The Day at a Glance | August 19 2020

The Top

· White House, Republicans and Democrats could agree on a reduced fiscal package, with intentions of negotiating a complementary one in January 2021.

· Joe Biden formally nominated as the presidential candidate in the Democratic National Convention.

· Japanese exports contracted for a fifth consecutive month: -19.2% annually in July (21%e.).

· Gasoline imports drop 37% in Mexico (annual) in June.

Economic environment

Republicans and Democrats consider the possibility of approving a reduced fiscal package that would immediately extend aid to US citizens and businesses affected by the virus, with the support of the White House. Speaker of the United States House of Representatives Nancy Pelosi affirmed that the demands made by the Democratic party could be reduced in order to reach an agreement that could immediately cover the country`s needs and propose the rest in negotiations after the election. The stance reflects confidence in the party`s possible important victories in November that would allow them to dominate the legislative agenda next year. “We`re willing to cut our bill in half to meet the needs right now,” said Pelosi to the press. According to sources close to the White House and quoted by Bloomberg, Trump`s administration believes it is likely that a $500 billion dollar stimulus package could be approved, which would avoid the treatment of the package`s most complicated issues and would comply with essential measures like funding the Postal Service and providing schools and businesses with aid. The proposal should be negotiated in the following days and will most likely be voted on in September, when the Senate formally returns from its summer recess.