Impeachment Vote
In a letter to Speaker Nancy Pelosi, Vice President Mike Pence said he would not invoke the 25th Amendment for the removal of President Donald Trump. Still, the House sent Pence a 24-hour ultimatum Tuesday night, calling for Pence to do so and vowing to vote quickly on impeachment otherwise.
- One House Republican joined Democrats in passing the resolution Tuesday night calling for Trump’s removal through the 25th Amendment, which would require the support of Pence and a majority of the cabinet.
- Pence’s decision not to invoke the 25th Amendment clears the way for Democrats to vote to impeach President Trump for the second time. That vote could happen as early as Wednesday evening.
- Five Republican House members have said so far that they would support impeachment, including Wyoming Rep. Liz Cheney, John Katko of New York, Adam Kinzinger of Illinois, Fred Upton of Michigan, and Jaime Herrera Beutler of Washington.
- House Minority Leader Kevin McCarthy (R., Calif.) said he is personally opposed to impeachment, suggesting less severe measures such as censure. But McCarthy said he would not lobby other GOP lawmakers to oppose impeachment. Pelosi has ruled out censure as an option.
- Senate Republican Leader Mitch McConnell indicated he is pleased with Democrats’ move to impeach Trump, the New York Times reported, although he has not said so publicly.
- Trump said Tuesday his remarks to protesters before they stormed the Capitol building were “totally appropriate” and took no responsibility for the insurrection that left at least five people dead. Democrats, Trump said, were continuing “the greatest witch hunt in the history of politics.”
What’s Next: Democrats have the votes to impeach Trump and Senate Democratic Leader Chuck Schumer (D., N.Y.) is exploring an emergency rule that would call the chamber back before Biden’s inauguration to conduct a quick trial in the Senate.
—Ben Walsh
***
Inauguration Day Plans Take Shape With a Focus on Security
With just one week to go before Inauguration Day, law enforcement and national security officials are planning what is shaping up to be the most fraught presidential inauguration in recent history.
- The swearing in of Joe Biden and Kamala Harris will happen on the west front of the Capitol, where Biden will also deliver his inaugural address. President Trump has said he will not attend, but Vice President Mike Pence will be there.
- The inauguration has been designated a national special security event, which means it could be the target of attacks and will get enhanced security. At least 10,000 National Guards will be present and a larger perimeter around the Capitol is being erected to keep any protesters at a distance.
- NBC News reported that extremists are using the encrypted messaging app Telegram to call for violence during the Jan. 20 inauguration. The Federal Bureau of Investigation has also warned of armed protests.
- Biden said he isn’t worried about his safety on Jan. 20. “I am not afraid to take the oath outside,” he said Monday.
- The Joint Chiefs of Staff sent a memo to all members of the U.S. military calling the Jan. 6 riot on Capitol Hill “a direct assault on the U.S. Congress, the Capitol building, and our Constitutional process.”
What’s Next: Another Inauguration Day worry for Biden will be getting at least some of his cabinet members confirmed since the Senate may be preoccupied with impeachment hearings. Biden is expected to pick Gary Gensler to chair the Securities and Exchange Commission, which also requires Senate approval.
—Ben Walsh
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U.S. Moves to Pick Up the Slow Pace of Vaccinations
The federal government took steps Tuesday to increase the number of Covid-19 vaccinations that are being distributed, after a rocky rollout with less than 10 million of the nearly 28 million vaccine doses that have been sent to states actually administered to Americans.
- Health and Human Services Secretary Alex Azar said the federal government will release the approximately 25 million doses of Covid-19 vaccines it currently has. Those jabs had been held back to use as booster shots for those who have already received a first dose.
- The federal government also said its guidance would be updated to recommend states allow any American over 65 years old or with a disease that puts them at increased risk to receive a vaccine.
- President-elect Joe Biden laid out a similar plan last week. At the time, the Trump administration rejected the idea. Michael Pratt, an Operation Warp Speed spokesman, said the “decision is without science or data and is contrary to the FDA’s approved label.”
- New deliveries of Covid-19 vaccines to states from the federal government will also now be based in part on how quickly states are delivering shots, instead of simply being determined by the number of adult residents.
