This signing does two important things for the U.S. economy: it prevents a government shutdown that would begin on Tuesday and extends billions of dollars in aid to coronavirus to troubled Americans.
It is estimated that the twelve million people from two key pandemic unemployment programs, who were facing their last payment this weekend, will now receive benefits for an additional 11 weeks. In addition, all those who receive jobless payments will receive a weekly federal boost of $ 300 through mid-March.
The relief package also extends protection against evictions through Jan. 31 and provides $ 25 billion in rental assistance to those who lost their sources of income during the pandemic. According to the Center for Budget and Priority Policies, an estimated 9.2 million tenants who lost their income during the pandemic have fallen behind in income.
Warnings: Since Trump did not sign the bill on Saturday, those enrolled in the two unemployment programs are unlikely to receive any payments for the last week of the year. His payments could also be delayed for several weeks while state agencies reprogrammed their computers.
U.S. futures and most global markets rose Monday as investors welcomed the additional stimulus.
Background: Economists have been arguing for months that U.S. lawmakers should deliver another relief package to help protect the fragile economic recovery from the pandemic. The Federal Reserve also said so.
But getting an agreement that was acceptable to both Democrats and Republicans turned out to be extremely difficult. Trump’s 11th-hour intervention, against an agreement negotiated by his administration, did nothing to help.
The deal eliminates two sources of uncertainty for investors. It provides some relief to troubled Americans before President-elect Joe Biden takes office next month and keeps the U.S. government in office until Sept. 30.
China tells Ant Group to quickly review its business
Financial regulators outlined a list of expectations of Ant Group executives at a meeting on Saturday. Officials criticized Ant Group for having “challenged” regulations, eliminated market rivals, harmed consumer rights and taken advantage of regulatory loopholes to its own benefit. They also accused the company’s corporate governance structure of being “inadequate,” according to a transcript of statements by Pan Gongsheng, deputy governor of the People’s Bank of China.
Big Problems: Ant Group, which is affiliated with e-commerce giant Alibaba, offers everything from investment accounts and micro-savings products to insurance, credit scores and even dating profiles. The company has been under intense scrutiny over the past few weeks after Chinese officials surprised investors by stopping its huge IPO at the last minute.
Here is a more fantastic context of my partner Laura He:
President Xi Jinping made it clear at a recent conference that one of China’s most important goals for next year is to strengthen antitrust efforts against online platforms and prevent a “disorderly expansion” of capital.
Regulators on Saturday told Ant Group executives to “go back” and focus on their “original” payment services, among other tasks, according to Pan. Regulators also called for a “strict review” of the company’s credit, insurance and wealth management services.
“The Ant group must fully understand the seriousness and need for this rectification,” the regulators told the company. They added that the company should develop a plan to implement these changes “as soon as possible”.
Ant Group said Sunday it would pay attention to the latest requirements, while focusing on innovation, service to small businesses and increased competitiveness on an international scale for the benefit of the country.
“We appreciate it [the] guidance and help from financial regulators, ”the company added.
Bitcoin prices are changing
Bitcoin crashes: up. Its price briefly topped $ 28,000 over the weekend and you may have more leeway to run.
The context: Bitcoin first surpassed $ 20,000 just 11 days ago, reports my CNN business colleague David Goldman.
Investors are investing money in bitcoins and other cryptocurrencies during the Covid-19 pandemic, as the Federal Reserve sent near-zero interest rates (and expects to keep them there for several more years), severely weakening the northern dollar. -American. This makes bitcoin, by comparison, an attractive currency.
They also drive valuation – big brand investors are storing it and huge consumer companies are hosting it. For example, a senior BlackRock executive recently said that cryptocurrency can replace gold and that Square and PayPal have adopted bitcoin.
Even with widespread credibility, the recent rise in cryptocurrencies shows signs of a thaw: an excess of enthusiasm fueled by the fear of getting lost, not just the fundamentals of the market.
Until next time
Weibo reports earnings before the opening bell. No major economic report is expected on Monday.
Next Tomorrow: The S&P Case-Shiller Price Index will be released at 9:00 am ET.