Geoffrey Smith 

Investing.com — U.S. President Joe Biden, and Chinese counterpart Xi Jinping, will virtually meet for the most substantial talks to date. The goal is to remove frictions about trade and Taiwan. While Elon Musk grumbles, the Democrats are closer to realizing their spending plans. While Japan’s GDP numbers for the third quarter were disappointing, China’s October data was better than expected. Although stocks will edge higher, there are no significant data due. Royal Dutch Shell is now ‘Shell’ because it has to abandon a century worth of traditions after its pandemic. This is what you should know about financial markets Monday 15th November.

1. When Joe (virtually speaking) met Xi

Later, Joe Biden (the United States President) and Xi Jinping (his Chinese counterpart), will speak in what officials believe to be their largest virtual meeting.

The meeting comes only days after both leaders achieved some important domestic policy goals, Biden securing agreement for his infrastructure spending package and Xi winning what amounts to a mandate to rule for life from the Communist Party’s top brass.

Both sides are expected to address issues such as trade. China continues to renege on its promises under President Donald Trump’s deal. Taiwan is also being discussed. Taiwan has seen Chinese mainland aircraft perform more aggressive and frequent military patrolling in recent months.

One positive data point is the fact that the yuan has been trading at its highest level in 3 years in comparison to the U.S. Dollar, in spite of a steep slowdown in Chinese economic growth during the third quarter.

2. Democrats press for this week’s passage of a spending bill

Nancy Pelosi, House speaker, will vote this week on Democrats’ $2 billion education, welfare and energy package. According to several reports, she has received enough votes to enable it to be voted on to end the current impasse. On Monday, the smaller bill for infrastructure spending will become law. 

Tesla (NASDAQ): CEO Elon Musk tried again to shift blame for the large sales of Tesla stock to the party at weekend. He sold a block more stock Friday in order to pay a tax obligation that was due to him under previous legislation.

The progressives seem to be resolving to support the way that the bill was cut after their woefully inadequate performances in the mayoral or gubernatorial election two weeks ago. Jerome Powell, Federal Reserve chair and an ominous figure for the left, is now more likely to be sacrificed in the game of 3D Chess. There have been multiple reports this weekend that Biden may nominate Lael Mindard to replace him. 

3. Stocks will open higher. Planemakers are in focus

U.S. stock markets are expected to open higher later, taking the news of the Democrats’ spending bill positively and still apparently confident that last week’s inflation scare won’t result in a hasty rise in official U.S. interest rates.

They were at 6:15 am ET (1115 GMT) and had increased 100 points (0.3%), while and were both increasing 0.2%

These stocks are likely to come into focus in the future Tyson Foods Advanced Auto Parts (NYSE:), reports earnings in a moment when food prices rise ahead of holiday season. Advanced Auto Parts also releases quarterly figures.  Airbus and Boeing (NYSE 🙂 will also be on the agenda as Dubai Air Show opens. Airbus already has a 255-plane purchase from Indigo Partners’ stable of airlines.

4. The execution of coal is halted

After India and China pressured other negotiators to abandon their commitments to phasing out coal, the lease on coal’s life as an energy resource was extended.

The final declaration from the summit spoke of a ‘phasing down’ of coal power instead. 

The reluctance of China to wean itself off coal is likely to harden opinion in Europe – and possibly North America – for imposing carbon taxes on imports from countries with lower environmental standards. That process may be helped – at the edges – by a surprising success at COP26 in moving closer to a common set of rules for carbon trading mechanisms.

5. The dollar strengthens oil, and the oil price falls. Farewell to the ‘Royal Dutch.

Oil prices weakened on Monday as the dollar’s strength and disappointing economic data out of the world’s third-largest economy weighed. Japan’s third quarter gross domestic product fell by 3.0% annually, which was more than the analysts expected. However, the news was partly countered by slightly more positive than expected data from China on industrial production as well as retail sales.

At 6:30 am ET, January’s futures contracts were trading at $78.67/barrel, down 1.3% compared to Friday. The contract, however, traded lower by 1.5% at $80.98/barrel.

Elsewhere, Royal Dutch Shell is set to become just ‘Shell’: the Anglo-Dutch oil major succumbed to the pressures of post-pandemic, pre-energy transition life by scrapping its dual share structure in an effort to squeeze out unnecessary costs