Financial markets keep rising, despite the postponed meeting between the United States and China. The back-to-school season is fast approaching, while Covid-19 keeps spreading.

The U.S. presidential election will be held in 78 days (November 3). A lot can happen between now and then, although Joe Biden maintains a comfortable theoretical lead over Donald Trump. The trajectory of coronavirus contaminations and deaths seems to have been reversed in the United States, but is it sustainable? Will an effective vaccine candidate be announced in this time frame? Will the unknowns in China, the trajectory of the financial markets and the support plan change the situation?

Meanwhile, the ties - diplomatically severed some 40 years ago - between Washington and Taipei have just been renewed. After long discussions, Taiwan has committed itself to buying F-16s from Lockheed Martin. The contract could be worth up to USD 62 billion. Taiwan is not officially recognized as an independent state by the UN. The territory is indeed claimed by China. Beijing had recently opposed the rapprochement between the USA and Taiwan, accusing the United States of endangering peace.

This agreement will not improve Sino-American relations, which are already severely damaged. According to Marshall Billingslea, Washington is reportedly in discussions with its Asian allies on the deployment of medium-range missiles to combat the Chinese nuclear threat.

Also, in the news, Japan released its GDP figures this morning, which were down 27.8% year-on-year and 7.8% quarter-on-quarter, the country has just experienced its largest drop in activity on record. Thailand also released its figures this morning, down 12.2% (YoY).

In the United States, the Empire Manufacturing Index and the NAHB June property price index are on the agenda.