What’s going on?

Despite taking more than half a year and deteriorating of some many economic indicators,  the US government finally put together a $900 billion coronavirus economic aid package.

What does this mean?

• It’ll become the second-biggest economic rescue measure in the US’s history – second only to the $2 trillion aid package passed in March.
• But the package might be too little too late for the almost 8 million Americans who have fallen into poverty since the last round of benefits expired.

Why should I care?

For markets: Hope for investors

• Governments and central banks all over the world have spent this year promising to do whatever it takes to soften the economic situation. That might’ve given investors more confidence in future company profits and stock prices – hence the rebound of financial markets.
• Now, though, those investors are relying on all this extra support to keep the global economy afloat until enough vaccinations have been distributed.

The bigger picture: The UK might follow

The UK might be longing for the extra money:

• Parts of Britain were plunged into an even stricter lockdown after the appearance of a new coronavirus strain that is thought to be 70% more transmissible.
• Thousands of businesses have been told to shut up
• Countries across the world have stopped travel from the UK.

Content source: 
1. Finimize. (2020) Thrilled To Pieces. Available at: https://www.finimize.com/wp/news/thrilled-to-pieces/ [Accessed on December 25, 2020]