Overview of TOP weekly news
The US Congress has approved a new fiscal package
The US Congress on Tuesday, December 22, 2020, approved a new fiscal package for $900 billion. Republicans who control the Senate almost unanimously approved legislation 92-6 after months of negotiations. This package was also linked to the Federal Government Financing Act.
In the stock of the package, we can see measures containing almost $300 billion to help small businesses; direct payments to adult Americans up to $600; and unemployment insurance by mid-March increased by $300 per week.
“While we have recognized the urgent need for resources to suppress the virus so that we can safely open our economies and schools, we must also realize that more needs to be done,” wrote Nancy Pelosi, reiterating calls for further stimulus support.
Will the EU and the UK reach a consensus?
At present, the only problem is the fisheries agreement. The EU has come up with a compromise and Johnson is currently examining an offer to reduce the value of EU rights in UK waters to around €650 million. This was rejected by the EU, which insists on expecting only a 25 per cent reduction.
The EU negotiator is currently aiming for a maximum reduction of 25%, introduced gradually over more than six years. The EU’s original offer was a maximum reduction of 18 per cent with a transition to 10 years.
The UK government’s fiscal regulator has calculated that failure to reach a trade agreement would cost 300,000 people a job in Britain and reduce GDP by 2% (around 40 billion GBP).
Apple will make cars
The American technology company with the largest capitalization in the world – Apple is said to have made progress in the development of autonomous car technologies and in 2024 plans to start producing passenger cars. Cars could use their ground-breaking battery cell technology.
“If there is a company in the world that has the resources to do so, then it’s probably Apple. But at the same time, it’s important to realize it’s not a cell phone,” an unnamed source working on Apple’s car project projected Reuters.
News that Apple is working on its car appeared as early as 2014. The company is currently so far planning to produce a car for ordinary consumers. This intention contrasts with the practice of competitors so far, such as Waymo of the Alphabet group, which builds robotic vehicles for taxi services.
Lululemon expands beyond the sea
Lululemon plans to expand to countries from the UK to Japan. The company, which manufactures luxury clothing, expects more than a third of the share to gain by expanding into new markets. As one of the few clothing companies, Lululemon has increased its capitalization to $50 billion during this year’s pandemic.
Performance of Lululemon’s shares (Source of the graph: Tradingview)
Fraudulent shops on Shopify
According to a FakeSpot survey, after examining more than 120,000 Shopify sites, up to 21 per cent posed a risk to shoppers. Shopify has become one of the winners of the pandemic as retailers in brick-and-mortar stores rush to a platform that offers tools to quickly launch online sales.
Performance of Shopify’s shares (Source of the graph: Tradingview)
Watch this week:
Thursday, December 24, 2020
Canada will publish the development of building permits. Analysts expect 3% growth on a month-on-month basis in November.
The United States will publish orders for durable goods. Analysts expect 0.6% growth on a month-on-month basis in November.
Friday, December 25, 2020
Japan will publish the development of core inflation. Deflation is expected at 0.8% year on year in December.
Source of the text: Investing, Zerohedge, Financial Times, Reuters, Tradingview