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U.S. House Speaker Nancy Pelosi speaks during a press conference on Capitol Hill in Washington, D.C., the United States, on Oct. 9, 2020.

House Speaker Nancy Pelosi on Sunday sent a letter to her Democratic colleagues calling the Trump administration’s latest stimulus offer “wholly insufficient.”
Over the weekend, the White House proposed a $1.8 trillion measure, a figure that’s too high for many Senate Republicans and too low for House Democrats.
On Sunday, Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows urged Democrats to pass a measure repurposing leftover funds from the Paycheck Protection Program.
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The Trump administration’s latest stimulus proposal is “grossly inadequate,” House Speaker Nancy Pelosi said in a letter to her Democratic colleagues on Sunday, suggesting Congress and the White House are no closer to a deal on a coronavirus relief package.

Over the weekend, the White House proposed a $1.8 trillion stimulus measure, angering both Senate Republicans, who consider that number far too high, and House Democrats, who passed a $2.2 trillion proposal last month.

The White House proposal includes a $400 boost in weekly unemployment insurance, $1,200 stimulus checks for US adults, and $1,000 checks for each child, The Washington Post reported.

Democrats have pushed for a $600 increase in weekly unemployment benefits and $1,200 checks for child dependents, as well as substantially more funding for state and local governments.

In her Oct. 11 letter, Pelosi decried the administration’s proposal, saying the disagreements have to do with more than the top-line numbers.

“[I]n terms of addressing testing, tracing, and treatment, what the Trump administration has offered is wholly insufficient,” she wrote.

Senate Republicans are equally unimpressed, CNN reported. “I don’t get it,” Florida Sen. Rick Scott told White House officials on a phone call this weekend, two sources told the news outlet. Tennessee Sen. Marsha Blackburn said the larger White House proposal would “deflate” the GOP base, the sources said.

With a deal between the White House and Congress seemingly out of reach, the Trump administration is also lobbying for a stimulus measure that would repurpose $135 billion in leftover funds from the Paycheck Protection Program, Politico reported.

Democrats have previously shown little interest in the idea, complaining about a lack of transparency with respect to how PPP funds were used — and seeking a much larger stimulus for an economy in recession.

In their appeal, Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows urged an end to the impasse, which last week saw President Trump call off negotiations before reversing himself in the wake of bipartisan anger.

“The all-or-nothing approach is an unacceptable response to the American people,” the officials wrote.

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FILE PHOTO: Traders gather at the booth that trades Abbott Laboratories on the floor of the New York Stock Exchange, December 10, 2012.   REUTERS/Brendan McDermid
Traders gather at the booth that trades Abbott Laboratories on the floor of the New York Stock Exchange

Crossmark Global Investment’s chief market strategist Victoria Fernandez told CNBC’s “Trading Nation” Tuesday US lawmakers need to decide on a fiscal package, even if it is smaller in size, to save consumer spending.She said consumers have almost spent their consumer checks which is worrisome going into the holiday season. “Even if it is a smaller number, or a one-time check, it is going to give support to that consumer as we go into the last quarter of the year and that is where you need to start looking at your portfolio to balance that out a little bit,” she said. She said investors should look at a combination of growth and value stocks, as well as different segments of the financial services sector to weather uncertainty. Visit Business Insider’s homepage for more stories.

US lawmakers need to decide on a fiscal stimulus package, even if it is a smaller one, to prop up consumer spending, particularly going into the holiday shopping period, Victoria Fernandez, chief market strategist at Crossmark Global Investments told CNBC’s“Trading Nation” Tuesday 

“We really need that consumer to hang in there. For that to happen, we will need to see another round of stimulus, even if it is a smaller deal, or not the $600 we saw before,” she said. “Even if it is a smaller number, or a one-time check, it is going to give support to that consumer as we go into the last quarter of the year and that is where you need to start looking at your portfolio, to balance that out a little bit.”

With around 10 million Americans still out of work, many consumers will have long since spent their first round of stimulus checks and will likely be relying on savings at this point. 

“If you look at consumption right now it is holding up, but if you look at revolving credit as a percentage of the debt households have right now, it is very small and lower than average. Which means they are spending the cash that they saved,” Fernandez said. “They are spending that extra unemployment insurance they had, if that dries up, especially as we are going into the holiday season, we will have some concerns there.” 

