The Day at a Glance | July 21 2021

The Top

*A new debate will be had in the United States on increasing the country`s debt ceiling.

*Exports to Japan (49% annual) and South Korea (32.8%) recorded growth in June, a sign that global demand is solid.

*Mexico and Canada could appeal before a resolution panel of the USMCA if an agreement with the United States is not reached after a dispute was had regarding the rules of origin for the automotive sector.

*COVID19: Thailand and South Korea logged record levels of infections, Australia expanded quarantine measures in its territory, and Mexico recorded its highest daily number of cases since January.

Economic environment

The United States Congress will have to decide whether or not it will increase the country`s debt ceiling soon. On Wednesday – at the latest – the United States Congress will know the approximate dates on which the federal government`s funds will run out, once the limit of indebtedness has been reached. Therefore, Democrats and Republicans will have to start discussing whether or not spending will be cut, or if the debt ceiling will be raised in order for the government to meet its financial obligations. The debt ceiling currently stands at 28.5 trillion dollars – and if negotiations fail to increase it, there could be a government shutdown, something that has happened 3 times in the last 10 years. On Wednesday, the Congressional Budget Office is scheduled to release its latest estimate of when the government would be unable to pay its bills, such as military salaries, tax returns, social security programs, and interest payments on debt. In case no agreement is reached, the government could suspend its activities starting on October 1st, and the Treasury Department could carry out its emergency plans in order to pay its short term debt.