The Day at a Glance | October 19 2021

The Top

*It`s unlikely that Biden`s economic agenda will be approved by the end of the month: Joe Manchin, Democratic Senator.

*Air transport prices increase in light of company efforts to restore inventories before Christmas.

*Inflation in Europe is still mostly transitory, but should not extend for much longer: Olli Rehn, member of the ECB.

*The real estate (-1.6% annual) and construction (-1.8%) sectors decreased during the 3Q21 for the first time in China since the pandemic.

*Chamber of Deputies in Mexico approved the Fiscal Miscellaneous Resolution for 2022.

*Russia prepares new mitigation measures in light of increasing cases in the country.

Economic environment

It`s unlikely that Biden`s economic agenda will be approved. According to comments made by Democratic Senator Joe Manchin, it`s unlikely that Congress will approve President Joe Biden`s economic agenda before the end of the month. Leaders of the Democratic Party had October 31st as the deadline to make the economic plan move forward, but discussions in the Senate still haven’t advanced. The disagreements are not being had with Republicans, but rather within the Democratic Party. President Biden has had active conversations with moderate and progressive Democrats in order to reach agreements. Manchin is one of the moderate legislators that are against the progressive party`s proposals; among them, the spending program for the transition towards renewable energies, which considers subsidizing the sector. Additionally, it seeks to reduce the size of the spending package from 3 trillion to 1.5 trillion. Biden has tried to reduce the package to 2 trillion and maintains close contact with the Senator, but there has been no agreement that would lead to voting in the Senate. Democratic members of the House of Representatives have shown intentions of voting on the 550 billion dollar infrastructure plan and the general spending plan worth 3 trillion before October 31st, but it must pass through the Senate before this. Democrats need to vote on this in order to make the proposal move forward before facing Republican opposition.