ECB to Decide ‘Meeting by Meeting’ on Stimulus, Lane to WSJ

(Bloomberg) —



a group of people on a sidewalk: Pedestrians walk past stacked chairs outside a closed cafe in Plaza del Angel in Madrid, Spain, on Thursday, Oct. 8, 2020. France, Spain and the Czech Republic posted record increases in coronavirus cases, underscoring growing alarm in Europe as it struggles to control the pandemic.


© Bloomberg
Pedestrians walk past stacked chairs outside a closed cafe in Plaza del Angel in Madrid, Spain, on Thursday, Oct. 8, 2020. France, Spain and the Czech Republic posted record increases in coronavirus cases, underscoring growing alarm in Europe as it struggles to control the pandemic.

The European Central Bank isn’t happy with the inflation outlook and will decide “meeting by meeting” whether more monetary stimulus will be needed, chief economist Philip Lane said in an interview with the Wall Street Journal.

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Lane pointed to data arriving over the coming weeks that will help policy makers make their decision, dodging a question on whether updated forecasts in December might be a trigger.

“I wouldn’t focus on any one meeting,” Lane said. “It’s not the case that we only look at the formal projection rounds.”

Economists widely expect the ECB to expand its 1.35 trillion-euro ($1.6

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Warren Buffett phoned Treasury Secretary Hank Paulson with a stimulus idea when the financial crisis erupted. It may have saved the US economy

U.S. Treasury Secretary Henry Paulson (L) shares a laugh with financier Warren Buffett, Chairman and CEO of Berkshire Hathaway, at the Conference on U.S. Capital Market Competitiveness in Washington March 13, 2007.

  • Warren Buffett phoned Treasury Secretary Hank Paulson at the height of the 2008 financial crisis with a suggestion that likely saved the US economy from an even deeper recession.
  • The famed investor and Berkshire Hathaway CEO proposed the government plow capital directly into banks instead of only buying their distressed assets.
  • Paulson quickly gathered the bosses of the nation’s biggest banks and convinced them to accept billions of dollars in investment.
  • The Treasury demanded preferred stock paying chunky dividends, as well as stock warrants in return, emulating Buffett’s bailout of Goldman Sachs in September 2008.
  • Former President George W. Bush called it “probably the greatest financial bailout ever” and said it “probably saved a depression.”
  • Visit
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Trump Wants ‘More Money at His Discretion’ in Latest COVID Stimulus Proposal: Pelosi

House Speaker Nancy Pelosi suggested there are still several disagreements between House Democrats and the Trump administration on the latest coronavirus relief package, writing that Donald Trump “wants more money at his discretion to grant or withhold” in a letter to Democratic colleagues Saturday regarding the president’s latest proposal.



a person wearing a suit and tie: Speaker of the House, Nancy Pelosi, Democrat of California, leaves after her weekly press briefing on Capitol Hill in Washington, DC, on October 8.


© Photo by ANDREW CABALLERO-REYNOLDS/AFP/Getty
Speaker of the House, Nancy Pelosi, Democrat of California, leaves after her weekly press briefing on Capitol Hill in Washington, DC, on October 8.

“When the President talks about wanting a bigger relief package, his proposal appears to mean that he wants more money at his discretion to grant or withhold, rather than agreeing on language prescribing how we honor our workers, crush the virus and put money in the pockets of workers,” Pelosi wrote. “At this point, we still have disagreement on many priorities, and Democrats are awaiting language from the Administration on several provisions

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MacroView: More Stimulus And The 2nd Derivative Effect

There is currently much hope for another fiscal stimulus package to be delivered to the economy from Congress. While President Trump recently doused hopes of a quick passage, there a demand for more stimulus by both parties. While most hope more stimulus will cure the economy’s ills, it will likely disappoint due to the “2nd derivative effect.”

Let me explain.

In March, as the economy shut down due to the pandemic, the Federal Reserve leaped into action to flood the system with liquidity. At the same time, Congress passed a massive fiscal stimulus bill that expanded Unemployment Benefits and sent checks directly to households. As shown in the chart below of the upcoming expected GDP report, it worked. (We estimated GDP to increase by 30% from the previous quarter.)

That expected 30% surge in the third quarter, and surging stock market to boot, directly responded to both the fiscal and

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How much stimulus check money could you get? Find out with our payment calculator

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The CNET stimulus payment calculator can help you estimate how much money you could get from the IRS if a second check comes to be.


