The Day at a Glance | December 22 2020

The Top

· Fiscal stimulus package approved in the US.

· The United Kingdom and European Union still have not reached an agreement regarding fishing rights before Brexit.

· IMF warns of a slower recovery in Europe in 2021.

· Economic indicators: US GDP for the 3Q20 was revised upwards (33.4% annualized vs 33.1% prev.); consumer confidence data is also expected to be published (97 e., 96.1 prev.).

Economic environment

After months of negotiations, the US Congress approved a fiscal package worth $892 billion dollars yesterday. The package also includes $1.4 billion to fund government activities during the current fiscal year. President Donald Trump signed the bill for its implementation. This is the second largest economic package in the country`s history, which seeks to back small, American businesses and households because of the pandemic`s effects. The package should be enough to avoid a second economic recession at the start of 2021 as a result of the virus`s fast spread during the fall-winter period. The unemployment benefits program will come to an end during the first quarter of the year, which is why it`s possible that negotiations revolving around these programs may continue in 2021. The final legislation considers $600 dollars in direct transfers to citizens, excluding households that make over $100 thousand dollars a year; $300 weekly dollars in unemployment benefits, $284 billion dollars for the payroll protection program (PPP), which backs small businesses, $82 billion for schools and universities, $15 billion for airlines, $69 billion for the development and distribution of vaccines; and up to $80 billion for public transportation, food programs, and aid provided to the agricultural sector, among others.

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