The U.S Senate debate over the $550 billion infrastructure package drags on. Singapore plans to change its foreign worker policies. ByteDance revives a plan to list in Hong Kong. Here’s what you need to know this Monday morning.
A slow-going U.S. Senate debate over a broad $550 billion infrastructure package could go on for days yet, with lawmakers unable to agree on which final changes to consider. Amendments still on the table include proposals for new cryptocurrency rules and flexibility for states and localities that choose to use some unspent pandemic relief funds for roads and bridges. The Senate did edge the infrastructure legislation past one of its final procedural hurdles on a 67-27 vote on Saturday, an indicator of the bill’s bipartisan support. But agreement on a last batch of amendments was elusive.
Asian stocks are set to start the week steady after a better-than-expected increase in U.S. payrolls fueled expectations that the Federal Reserve is moving closer to a pullback of stimulus. Futures rose in Australia, but they fell in Hong Kong earlier. Japan markets are closed for a holiday. On Friday, the S&P 500 climbed to a record, led by financials and materials, while the technology-heavy Nasdaq 100 fell. The U.S. 10-year Treasury yield climbed to 1.3% and the dollar strengthened against major peers. Cash Treasuries won’t trade in Asia because of the holiday in Tokyo.
As U.S. Covid cases hit a six-month high, Anthony Fauci, the U.S.’s top infectious-disease doctor, said he was “strongly in favor” of speeding booster shots to people with weakened immune systems. In Israel, the first nation to roll out boosters widely, more than half a million people aged 60 and over were due to have had their third injection by the end of Sunday. Elsewhere, Wuhan completed mass Covid testing of local residents after new local cases were reported; the strict lockdown in the Philippines may be costing 150 billion pesos ($2.98 billion) a week; delta cases worsened across Australia’s biggest cities and the nation has barred non-resident citizens who enter the country from leaving again; and Indonesian President Joko Widodo ordered law enforcement officials on the nation’s outer islands to take immediate action to stem virus cases.
Singapore will recalibrate its foreign worker policies to balance between remaining accepting of those from overseas, and addressing the economic and social concerns of its citizens, Prime Minister Lee Hsien Loong said. The government is aware anxieties over the foreign worker population have worsened because of uncertainties caused by the Covid-19 pandemic, and authorities are addressing them, Lee said in a televised message on the eve of the country’s 56th National Day. Other tough issues that have come to the fore during this period and which need to be dealt with are support for low-wage workers and the challenge of maintaining racial harmony, he said.
TikTok owner ByteDance is reviving plans to list in Hong Kong, next quarter or in early 2022, even as Chinese authorities widen their crackdown on the country’s technology companies. Meanwhile, the world-beating rally in China’s sovereign bonds fueled by policy easing bets may have some ways to go, but inflation data this week could provide a reason to slow the bullish momentum. And China called on the U.S. to respect Chinese sovereignty and stop interfering in Hong Kong affairs, in a response to President Joe Biden’s move to offer some Hong Kong residents temporary safe haven.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours:
And finally, here’s what Tracy’s interested in today
A blow-out jobs report finally succeeded in shocking U.S. bond yields into life, with the benchmark 10-year Treasury jumping above 1.3% after reaching as low as 1.12% earlier in the week. The addition of 943,000 jobs in July — much more than the 870,000 expected — means we're ostensibly getting closer to the Federal Reserve's goal of “substantial” further progress in the job market.
So it's no surprise that the conversation about just how the U.S. central bank might react to lower rates of unemployment and higher rates of inflation is kicking into high gear. Will the central bank start tapering its asset purchases and raising rates? There's sometimes an implication that the two things must happen in conjunction with each other, or at least one must be followed relatively quickly by the other.
But in the new episode of the Odd Lots podcast, the Fed's Robert Kaplan emphasizes that's not necessarily the case. Tapering could help take some of the pressure off the need to raise raise interest rates in the future, according to the Dallas Fed president. “Adjusting these purchases sooner might actually allow us to be more patient on the Fed funds rate down the road,” he says. It's a nice reminder that tightening monetary policy doesn't have to be a monolithic or even linear activity. The whole podcast is well worth a listen.
You can follow Tracy Alloway on Twitter at @tracyalloway.
"need" - Google News
August 09, 2021 at 06:25AM
https://ift.tt/3Apfljf
Five Things You Need to Know to Start Your Day - Bloomberg
"need" - Google News
https://ift.tt/3c23wne
https://ift.tt/2YsHiXz
Bagikan Berita Ini
0 Response to "Five Things You Need to Know to Start Your Day - Bloomberg"
Post a Comment