As Britain approaches another new deadline for trade deals with the European Union on Sunday, the pound is closing its worst week in three months. It took a sharp turn against the euro on Thursday and sank further on Friday, as traders rallied with the possibility that Britain’s trade talks with the European Union could indeed fail.
“There is hope in the markets as long as they talk. “I’ve been really cautious about it,” said Jane Foley, a ReboBank strategist. “There can be no deal but even if there is a deal, it will be disrupted. And the political result will come. ”
All this, is bad for the currency.
Within just three weeks, the Brexit transition period will expire, and if no agreement is reached, Britain will be forced to do business with its largest trading partner on WTO terms, meaning tariffs on goods will be brought in and there will be less. Opportunity for future cooperation between services industries. Three issues so far – Phishing rights, Business competition rules and how the deal will be applied – negotiations stalled.
Prime Minister Boris Johnson went to Brussels for dinner on Wednesday night With the President of the European Commission, Ursula von der Leyen, to try to break the impasse. By time Fish dinner Was over, there were reports that there was an estimate for the deal Even more gloomy. A new deadline was set for Sunday.
Then on Thursday, the European Commission outlined what it would do for it If there was no deal. And Said Mr. Johnson An agreement was “not yet there” and there was a “strong possibility” of a deal.
Permanent optimism in financial markets has been examined many times. Numerous Brexit deadlines came and went. But this time, if an explanation is reached, there are serious concerns about how the law can be ratified before January. The British Parliament is preparing its plan Works until Christmas, But it will be a difficult time to gather 27 nations during the holiday period in the European Union.
This week has been the worst for the pound since early September, traders said Boris Johnson’s trade deal will fail By introducing a new bill that clashes with the EU withdrawal agreement and breaking international law.
Before the end of the transition period, Britain got a glimpse of its kind Crash occurs While business is not running smoothly, Honda shut down its assembly plant in England this week because parts were stuck in transport.
The economic impact of further trade disruptions on the British economy in the new year will begin once customs checks begin Attempts to recover during the second wave of the epidemic. Data on Thursday showed that Gross domestic product grew by 0.4 per cent in October, A recession before England went into a month-long lockdown in November.
Shares fell worldwide on Friday and futures signaled the S&P 500 index to open 1 percent lower, as investors stayed away from risky assets despite news of being in the United States. The Pfizer-Bioentech vaccine is likely to be authorized Within days. Instead traders are facing the prospect of a no-deal Brexit and months of economic hardship as countries still struggle to contain the virus.
Stocks Europe 600 index fell 1.3 percent. The FTSE 100 index fell 1.1 percent in the UK, the CAC 1.3 percent in France, and the DAX 2 percent in Germany. In Asia, the Shanghai Composite Index was down 0.8 percent, and the Nikkei 225 was down 0.4 percent in Japan.
The S&P 500 index is on track to break the two-week gain. The U.S. benchmark index fell 0.8 percent so far this week as markets closed on Thursday.
Oil prices also fell on Friday, when prices rebounded a day before their March highs. U.S. Benchmark, West Texas Intermediate futures fell 0.5 percent to .5 46.57 a barrel.
Instead, traders bought traditional securities such as government bonds. 10-year-old U.S. Production on Treasury bonds fell 8 basis points, or 0.08 percentage points, this week, the highest since June. Yields continue to rise in price.
Britain’s Prime Minister Boris Johnson and European Commission President Ursula von der Leyen have both said Britain and the European Union seem more likely. No agreement will be reached On free trade by the end of the year. The conversation is expected to continue through the weekend.
In the United States, fresh fiscal stimulus deals are expected to be reached before Congress collapses. Was reduced. On Thursday, aides to Republican majority leader Senator Mitch McConnell indicated that many Republicans would not agree to the emerging bipartisan package. On the same day, the data showed 947,000 people Application for unemployment benefits Last week, a leap from last week.
Economic recovery in Washington Washington and the suspension of federal aid, State governments are entering Trying to help small businesses survive the epidemic winter.
