Overseas Headlines – December 1, 2020

United States:

The Fed Effort to Save Midsize Firms Isn’t Working, and Here’s Why

“It sounded like a great idea back in April. With the economy getting hammered by Covid-19, the Federal Reserve hatched a bold plan to rescue thousands of midsize companies that were falling into a gap between government aid programs. Using its magic printing press, the U.S. central bank would take $75 billion appropriated by Congress and turn it into as much as $600 billion in loans to companies damaged by the pandemic.”



German Economy Shows Resilience to Renewed Virus Slump

“The German economy displayed resilience last month in the face of new virus restrictions, with manufacturing recording solid growth and joblessness unexpectedly declining. Although restaurants, bars, gyms and cultural venues are closed to try to limit the spread of the coronavirus, factories are benefiting from a rebound in global trade, data released on Tuesday showed. In a separate release, unemployment dropped for a fifth month.”



China Beats U.S. as Top Market for Asia-Pacific Firms, HSBC Says

“China has overtaken the U.S. as the top foreign market for companies across Asia-Pacific, according to a new survey that underscored several ways the pandemic is accelerating tectonic shifts in the global economy. The U.S. was the biggest trading partner among 28% of firms polled, just behind China’s share, which rose to 29%, according to the survey released Tuesday by HSBC Holdings Plc. The overall outlook for trade is holding up well given Covid-19 disruptions that fueled calls for shorter supply chains, with 72% of respondents holding a positive view over the next few years, compared with 81% a year ago.”




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