Jul 20 2020 0
European Union's efforts to unify the stimulus package of 750 billion euros ($ 850 billion) seem to be faltering by the end of Sunday as the leaders are unable to neutralize the difference in the amount of money. that Recovery Funds should be distributed through grants versus low interest loans. European Commission President Charles Michel made a new proposal to reduce the size of the additional injection to 400 billion euros, down from the initial 500 billion euros.
Dutch Prime Minister Mark Rutte, along with his Austrian, Danish and Swedish counterparts, rejected the new proposal and pledged a commitment to limit the funding to € 350 billion. With the backing of most of the bloc, Germany and France insisted that at least 400 billion euros of stimulus package must be issued to protect fragile southern European economies from the worst effects of coronavirus pandemic. As investors have assumed there will be an agreement after a series of bold announcements in recent weeks, the leaders are under great pressure to narrow their differences before the market. Finance is open on Mondays.
Covid-19 cases in the US increased by 2.2%, higher than the daily average of 1.9% in the past week. According to data from Johns Hopkins University and Bloomberg, the nation's number of deaths due to Covid-19 has reached 140,369. New York City is about to enter Stage Four - reopening on Monday, while Los Angeles Mayor Eric Garcetti warns that the city is on the verge of issuing another stay-home order when cases in California escalated. No evidence was provided, but Mr. Trump said the United States had "the best support rate of death" when a poll helped Joe Biden lead 15% compared to the president. Mr. Trump tried to make the epidemic less stressful, saying that many people were just experiencing a "sniffle" but nothing, the number of positive test cases increased just because the test was expanded. over and the US reaction is "the envy of the world". Discussions about the next coronavirus stimulus package will begin at the White House on Monday. The Beijing government has lowered the city's emergency response after nearly two weeks without a new case of new coronavirus infection in the country.
The market is back
The stock appears to be set for a mixed start of the week, before a sharp rise in earnings season. The euro fell as EU leaders failed to reach agreement on a recovery package over the weekend. Futures market in Japan fell, little changed in Hong Kong and Australia. Futures on the S&P 500 index rose as the Asian session opened. The S&P 500 closed Friday with an increase as a result of a three-week rally in global equities as investors assessed the potential to support pandemic policy and public performance. Company with a series of earnings reports this week.
Australia’s big move
The Australian Government will provide an economic and financial update which shows the biggest budget boom since World War II, while the second wave of infection delays the stimulus axis for rehabilitation. Australian Treasury Secretary Josh Frydenberg will forecast a budget deficit of 191.5 billion AUD ($133.7 billion) - about 10% of GDP - for the 12 months to June 2021, according to a Bloomberg's survey of economists showed before the results were published on Thursday morning. They estimate a budget deficit of 93 billion AUD in the fiscal year ending last month. A new outbreak of Covid-19 forced the government to blockade Victoria, Melbourne and apply new restrictions on restaurants, cafes and bars in New South Wales.
An extradition pact
U.S. Secretary of State Dominic Raab signaled the United States would join international allies in suspending an extradition treaty with Hong Kong after China imposed national security laws on its former colony. Brother. Raab told Sky News that on Monday he will update Parliament with Britain's extradition agreements with Hong Kong, less than a week after the country banned Chinese telecommunications company Huawei Technologies from being home. Long-term supply to its 5G networks because of concerns about its infrastructure security. Raab also said that China had seriously abused the human rights of the Uighurs minority country. Canada and Australia have suspended extradition agreements with Hong Kong.