Chris Harvey reveals Wells Fargo's S&P 500 year-end call; Robert Tipp discusses the potential for a 5% or 6% rise in the 10-year; Sheila Kahyaoglu highlights United airlines' potential $80M savings from reduced passenger weight; Dana Peterson talks about consumer hurdles; Gov. Lamont addresses Connecticut's economic competitiveness and border control.
Connecticut's Governor Ned Lamont is focused on attracting businesses and residents to the state by highlighting its strong education system, access to major cities, and quality workforce.
Despite tough competition from states with lower taxes, Governor Lamont acknowledges Connecticut's progress in becoming more competitive by attracting businesses and promoting its workforce and education system.
Deep dives
Connecticut's Efforts to Attract Businesses and Residents
Connecticut's Governor, Ned Lamont, is working to attract businesses and residents to the state. Despite competition from states like Florida, Lamont emphasizes Connecticut's strong education system, access to New York and Boston, and quality workforce as key selling points. The state has also reduced taxes for middle-income earners and eliminated estate taxes for most of the population. While tax competitiveness may not match states like Florida, Lamont aims to highlight Connecticut's other advantages.
Challenges in Building up Connecticut's Economy
Connecticut, previously experiencing a decline in population, is facing challenges in building up its economy. The state cannot rely heavily on borrowing due to high borrowing costs and limited leeway amidst low yields. Governor Lamont acknowledges the difficulties but remains optimistic, pointing to an influx of newcomers during the COVID-19 pandemic and an expanding education system. An area of concern is the housing shortage in the state.
Competition with the American South and Tax Policy
Connecticut faces tough competition from states in the American South, which have lower taxes. Governor Lamont acknowledges that Connecticut may not be able to match the low tax rates of these states. However, the state aims to promote its strong workforce and education system as key advantages. Lamont emphasizes that Connecticut has made progress in becoming more competitive, attracting businesses such as Citadel, Apollo, and Digital Currency Group.
Migration and Border Control
Connecticut is observing the issue of migration closely. While not deeming it a crisis, the state has noticed an increase in migrants. Ensuring control at the border is seen as crucial. Governor Lamont believes it is necessary to address the border situation and highlights the importance of having a plan for handling migrants, including access to jobs and shelter. He suggests that New York, Texas, and other states need to control their borders to manage the situation effectively.
Chris Harvey, Wells Fargo Securities Head of Equity Strategy, discusses Wells Fargo's call for 4420 on the S&P 500 year-end. Robert Tipp, PGIM Fixed Income Chief Investment Strategist, says 5% or 6% on the 10-year could be possible. Sheila Kahyaoglu, Jefferies Senior Equity Research Analyst, says United airlines could save $80M a year if the average passenger weight falls by 10 pounds. Dana Peterson, The Conference Board Chief Economist, says the consumer will face a number of hurdles. Gov. Ned Lamont, (D) Connecticut, says Connecticut is not currently facing a migrant crisis but he's watching the situation carefully. Get the Bloomberg Surveillance newsletter, delivered every weekday. Sign up now: https://www.bloomberg.com/account/newsletters/surveillance