European Briefing - Friday 20.11
Headlines
  • US Treasury Refuses To Extend Some Of Fed’s Crisis-Fighting Tools
  • Fed’s Bostic: Treasury Ending Programme Would Remove Backstop
  • President Elect Biden: Have Picked Nominee To Lead Treasury Dept
  • US Senate Minority Leader Schumer Hints At Aid Relief Movement
  • US VP Pence: Admin Does Not Support Lockdown, School Closures
  • US To Release New Rules Aimed At Driving Down Pharma Prices
  • NY Warns Indoor Dining End, California Enforces Evening Curfew
  • Biden Maintains Lead Over Pres Trump As Georgia Recount Ends
  • EU Deadlocked Over Recovery Policy After Hungary, Poland Veto
  • EU Leaders Are Urged To Step Up Preparations For No-Deal Brexit
  • UK Consumer Confidence At Six-Month Low As Restrictions Tighten
  • UK Chancellor To Impose Public Sector Pay Cap In Spending Review
Commentary
Mnuchin-Powell Split Shows Rare Discord As Economy Struggles

The top two US economic policymakers have parted ways over whether to preserve emergency lending facilities designed to shore up the economy -- a rare moment of discord as the nation confronts the risk of a renewed downturn spurred by a surge in coronavirus cases.

 

The disagreement erupted late Thursday, touched off when outgoing Treasury Secretary Steven Mnuchin released a letter to Federal Reserve Chair Jerome Powell calling for the return of funding for several Fed lending programs that rely on Treasury’s backing.

 

Minutes later, the central bank issued its own statement urging that “the full suite” of facilities be kept in place. Investor reaction to the split was swift: futures on the S&P 500 Index slumped 0.9% in early Friday trading in Asia, with haven demand sending Treasuries higher and pulling down yields. (BBG - Continue Reading)

US Businesses In China More Optimistic With Biden Presidency

US companies are more optimistic about doing business in China under President-elect Joe Biden, believing that bilateral relations will be more stable than in the last four years, a postelection survey by a Shanghai-based business chamber showed.

 

Still, more than half of the 120 businesses polled by the American Chamber of Commerce in Shanghai said they had no plans of increasing investment in China, and a third were concerned about the personal health and safety of their employees in the country, indicating that companies needed more reassurance from Chinese authorities before committing to investing more.

 

A two-year trade war and a race to dominate cutting-edge technologies between the world’s two largest economies under President Trump had left American businesses in China increasingly uncertain about their future. (WSJ - Continue Reading)

UK Economy To Double-Dip Recession After Lockdown Two Impact

Britain is on course for a double-dip recession as renewed lockdown measures to try and quell a second wave of the coronavirus pandemic deliver another hammer blow to economic activity, a Reuters poll found.

 

Having already suffered the highest COVID-19 related death toll in Europe, Britain - like much of Europe - is suffering a resurgence in the spread of the coronavirus and has reimposed strict restrictions on economic activity. No respondent expected growth this quarter whereas last month 94% of forecasters polled did.

 

With much of the country’s dominant service industry forced to close for most of November the economy was expected to contract 2.5% this quarter, a stark reversal from the 2.6% growth predicted last month. (RTRS - Continue Reading)

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