Key News This Week:
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Hi there, welcome to my financial markets recap for the week, it’s John Bannan here from Comhlatech.com. Before we get to the news, a little update on the system. We just closed a trade today. It was a minuscule win on the NASDAQ man, and I mean minuscule. But on the ETF itself, we had a nice close on the s&p 500 trades, so that was a nice you know, almost 1.7% there. So that was a nice trade-in that one. So money in the bank this week, that was great. I expect the pullback into the beginning of next week because this trend has been up and up and up and then hopefully our rally into the rest of August, or certainly part of it that we were looking at. So more details on that next week. So that was a nice one today and it was my birthday, which is always nice. You know, I don’t always get things, I know in the past, like with the stock market, it has not always been that great for me on my birthday, right? But this time it really behaved itself and gave me a nice win. So money in the bank on my birthday, great stuff right?
So that was the system update. What was the news this week? Well, there was one major piece of news that you know, dominated all the news. That was the rare collaboration between the political parties in the US. The Senate Democrats and Republicans got together and they passed the $1 trillion infrastructure deal that Biden put forward. 19 Republicans joined the 50 Democrats in the Senate to pass that, which is, you know, obviously quite a significant amount of Republicans passing it with them. And the US is really pushing Biden’s plan for this much bigger plan. But the big part of it, is the fact of $1 trillion infrastructure part to give America’s infrastructure, a real boost, a major facelift. So $550 billion is going to public work programs, including roads and bridges and rail, and transit. And another 65 billion is going to internet access, including $30 of monthly vouchers for low-income families. And other stuff is going to 7.5 billion going to Evie charging stations. So big one for investment and that kind of technology. Also for 7.5 billion for greener school buses, so we don’t want those big diesel things on the road anymore. So more hybrid-type buses for schools. So, that’s a big part of the big major chunks of that particular bill. The bill still needs a green light from the house, it’s now passed the Senate political in the house, which could be rocky because House Speaker Nancy Pelosi has already said that the chamber wouldn’t take it up until the Senate also passes the rest of it, which is the massive anti-poverty and climate plan, which is part of the 3.5 trillion overall plan that the Democrats have put forward on things like social programs and climate efforts like universal pre-kindergarten. Two to three years of community college. So encouraging people to go to college without the cost, public housing, and clean energy development. So more money was spent on that. So that’s the bigger plan. But this first part of it was actually passed, but the host, wants the 70 Pass the rest of them to follow before they even look at it, so we’ll see how that goes. The plan to pay for this is really raising taxes on corporations and the wealthy, like, particularly corporations, as I’ve spoken of before, we’ll see how that goes. But the Democrats are looking to do this through reconciliation, which means they will be looking to require Republican support for this, to pass this thing. So we’ll see how they get on with the rest of that. The first parts pass through, you know, for perspective, you know, looking at the overall size of this budget plan, $3.5 trillion in 1933, during the Great Depression, the government spent 2.96% of the US GDP. Now, that was on infrastructure alone. So this administration, no administration since has tried to spend that kind of money, and that percentage of GDP on infrastructure. So this is, these guys are getting close, but not quite close, because under current economies, the current economy with the GDP, would be over 4 trillion to match the 1930s Great Depression. However, obviously, that’s a pretty big number. And actually, the US spends about 4 trillion annually on defense. So that gives you sort of perspective, it seems like a lot of money but they’re spending that on defense every year, and that would be you know, that would be over 10 years, that 3.5 trillion. So that kind of gives you a perspective, but I’m not really going to go any more than that.
That was the government news, on earnings news, Disney really knocked it out of the park last week because they had a big jump in their earnings for the theme parks. And they’re showing they’re back to being profitable again, after the pandemic started, which is obviously good to see, you know, the world’s getting a little bit more normal. People are going back to theme parks, and that’s good for Disney obviously. They also have, which is a much bigger part of the business now. They have 116 million subscribers to Disney Plus. Now to give you perspective on that, they originally started out thinking they would have between 60 and 90 million by 2024. So they really really knocked it out of the park. Now whoever’s heading that division is probably getting a really, really big bonus for this. And he’s doing really well. But you know, together with ESPN, which is obviously the sports network, and Hulu, Disney has nearly 174 million subscribers to their media empire. So behind Netflix in about 200 million, but not that far behind, considering they’ve only had this thing going for a couple of years, right? It’s absolutely incredible growth for Disney, so good for them.
In housing news, it was reported that US home prices have soared 23% in the last quarter, the sharpest uptick, on record, sharpest uptake ever. So, you know, a really, really big move in the US home prices, I’m sure that’s the same in Canada. I mean, the prices of real estate are rising fast, you know, the median price for existing homes, and the US or single-family homes is $357,000. and that’s the US. I mean, it’s really kicking up. So I mean, I don’t know how young first-time buyers get into this market in the US, it’s quite a big uptick. And it just keeps going up and up and up.
The last piece of news to really share with you is President Biden met with several CEOs this week, to really encourage worker vaccination requirements. McDonald’s, Google, Uber, Facebook have already mandated them. And the US government is really pushing that agenda. So you know, don’t get vaccinated, you don’t get to go to work. Controversial, I know, obviously, but that seems, the world seems to be heading in that direction. And so there’s a lot of countries so very interesting developments and the government in the US obviously pushing that forward as are the courts who are rejecting all sorts of challenges to that fact, particularly universities.
But that’s it for me, it is the weekend, it is time to down tools, and in this case, time for me to eat some cake because it’s my birthday. So have a great weekend, everyone, thanks for watching. Take care and bye for now.