Read more: Morgan Stanley lays out its 5 favorite trades for investors looking to dominate a looming V-shaped recovery, even if a stimulus deal takes until 2021

Fernandez is urging investors to look at a “barbell” strategy made up of growth and value stocks to weather the stalemate in Washington over a new set of measures to protect the economy and individual households.

“We think you need to build that barbell strategy and have some of those tech names that are in there, but also have some other names like Walmart and Amazon that would benefit from people choosing to do shopping a little bit differently,” she said.

She said investors should look beyond banks and explore other segments of the financial sectors such as credit card companies such as Visa and Mastercard. 

“Banks are not an area that this time which is the strongest bet. We do need some exposure to other areas, like credit cards, Fernandez said. “You can have exposure to finance without necessarily being in the banks, with the yield curve not as steep as we would like at this point.” 

The yield curve, or difference between yields on shorter-dated government bonds and longer-dated ones, which are used to price products like mortgages, has been fairly flat, as interest rates remain low, meaning banks eke out little profit from their lending activities.

Fernandez said though she expects a deal to be approved before the US election on November 3. 

“I do think before the election we will get a stimulus deal,” she said. “Both sides want to be able to be seen as supporting the consumer and supporting those industries that have been hardest hit.” 

Read more: A fund manager beating 90% of his rivals told us why he actively avoids companies with giant profit margins — and shares 5 stocks he thinks will keep winning for years

Democrats and Republicans have been gridlocked over a deal since July. Proposals by the Democrats are unlikely to make it through the Republican-controled Senate on the grounds that they are too generous, and measures put forward by President Donald Trump’s administration have been rejected by the opposition for being inadequate.

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smiling stock exchange trader happy

US stocks rose on Monday as Democrats and Republicans inched closer to a stimulus compromise.Mega-cap companies including Apple and Amazon led indexes higher as investors rushed to the growth favorites.President Trump urged Republicans to speed up Amy Coney Barrett’s confirmation to the Supreme Court so that they can pass a new stimulus bill before Election Day.Investors also prepared for earnings season. Citigroup and JPMorgan are set to kick off reporting on Tuesday.Oil futures sank as operations temporarily halted by Hurricane Delta resumed. West Texas Intermediate crude fell as much as 3.8%, to $39.04 per barrel.Watch major indexes update live here.

US equities extended their rally into a new week as investors pushed tech giants higher.

Apple surged ahead of a Tuesday event widely expected to unveil the next generation of iPhones. Amazon climbed as it kicked off its Prime Day sale event. Other mega-caps including Alphabet and Microsoft also drove indexes’ gains.

Investors hoping for fresh government aid remained hopeful on the prospects of a near-term bill. The Trump administration raised its proposal to $1.8 trillion from $1.6 trillion on Friday, closing the gap with House Democrats’ $2.2 trillion bill.

The measure includes another round of stimulus checks and funding for the Paycheck Protection Program, but falls short of Democrats’ allocations for expanded unemployment benefits and state and local governments. 

Here’s where US indexes stood at the 4 p.m. ET market close on Monday:

S&P 500: 3,534.22, up 1.6%Dow Jones industrial average: 28,837.52, up 0.9% (251 points)Nasdaq composite: 11,876.26, up 2.6%

Read more: GOLDMAN SACHS: Buy these 15 stocks set to deliver the strongest possible profit growth and subsequent returns through year-end

Still, House Speaker Nancy Pelosi described the administration’s new offer as “one step forward, two steps back.” Pelosi and Treasury Secretary Steven Mnuchin are expected to continue negotiations throughout the week, though the odds of passing a bill before the presidential election are dwindling.

Bringing the measure to a vote in the Senate would also prove difficult, as Republican lawmakers have shifted their focus to confirming Judge Amy Coney Barrett to the Supreme Court. Four days of congressional confirmation hearings begin Monday morning.

President Donald Trump urged Republicans to speed up Barrett’s confirmation process so they can pass new fiscal relief earlier.

“Personally, I would pull back, approve, and go for STIMULUS for the people!!” he said in a Monday morning tweet. To be sure, Senate Republicans have balked at the White House’s latest offer.

Bank earnings are set to drive the market’s trajectory through the rest of the week. Citigroup and JPMorgan kick off third-quarter reporting on Tuesday, followed by Goldman Sachs and Bank of America on Wednesday.

