Trump Pulls the Rug Out From Under 2nd COVID Bailout
Looks like Americans are going to have to wait another few weeks for those $1,200 welfare checks paid for by themselves. President Donald Trump suddenly and unexpectedly called off all talks with Democrats on another multi trillion dollar bailout bill. “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump tweeted on Tuesday. Stocks got hammered by the news, the S&P 500 (NYSEARCA:SPY) falling 1.4% on the day, though about 2% from the intraday high. An unnamed banker was quoted by CNBC using profanity to express his disbelief. “Why would you concede to this and lose?” said the banker quoted by CNBC. “It’s not like Donald Trump gives a s— about the deficit, and he wouldn’t be against putting his name on the checks.”
No word from the Office of Management and Budget on whether anyone else in Washington gives either.
“Big Progress” On Brexit Negotiations, Says Unnamed EU Diplomat
Britain and the EU are closer to agreement on one issue at least, which is reciprocal social security rights for citizens after Brexit, two diplomatic sources said as quoted by Reuters UK, with one describing talks last week on an elusive trade deal as “one of the most positive so far”. The issues of fisheries, dispute resolution, and subsidies remain sticking points. One would expect progress to reflect positively among the bankstocks in the United Kingdom, but so far this isn’t happening. All remain at or near all time lows, both HSBC (NYSE:HSBC) and Lloyds (NYSE:LYG) down this morning.
However, while the financial system in Europe continues to suffer, payment solutions on the continent are still innovating despite the moribund conditions in the banks themselves, which might make better payment solutions even more necessary in the near future. One payment firm, Epayblock, which facilitates those with business bank accounts in Europe for non residents, is moving ahead with making banking and money transfers easier. “We are innovating payment solutions that let you focus on getting things done, not on your technology. Say goodbye to the headaches associated with yesterday’s international money transfers,” the company says.
More People Leave New York Than Any Other State
People are voting with their feet against draconian lockdowns and deteriorating living conditions, New York seeing the most residents flee the state this year than any other state in the Union. From New York City particularly, moving requests were 52% above the national average in August. Billionaire investor Barry Diller has called the situation in New York City “devastating”, and it has been reported that 90% of restaurateurs were unable to pay their rent in August. Doing even worse than New York City though, was San Francisco, which saw moving requests skyrocket 128% above the national average in the same month. Also coming ahead of New York State as a whole was Washington D.C.
GE May Be Getting Sued By the SEC
In an obfuscating statement relating to a possible civil action against General Electric (NYSE:GE) taken by the Securities and Exchange Commission, GE informed investors that it might be in trouble. “GE has been informed that the issues the SEC staff may recommend that the SEC pursue relate to the historical premium deficiency testing for GE Capital’s runoff insurance operations, as well as GE’s disclosures relating to such runoff insurance operations,” GE said in a statement. Basically, the SEC has a problem with GE’s method of revenue recognition, which may have something to do with several multibillion dollar write-offs it has had to incur since 2018, possibly fooling investors into thinking certain value existed in the company when it did not. The stock reversed on the news, though that arguably had more to do with Trump cancelling bailout negotiations, as the stock fell at the same time as the broader market.
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