For four years, President Donald Trump has linked his luck to that of Wall Street.
Each of the Dow Jones records has been celebrated as if they were their own. This index, so sensitive to each of his tweets, completely passed from Trump’s idea of boycotting the injection of 900,000 million dollars of the stimulus plan to alleviate the impact of Covid-19.
Donald Trump is packing his bags and his ability to influence the market is increasingly limited. His intention not to sign this new stimulus plan, after months of legislative blockade, was ignored yesterday by investors. Traders take it for granted that the money will arrive and that the liquidity that has boosted the stock markets – above all, from central banks – will not be lacking for a long time.
This buyer optimism that has been overcoming, in recent months, outbreaks and outbreaks of the virus, was fueled yesterday by the proximity of a Brexit agreement that is expected to be achieved in the last minute of the umpteenth extension that the European Union is contesting. and the UK. The Ibex recovered 8,000 points after rising 1.8%, the highest rise among the main European stock exchanges. Frankfurt, Milan and Paris advanced more than 1% and London, which had not fallen so much in the preceding days, scored 0.7%.
On the other side of the Atlantic, Wall Street continued with the good tone that has led to record after record this year.
The Dow Jones continued its pull, growing more than 250 points in the early afternoon, a percentage of close to 1%, although in the end it remained with a rise of 0.38%, despite the latest occurrence of Trump. by not signing that plan.
The proposal includes direct checks of $ 600 for those who receive a maximum of 75,000 per year, an increase of $ 300 per week for unemployment until March and more than 300,000 million in aid to small businesses.
For now, amid the confusion, Trump refuses to give the go-ahead if it doesn’t go up to $ 2,000 per person. This idea attacks the waterline of the Republicans, his party. Steve Mnuchin endorsed those $ 600 and assured, as soon as it was approved Monday night in Congress, that the first checks would arrive next week. This help is more than necessary in a country where this Wednesday the requests for weekly unemployment benefits continued to exceed 800,000 and that consumption has slowed after a severe rebound in the pandemic.
Packing
The influence of the president in the markets is decreasing
Everything has been in limbo, despite the fact that the White House had given signals that the president would sign this legislation, which goes together with the 1.4 billion to finance the Government and avoid its administrative closure.
If Trump’s lack of a plan, seen more as a punishment for his Republican colleagues who have recognized Joe Biden’s victory, did not affect Wall Street and global stock markets, the effect in the United States could be serious and drag the markets. .
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His opposition to this legislation, more than 5,000 pages which includes stimulus and administrative financing, threatens to ruin the benefits of millions of unemployed and poses the danger of the government shutdown. The deadline to prevent the Executive from being able to face the bills is at midnight next Monday.
Hang the question. House Speaker Nancy Pelosi, Democrat, picked up the gauntlet immediately. He recalled that his group is more than in agreement with raising to $ 2,000 and that at the meeting this Thursday they could approve that proposal by consent, if it is serious.
The problem is that conservatives, including Kevin McCarthy, the Republican Majority Leader in that chamber and a great Trump player, refuse to increase spending.
The president voiced his opposition in a four-minute video, manipulating what is included in the plan and what is not. It has been considered more of an outburst than a well-calculated policy. While he did not specify whether he is willing to veto or simply refuses to sign it, Trump said that “the next administration will have to carry out the Covid-19 aid package,” if Congress did not send him a revised version to his liking.
Any delay in the bill becoming law poses a threat of financial ruin to citizens who are already in a big hurry.
The extension of unemployment benefits would cover twelve million workers. The current provision expires this Saturday.
The risk
Opposition to the deal threatens millions of unemployed
The 1.4 trillion for government expenses offer coverage until next September 30, the close of the fiscal year. The Executive can lower the blind on Tuesday. It would mean leaving thousands of federal officials without pay and the possibility of homelessness because they cannot afford rents or mortgages. In addition, government supplier companies would not charge. If Trump decides on the veto, the two houses could convene plenary sessions to approve measures that would nullify the president’s decision.
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