EconBites Weekly Read.
20 - 26 Dec 2020, Week 4
HIGHLIGHT STORY
US stimulus deal sent back to Congress
Link to article (NBC)
Trump sent the pivotal $900bn (£665bn) stimulus package back to Congress, arguing that the one-
time payment to Americans should be $2,000 instead of $600.
The coronavirus relief package is also attached to a $1.4tn federal budget, risking a partial
government shutdown if it fails to pass.
Democrats blocked Republican attempts to cut foreign aid, with the latter refusing to allow the
increase in coronavirus payments to $2,000.
Unemployment benefits are due to expire on Saturday if the bill is not enacted, and a moratorium on
evictions may not be extended.
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EconBites Weekly Read.
20 - 26 Dec 2020, Week 4
UNITED KINGDOM
Social media giants face big fines and blocked sites under new UK rules
on harmful content
Link to article (CNBC)
The U.K. government is looking to mandate stricter content laws on online platforms, which mainly
affects tech giants, and proposes fines of up to £18 million or of 10% of their annual global revenues,
whichever is higher.
U.K. Signs Continuity Trade Deal With Mexico, Keeps EU Benefits
Link to article (BBC)
The U.K. signed a continuity trade deal with its 31st largest trading partner, Mexico, thereby
preserving the benefits of the treaty it had with the country through the European Union.
It has now signed deals with 58 countries, covering about 15% of its total trade.
U.K. to Halt Subsidies for Fossil Fuel Projects Abroad
Link to article (NYTimes)
The prime minister’s office said that Britain would end financing, aid and trade promotion for new
projects overseas to extrade or use crude oil, natural gas or the type of coal burned to generate
electricity.
This is a big step given that the British government has supported about $27.8 billion of British
involvement in overseas oil and gas projects in the last four years.
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EconBites Weekly Read.
20 - 26 Dec 2020, Week 4
MALAYSIA
World Bank: Malaysia’s economy declined by 2.6pc in Q3 2020, but
performed better than previous quarter
Link to article (Astro Awani)
In a Recession: In 2020, Malaysia’s These industries have been identified so as to generate high value-
added activities and products, high-skilled employment and to achieve the green agenda.
Fiscal Deficit: The recession and subsequent fiscal policies to curb the economic fallout has led to
wider fiscal deficit.
New businesses mushroom in Malaysia despite COVID-19 pandemic
gloom
Link to article (Bernama)
32,469 businesses have shut down since March 2020. However, nearly 280,000 new businesses
registered in Malaysia between March and September, despite the economic slowdown caused by the
pandemic.
Gig economy rides out Covid-19 storm
Link to article (Bernama)
The number of gig workers, e-hailing and delivery services in particular, have increased significantly
this year due to increased consumer demand for delivery services and retrenchment as a result of
the Movement Control Order (MCO).
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EconBites Weekly Read.
20 - 26 Dec 2020, Week 4
WORLD
Emerging Asian stocks, currencies drop as virus spike threatens
recovery
Link to article (NYTimes)
Stocks and currencies across the emerging Asian markets slipped on Tuesday as a spike in Covid-19
cases and restrictions globally affected China’s factory output, along with investors' sentiments that
range from vaccine hope and economic reality.
Chinese Economic Recovery Continues, Expected to Continue into 2021
Link to article (Bloomberg)
The key driver for the Chinese economy is its strong exports, with strong consumer sentiment which
can be seen through the Single’s Day event in November. The accelerated recovery seen so far in the
fourth quarter looks set to continue into 2021, which is aided by stronger demand, credit growth, and
stimulus measures.
Astra-Zeneca to acquire Alexion for $39 billion
Link to article (Bloomberg)
After recent success with its Covid-19 vaccine in tandem with Oxford University Astra-Zeneca is
attempting to break into the rare diseases market by acquiring Alexion
Projected earnings in three years resulting from this deal are estimated at around $500 million
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