Financial Times: The Fed may be forced to extend the bond purchase plan if the fiscal plan is not available
It is reported that in order to stimulate the US economic recovery, the Federal Reserve (Fed) will prepare to issue new guidelines to expand its emergency bond purchase program.
It is widely believed that the Federal Reserve will announce at this week’s meeting that the monthly purchase of $120 billion in bonds initiated at the beginning of the epidemic will continue until the recovery reaches a certain standard.
Although the number of confirmed cases has risen again and again and the unemployment rate has been slow to stabilize, the two parties in the US Congress have been slow to pass a new fiscal stimulus package.
This has caused the burden of stabilizing the US economy and employment to fall on the Fed, forcing the Fed to use monetary means to solve practical problems.
Bloomberg丨Nikkei Asia Review: Vaccines will start, gold prices fall
The first batch of new coronavirus vaccines in the United States will be sent to states starting Monday morning. As the vaccine is about to start, the year-long golden bull market is expected to end.
On August 6 this year, the price of gold rushed to US$2,069 per ounce. On Sunday, the price of gold had fallen back to $1,837 per ounce after suffering another drop.
But so far, this year’s gold price is still up 21%.
Financial Times丨Reuters: Brexit negotiations continue, pound appreciation
On the original deadline for the final negotiations on Sunday, the UK and the EU still failed to reach a reunification, but the negotiating parties said they would extend the negotiation period.
According to reports, the two sides did not set a new deadline for negotiations, and may talk about before Christmas.
Affected by this, on Sunday, the pound rose to 1% to 1.3367 US dollars per pound.
After Britain officially leaves the European Union, its trade policy is still in a transitional period. But the transition period will end this year. If there is no new trade agreement by then, the trade of about US$1 trillion between the two sides will be hit hard.
New York Times: The United States has to use health codes
In the next few weeks, American Airlines will first use the health code as a health certificate for boarding passengers.
The health certificate during the epidemic has a long history. Back in the smallpox epidemic in the 1880s, only students and teachers with vaccination certificates were allowed to work in schools.
In the 1990s, the WHO also introduced the “Little Yellow Card”, a vaccination certificate dedicated to international travel.
With the launch of vaccines in the United States, vaccine certificates will rise again, but this time they will be replaced by digital versions.
At that time, including schools, summer camps, entertainment venues and workplaces, people may be required to show the voucher.
Wall Street Journal: US small-cap stocks lead the market
With the launch of the vaccine and the upcoming fight, US small-cap stocks ushered in their best month of the year in November this year.
Subsequently, the rising market of small-cap stocks continued to be maintained in December. So far in December, the small-cap Russell 2000 index has risen 5%, far exceeding the 1.2% rise of the S&P 500.
This also makes small-cap stocks outperform large-cap stocks for the first time this year. So far, the small-cap stock index has risen 15% this year, surpassing the 13% of the S&P 500.
According to historical data, the performance recovery of small-cap companies is generally stronger for larger-cap companies. Therefore, many investment analysts said that the United States has ushered in the small-cap stock investment cycle.
Reuters: McLaren has an optimistic outlook
On Sunday, McLaren Group Executive Chairman Walsh said that despite setbacks during the new crown pandemic, he is now seeing a recovery in demand and he is optimistic about the prospects of his luxury sports cars.
Walsh said that McLaren has high-margin cash flow and a good automotive business, so there is no need to worry about cash needs in the next two to three years.
He also said that he will continue to raise funds, but does not want to bear too much debt, so he plans to sell or lease McLaren’s global headquarters in Woking, UK, in exchange for effective capital.
Financial Times: Federal Trade Commission sues Facebook
Last week, the US Federal Trade Commission (FTC) united 48 states to file a lawsuit against Facebook, claiming that it has a monopoly.
It is reported that the FTC is trying to force Facebook to split what apps and Instagram, because the FTC suspects that Facebook’s acquisition of companies such as Instagram and WhatsApp is part of its strategy to stifle competition.
In addition, the lawsuit states that Facebook uses data collection to prevent users from switching to other services.
Facebook claims that its acquisition meets all requirements and that antitrust laws should not be used to punish successful companies.