Addressing new issues
Today’s news headlines:
‘Democrats push for stimulus deal before Trump impeachment trial’. Joe Biden will face an early test on his popularity as he looks to secure bipartisan support for his $1.9tn fiscal stimulus bill in the coming weeks. House Democrats want to push through the deal before Donald Trump’s impeachments trial begins on the week of 8th February, and are likely to try and gauge Republican support for the stimulus plan in the next few days. If no area of agreement can be found on the rescue package, Democrats will move to pass it with their majority in both houses of Congress. (Financial Times)
‘Britain’s hopes of a quick trade deal with US fade’. Boris Johnson has been dealt a post-Brexit blow after he was told that new trade agreements are not a priority for President Biden. The UK’s trade secretary, Liz Truss, had commented that most of the groundwork on a US-UK deal has been done, although other senior government officials admitted that an agreement is unlikely in 2021. Janet Yellen, the incoming Treasury Secretary, made it clear that Biden’s economic team would focus on providing relief and investment domestically before addressing international trade. (Financial Times)
Today's events, rates, and data
Risk sentiment is looking positive heading into this new week, which sees the World Economic Forum kicking off today. Asian stocks rose overnight along with US and European equity futures, whilst US Treasuries were sold off taking the 10-year yield higher. The Dollar has been sold in early trading today, with risk currencies, the Pound, and Euro all benefitting.
ECB President Lagarde Speaks: 8.45am & 4.15pm
German ifo Business Climate: 9.00am