A hazy outlook
Today’s news headlines:
‘Republicans unveil $1tn stimulus plan cutting jobless benefits’. Senate Republicans brought their new $1tn stimulus package before Democrats yesterday but were warned that it could fall short of what’s needed to prop up the flagging US economy. The plan would see emergency unemployment benefits cut by two-thirds, with Republicans arguing that the current deal discourages work. Many economists, including those at the Federal Reserve, are worried that a partial deal, or worse, could threaten to stunt the US recovery. (Financial Times)
‘Johnson warns UK business to prepare for second wave’. In an apparent U-turn from previous comments, the UK’s Prime Minister warned British businesses of the risk of a second wave of the coronavirus in the autumn. Johnson expressed hope for a return to normal by spring next year, in contrast with his comments just over a week ago that there could be a return to normality by Christmas. The Prime Minister’s words echoed recent private warnings by Cabinet Office officials to businesses to prepare for a second wave. (Financial Times)
Today's events, rates, and data
Markets are trading cautiously ahead of tomorrow’s Federal Reserve meeting, with spot gold prices inching closer to the $2,000 per troy ounce mark. Viewed as a haven in uncertain times, gold has jumped by about 9% in the past six trading sessions. In equity markets, most Asian benchmarks rose overnight along with US and European stock futures.
Spanish Unemployment Rate: 15.3% vs 14.4% previously
US CB Consumer Confidence: 3.00pm