(Bloomberg) — U.S. equity futures climbed after the White House appeared to shift tack and signaled the Trump administration is again leaning toward a large-scale stimulus bill. The dollar fell.

S&P 500 contracts were about 0.5% higher following news that Treasury Secretary Steven Mnuchin told Nancy Pelosi that President Donald Trump wants agreement on a comprehensive aid package. Shares in Japan dipped, while those in Australia rose. Chinese equities advanced as markets reopened after a week-long holiday. The offshore yuan climbed following a stronger-than-anticipated daily currency fixing.

The U.S. benchmark earlier closed up despite conflicting comments from Trump and Pelosi that whipsawed markets. Gains for crude oil eased as Hurricane Delta approached the already battered Louisiana coast. Treasuries ticked higher and gold climbed.



chart: MSCI gauge of global equities heads for best week since early July


© Bloomberg
MSCI gauge of global equities heads for best week since early July

Global equities are edging back toward last month’s all-time high and are having the best week since the start of July with investors increasingly betting that a Joe Biden victory in the November election and gains by Democrats in Congress will support stocks. The scenario seems to be somewhat quelling volatility even as risks from a split in government to a resurgence of coronavirus cases threaten the economic rebound. Trump’s doctor said he expects the president to safely return to public engagements by Saturday following treatment for Covid-19.

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We are seeing “an increasing probability of, let’s call it, the blue wave,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said on Bloomberg TV. That “might not be such a bad thing, because that would give us more certainty with regard to policy, particularly with the use of fiscal policy to help our economy at this point.”

Prospects for an agreement on a stimulus package in Washington remain uncertain

(Bloomberg) — Italy’s Mediobanca SpA approached Assicurazioni Generali SpA about acquiring the insurer’s private banking and wealth management unit before ultimately abandoning the plan, people familiar with the matter said.

The Milan-based investment bank decided that conditions were unfavorable for a bid on Banca Generali SpA, a listed unit of the Italian insurer that has a market value of 3.2 billion euros ($3.8 billion), said the people, asking not to be named as the talks remain private.

Representatives for Generali and Mediobanca declined to comment.



a man wearing a suit and tie: Mediobanca SpA CEO Alberto Nagel Strategy Update News Conference


© Bloomberg
Mediobanca SpA CEO Alberto Nagel Strategy Update News Conference

Alberto Nagel

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Photographer: Camilla Cerea/Bloomberg

Mediobanca Chief Executive Officer Alberto Nagel looked at a range of options to pay for the deal, including partially using shares the bank owns in Generali, according to the people. Mediobanca holds about 13% of Trieste, Italy-based Generali.

Nagel, who over the last two years has been looking to pull off a landmark deal at the bank where he’s worked since 1991, was dissuaded by the performance of Generali shares, which have lost about 35% since the beginning of the year, and by market uncertainties in the wake of the coronavirus outbreak, the people said.

Mediobanca fell as much as 1.8% in Milan trading and was down 1.1% at 6.62 euros as of 9:06 a.m. The stock has declined about 34% this year, giving the company a market value of 5.86 billion euros.

Sector Consolidation

Consolidation in the Italian financial industry is already well underway. Lender Intesa Sanpaolo SpA earlier this year announced its planned takeover of Unione di Banche Italiane SpA, while the Italian government reportedly asked UniCredit SpA executives if they’d be interested in buying the state’s majority holding in Banca Monte dei Paschi di Siena SpA.

A purchase of Banca Generali would have fit