Markets Live: Green List green light? US infrastructure deal & more
Good morning and welcome to the IC Markets Live Blog for the latest news on your investments.
Green list updated, but EU quarantines could create complications
The government updated its “green list” for travel yesterday, adding Malta, Madeira, the Balearic Islands and Barbados as travel destinations where travelers do not require quarantine. The changes will take effect on June 30th at 4 a.m.
Transportation Secretary Grant Shapps also said the government plans “later this summer” to lift quarantine requirements for fully vaccinated individuals traveling from “yellow list” countries. This is expected to be done in phases, starting with the return of UK residents from abroad rather than foreign tourists. More details will be announced next month.
The European summer vacation could face further complications, however, as Chancellor Angela Merkel urges EU countries to quarantine travelers from the UK to slow the spread of the Delta variant. Merkel told the German Bundestag: “[i]In our country, when you come from Great Britain, you have to be in quarantine – and that’s not the case in every European country, and I would like that. “
Your proposal is supported by French President Emmanuel Macron, who says: “[a]Above all, we have to be very coordinated. “
The travel industry’s response to the updated Green List has been mixed.
Heathrow boss John Holland-Kaye said: “[i]It is very positive news that ministers are following the science and that fully vaccinated people can travel safely without quarantine later this summer. “
But easyJet (EZJ) Managing Director Johan Lundgren says: “This is still not the safe and sustainable reopening of travel that the government has promised … With two thirds of UK adults expected to be double stabbed by July 19th, it’s now Time to let UK citizens benefit from the success of the vaccination program. “
Non-partisan infrastructure agreements bring the S&P 500 to a new record high
Flanked by a group of Republican and Democratic senators, President Biden announced yesterday that an agreement had finally been reached on an infrastructure spending package. The bipartisan agreement includes investments of approximately $ 1 billion (£ 720 million) over the next eight years – of which 579 million will be invested.
“Let me be clear: Neither side got everything they wanted in this deal, and that means compromise,” Biden said yesterday.
The new proposal is insignificant in detail, but includes spending of USD 109 billion on roads and bridges, and USD 65 billion.
Part of the infrastructure stalemate has been funding such high investments, with Republicans vehemently opposed to higher corporate taxes. The bipartisan plan includes a number of measures to increase revenue, such as increasing the Internal Revenue Service’s (IRS) capacity to enforce tax laws.
Although the deal is currently backed by 21 senators from both aisles, there are still doubts as to whether it can get the 60 votes it needs. Some Democrats want assurances that the rest of Biden’s ambitious spending plans will be followed through the reconciliation process, which only requires a simple majority in the Senate.
House Chairwoman Nancy Pelosi said yesterday that “we will not pass a bill in the House until the Senate passes bipartisan law and a law of reconciliation.”
Despite the uncertainty ahead, Wall Street was encouraged by the progress that had been made. The S&P 500 rose 0.6 percent yesterday to hit a new high of $ 4,266.
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