Sarah Tew/CNET

If Congress approves a second stimulus check by the end of 2020, how much money could you expect as a payment? There are a number of variables that factor in, so we built a handy calculator to help make estimating the amount as easy as possible.

The IRS is expected to follow the same guidelines as with the first stimulus check of up to $1,200 per person, but with a twist. If and when Congress signs off on a second direct payment, there could be changes to qualifications for you or your family members, which could result in more money for you. However, there are two different proposals for what that means, so things could get tricky. It’s important to read

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Dollar Dips on Stimulus Optimism, Bets on Biden Victory | Investing News

NEW YORK (Reuters) – The dollar fell to three-week lows on Friday on optimism that a deal for new U.S. stimulus would be reached, and as investors bet that Democrat Joe Biden is more likely to win the U.S. presidency and offer a larger economic package.

U.S. House Speaker Nancy Pelosi said she would resume talks on a possible COVID-19 stimulus package with Treasury Secretary Steven Mnuchin on Friday, while Senate Republicans voiced doubts that a deal can be reached before the Nov. 3 election.

Republican President Donald Trump, who initially withdrew from the negotiations this week only to regain interest in forging a bipartisan accord, said he was open to a larger deal.

“It seems like, at least in the White House, there is more of a sense of urgency that it needs to be done,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets

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Financial markets have waited patiently for fiscal stimulus. That might change soon

The headlines make the situation seem like a curiosity.

For investors, Wall Street analysts, and even some financial journalists, the reality of the damage to the economy, several weeks after the initial round of fiscal support expired, may indeed seem like a spectacle.

But it’s not that way for millions of Americans out of work or struggling to pay the rent or buy food in the wake of this year’s coronavirus pandemic.

It may not need saying that the longer the economy goes without another financial aid package, the worse the situation may become. But some analysts increasingly think it will also soon start to make an impact where it cannot be ignored: in the financial markets.

“Stimulus is the wrong word for this,” said David Rosenberg, a long-time strategist now running his own firm, Rosenberg Research. “This not classic Keynesian stimulus. It’s a lifeline to get us through. The

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EU Climate Change Latest News: Green Stimulus for CO2 Emissions from Buildings

The business district in Brussels, Belgium. 

Photographer: Jasper Juinen/Bloomberg

The European Union wants to at least double the pace of renovation of homes and offices over the coming decade in a bid to save more energy and meet stricter climate goals under a sweeping green overhaul.

The Renovation Wave strategy, to be unveiled by the European Commission on Wednesday, will outline steps needed to accelerate upgrades of more than 200 million existing buildings — including insulation and change of heating equipment — at a cost of nearly 300 billion euros ($355 billion) per year, according to draft EU documents seen by Bloomberg News.

Explore dynamic updates of the earth’s key data points

Buildings account for more than a third of EU greenhouse-gas emissions, and improving their energy efficiency is a prerequisite for Europe to meet its Green Deal goal of becoming the world’s first climate-neutral continent by

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Wall Street Finishes up as Stimulus Talks Continue | Investing News

(Reuters) – U.S. stocks rose on Friday and the S&P 500 and Nasdaq registered their biggest weekly percentage gains since July as optimism over more federal fiscal aid grew.

Talks were expected to continue on a COVID-19 stimulus package, even though U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed on Friday to reach agreement.

Mnuchin floated a new proposal Friday afternoon, but an aide for Pelosi said it lacked a broad plan to contain the pandemic.

Recent trading on Wall Street has been dictated by headlines on fiscal aid, with the three main indexes tumbling on Tuesday after U.S. President Donald Trump called off negotiations. He has since indicated he was willing to resume discussions.

“The market’s reacting well to Trump’s sudden turnaround in terms of a support package,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, New York. “A lot of this

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Wall Street closes higher on U.S. stimulus hopes, gold spikes and dollar drops

NEW YORK (Reuters) – International stocks rose on Friday, with all three major Wall Street indexes posting weekly gains as investors grew more hopeful the U.S. government would provide additional economic stimulus.

FILE PHOTO: A street sign is seen in front of the New York Stock Exchange on Wall Street in New York, February 10, 2009. REUTERS/Eric Thayer/File Photo

Gold jumped and the dollar dropped as investors focused on the probability of forthcoming U.S. coronavirus relief.

Wrangling in Washington over pandemic aid has dominated global markets this week, and although U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to hammer out a deal, talks will continue despite Republican doubts.

Trump said in an interview on Friday that he wants to see a bigger stimulus package than either Democrats or Republicans were offering, a reversal from his threats at the beginning of the week that he would halt

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