Read more: A $2 billion fund manager says market volatility is here to stay for the long-term. He breaks down his best recommendations for the new normal — including 4 of his favorite stocks.

“The stimulus stalemate still looms large, though it failed to derail the market last week. And with high expectations for big bank earnings kicking off the season, we could get a clearer picture into just how far we’ve come in terms of economic recovery,” said Chris Larkin, the managing director of trading and investment product at E-Trade.

Communications services and consumer discretionary stocks followed tech’s lead in the market upswing. Materials and energy stocks underperformed.

Monday’s uptick followed the market’s best week since August. Renewed stimulus hopes brought investors back to stocks, and economic indicators including weekly jobless claims showed continued — albeit slowing — improvement.

Read more: ‘The largest financial crisis in history’: A 47-year market vet says the COVID-19 crash was merely a ‘fake-out sell-off’ — and warns of an 80% stock plunge fraught with bank failures and bankruptcies

Twilio shares leaped after the firm agreed to buy the data platform Segment for $3.2 billion. The acquisition is expected to close before the end of the year.

Department-store chain Dillard spiked higher after Berkshire Hathaway investment manager Ted Weschler unveiled a 6% stake in the company.

Spot gold fell as much as 0.6%, to $1,918.44 per ounce, before paring losses. The US dollar gained slightly against a basket of global peers.

Oil traded lower as operations temporarily constrained by Hurricane Delta resumed. West Texas Intermediate crude fell as much as 3.8%, to $39.04 per barrel. Brent crude, oil’s international standard, sank 3.5%, to $41.36 per barrel, at intraday lows.

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Traders gather at the post that trades Pfizer's stock on the floor of the New York Stock Exchange October 29, 2015.   REUTERS/Brendan McDermid

Global stocks rose on Monday as investors held onto hopes for a prompt deal on a new round of US fiscal stimulus, boosted by the White House’s change in position over the weekend.US stock futures rose as much as 1%, even after House Speaker Nancy Pelosi rejected the Trump administration’s latest proposal on Sunday.In Asia, China stocks rose to a two-year peak, driven by a new central bank policy that makes it easier to sell the yuan.The FTSE 100 edged slightly lower ahead of Prime Minister Boris Johnson’s expected announcements on stricter COVID-19 restrictions across the country.Visit Business Insider’s homepage for more stories.

Global stocks rose on Monday as investors largely pinned hopes on a new US fiscal stimulus deal to get across the line. 

US stock futures rose as much as 1% even after House Speaker Nancy Pelosi rejected the Trump administration’s latest proposal, or a stripped-down version of the coronavirus relief bill, calling it “grossly inadequate” over the weekend. The dollar index, meanwhile, fell 0.5%.

President Donald Trump’s team proposed a $1.8 trillion stimulus package, which includes a $400 boost in weekly unemployment insurance, $1,200 stimulus checks for US adults, and $1,000 checks for every child. 

Read more: GOLDMAN SACHS: Buy these 15 stocks set to deliver the strongest possible profit growth and subsequent returns through year-end

The MSCI World Index rose 0.7% as global markets rotate into a risk-seeking position and investor hopes persist that a fiscal stimulus package is on the horizon. But House Democrats appear to be sticking to their original $2.2 trillion plan

“Even if the White House capitulates, getting that number through the Senate will be challenging,” said Jeffrey Halley, a senior market analyst at OANDA. “With markets now totally ignoring the possibility of a fiscal stimulus package not happening and piling into the ‘buy everything’ trade, the correction if negotiations fall apart could be something to behold.”

Nonetheless, the more positive mood carried over to the European region, where the Euro Stoxx 50 index of eurozone blue-chip shares rose 0.3% and Germany’s DAX rose 0.2%.

London’s FTSE 100 fell 0.2%, ahead of a slew of new  COVID-19 restrictions across the country from Conservative Prime Minister Boris Johnson following an explosion in new cases. Britain already has the highest death rate in Europe.

In Asia, China’s benchmark index jumped to a two-year peak, after the People’s Bank of China unveiled a new policy that makes it easier to short the yuan, which was down almost 1% against the dollar.

The central bank no longer requires lenders to hold reserves when buying foreign currency forward contracts. The yuan’s appreciation is likely to resume after these measures run their course, OANDA’S Halley said.

China’s Shanghai Composite index rose 2.6%, and Hong Kong’s Hang Seng rose 2.2%, while a stronger yen knocked 0.3% off Japan’s Nikkei.

