This signature does two important things for the United States economy: it avoids a government shutdown that was supposed to start on Tuesday and extends billions of dollars in aid for coronavirus to struggling Americans.
The estimated 12 million people in two key unemployment pandemic programs, who were facing their last payment this weekend, will now receive benefits for another 11 weeks. In addition, all those receiving unemployment insurance payments will receive a federal $ 300 weekly increase through mid-March.
The aid package also extends protection against eviction until January 31 and provides $ 25 billion in rental assistance for those who lost their sources of income during the pandemic. It is estimated that 9.2 million tenants who lost income from employment during the pandemic are behind in rent, according to the Budget and Policy Priorities Center.
The caveats: as Trump did not sign the law on Saturday, those enrolled in both unemployment programs are unlikely to get paid in the last week of the year. Your payments can also be delayed for several weeks while state agencies reschedule your computers.
US futures and most global markets rose on Monday, with investors welcoming the further stimulus.
The bottom line: economists had been arguing for months that US lawmakers needed to deliver another aid package to help protect the fragile economic recovery from the pandemic. The Federal Reserve also said that.
But getting a deal that was acceptable to both Democrats and Republicans was extremely difficult. Trump’s 11-hour intervention – against a deal his government negotiated – did not help the issue.
The deal removes two sources of uncertainty for investors. It provides some relief to struggling Americans before President-elect Joe Biden takes office next month, and keeps the United States government running until September 30.
China tells Ant Group to quickly review its business
Financial regulators drew up a long list of expectations for Ant Group executives at a meeting on Saturday. Employees criticized Ant Group for “challenging” regulations, driving rivals out of the market, undermining consumer rights and taking advantage of regulatory loopholes for their own profit. They also accused the company’s corporate governance structure of being “inadequate”, according to a transcript of comments 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 undergone intense scrutiny in recent weeks after Chinese officials shocked investors by interrupting its massive initial public offering at the last minute.
Here is more excellent context from my colleague Laura He:
President Xi Jinping made it clear at a recent conference that one of China’s most important objectives for the coming year is to strengthen anti-monopoly efforts against online platforms and to avoid a “disorderly expansion” of capital.
Regulators told Ant Group executives on Saturday to “go back” and focus on their “original” payment services, among other tasks, according to Pan. Regulators have also called for a “rigorous review” of credit, insurance services and management of the company’s assets.
“The Ant Group must fully understand the seriousness and necessity of this rectification,” regulators told the company. They added that the company must develop a plan to implement these changes “as soon as possible”.
The Ant Group said on Sunday that it will meet the latest requirements, while focusing on innovation, serving small businesses and increasing competitiveness on an international scale for the benefit of the country.
“We thank [the] guidance and help from financial regulators, “added the company.
Bitcoin prices go crazy
Bitcoin is falling – upwards. Its price soon reached $ 28,000 over the weekend and may have more space to run.
The context: Bitcoin exceeded $ 20,000 for the first time just 11 days ago, reports my CNN business colleague David Goldman.
Investors are pouring money into bitcoins and other cryptocurrencies during the Covid-19 pandemic, as the Federal Reserve sends interest rates close to zero (and hopes to keep them for a few more years), seriously weakening the US dollar. . This makes bitcoin, by comparison, an attractive currency.
Also pushing the rating: big brand investors are piling up and big consumer companies are embracing. For example, a senior executive at BlackRock said recently that cryptocurrency can replace gold and that Square and PayPal have adopted bitcoin.
Even with mainstream credibility, the recent rise in cryptocurrency is showing signs of melting – excess enthusiasm fueled by fear of losing, not just the fundamentals of the market.
Next
Weibo reports earnings before the opening bell. There are no major economic reports expected on Monday.
Tomorrow: The S&P Case-Shiller home price index will be released at 9:00 am Eastern time.