US Briefing - Monday 27.07
Headlines
  • WH, Senate Republicans Reach Agreement On Covid-19 Aid Bill
  • US Virus Hot Spots Get Reprieve From Climbing Cases
  • WH's Birx: Covid-19 Cases Beginning To Plateau In Hot Spot States
  • US Pres Trump Goes All In On Vaccines And Therapeutics
  • ECB’s Panetta: Recent Data Shows Progress But Not Satisfaction
  • German Ifo Business Climate, Expectations Exceed Estimates In July
  • Bavarian Farm Outbreak Adds To Germany’s Second-Wave Concerns
  • Spain: Outbreaks Under Control After UK Orders 14 Day Quarantine
  • China Reports Biggest Virus Spike Since End Of Wuhan Outbreak
  • China Seizes US Consulate In Chengdu, Retaliating For Houston
  • Victoria Records Daily Virus Record, Warns Of Lockdown Extension
  • Gold Surges To Record High With $2,000 An Ounce In Sight
  • Dollar Slumps; EUR/USD Holds Above 1.1700; Cable Eyes 1.2870
  • AstraZeneca To Pay Daiichi Up To $6B For New Cancer Drug
  • JPMorgan Raises Target Price On Apple To $425 From $365
  • Telsey, Wells Fargo Raise Price Target On Amazon To $3600
  • Airline Stocks Fall On UK's Spain Move; SAP Plans Qualtrics IPO
Commentary
Republicans Prepare To Unveil $1T Covid-19 Relief Package

With time running out to pass another coronavirus stimulus package, Treasury Secretary Steve Mnuchin said on Sunday that Republicans are now prepared to unveil their long-awaited coronavirus relief plan — and that it would include another round of $1,200 stimulus checks as well as a smaller version of the enhanced unemployment insurance that has been credited with helping to keep the US economy afloat.

 

Democrats put forward their stimulus plan earlier in the year, with the Democratic-controlled House of Representatives passing the $3 trillion HEROES Act in May, but Republicans have struggled to answer it with legislation of their own, failing to share their plan as promised last week.

 

Passing the bill — which will involve striking a deal with Democrats — is a deeply urgent matter for Congress. Unemployment benefits are set to expire after July 31, a federal eviction moratorium imposed by the previous stimulus bill, the CARES Act, expired last week, and the Senate breaks for August recess on August 7.

(Vox News – Continue Reading)

Ifo German Business Confidence Records 3rd Straight Rise

Frankfurt, 27 July 2020 (LS NEWS) – Managers in Germany were more upbeat for the third month in a row as the country attempts to get back on its feet following Covid-19 lockdowns and restrictions.

 

Ifo’s headline business confidence index rose to 90.5 to beat the economists’ forecast of 89.3 and the upwardly revised 86.2 reading from last month. The forward-looking expectations component increased to 97.0—the highest since November 2018—and exceeded the market estimate of 93.4 and June’s upwardly revised mark of 91.6. The current situation gauge was also higher at 84.5 but fell short of the 85.0 expected by analysts.

 

In June, the main index surged for the biggest one-month gain on record. “The German economy is recovering step by step,” Ifo said in a statement. Reuters quoted an Ifo economist as saying that the German thinktank is sticking to its third-quarter estimate of 6.9pct quarterly growth for Europe’s largest economy, which underlines the ever-increasing opinion that the rebound in Germany is well underway.

(LiveSquawk - Continue Reading)

Dollar Bears Set Currency On Course For Worst July In A Decade

A rout that sent the dollar to the lowest since February 2019 may have room to run. Data from the Commodity Futures Trading Commission show that asset managers added to net long positions on the yen, the euro, the Canadian dollar and the Swiss franc, adding fuel to a sell-off that sent the Bloomberg Dollar Spot Index tumbling more than 3% this month. The gauge is poised for its worst July since 2010.

 

The reasons for betting against the greenback are many -- a worsening row with China, concerns that the U.S. is struggling to contain the pandemic, the uncertainty of a November presidential election, and growing expectations that the Federal Reserve will have to slash policy rates further.

 

“The dollar’s strength is well and truly over for now,” said George Boubouras, head of research at hedge fund K2 Asset Management, who is shorting the greenback against the Aussie. “More Fed stimulus is coming as the U.S. grapples with the virus, and there’s also election uncertainty coming up -- all of this will most likely be dollar negative.”

(Bloomberg - Continue Reading)

Germany And France Next For A UK Quarantine?

The British government is watching the situation in Germany and France closely and continuously reviewing the situation in popular holiday destinations, a junior health minister said on Monday when asked about widening a quarantine for Spain.

 

"We have to keep the situation under review and I think that is what the public would expect us to do," junior health minister Helen Whately told Sky when asked about Germany and France possibly being next to face a quarantine.

 

"If we see rates going up in a country where at the moment there is no need to quarantine, if we see the rates going up, we would have to take action because we cannot take the risk of coronavirus being spread again across the UK," she said. Britain abruptly imposed a two-week coronavirus quarantine on travellers returning from Spain, a decision that filled holidaymakers with dismay.

(Reuters – Continue Reading)

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