Closing Wrap - Friday 31.07
Headlines
  • White House Signals Support For $600 Jobless Benefit
  • House Clears $1.3 Tln Spending Bill With $210 Bln In Emergency Cash
  • US Imposes Human Rights Sanctions On Chinese Company, Individuals
  • Spain Diagnoses 1,525 New Coronavirus In New Post-Lockdown Record
  • S&P Revises EU To ‘AA Positive’ From ‘AA Stable’
  • Chevron And Exxon Post Huge Losses As Oil Prices Plummet
  • AbbVie Shares Rises On Strong Q2, Though Cosmetic Botox Sales Tumbled
  • Microsoft Is Reportedly In Talks To Buy TikTok's US operations
  • Alstom Gains EU Okay To Acquire Bombardier's Rail Business
Commentary
The Open Secret To Reopening The Economy

Areas that eased their initial Covid-19 lockdowns and now have surging infection rates are a testament to all that has gone wrong in the pandemic. The lesson from day one still holds: until the virus is defeated, there can be no return to normal, writes Anne Krueger for Project Syndicate.

Recovery will need time

The future of the world economy is becoming clearer. At the outset of the pandemic, there were lively disagreements over whether the lockdown and other measures were warranted, or whether the economic costs were too high. Now, it is increasingly evident that economic activity will resume fully only after lockdown restrictions have been given time to work. Otherwise, Covid-19 will continue to spread, making a sustained and rapid economic recovery all but impossible until the arrival of effective, widely available vaccines. Continue Reading

The US Election Is Getting Ugly - And Investors Are Getting Nervous

Investors are increasingly preparing for the risk of a contested U.S. presidential election come the fall, worried that an ugly political situation will create volatility across markets.

 

A key risk is that Republican President Donald Trump is already questioning the legitimacy of the election, analysts said. His Democratic challenger, former Vice President Joe Biden, currently has a 9 percentage point advantage among likely voters and a significant advantage among voters who are undecided, according to a Reuters/Ipsos opinion poll.

 

“It is going to get ugly,” said Nick Maroutsos, head of global bonds at Janus Henderson Investors. “I would expect a lot of volatility ... but it will be very short-lived, you are talking about a two-week span.”

 

Trump escalated fears of a contested election in a tweet Thursday morning and suggested the election be delayed until people can “properly, securely and safely vote.” (Reuters - Continue Reading)

How Strong Is Too Strong? Euro's 10% Rally Fans Fears Of Side Effects

After years of gloom, euro bulls will be celebrating the single currency’s brisk rally to two-year highs against the dollar, yet the euphoria is now being tempered by caution over what side effects the rapid run-up might bring.

 

The euro has enjoyed a 11% jump against the dollar since May, benefiting from the U.S. currency's weakness and Europe's decisive joint stimulus plan to combat the coronavirus. It will end July with its best monthly performance in a decade.

 

And its real exchange rate — against a basket of trade partners’ currencies, a gauge watched by policymakers — has soared to six-year highs. (Reuters - Continue Reading)

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