What’s Next: Biden will release details of his plan to deliver 100 million shots in his first 100 days in office on Thursday. That goal looks increasingly doable, with more vaccines being shipped to states, more Americans becoming eligible, and mass-administration sites in places like Dodger Stadium in Los Angeles and Citi Field in New York planned to open soon.
—Ben Walsh
***
Pharma Industry Warns Against Messing With Covid Vaccine Jab Intervals
U.S. and European pharma industry organizations on Wednesday urged governments not to extend the delays prescribed by Covid vaccine developers between the first and second shot, as the U.K. has begun to do to deal with current bottlenecks or shortages.
- Governments and national health authorities should “stick to the dosing that has been assessed in clinical trials,” said the European Federation of Pharmaceuticals Manufacturers and Associations and the U.S.’s Biotechnology Industry Organization and the Pharmaceuticals Research and Manufacturers of America in a joint release.
- Any change in dosing or schedule “should follow the science and be based on transparent deliberation of available data,” they add.
-
The U.K. government earlier this year devised plans to extend the interval between two doses to up to 12 weeks, against the minimal 3 weeks prescribed by manufacturers, triggering criticism from
BioNTech,
a developer of the first vaccine to be approved. Other countries such as Germany are considering similar steps. -
The World Health Organization said last week that although “an interval of 21 to 38 days” was recommended for the
Pfizer
-BioNTech vaccine, that could be extended up to 42 days (six weeks)” due to the current “exceptional circumstances.” - The U.S. Food and Drug Administration, on the other hand, said on Jan. 4 that “changes to authorized dosing or schedules” would be “premature and not rooted solidly in the available evidence.” Barring appropriate data, it added, this would represent a “significant risk of placing public health at risk.”
- The European Medicines Agency has also expressed its skepticism on longer intervals.
What’s Next: The U.K. decision, triggered by the severity of the pandemic spike and the ambitious vaccination campaign the government has set, is coming under fire from the pharma industry. That could increase fears among the public about the risks of a rushed vaccination campaign.
—Pierre Briançon
***
Gig Workers, Union Sue to Overturn California’s Proposition 22
Ride-sharing workers and a labor union are suing to overturn a California ballot measure that will allow companies like
Uber Technologies
and
Lyft
to continue to classify drivers as contractors in the state.
- In a lawsuit filed on Tuesday, the Service Employees International Union argues the measure violates the state’s constitution, and would be “profoundly harmful to many workers.”
-
Proposition 22 exempts gig economy firms like Uber and
DoorDash
from Assembly Bill 5, which would have made such companies classify workers as employees, rather than contractors. As contractors, workers would still receive some benefits like minimum earnings and funding for health benefits. - Gig economy firms invested more than $200 million in support of the measure. It was the most money ever spent on a statewide California referendum, according to Ballotpedia and Cal Access. California voted in favor of the measure during the November election.
What’s Next: Though analysts previously cited risks to the ride-sharing business model if Proposition 22 was voted down, shares of Uber and Lyft on Tuesday rose 7.2% and 4.8%, respectively.
—Connor Smith
***
Dear Moneyist,
I have a 23-year-old son who lives at home and he works a full-time job. He pays $300 a month, which I put in a savings account. Is it unreasonable to tell him that, once he turns 26, he will need to move out? It makes me uncomfortable that I have to tell him this.
I feel like it is wrong, but a part of me knows that he needs to explore life and I don’t want to hinder him. He is a good young man, but he also needs to learn. I also talk to him about money management, savings and investing, but the investing I am learning myself so I can’t really teach.
He has saved $10,000 and it’s in a money-market account. What can he do to help maximize the money he has saved? And how should I invest the money he is giving me so when he does leave, he will have something to fall back on? He doesn’t know I am saving the money.
Thank you for your help and attention in this matter.
—Unsure Mom
Read The Moneyist’s response here.
—Quentin Fottrell
***
—Newsletter edited by Anita Hamilton, Stacy Ozol, Mary Romano, Matt Bemer, Ben Levisohn
