Foreign interest in Chinese assets, which includes substantial US participation, has been driven not only by Chinese deregulation, but by other factors as well. In addition, the growing interest of US-based financial services companies in the Chinese market is, in part, driven by expectations that the Chinese middle class will continue to grow at a rapid pace. A rising middle class in a country of high savers is attractive for the sale of wealth management and other services. The UK government hopes to offset these headwinds to growth by taking advantage of the UK’s right to diverge from the EU’s rules. This week the prime minister Boris Johnson urged business leaders to get behind plans for regulatory and legislative reform. As the UK adopts its new, more distant trading relationship with the EU, these new arrangements will likely change the way many businesses operate, creating both challenges and opportunities. As for the job market, the Fed said that employment grew in a majority of districts, but at a slow pace.
His ability to obtain anything from Congress will depend on the outcome of the runoff elections in Georgia schedule for January 5. Personal income and consumer spending both declined in November and some measures of housing activity weakened after many months of stellar performance.
Yet a robust healing later this coming year will not necessarily likely erase the challenges faced by many ex – employees of consumer-facing industrial sectors who are expected to be able to remain unemployed. Disruption regarding the job market is a longer-term problem, one whoever solution will be contested in Congress. Meanwhile, typically the US Congress finally approved and the president agreed upon a spending package regarding about US$900 billion. It provides extended unemployment insurance, funds for households and businesses, and money for education and medical care. It will modestly buttress the economy for a few months, but it is likely that more will be needed unless the vaccine is widely distributed earlier than anticipated. Once Joe Biden becomes president, he is expected to ask Congress for further funding, especially to implement a much greater level of testing as well as to boost distribution of the vaccine. He also wants more money for households and extra money for distressed state and local governments.
The weakness likely resulted from the impact of the massive surge in the virus. Although the number of new infections began to abate toward the end of December, public health officials worry that the increase in holiday travel in late December will result in yet another surge in infections in early January. On the positive side, the distribution of vaccines is under way, offering the promise that, sometime later in the year, the negative impact of the virus could ultimately abate.
In any event, typically the EU says that typically the deal would not remove their ability to address individual rights and geopolitical concerns in China which can be regarding importance to the Combined States. Finally, the package might lead US organizations to pressure their federal government to negotiate the same package with China. The huge uncertainty concerns how swiftly this will happen in addition to at what cost. Continue to, when recovery comes, expect that middle- to upper-income households will stop conserving this kind of large share regarding their income and, as an alternative, spend more on consumer-facing services, such as eating places and travel. This move in behavior will move a considerable ways toward boosting typically the rate of economic progress.
On the negative side, the virus continues to threaten economic stability, especially in those parts of the world where the outbreak has not been controlled. This is true in the United States and the United Kingdom and threatens to be a problem elsewhere as the new strains of the virus spread further. The challenge for policymakers will be to stifle the current outbreak, protect those who are disrupted by the outbreak, and speed up distribution of the vaccine.
Finally, with the pandemic continuing to ravage the United States, it is likely that there will not be a rebound in employment at consumer-facing industries in January. However, continued gains in other industries could lead to an overall increase in employment. Much will depend on the path of the virus, the speed at which vaccines are distributed, and the sentiment of businesses regarding the potential impact of the new administration. We do know that the new administration intends to pass an additional stimulus measure. With control of both houses of Congress, it is likely that this will happen.