Weekly financial market overview 11.01.-17.01.
Main events of the previous week
US President-elect Joe Biden presented a draft of measures to stimulate the American economy for $1.9 trillion. The plan has already been backed by Democrats in Congress. The president-elect's proposal includes a number of measures to stimulate the economy. About $400 billion of this amount is supposed to be allocated to the fight against the virus and for the vaccination campaign, $1 trillion - to provide assistance to the population, the rest - to help businesses especially hard hit during the pandemic. The package includes direct payments to Americans of $1.4 thousand per taxpayer. Payouts will reach $2,000 per person (along with a $600 check approved by Congress in December). Biden also proposes raising the minimum wage to $15 per hour and increasing the amount of weekly unemployment benefits. In accordance with the document, $350 billion is planned to be allocated to support local authorities at the state level. $170 billion should go to higher education institutions. The plan also includes measures to support small businesses. In addition, Biden proposes to allocate $50 billion for the COVID-19 infection testing program, and $20 billion for the national vaccination program.
The head of the federal state of North Rhine-Westphalia Armin Laschet was elected as the leader of the Christian Democratic Union. The head of the ruling party is a potential candidate for the post of German chancellor, elections to the Bundestag will be held in September. The majority of the delegates at the meeting of the German Christian Democratic Union (CDU) party voted for the head of the federal state of North Rhine-Westphalia Armin Laschet to become the new party leader. 521 people voted for his candidacy, another 466 delegates supported the former leader of the faction Friedrich Merz. Four people abstained. In total, three people applied for this post, the chairman of the Bundestag Foreign Policy Committee Norbert Röttgen dropped out of the race in the first round. The results must be officially confirmed by mail voting. Until 2018, the party was led by Angela Merkel, after her - by Annegret Kramp-Karrenbauer, but the latter in February 2020 announced her decision to resign and refuse to fight for the post of German chancellor.
US. Consumer price index in December rose by 0.4% versus November, while the annual inflation rate was 1.4%. The growth of the core inflation rate excluding food and energy in December amounted to 1.6% y/y.
The number of initial jobless claims for the week was registered in the amount of 965 thousand, which is 181 thousand more than the week before and 170 thousand more than predicted by analysts.
Retail sales fell 0.7% in December versus November, while retail sales were expected to remain at the November level. In turn, excluding data on gasoline and car sales from the indicator, retail sales in December decreased by 2.9%.
China. The consumer price index in December rose by 0.2% versus November, while the annual inflation was 0.7%.
The trade surplus in December reached a record high of $78.14 billion. Exports in December increased by 18.1% compared to December 2019, while imports grew by 6.5% over the same period.
Key events this week
- On Monday, China is to publish data on GDP growth in the fourth quarter, as well as industrial production, retail trade and unemployment in December.
- The inauguration of the new US President Joe Biden will take place on Wednesday.
- On Thursday, the US will report on the number of initial jobless claims for the week and the ECB will publish its decision on the key rate.
- On Friday, the level of business activity in January will be published in the Eurozone and the United States, where the change in oil reserves for the week will also become known.
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