The Day at a Glance | November 5 2020

The Top

· Biden close to winning the presidential election; Senate inclined to hold a Republican majority.

· Mitch McConnell considers the Senate approving a new fiscal package before the end of the year a priority.

· FED decision at 13hrs Mexico; no change are expected.

· A record global number of daily deaths due to COVID-19 were logged: 9,057.

· Economic indicators: Retail sales in Europe (2.2% annual Sept. vs 2.8% e.); Initial jobless claims in the US (751k vs 732k e.).

Economic environment

Joe Biden needs to win any one of the pending states to be named the presidential election`s winner. Biden reached 264 Electoral College votes yesterday after winning Michigan and Wisconsin, which makes him 6 votes away from winning the Presidency. It`s presumed that Biden could be confirmed the winner this week in Nevada or Arizona and bring the race to an end while Trump must win any of those two states as well as Georgia, Pennsylvania and North Carolina. President Trump`s legal team has already requested the suspension of vote counting in Pennsylvania and Michigan. In the Senate, Republicans reached important victories in Iowa and Maine, which has led them to topple any chances of seeing a Democratic majority. Everything points to the next government being divided with Biden as President and a Senate made up of a Republican majority. This will limit the reach of the President`s political agenda, something seen positively among markets given the aims to increase corporate taxes and regulations on economic sectors. Regarding the extension of fiscal aid due to COVID-19, the Senate`s leader, Mitch McConnell, has assured that approving a new stimulus before the end of the year is a priority and expects to begin efforts next week, when representatives will also come together to discuss government funding.