The Day at a Glance | September 2 2020

The Top

· Efforts to reach a new fiscal agreement in the US are renewed.

· Unemployment increases in Spain and weak retail sales in Germany (-0.9% jul) reduce expectations of a strong recovery.

· Biden (49%) leads in national survey ahead of Trump (41%).

· Economic indicators: Creation of jobs in the private sector in the US below estimates during August (428k vs 950k e.).

Economic environment

US Congress will resume sessions next week and efforts to reach a new fiscal agreement that would extend aid due to the virus are expected to renew. Moderate Democrats have pressured Speaker of the United States House of Representatives Nancy Pelosi in recent weeks to reach an agreement with Republicans as soon as possible and prevent US citizens from being the ones to pay the economic consequences of the health emergency. Secretary of the Treasury Steven Mnuchin confirmed that conversations with Pelosi have begun regarding a new fiscal stimulus. Meanwhile, Republicans seek to vote on a 500 billion dollar package next week that would cover essential and urgent matters. The main difference between Republicans and Democrats is focused on providing resources to state and local governments, which is an issue that has become very political in midst of the presidential race. A survey carried out by Franklin Templeton-Gallup in August shows that up to 70% of adult US citizens believe that the government should extend government aid because of the pandemic.

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