Western states continue pretending that the ongoing global economic crisis is not a result of reasonable factors – the lack of opportunities to growth and conflicts between key players (the Saudi offensive on the oil market and the US tariffs campaign are examples). They prefer to blame the coronavirus (COVID-19) pandemic and some ‘unfair’ players (like China) for their own problems. So, now, the COVID-19 agenda became a useful propaganda tool for the US to employ measures to contain the crisis consequences for itself and try to reshape the global market into its own favor.
White House and US senators reach late night deal on massive coronavirus stimulus package after days of talks (source):
US senators and the Trump administration have finally reached an agreement on a massive rescue plan to help stem the impact Covid-19 is having on the country’s economy.
The compromise bill directs around $2 trillion to help keep the economy afloat amid the massive shutdown of businesses in a bid to curb the financial fallout of the coronavirus pandemic.
Senate Democratic Leader Chuck Schumer called the proposal “the largest rescue package in American history.”
Schumer said that the bill is “far from perfect, but we believe the legislation has been improved significantly to warrant its quick consideration and passage.”
Schumer’s main rival in the Senate, Republican Majority Leader Mitch McConnell, was also optimistic about the deal, hailing it as “a bipartisan agreement.” He promised that the Senate will approve the legislation later on Wednesday.
According to the revised bill, $130bn will go to hospitals, and $367bn will be used to rescue small businesses. Americans making up to $75,000 a year will receive a one-time check of $1,200 to help them cope with the loss of jobs during the pandemic.
The agreement was announced by McConnell at 1:30am following several days of intense debate with the Democrats, who argued that the initial Republican proposal was skewed too much in favor of protecting big companies instead of helping workers.
During the debates, the leader of House Democrats, Nancy Pelosi, put forward the party’s own version of the $2.5 trillion stimulus package. The GOP rejected her proposal, saying the Democrats’ bill was riddled with provisions seemingly unrelated to rescuing the economy, like tougher rules on air pollution and a mandate for same-date voter registration. President Donald Trump argued that the legislation was aimed at pushing for the Democrats’ “agenda” rather than repairing the damage done by Covid-19.
European stocks surge on hopes massive US cash injection will lift global economy (source):
Markets in Europe continued gaining on Wednesday as the US government agrees to unlock $2 trillion worth of funds to cushion the blow to the economy from the coronavirus pandemic.
Britain’s FTSE 100 index surged almost two percent at the start of trading in London. Germany’s DAX is up almost three percent, while France’s CAC is gaining almost five percent.
This follows huge gains by European stocks on Tuesday with the British stock market gaining over nine percent, German stocks surging almost 11 percent, and French stocks closing almost five percent higher.
Positive investor sentiment in Europe comes on hopes that the US economy will finally receive a $2 trillion boost to mitigate the impact of the coronavirus pandemic.
Markets rallied after Republicans and Democrats reached an agreement on a massive package amounting to $2 trillion to rescue the US economy amid the Covid-19 outbreak. The bill is set to give hundreds of billions to businesses that were forced to shut down and lay off workers due to prevention measures, and stipulates one-time payments to Americans among other measures.
The news sent Asian markets higher with Japan’s benchmark Nikkei gaining over eight percent, while stocks in Hong Kong and mainland China added between two and three percent. Other markets in Asia-Pacific were also up on Wednesday, with both Australia’s All Ordinaries and India’s key Mumbai Sensex jumping more than five percent.