Light at the end of the tunnel
Today’s news headlines:
‘US Senate approves $900bn stimulus package’. Late last night, US Senators voted to approve a $900bn fiscal stimulus package, the second largest economic relief bill in American history. The legislation will now be sent to the White House to be signed into law by President Trump. The package includes $300bn in small business relief, in addition to direct payments of up to $600 to American adults, which Treasury Secretary Steven Mnuchin says could be recipients bank accounts next week. Democrats had spent a large part of this year calling for a bigger stimulus package but eventually had to come to a compromise with Republicans in the Senate. (Financial Times)
‘EU and UK edge towards Brexit compromise on fisheries’. Yesterday, UK and EU negotiators inched closer to a Brexit compromise on fisheries, which would unlock the path to a wider agreement. Boris Johnson is now eyeing the 30th December for a last-ditch parliamentary vote, if the EU accepts a new proposal for a smaller reduction in fishing quotas. Initially, the UK wanted to seize 80% of EU rights to UK waters, whilst the EU was unwilling to sacrifice more than 18%. Now it appears as though an agreement might be struck around the 25%-30% mark. Official lines on both sides, however, have maintained that significant differences remain. (Financial Times)
Today's events, rates, and data
- Market sentiment continues to suffer at the hands of the new strain of coronavirus, along with a wave of new lockdowns. US stocks declined yesterday, and futures indicate another day of declines is in the offing, in addition to declines for European equities. The Bloomberg Dollar Index moved higher as investors moved for safe-haven assets. The Pound recovered some of yesterday’s losses on positive Brexit sentiment.
German Gfk Consumer Climate: -7.3 vs -6.8 previously
UK Final GDP: 16.0% vs 15.5% previously
US Final GDP: 1.30pm
US CB Consumer Confidence: 3.00pm
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