The Colorado Legislature held a special session last week to pass a financial aid package. Ohio Rest Restaurants is offering a new round of grants to renters, bars and other businesses affected by the epidemic. And in California, a new fund will use state money for backstabs that could eventually run into millions of dollars in private loans. Other states led by both Republicans and Democrats are announcing or considering similar action.
This effort comes as many New York Times businesses are facing increasingly difficult situations Ben Kasselman Reports.
A survey by the National Federation of Independent Business on Tuesday found a drop in optimism and an increase in uncertainty as nationwide growth in coronavirus cases led governments to spend behind sanctions and consumer spending. Separate data from the Census Bureau showed a growing share of small businesses cutting jobs, and a large number of businesses were at risk of failing other surveys.
If that happens, it could be a disaster for both the state economy and the state budget. Local businesses are the main source of tax revenue – directly and through their employees – and the main drivers of economic activity. If they fail in large numbers, economic recovery will slow once the epidemic is over.
Lulemon reported third-quarter sales of 1. 1.1 billion on Thursday, up 22 percent from a year earlier, as shoppers bought leggings and other workout gear to stay comfortable and in shape while working from home. Net income in North America has increased by 19 percent. Consumer Revenue Direct Direct – which includes sales and online sales – increased by 94 percent.
Is Walmart Preparing to receive vaccine doses from its more than 5,000 stores So that once they get regulatory approval and become available they can be ready to distribute the shots. The retailer said in a statement Thursday that it is making sure it has enough freezer and dry ice to store the vaccine, and is ready to distribute the vaccine through its Walmart and Sam Club stores and in long-term care facilities such as nursing homes. The company relies on state governments to direct its distribution efforts.
The U.S. government and more than 40 states On Wednesday, Facebook filed a lawsuit against competitors for illegally competing And the company has demanded that it undo the acquisitions of Instagram and WhatsApp.
Here are five key questions about this case, answered:
1) What is the argument from the government and Facebook?
There’s a legal reason why Instagram and WhatsApp are at the center of state and federal lawsuits. Trying to reduce competition by buying competitors is a clear violation of America Anti-trust laws. Government lawyers say that’s exactly what Facebook does and will do.
The difficult thing is that the government allowed Facebook to buy Instagram and WhatsApp In 2012 And 2014. Of Facebook Argument That it is now unfair for government officials to try to do-over, and Facebook has made it better than itself on Instagram and WhatsApp.
2) What will be the impact of the lawsuit on the people who use Facebook?
Legal solutions like these can take years. Your experience with Facebook, Instagram, WhatsApp or Messenger will not suddenly change tomorrow.
The more immediate impact of this legal battle could be subtle changes to these social applications as Facebook’s eye is on court cases.
Already, Facebook is working to create an integrated behind-the-scenes messaging feature in many apps, which can Make the break more difficult. It is also possible that Facebook may block new acquisitions or change features in development so as not to damage the company’s legal arguments.
)) Related: Will this leave Facebook behind?
In An interview last yearBill Gates said that if Microsoft had not been “distracted” by the anti-government lawsuits that began in 1998, its company’s Windows – and not Google’s Android – May be the most popular smartphone system in the world. Gates showed a general view among company officials at the time of the claim Made Microsoft more cautious And as a result the company missed the possibility of moving in new directions.
It is possible that Facebook may change its behavior because it is surrounded by court cases or is worried about appearing to be in revolt.
)) Why is this happening now?
The government is suing after years of failures to control its power on Facebook and now has the political will to do so.
What is changing now is that elected officials and others in government United in their frustration with America’s tech superpowers And more Ready to call for major changes.
5) What happens next?
Those who want to change these companies, the Internet, and the American economy sometimes see no-confidence lawsuits as a catchy fix. But antitrust cases, even if they are successful, do not necessarily address the diverse and sometimes inconsistent complaints of many.
No matter what happens with the Facebook case, there’s no going back to more carefree times for tech giants. In the world’s capitals, courtrooms and peoples, we’re wrestling with what a handful of affluent tech companies mean to influence our lives, elections, economies and minds.
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