The Day at a Glance | July 28 2020

The Top

· China has carried out only 23% of purchases stipulated in the “phase 1” agreement with the US in the first 6 months of 2020.

· Republicans announce a $1 trillion dollar package.

· In Mexico, there are 21 million unemployed people and 26 million with insufficient income necessary to buy items in the basic basket: Citizen Action Against Poverty.

· Economic indicators: Consumer confidence data is expected to be published in the US (94.5 e. vs 98.1 prev.).

Economic environment

Republican Senators have disclosed details regarding their stimulus package proposal, in order to maintain US citizens` income during the health emergency. The package includes up to 1 trillion dollars in various projects that could be integrated in the final version. The proposal extends unemployment aid for two months, but reduces the weekly transfers from $600 dollars to $200. After two months, the package proposes granting benefits under 70% of a citizen`s previous perceived salary, and would be limited to $500 dollars per week. This could be a contentious issue to discuss with Democrats as they have seeked to extend the program as is. Additionally, the plan proposed by Republicans stipulates a 1,200 dollar transfer to personas that perceive an income below 75 thousand dollars a year, and eliminates the Democrats` proposal of an additional 1,200 dollars for every child or senior citizen. Lastly, $105 billion dollars are proposed for funding schools, an additional $60 billion for the Paycheck Protection Program (PPP), $20 billion for aid to agriculture and $16 billion for COVID-19 testing. Any expense concerning an employee`s or client`s health will be tax-deductible and there will be fiscal stimulus for those who maintain their workforce.