Overseas Headlines – October 20, 2020

United States:

Do-or-Die Stimulus, Race Bias Cost, U.S. House Prices: Eco Day

“After months of on-again, off-again talks on an increasingly needed fiscal-stimulus package, Tuesday is shaping up as a do-or-die moment for Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi to get a virus relief deal done in time for Election Day. Slowing U.S. employment gains and an increased proportion of permanent layoffs could undermine the economic recovery with disproportionate harm to minorities, said Federal Reserve Bank of Atlanta President Raphael Bostic.”



EU’s First Social Bonds Smash Records With $275 Billion Orders

“The European Union’s first offering of social bonds was said to receive orders of more than 233 billion euros ($275 billion), a record in the euro area. The bloc looks set to raise 10 billion euros from the sale of the 10-year debt via banks, according to a person familiar with the matter. That alone drew orders above 145 billion euros, easily the most ever for a sale in Europe. It’s also issuing 7 billion euros of 20-year securities.”



BOJ Considers Changing Inflation Forecasts Over Travel Program

“The Bank of Japan is likely to consider changing its inflation forecasts to reflect the short-term impact on prices of a government travel campaign at its policy meeting next week, according to people familiar with the matter. The central bank will probably discuss cutting its price projection for the year ending in March to account for the downward price pressure of Prime Minister Yoshihide Suga’s Go To Travel campaign, the people said. The campaign offers subsidized domestic travel. A downgrade of the projection wouldn’t trigger any additional BOJ action, the people added.”




Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.