DXY Potential Support
China's approval of Hong Kong security legislation in defiance of the U.S. raises the stakes in the increasingly antagonistic relationship between the two. President Donald Trump said he'll announce new U.S. policies regarding China on Friday, saying his administration is "not happy" with Beijing. Larry Kudlow, Trump's top economic adviser, said China will be "held accountable" and that it had made a "huge mistake" in passing the new security law, though it remains unclear what the ramifications will be in terms of sanctions. Wall Street has billions to lose from the frictions and a trade war stands to hammer the value of American companies. With no off-ramp in sight, the situation only stands to get worse.
Germany is preparing plans for a second phase of stimulus spending in a bid to supercharge the nation's recovery from the pandemic, as Chancellor Angela Merkel seizes the opportunity to remake the country's economy. More details continue to emerge for the European Union's 750-billion-euro package, including who gets what and that strings will be attached in the shape of reforms to be implemented and that the grants and loans get spent on green and digital policy priorities. Bankers, traders and asset managers are all bullish on the plans, however, which is driving money into riskier assets. Yet lingering in the background is Brexit, where the EU thinks the U.K. may have given up on agreeing a deal.
Beyond dealings with China over Hong Kong and domestic Covid-19 policies, President Trump also signed an executive order seeking to limit liability protections for social media companies, a move sparked by Twitter fact-checking his posts on the platform. He even singled out one Twitter employee in a tweet complaining that the decision to fact-check his tweets on mail ballots would "taint" the upcoming election. Wall Street thinks it's just "noise" and will have a limited impact on the companies the order targets but it highlights the divergent approaches taken by Twitter in directly fact-checking presidential tweets and by Facebook Inc., which has taken a more hands-off strategy.
Lockdowns are easing across Europe, albeit with slight different guidance everywhere. French cafes, bars and restaurants will reopen Tuesday while the U.K., where business confidence remains rock-bottom and where people are still mostly staying at home, will allow up to six people from different households to meet up, as long as they do so outside, socially distance and wash their hands. In New York, Governor Andrew Cuomo wants to make mask-wearing a part of daily life in the city. Elsewhere, the situation is less optimistic. India became the latest country to see its virus death toll top that of China despite putting in place the biggest lockdown in the world, and Latin America now accounts for 40% of all daily Covid-19 deaths globally with rates surging in Brazil and Mexico.
China's approval of Hong Kong security legislation in defiance of the U.S. raises the stakes in the increasingly antagonistic relationship between the two. President Donald Trump said he'll announce new U.S. policies regarding China on Friday, saying his administration is "not happy" with Beijing. Larry Kudlow, Trump's top economic adviser, said China will be "held accountable" and that it had made a "huge mistake" in passing the new security law, though it remains unclear what the ramifications will be in terms of sanctions. Wall Street has billions to lose from the frictions and a trade war stands to hammer the value of American companies. With no off-ramp in sight, the situation only stands to get worse.
Germany is preparing plans for a second phase of stimulus spending in a bid to supercharge the nation's recovery from the pandemic, as Chancellor Angela Merkel seizes the opportunity to remake the country's economy. More details continue to emerge for the European Union's 750-billion-euro package, including who gets what and that strings will be attached in the shape of reforms to be implemented and that the grants and loans get spent on green and digital policy priorities. Bankers, traders and asset managers are all bullish on the plans, however, which is driving money into riskier assets. Yet lingering in the background is Brexit, where the EU thinks the U.K. may have given up on agreeing a deal.
Beyond dealings with China over Hong Kong and domestic Covid-19 policies, President Trump also signed an executive order seeking to limit liability protections for social media companies, a move sparked by Twitter fact-checking his posts on the platform. He even singled out one Twitter employee in a tweet complaining that the decision to fact-check his tweets on mail ballots would "taint" the upcoming election. Wall Street thinks it's just "noise" and will have a limited impact on the companies the order targets but it highlights the divergent approaches taken by Twitter in directly fact-checking presidential tweets and by Facebook Inc., which has taken a more hands-off strategy.
Lockdowns are easing across Europe, albeit with slight different guidance everywhere. French cafes, bars and restaurants will reopen Tuesday while the U.K., where business confidence remains rock-bottom and where people are still mostly staying at home, will allow up to six people from different households to meet up, as long as they do so outside, socially distance and wash their hands. In New York, Governor Andrew Cuomo wants to make mask-wearing a part of daily life in the city. Elsewhere, the situation is less optimistic. India became the latest country to see its virus death toll top that of China despite putting in place the biggest lockdown in the world, and Latin America now accounts for 40% of all daily Covid-19 deaths globally with rates surging in Brazil and Mexico.