Closing Wrap - Wednesday 24.06
Headlines
  • Fitch Downgrades Canada's Ratings To 'AA+'; Outlook Stable
  • IMF Says Decline In Global Growth Worse Than Forecast
  • White House To End Federal Support For COVID-19 Testing
  • US Working With Europe On How To Reopen Travel Safely
  • WTO Delays Decision On EU Counter-Tariffs In Aircraft Dispute
  • ECB To Release Documents To Defuse German Court Challenge
  • Senate Oil Allies Push Expanded Tax Breaks For Drillers
  • Drug Pricing Review Group Raises Recommended Price For Remdesivir
  • Apple To Re-Close 7 Stores In Houston On COVID-19 Spike
  • Apple, Other US Goods From China Held Up At Indian Ports
  • Bayer Reaches $10.5 Bln Settlement Over Weedkiller Roundup
  • FAA Finalizes Inspection Directive On Boeing 737 MAX Planes
Commentary
Coronavirus Numbers Are Accelerating Across US

Covid-19 cases are accelerating around the country, reaching new daily highs in states including Texas and Arizona and spurring concerns about prospects for an economic and social revival.

 

Thirty-three states, from Oklahoma to South Carolina and Washington, had a seven-day average of new cases on Tuesday that was higher than their average during the past two weeks, according to a Wall Street Journal analysis of Johns Hopkins University data. That was the situation in 21 states at the start of the month, so the data reflect... (WSJ – Continue Reading)

ECB To Release Documents To Defuse German Court Challenge

The European Central Bank agreed to give vital documents to German authorities to prove the proportionality of ECB policies, two sources said, in a step to defuse a challenge threatening to undermine its powers to keep the euro zone together.

 

Germany’s Constitutional Court ruled in May that the ECB overstepped its mandate with over 2 trillion euros of government bond purchases, ordering the Bundesbank to quit the scheme unless the ECB can prove proportionality within three months.

 

The ruling set off an unprecedented legal conflict with a national court looking to exert jurisdiction over an institution of the European Union and trying to curtail its policy framework, seen as an encroachment on ECB independence.

 

In a compromise deal, the ECB agreed on Wednesday to give unpublished documents underpinning its policy decisions to Bundesbank chief Jens Weidmann, who can then present them to the German parliament and government, as demanded by the court ruling. (Reuters – Continue Reading)

Quarantine-Free Holiday Air Bridges In Days

Air bridges between Britain and low-risk European counties will be confirmed on Monday amid a surge in demand for summer holidays abroad.

 

Grant Shapps, the transport secretary, said that quarantine-free travel corridors were on the verge of being agreed with countries that have a coronavirus test and trace system comparable to the UK’s.

 

He said that countries where infection rates were rising would not be included in the initial wave of travel agreements.

 

Details of travel between the UK and other countries will be confirmed on June 29 in an attempt to boost the beleaguered travel industry, Mr Shapps said. (The Times – Continue Reading)

A Crisis Like No Other, An Uncertain Recovery - IMF WEO

Global growth is projected at –4.9 percent in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast. The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast. In 2021 global growth is projected at 5.4 percent. Overall, this would leave 2021 GDP some 6½ percentage points lower than in the pre-COVID-19 projections of January 2020. The adverse impact on low-income households is particularly acute, imperiling the significant progress made in reducing extreme poverty in the world since the 1990s. (Continue Reading - LiveSquawk)

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