The Opening Belle

 European Opening Calls:#FTSE 5887 +0.35%#DAX 12808 +0.37%#CAC 4829 +0.52%#AEX 551 +0.53%#MIB 19102 +0.46%#IBEX 6756 +0.59%#OMX 1833 +0.19%#STOXX 3210 +0.50%#IGOpeningCall— IGSquawk (@IGSquawk) October 1, 2020 

 US Treasury Secretary Mnuchin: We Have Reached Agreement On Direct Payments To Americans— LiveSquawk (@LiveSquawk) September 30, 2020 

A person briefed on Mnuchin’s plan said it included $250 billion for state and local governments, which is $186 billion less than Democrats want in their latest $2.2 trillion package, but $100 billion more than the White House offered in talks that broke down over the summer.

On unemployment insurance, Mnuchin proposed a $400 per week federal benefit, retroactive to Sept. 12 and lasting through Jan. 1, 2021, according to the source, who described the package on condition of anonymity. That's less than the $600 a week Democrats want, but $100 more than Senate Republicans have proposed.

 There were 4.5 unemployed people per job vacancy in the August quarter, down from 7.1 three months earlier. Include the underemployed and that jumps to 11.8 people per job vacancy. While improved, that's still a dire situation for jobseekers #ausbiz #jobs @IndeedAU pic.twitter.com/6l1iYCauC5— Callam Pickering (@CallamPickering) October 1, 2020 

"The disappointing contraction of manufacturing and the slump in manufacturing employment in September is a timely reminder that recovery from the COVID-19 crisis, at least in its initial stages, will be tentative and prone to periodic setbacks.

Manufacturing activity was demonstrably dragged down by the Melbourne lockdown and associated restrictions in other parts of Victoria as well as the tougher border barriers put in place in response to the Melbourne outbreak.

However, other factors also contributed to the weakness in September: the construction sector in general and residential building in particular is contracting in the face of cyclical and structural forces and this is impacting heavily on demand for manufactured building materials; exports which fell in September, are vulnerable to disruptions in demand in other countries; and the continuing slump in business and household confidence is holding back spending and demand for a wide variety of manufactured goods – as reflected in the fall in new orders in September.

There is clearly a need for further fiscal stimulus in next week’s federal Budget to help rebuild the confidence that is needed to get businesses investing and households spending," Mr Willox said.

"Latest PMI data showed the recovery in Australian manufacturing sector gaining pace in September, with output and sales increasing solidly.

Other survey indicators suggest that the upturn has further room to continue. "A renewed increase in backlogs of work, which reflected rising capacity pressure, led firms to expand their workforce numbers for the first time since late 2019.

Purchasing activity was also up for a third straight month to meet higher production requirements.

"Business confidence consequently improved further, with optimism at its strongest for nearly one-and-a-half years, amid rising expectations of a sustained recovery from the pandemic.

"The survey also highlighted the severe pressure on supply chains due to limited freight capacity globally and import restrictions at home.

The reduced availability of inputs may therefore limit output growth in the coming months even if demand continues to rise."

Exports from South Korea jumped 7.7 percent from a year earlier to USD 48 billion in September 2020, the first time increase in seven months and the strongest growth since October 2018, and beating market expectations of a 2 percent rise, as more countries gradually reopen the economy, after loosening of restriction measures to combat the spread of the coronavirus.

Exports of chips surged 11.8 percent, while exports of automobiles jumped 23.2 percent, marking the first increase in six months.

Also, exports of electronics spiked 30.2 percent, while exports of computers soared 66.8 percent.

Amid the coronavirus pandemic, exports of bio-health surged nearly 80 percent.

Meanwhile, exports of petrochemical products fell 5.3 percent, due to the falling global oil prices.

Among key trade partners, exports rose to China (8.2 percent), the US (23.2 percent), ASEAN (4.3 percent), the EU (15.4 percent), while dropped to Japan (-6 percent).

On 1 and 2 October, EU leaders will meet in Brussels to discuss foreign affairs, in particular relations with Turkey and the situation in the Eastern Mediterranean. The leaders are also expected to address relations with China, the situation in Belarus and the poisoning of Alexei Navalny. The single market, industrial policy and digital transformation are also on the agenda.