Fri, 10/09/2020 – 13:53
- *TRUMP SAYS HE’D LIKE TO SEE BIGGER AID PACKAGE
- *TRUMP SAYS HE WANTS MORE AID THAN EITHER PARTY IS OFFERING
The chaos agent is back… or is this Art of The Deal:
…walk away from stalled talks, get in your car and drive off, leaving the other side stunned and, hopefully, softened up for compromise. Then you restart negotiations with each side a little more flexible, and — in this case the crucial second part of the strategy — the deal broken up into bite-sized, and thus more easily doable, parts.
* * *
Update (1245ET): FBN senior correspondent Charles Gasparino has just confirmed that while McConnell has apparently opened the door to a deal, many within the GOP’s Senate caucus are still generally opposed.
SCOOP: Senate GOP sources tell me and @LJMoynihan latest stimulus proposal being floated by @larry_kudlow @stevenmnuchin1 @realDonaldTrump @SpeakerPelosi still faces stiff resistance in GOP senate and as of now @senatemajldr does not have the votes for a $1.8 trillion package
— Charles Gasparino (@CGasparino) October 9, 2020
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Update (1215ET): The White House has reportedly increased its COVID-Aid package total size to $1.8 trillion (compared to Democrats’ $2.2 trillion, down from their earlier $3.5 trillion offer).
Mitch McConnell says he “doesn’t know if there’ll be a deal or not.”
Politico says The White House and Congress will work on the deal through the weekend.
* * *
President Trump appears to have reversed almost entirely from Tuesday’s ‘no deal’, tweeting that:
Covid Relief Negotiations are moving along. Go Big!
— Donald J. Trump (@realDonaldTrump) October 9, 2020
This was confirmed by Larry Kudlow, who noted that President Trump had agreed a revised stimulus package, clearing the way for a relatively broad-based deal including airline bailouts, extended PPP, and additional aid for small businesses… though no state bailout.
Sending stocks soaring…
Quite a reversal…
and Bond yields spiking…
If anyone really believes Pelosi will act on this, we have abridge to sell you too. Also, it would seem the algos have already forgotten what Mitch McConnell said earlier – no deal!
And just as a reminder, former White House chief of staff Mick Mulvaney said this last week on Fox Business:
“We always needed to put Kudlow on TV — on your show — when we needed the markets to go up.”
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Author: Tyler Durden