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Good afternoon. Here's what you should know today, Feb. 5. | |
- Tensions between the U.S. and China are growing.
- President Biden will deliver the State of the Union address.
- Will it be Beyoncé's year at the Grammys?
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 | | Officials said a U.S. jet fighter downed a Chinese balloon with a single missile off the South Carolina coast and within U.S. territorial waters.
PHOTO: RANDALL HILL/REUTERS | | |
1. Sino-U.S. relations are tested by a suspected Chinese spy balloon. | |
| The appearance of a suspected Chinese surveillance balloon over the continental U.S. rattled Washington and prompted the suspension of a trip by Secretary of State Antony Blinken to Beijing this week. On Saturday, a U.S. military jet fired a missile to bring the balloon down, marking a dramatic end to a flight Beijing has described as a meteorological research endeavor that had blown off course. Beijing on Sunday criticized the U.S. move, but the initial response suggested it prefers to let the heat seep out of the controversy. | |
| U.S.-China Tension Grows as Suspected Spy Balloon Leads to Postponed Visit (Read) Chinese Reconnaissance Balloon: What to Know (Read) 🎥 U.S. Shoots Down Suspected Chinese Spy Balloon (Watch) | |
2. Strong labor market keeps investors on edge about the Fed. | |
| With employers ramping up hiring across industries, investors say it is difficult to imagine the U.S. slipping into recession soon. Yet, some investors worry that it might in fact be bad news for the markets if it pushes the Federal Reserve to tighten monetary policy more than they expect. This week, investors will get a look at data on consumer sentiment and hear from Fed Chair Jerome Powell, who is scheduled to make remarks Tuesday at the Economic Club of Washington, D.C. | |
| January's Hiring Boom Caught Economists by Surprise (Read) The Outlook: States are Flush With Cash, Which Could Soften a Possible Recession (Read) | |
3. President Biden will give the State of the Union speech. | |
| In his annual State of the Union address on Tuesday, President Biden is expected to speak about the economy, competitiveness, security and unity. Speaker of the House Kevin McCarthy (R., Calif.), in his letter inviting Mr. Biden to the Capitol, said the results of the midterms show voters are looking for Congress to deliver "a new direction for the country, to find common ground, and to debate their priorities." Democrats and Republicans have begun what are expected to be contentious negotiations on raising the debt ceiling. | |
| Biden, McCarthy Start Debt-Ceiling Talks to Prevent Default (Read) | |
4. Disney and Uber are set to report during a lackluster earnings season. | |
| The ride-sharing rivals Uber and Lyft, set to release earnings Wednesday and Thursday, respectively, will share how companies in the gig economy are faring as the U.S. jobless rate is at the lowest level in five decades. Disney's earnings, due Wednesday, will provide insight into the state of streaming services as increased competition and an uptick in households cutting the cable-TV cord damp user growth. The report is the first one under the reinstated Chief Executive Robert Iger. | |
5. Will Beyoncé become Grammys' most decorated artist ever? | |
| The big question at tonight's 65th annual Grammys is whether Beyoncé dominates the evening with her acclaimed album "Renaissance." If she wins four of her nine nominations, she will become the Grammys' most-awarded artist ever. She hasn't scored a victory in any of the Grammys' three biggest categories—album, record or song of the year—since 2010, when "Single Ladies (Put a Ring on It)" won song of the year. | |
| Beyoncé Announces 'Renaissance' Tour, as Ticketmaster Braces for Demand (Read) | |
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