Written By: Emily Vo
utilities
ERCOT overcharged Texas $16 billion for electricity during the winter storm
An independent market monitor has reported that the Texas power-grid operator made a mistake that caused $16 billion in overcharges last month. Texas kept wholesale prices high for 33 hours longer than warranted as the winter storm caused blackouts and power shortages across the state. The independent market monitor recommended that Texas should have repriced its wholesale power market and now needs to reverse $16 billion in charges. Many participants in the power market are suffering and a reversal of these charges would greatly benefit them. Retailers, electric cooperatives, and wind farms have suffered significant financial harm as a result of these charges. Furthermore, ERCOT is also suffering financially and is reportedly $2.5 billion short in payments right now. Resetting the prices in the wholesale market would allow many of these participants to recover and continue to offer their services for power in Texas.
Google says it will now only use “privacy-preserving technologies" after it stops supporting cookies
On Wednesday, Google announced in a blog post that it will not use technologies that track people on the internet. They will only use “privacy-preserving technologies” that utilize things such as anonymization or aggregation. These ‘privacy-preserving technologies” will be used after Google stops supporting cookies, which are small pieces of code that websites deliver to a visitor’s browser and that stays with them as this person visits other internet sites. In January of 2020, Google had already announced that its browser, Chrome, will no longer support third-party cookies within the next two years. Cookies are essential to digital advertising and Google’s intent to discontinue supporting them has many future implications for advertising and markets.
COVID-19
Texas and Mississippi join a dozen other states in repealing their mask mandates
Texas and Mississippi are the recent states to join a dozen other states in removing their mask requirements. Greg Abbot announced his intent to have Texas fully reopen on March 10th, which includes removing the current mask mandate. Mississippi’s governor Tate Reeves followed suit in ending its mask mandate and allowing businesses to operate at full capacity. Both governors declared that people and businesses should have the freedom to determine whether or not to continue wearing masks or operate at full capacity. These decisions have been highly criticized by many, including President Joe Biden. Both states feature an extremely high number of COVID-19 cases and many feel that repealing the mask mandates now is too soon. Vaccines have arrived, but most people are not vaccinated yet. Despite this decision, many businesses are continuing to enforce masks and other prevention methods including social distancing and limited capacity.
economy
Fillings for unemployment benefits reach their lowest level in almost three months
It has been reported that in the latter half of February, fillings for unemployment benefits reached a three-month low. This is a sign of labor-market improvement, even if it is slow. The Labor Department reported that unemployment benefit claims were under 800,000 on the week of February 27th. Though this number is still high in comparison to pre-pandemic levels, it is the lowest it has recently been. The number is also predicted to improve as COVID-19 cases decline and more vaccines are distributed. Economists also expect February’s employment report to show some job gains as well. Hiring is also picking up in certain industries, contributing to this improvement. This economic recovery has been slow, but progress is being made.
Stimulus Package
Democrats aim to pass a $1.9 trillion relief bill over republicans
Democrats in Congress are working to meet a mid-March deadline for President Joe Biden’s COVID-19 relief package before federal unemployment benefits expire. The House and the Senate recently passed a budget resolution earlier this month that has allowed them to formula a $1.9 trillion relief package. This package includes $1,400 stimulus checks for those making under $75,000 annually and continued unemployment benefits of $300 a week. $8.75 billion is also allocated to facilitate vaccine distribution and testing. The bill also includes around $130 billion for funding K-12 schools and $350 billion in aid for state and local governments. However, this package will not include an increase in the federal minimum wage, something many have been fighting for. Republicans are also highly unlikely to back this bill, but Democrats will be able to pass it without their support.
Costco
Costco’s sales have risen 15% in the latest quarter
In the latest quarter, Costco’s sales have climbed once again. Their revenue rose to $44.77 billion in the latest quarter ended on February 14th. This is a 14% increase from the year-earlier period. Analysts projected $43.7 billion, but with strong demand for food and household items, Costco’s revenue was able to top this prediction. Though, Costco has had some challenges, specifically in their supply-chain system that has led to some shortages and delays in goods such as seafood and furniture. Their Chief Financial Officer Richard Galantini has expressed how he expects these pressures to ease and these challenges to pass. Overall, Costco is performing very well despite the pandemic and their growth is only expected to rise.
works cited
Chin, Kimberly. “Costco Sales Rise 15% in Latest Quarter.” The Wall Street Journal, Dow Jones & Company, 4 Mar. 2021, www.wsj.com/articles/costco-sales-rise-15-in-latest-quarter-11614894599?mod=searchresults_pos6&page=1.
Gibson, Kate. “Retailers Put Brakes on Texas and Mississippi Move to Scrap Mask Mandates.” CBS News, CBS Interactive, 4 Mar. 2021, www.cbsnews.com/news/mask-mandate-texas-mississippi-retailers/.
Gold, Russell. “Texas Overcharged $16 Billion for Power During Freeze, Monitor Says.” The Wall Street Journal, Dow Jones & Company, 4 Mar. 2021, www.wsj.com/articles/texas-overcharged-16-billion-for-power-during-freeze-monitor-says-11614894714?mod=hp_lead_pos2.
Lang, Hannah. “U.S. Jobless Claims Hold Nearly Steady.” The Wall Street Journal, Dow Jones & Company, 4 Mar. 2021, www.wsj.com/articles/weekly-jobless-claims-coronavirus-03-04-2021-11614811082?mod=searchresults_pos15&page=1.
Megancgraham. “What Google's Latest Cookie Announcement Means for Top Ad-Tech Stocks, According to Analysts.” CNBC, CNBC, 4 Mar. 2021, www.cnbc.com/2021/03/04/what-googles-latest-cookie-news-means-for-top-ad-tech-stocks.html.
Rubin, Gabriel T. “Stimulus Package Update: Biden's Plan Includes Third Checks, Vaccine Funding and Jobless Aid.” The Wall Street Journal, Dow Jones & Company, 4 Mar. 2021, www.wsj.com/articles/stimulus-update-biden-covid-19-relief-package-11614095748?mod=searchresults_pos11&page=1.