That signature does two important things for the U.S. economy: It prevents a government shutdown that would begin Tuesday, and gives billions of dollars in coronavirus aid to Americans who are struggling.
The estimated 12 million people in two major pandemic unemployment programs, last paid this weekend, will now receive benefits for an additional 11 weeks. In addition, all those who collect jobless payments will receive a weekly federal boost of $ 300 through mid-March.
The aid package also extends eviction protection through January 31, providing $ 25 billion in rental aid for those who lost their sources of income during the pandemic. According to the Center on Budget and Policy Priorities, an estimated 9.2 million tenants who did not lose any income from work during the pandemic are in rent arrears.
The caveats: Because Trump didn’t sign the bill on Saturday, those who enroll in the two unemployment programs are unlikely to receive payment for the last week of the year. Their payments can also be delayed for several weeks while government agencies reprogram their computers.
US futures and most global markets rallied Monday as investors welcomed the extra stimulus.
The backstory: Economists had argued for months that U.S. lawmakers needed to provide another aid package to help protect the pandemic’s fragile economic recovery. The Federal Reserve said so too.
But getting a deal that was acceptable to Democrats and Republicans alike turned out to be extremely difficult. Trump’s 11am intervention – against an agreement negotiated by his government – didn’t help matters.
The deal removes two sources of uncertainty for investors. It offers some relief to struggling Americans before President-elect Joe Biden takes office next month, and keeps the US government going through September 30. That means that at least until the next fiscal year, there will be no annoying government closures.
China tells Ant Group to review its business soon
Financial regulators in a meeting on Saturday outlined a laundry list of expectations for Ant Group executives. The officials chastised Ant Group for “defying” rules, driving rivals from the market, violating consumer rights, and exploiting loopholes for its own profit. They also accused the company’s corporate governance structure of being “inadequate,” according to a transcript of comments made by Pan Gongsheng, deputy governor of the People’s Bank of China.
Big Problems: Ant Group, which is affiliated with e-commerce giant Alibaba, offers everything from investment accounts and micro-savings products to insurance, credit scores and even dating profiles. The company has been under intense scrutiny in recent weeks after Chinese officials shocked investors by halting the massive IPO at the last minute.
Here’s more great context from my colleague Laura He:
President Xi Jinping made it clear at a recent conference that one of China’s main goals for next year is to strengthen anti-monopoly efforts against online platforms and prevent “disorderly expansion” of capital.
Regulators told Ant Group executives Saturday to “go back” and focus on the “original” payment services, according to Pan, among other duties. Regulators also called for a “rigorous overhaul” of the company’s credit, insurance, and asset management services.
“Ant Group must fully understand the seriousness and necessity of this rectification,” regulators told the company. They added that the company should develop a plan to implement these changes “as soon as possible”.
Ant Group said on Sunday it would take into account the latest requirements, while focusing on innovation, serving small businesses and increasing competitiveness on an international scale to the benefit of the country.
“We appreciate [the] guidance and assistance from financial regulators, “the company added.
Bitcoin prices are raging
Bitcoin crashes – to the top. The price briefly topped $ 28,000 over the weekend and may have more room to run.
The Context: Bitcoin first passed $ 20,000 11 days ago, my CNN Business colleague David Goldman reports.
Investors are pouring money into bitcoin and other cryptocurrencies during the Covid-19 pandemic as the Federal Reserve sent interest rates close to zero (and expects to hold them there for several more years), seriously weakening the US dollar. That makes bitcoin an attractive currency in relative terms.
Also pressure on valuation: large investors of well-known brands are stocking it and huge consumer companies are embracing it. For example, a chief executive at BlackRock recently said the cryptocurrency could replace gold, and Square and PayPal have both embraced bitcoin.
Even with the credibility of the mainstream, the cryptocurrency’s recent surge is showing signs of a melt-up – over-enthusiasm fueled by fears of missing out, not just the fundamentals of the market.
Next one
Weibo reports earnings before the opening bell. No major economic reports are expected on Monday.
Available tomorrow: The S&P Case-Shiller Home Price Index will be released at 9 a.m.ET.