Gold rose 0.2% to $1,929 an ounce, lifted by a weaker dollar. Gold’s firmness points to “positive technical developments that should signal further gains in the week ahead,” Halley said.

Read more: SPACs have generated a $39 billion frenzy in the US this year. The executive behind their first ETF explains how retail investors can use them to level the playing field with Wall Street titans like Warren Buffett.

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steven mnuchin
Treasury Secretary Steven Mnuchin.

The Treasury has upped its offer on federal coronavirus spending by some $100 billion as it continues negotiations with Democrats, Roll Call reported.
The politics news site reported that Treasury Secretary Steven Mnuchin offered a $1.62 trillion package when talking to House Speaker Nancy Pelosi on Wednesday.
They didn’t reach a deal Wednesday but committed to keep trying, Roll Call said. But even if they do strike a deal, it could still struggle to make it through Congress.
The two parties have been in a standoff as Democrats seek to secure much more spending than Republicans.
One source of agreement is that both Mnuchin and Pelosi want another round of $1,200 checks to be sent to Americans.
Visit Business Insider’s homepage for more stories.

The Treasury is increasing the amount of money it would support for a new coronavirus spending bill as it continues to negotiate with Democrats, Roll Call reported Wednesday night.

Treasury Secretary Steven Mnuchin offered a $1.62 trillion package in his Wednesday talks with House Speaker Nancy Pelosi, the report said.

The increased offer is said to include more money for education and state and local governments than before.

Pelosi and Mnuchin met for 90 minutes without striking a deal. But after, both seemed hopeful of continuing negotiations and reaching some kind of agreement.

One issue that is not in question: Both sides have said they support another round of $1,200 direct payments to Americans.

Nancy Pelosi
House Speaker Nancy Pelosi.

This week has been the first major negotiation on more federal spending to address the economic effects of the coronavirus pandemic since talks most recently collapsed in August.

The parties have been trying to find common ground, with Democrats seeking a more expansive package: They have proposed spending $2.2 trillion. Republicans have argued for a far smaller amount.

After meeting Pelosi, Mnuchin told Fox Business that he would aim for somewhere between $2.2 trillion and an earlier offer of about $1 trillion.

“We’re not going to do a $2.2 trillion deal,” he said.

Mnuchin said President Donald Trump “instructed us to come up significantly, so we have come up from the trillion-dollar deal that we were working on earlier.”

He said the White House proposal was in the “neighborhood” of $1.5 trillion.

The politics site Roll Call said the following measures were in the latest version of the Treasury offer. The details have not been confirmed publicly or by other news outlets.

Direct payments of $1,200 for adults and $500 for dependents, which Democrats had signaled support for.$250 billion for state and local governments ($186 billion less than Democrats proposed but $100 billion more than in the White House’s previous offer).$150 billion for education (Democrats want $225 billion).$400 a week in additional unemployment insurance ($200 less than Democrats proposed but $100 more than Senate Republicans proposed).$75 billion for COVID-19 testing and tracing (this meets Democrats’ demand, while Republicans had offered $16 billion).$175 billion for healthcare (Democrats had proposed $249 billion for the Department of Health and Human Services).$10 billion for the US Postal Service (Democrats had proposed $25 billion and then dropped it to $15 billion).$160 billion for the Paycheck Protection Program.Nearly $120 billion for businesses like restaurants and entertainment venues.$20 billion for farmers and ranchers.Negotiations are underway

It is not clear whether Senate Republicans would support such a proposal.

The White House and Senate Republicans had proposed a $1 trillion plan in the summer, and in September they floated a “skinny” plan, worth $500 billion.

Senate Majority Leader Mitch McConnell recently called $2.2 trillion an “outlandish” request. He also dismissed the idea of getting a deal through Congress before the November 3 election when talking to reporters after Pelosi and Mnuchin’s meeting on Wednesday, The Hill reported.

Senate Majority Leader Mitch McConnell
Senate Majority Leader Mitch McConnell.

The source who outlined Mnuchin’s proposal to Roll Call suggested that McConnell might consider the latest proposal viable, but a spokesman for McConnell denied this.

Democrats have not yet voted on their $2.2 trillion plan, delaying it until at least Thursday to see what the outcome of talks between Pelosi and Mnuchin are.

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