1) Republicans Stimulus Plan
Senate Republicans released a package of economic support bills worth an estimated $1 trillion that would cut the federal subsidy for unemployment benefits by two-thirds from the end of September. After that, the payments would be combined with state benefits to replace 70% of lost wages.
Democratic Party politicians criticised the move as removing a vital support for over 16 million people currently claiming unemployment benefits.
The two parties have until the end of the week to thrash out a compromise. A bill passed in the House approved a much larger $3.5 trillion package of measures, including $900 billion of support for state and municipal governments that is lacking from the Republican package.
2) Fed Meeting Starts
The Federal Reserve’s two-day Federal Open Markets Committee meeting starts, but the results will not be known until Wednesday. Ahead of meeting, analysts expect that the Fed could offer clearer guidance of an intention to ease monetary policy further in the future, although no fresh actions are expected at this week’s meeting.
3) Moderna And Pfizer Start The Stage 3 Drug Trials
Moderna Inc announced the start of the third and final stage of trials for its experimental drug for treating the Covid-19 virus.
Pfizer and its German partner, Nasdaq-listed Biontech Se, also said they would start a hybrid stage 2/stage 3 trial for their candidate vaccine.
The rapid progress in vaccine development, although the progress that has no guarantee of ultimate success.
4) ECB warns banks against dividends
The European Central Bank told eurozone banks not to pay dividends for the rest of the year, but rather to store up their cash to strengthen defenses against an expected wave of bankruptcies.
In the mean time, the ECB cut the banks further slack on recognizing loan losses, saying it wouldn’t tighten supervisory standards on liquidity and capital until the end of 2022 at the earliest.
The ECB is determined not to turn an expected economic crisis into a financial one so soon after the last wave of eurozone banking problems.
Eurozone bank stocks rose an average of 0.6%, with the biggest rises seen in Spain, whose banks may need capital relief more than most given the risk to its large tourist sector from the recent rise in Covid-19 cases.
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