The day at a glance |December 28, 2020

The Top

·     Trump signs $900 billion dollar fiscal stimulus package. 

·     Through November, China had completed only 50.5% of purchases stipulated in the trade agreement with the US. 

· United Kingdom and the EU reach a Brexit trade agreement.

Economic environment

US President Donald Trump signed a coronavirus relief bill, which had been approved by Congress last week. This event will allow government resources to be channeled towards unemployed citizens and small businesses during the virus`s second wave during winter. Additionally, the decision avoids a new government shutdown as it also approved this year`s fiscal budget. However, Democrats are trying to push a new proposal forward that increases deposits to citizens from $600 to $2000 dollars; voting on this could be carried out today.

The United Kingdom and the European Union reached a trade agreement that will regulate bilateral trade relations after Brexit. The historical agreement was reached after 4 years of proceedings to separate the UK and guarantees the free trade of goods between both blocks. However, the preferential treatment was not extended to the services sector, which represents 80% of the British economy. Regarding financial services, for example, the signatures established in the United Kingdom will lose unrestricted access in the European market. Furthermore, clauses have been added, which will allow for the renegotiation of parts of the agreement in which a malfunction is detected, which is why government subsidies, the financial sector, exchange of information and access to water for fishing activities could continue to be negotiated in the future. The agreement is expected to be voted on December 30^th in the British Parliament, under expectations of being fully supported. In Brussels, governments of the EU have assured that the agreement will come into effect on January 1^st, even though the formal ratification process will be extended for at least 3 more months.