5 Important Developments To Watch This Week

What are the 5 important developments to watch this week? What issues will occupy the world agenda this week? Here are the headlines of the new week to watch carefully:   1.Joe Biden will Take Office Joe Biden, the winner of the US Presidential Election, will take office as the country's 46th President on Wednesday, January 20th. In the epidemic environment dominated by uncertainty and anxiety, Biden announced a $ 1.9 trillion stimulus package. However, this package not only created optimism about the economic recovery, but also raised concerns about how the US would meet this amount. The S&P 500 had risen in the first 100 calendar days in eight of the last 10 presidential terms, but Biden's first 100 days are thought to be more difficult than its predecessors. While Biden is expected to take steps to quickly recover the economy, it is said that the low number of Democrats in Congress will create uncertainty in terms of the size and timing of the package.   2.Janet Yellen's Certification Trial to Take Place The Senate Finance Committee will hold a confirmation hearing for Janet Yellen's US Treasury Department on Tuesday, the day before Joe Biden's oath. Yellen, who served as the President of the FED (US Central Bank) between 2014 and 2018, is likely to get the Senate approval without difficulty and to be one of the first members of the Biden cabinet to be approved. It is also predicted that Yellen will support Biden's $ 1.9 trillion stimulus package.   3.Earnings Reports Will Be Announced The expected earnings results will be the focus of investors' agenda as they will give an idea of ​​how 2021 will go. The US stock markets, rising with the optimism created by the vaccine studies, also found support from the announcement of the additional stimulus package. Earnings reports for the last quarter of 2020 continue to be released: Bank of America (NYSE: BAC), Goldman Sachs (NYSE: GS), Netflix (NASDAQ: NFLX), Charles Schwab (NYSE: SCHW), Procter & Gamble (NYSE: PG), United Airlines (NASDAQ: UAL), Intel (NASDAQ: INTC) and IBM (NYSE: IBM). According to Refinitiv's IBEs data, earnings of S&P 500 companies are predicted to recover in 2021, with a 9.5 percent decrease from a year ago and a 16.4 percent increase for the first quarter.   4.European Central Bank (ECB) Meeting will be held The ECB will hold its first meeting of 2021 on Thursday. Politicians announced an additional stimulus package in December, but the economic picture, the emergence of new mutations of the coronavirus and the slowdown in vaccine supply dropped optimism. However, ECB President Christine Lagarde looks at the full side of the glass and predicts a recovery as the coronavirus decreases. The fact that the German economy shrank by 5 percent in 2020, below the expectations, stands out as one of the sources of this optimism. The fact that Fajat quarantine practices are still ongoing will undoubtedly reflect negatively on the recovery. In this case, the markets will demand a message that they use the full strength of the 1.85 trillion euro ($ 2.24 trillion) emergency bond purchase program.   5.Economic Data Will Be Announced The PMI data of the USA, the Eurozone, the UK and Japan, which will be released on Friday, will be the first data for 2021. These data are expected to be weaker than expected. As signs of economic recovery continue to be given, new quarantine practices and the increasing number of cases are weakening these signals. Other data to watch this week include US housing market reports, backed by significantly lower mortgage rates. Housing starts to be released on Thursday and current housing sales to be released on Friday are expected to be strong. China's fourth quarter and annual GDP data, which will be released on Monday, may prove that China is the fastest growing country in 2020.       This article is contributed by Investing.com and Reuters.