The Opening Belle - Just Buy Everything

Opening Belle

The post-election risk rally continues apace.

Is this what they call a relief rally?

European Opening Calls:#FTSE 5985 +1.27%#DAX 12680 +1.60%#CAC 5039 +1.56%#AEX 581 +1.43%#MIB 19977 +1.50%#IBEX 6951 +1.18%#OMX 1843 +1.29%#STOXX 3252 +1.51%#IGOpeningCall
— IGSquawk (@IGSquawk) November 9, 2020

Bank of Japan closely watching forex market after Biden's win

The government and Bank of Japan officials are keeping a close eye on foreign exchange rates following Democrat Joe Biden’s victory in the U.S. presidential election.

They are concerned that any sharp rise in the yen’s value against the dollar will deal a serious blow to the Japanese economy already struggling with the coronavirus pandemic, sources familiar with their thinking said.

The BOJ plans to continue its monetary easing policy. It is considering expanding and extending its coronavirus relief measures, set to expire at the end of March next year.

But the central bank could be forced to consider additional stimulus measures if the yen rises sharply against the dollar, the sources said.

The government is considering assembling a third fiscal 2020 supplementary budget to stimulate the economy. It may be forced to add measures to cushion the impact of a strong yen, the sources said.

Yen has weakened ∽40 pips since the open.

Everyone's getting excited over a return to stable trade relations.

This headline amused me more than it should have.

Man elected president of America, no longer puts America first.

Anyway, the EU just cannot wait.

According to the FT, trade ministers will meet today to plan a 'reboot' of transatalantic relations.

“We want to quickly fix ongoing disputes we have with the US, so we can move on and reboot our transatlantic co-operation,” Valdis Dombrovskis, the EU’s trade commissioner, told the Financial Times. “We have a very positive agenda we can build on with our American partners, with many areas of common interest.”

The European Commission is set this week to target almost $4bn worth of US goods, including tractors, groundnuts and gym equipment, with additional import duties as part of the two side’s 16-year-old dispute over state aid to Airbus and Boeing. But Brussels has emphasised that it hopes the retaliatory move will pave the way to a settlement of the long-running spat, after the US raised tariffs on European products last year.

The bloc’s trade ministers will hold a virtual meeting on Monday to try to work out how to build a common transatlantic front with the Biden administration on strategic challenges such as reining in China’s trade practices and tackling the Covid-19 pandemic.

EU diplomats underline the urgency of turning the page on four years marked by recurrent bouts of transatlantic trade tension.

...the strong hope within the EU is that, under a Biden presidency, the union will be treated as a partner rather than a threat, and that common cause can be found in defending the international system of rules-based trade.

A return to the “old normal” of life before the Trump presidency “is not on the cards” said one EU diplomat. “But at the same time the US will remain an indispensable trade partner for the EU. The same is true the other way around.”

Biden is prioritising Covid-19 and will announce his task force today

Joe Biden plans Monday to name a 12-member task force to combat and contain the spread of the coronavirus, sources tell Axios.

Why it matters: By announcing a COVID task force even before unveiling his senior White House staff or a single cabinet appointment, Biden is signaling that addressing the coronavirus will be the immediate priority for his transition, and then his potential administration.

While Biden still hasn't declared victory in Tuesday's election, his team is already planning to govern, and he and his advisers want to reassure the country they can address a health crisis that's getting worse, not better.

Although he still hasn't officially won.

President-elect Joe Biden’s campaign on Sunday urged the Trump political appointee who heads the U.S. General Services Administration to approve an official transition of power despite President Donald Trump’s refusal to concede.

The Biden campaign warned that U.S. national security and economic interests depended on a clear signal the country would engage in a “smooth and peaceful transfer of power.”

Biden was declared the winner of the Nov. 3 election by U.S. television networks on Saturday, but Trump and his allies have made clear he does not plan to concede anytime soon.

GSA Administrator Emily Murphy, appointed to the job by Trump in 2017, has not yet determined that “a winner is clear,” a spokeswoman said, delaying the Biden team’s access to millions of dollars in federal funding and the ability to meet with officials at intelligence agencies and other departments.

The spokeswoman declined to say when a decision could be made.

Probably shouldn't get their hopes up...

Trump does not plan to concede any time soon, aides and allies indicate

“The simple fact is this election is far from over. Joe Biden has not been certified as the winner of any states, let alone any of the highly contested states headed for mandatory recounts, or states where our campaign has valid and legitimate legal challenges that could determine the ultimate victor,” Trump said in a statement released by his campaign around midday.

The president’s allies and advisers privately admitted that the former New York businessman’s chances of overturning the election results and staying in the White House were slim. While preparing for an eventual concession, they called for time to let the legal challenges run their course.

“He should allow the recounts to go forward, file whatever claims there are, and then if nothing changes he should concede,” said one Trump advisor.

Looking ahead, nothing much to get excited about on the calendar

Central bank speakers are back in action this week, with ECB's Lagarde & Mersch, plus BOE's Bailey this morning.

This afternoon, BOE's chief economist Haldane gives us his insight on 'The Economic Impact of COVID-19 & long-term UK implications', and the Fed's Mester & Harker will be speaking too.

Onto the important news...

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