The signature does two important things for the U.S. economy: it excludes a government shutdown that would begin Tuesday, and extends billions of dollars in coronavirus aid to struggling Americans.
The estimated 12 million people in two major unemployment programs for pandemics, which faced their last payment over the weekend, will now receive benefits for another 11 weeks. Plus, everyone who collects unemployed payments will receive a $ 300 federal boost by mid-March.
The emergency relief package also extends eviction protection until January 31 and provides $ 25 billion in rental assistance to those who lost their income during the pandemic. According to the Center for Budget and Policy Priorities, 9.2 million tenants lost their income during the pandemic.
The caveat: Because Trump did not sign the bill on Saturday, those enrolled in the two unemployment programs are unlikely to receive a payment for the last week of the year. Their payments can also be delayed for several weeks while government agencies reprogram their computers.
US futures and most global markets rose higher on Monday as investors welcomed the additional stimulus.
The background: Economists have been arguing for months that U.S. lawmakers need to deliver another emergency relief package to help protect the fragile economic recovery from the pandemic. The Federal Reserve also said so.
But it was extraordinarily difficult to get an agreement that was acceptable to both Democrats and Republicans. Trump’s intervention at the eleventh hour – against an agreement negotiated by his administration – did not help matters.
The deal removes investors two sources of uncertainty. It gives some relief to struggling Americans before President-elect Joe Biden takes office next month and keeps the US government running until September 30. This means that there are no troublesome government interruptions until at least the next financial year.
China tells Ant Group to revamp its business quickly
Financial regulators set out a meeting list of expectations for Ant Group executives at a meeting on Saturday. The officials exploded the group Ant because they “defied” the regulations, enforced opponents of the market, harmed consumer rights and took advantage of regulatory loopholes for own profit. They also accused the company’s corporate governance structure of being ‘unhealthy’, according to a headline from 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 points and even appointments. The company has been under scrutiny in recent weeks after Chinese officials shocked investors by halting its huge IPO at the last minute.
Here’s another great context from my colleague Laura He:
President Xi Jinping made it clear at a recent conference that one of China’s main goals for next year is to strengthen anti-monopoly efforts against online platforms and prevent a “disorderly expansion” of capital.
Regulators on Saturday told Ant Group group managers to ‘go back’ and focus on their ‘original’ payment services, among other things, according to Pan. Regulators have also called for strict control over credit, insurance and wealth management services.
“Ant Group must fully realize the seriousness and necessity of this correction,” the regulators told the company. They added that the firm should design a plan to implement these changes as soon as possible.
Ant Group said on Sunday that it will meet the latest requirements while focusing on innovation, serving small businesses and increasing international competitiveness to the benefit of the country.
“We appreciate [the] financial regulators’ guidance and assistance, ”the company added.
Bitcoin prices go up
Bitcoin is falling – upwards. The prize briefly amounted to more than $ 28,000 over the weekend and perhaps more room to run.
The context: Bitcoin first passed $ 20,000 just 11 days ago, reports my CNN business colleague David Goldman.
Investors are pouring money into bitcoin and other cryptocurrencies during the Covid-19 pandemic, as the Federal Reserve sent interest rates close to zero (and expects to keep them there for a few more years), seriously weakening the US dollar. This makes bitcoin a relatively attractive currency.
It also pushes up valuation: big investors with brands stop it, and big consumer businesses accept it. For example, a general manager at BlackRock recently said the cryptocurrency could replace gold, and Square and PayPal have both adopted bitcoin.
Even with the credibility in the mainstream, the recent increase in cryptocurrency shows signs of a meltdown – too much enthusiasm fueled by the fear of missing out, not just the fundamentals of the market.
Following
Weibo reports earnings before the opening clock. No major economic reports are expected on Monday.
Come tomorrow: the S&P Case-Shiller house price index will be presented at 09:00 ET.