The Day at a Glance | September 24 2020

The Top

· Trump does not commit to a peaceful transition if Biden wins November`s election.

· Canada and the United Kingdom published new aggressive spending plans to aid workers and businesses due to the likely second wave of COVID-19.

· Banxico monetary policy decision is expected this afternoon (13 hrs Mexico City time).

· Economic indicators: Initial jobless claims increase in the United States (870k vs 840k e.).

Economic environment

The President of the United States avoided committing to a peaceful transition of power if Joe Biden wins the election in November. In a press conference at the White House yesterday, Trump once again criticized the voting through mail system and its legitimacy. Once asked about guaranteeing a peaceful transition of power in case he lost the election, the President responded: “Well, we`ll have to see what happens.” The President has argued that voting through mail is more susceptible to a fraud than in-person voting, which is why he is against this type of voting, which some States will ask its citizens to do to avoid large gatherings in voting booths and mitigate the spread of COVID-19 during the election. Nervousness has increased in light of the upcoming elections, as derivative instruments show great volatility with November fast approaching. Fears are regarding a close election, and that results will not clearly show who won. It`s speculated that Trump followers will go to in-person voting booths, and through this, the vote counting will be skewed towards the current President; but once the mail-in votes are counted (which would take a longer period of time and could be the preferred method by Democratic voters), results will be subject to a change, which is a situation that may raise questions and doubts about the results. The President has said that he plans to denounce the process in case he loses the election, which is also why he is looking for the immediate appointment of a new Supreme Court Justice that would substitute recently passed Ruth Bader Ginsburg.