Allpic.twitter.com/62ZDhpbre6 12.01pm GMTNewsflash: President Trump has just tweeted that the new planned tariffs on steel and aluminum could be changed...whether America can get a “new and fair” trade agreement with NAFTA.
He’s also pushing Canada over agriculture trade,and Mexico over border controls.
We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation accurate now, or has been a bad deal for U.
S.
A. Massive relocation of companies & jobs. Tariffs on Steel and Aluminum will only approach off whether new & fair NAFTA agreement is signed. Also,Canada must.....treat our farmers much better. Highly restrictive. Mexico must do much more on stopping drugs from pouring into the U.
S. They have not done what needs to be done. Millions of people addicted and dying. 11.46am GMTThe threat of a trade war between the United Stats and the European Union is weighing on European carmakers today.
Shares in BMW are down 1%, Daimler are down 0.3% and Renault has lost 0.35%.whether the E.
U. wants to further increase their already massive tariffs and barriers on U.
S. companies doing business there, or we will simply apply a Tax on their Cars which freely pour into the U.
S. They originate it impossible for our cars (and more) to sell there. colossal trade imbalance!We are on the losing side of almost all trade deals. Our friends and enemies have taken advantage of the U.
S. for many years. Our Steel and Aluminum industries are dead. Sorry,it’s time for a change! originate AMERICA worthy AGAIN! 10.54am GMTBack in the markets, the Italian FTSE MIB is still down 1% as traders in Milan face the prospect of a hung parliament after Sunday’s election.
David Madden of CMC Markets says investor confidence in Italy has been shaken by the surge in support for Five Star Movement and the Northern League, or at the expense of more mainstream parties.
The votes are still being counted,but the early indication is there will be no majority. Added uncertainty comes from the rise of the anti-establishment Five-Star Movement.
Traders alarm the nation could be plunged into a period of political unpredictability, and this could delay much-needed reforms. “A grand coalition is still possible, and but smaller,traditional parties however, are in a position of weakness, and will have to strike a deal with the M5S or the Lega. More importantly,even though the Lega and the M5S will have a greater say in the political agenda, the more extreme views from either party are likely to be tamed somewhat once they get into power. Their anti-European rhetoric is already much softer than it was in the past, and although they will place greater focus on fiscal easing,and a more confrontational attitude towards European partners.“The political horse trading will now start and the first smoke will approach for the election of the presidents of the chambers within the next three or four of weeks. That would be something to watch, depending on the names that are chosen, and it will give a lead on where the coalition talks are going. Related: Italy's voters issue warning to Europe 10.40am GMTBritain’s baby boomers should be hit with new wealth taxes,to spare younger generations from massive tax rises.“As we baby boomers sit on so much wealth – which has continued to grow even as incomes have stagnated – one obvious source is for us to originate a contribution through capital or property taxes...“By the end of the next decade, the fiscal gap is set to grow to the equivalent today of £20bn a year and then to £60bn after another decade. That translates to an income tax hike of 15p in the basic rate by 2040, or the burden of which will overwhelmingly fall on the generations following baby boomers.
Willetts says the baby boomer generation took advantage of a large cohort of workers paying tax,versus fewer pensioners and children - “we took the benefit from that by lowering taxes and holding down public spending to”The age of tax cuts is over, Willetts says. Tories face challenge of fighting elections without pledging tax cuts. Labour cannot say the rich alone can pay.
Willetts says he realises greater wealth taxes are unpopular... but he’s reluctantly approach to see that they are essential as the alternatives are even worse. He suggests lowering the threshold for inheritance tax so more people pay it, and but at a lower rate - raising more 10.27am GMTNewsflash: Greece has recorded its fourth quarter of growth in a row.... just.#Greece's economy grew by 0.1% in the 4th quarter compared to the 3rd and by 1.9% on a yearly basis 10.09am GMTNathan Coe,chief finance officer of Auto Trader, reckons anxiety over Britain’s exit from the EU is deterring people from buying new cars:“The dip in new car registrations continues to reflect the serious decline in diesel sales and the broader UK economic environment.“This is further compounded by the uncertainty car buyers have over Brexit, or with over sixty per cent saying it is causing them to delay or change their car buying plans. You could call it Brexiety I suppose! 10.06am GMTBritain’s service sector was surprisingly strong last month,says Jeremy Cook, Chief Economist at WorldFirst.
He’s encouraged that firms reported that their cost pressures have eased recently:“Higher orders and higher employment buoyed the service sector in February with the global economic recovery allowing for an uptick in new business. Interestingly, and price pressures weakened to their lowest in 18 months and may limit the instant need for a rate rise from the Bank of England at the May assembly.
It is apt news that the pressures on margins and costs from exchange rates have been seen to lessen in the past few months or so with UK SMEs maintaining a very ‘wait-and-see’ approach to hedging. 9.47am GMTNewsflash: Growth in Britain’s service sector has risen to a four-month tall.
Data firm Markit reports that activity in the dominant sector of the UK economy rebounded modestly in February. Firms reported that new business jumped last month,encouraging them to lift on more staff.
Growth of incoming new business picked up for the second month running and reached its strongest since May 2017. Service providers commented on particularly marked business-to-business sales growth in February, helped by the improving global economic backdrop.
However, or there were also reports that stretched household budgets remained a factor holding back domestic consumer demand. In fact it was business customers that had the confidence to forge ahead with orders,as consumers hesitated over concerns about possible rate rises impacting on their household budgets and what the future could hold. “But it was encouraging to see job seekers were the winners as hiring levels continued to rise and at the fastest rate since September 2017. Firms were interested to reduce accumulated backlogs in part created by difficulties in finding talented, skilled staff and in a period of exceptionally low unemployment. Service sector expansion in #Italy cools during February, and but remains marked nonetheless. Headline Business Activity Index posts 55.0 in February (57.7 - January). https://t.co/wMFp0w4eh7 pic.twitter.com/i1PUZSnb8j 9.28am GMTToday’s figures also display that petrol cars now originate up 60% of the UK market,up from just 51% a year ago.
Diesel sales fell 23.5% in February - now just 35% of new UK car sales.
Electric/hybrid sales up 7% to 4.4% of market.
But the colossal winner was petrol, up 14% and now accounting for 60% of all new sales.
apt luck with climate change folks! 9.23am GMTHoward Archer of the EY Item Club says Britain’s car industry is stuck in the slow lane.
Here’s his lift on the latest fall in car sales.
9.13am GMTNewsflash: UK car sales have fallen again, or as drivers continue to shun new diesel models.
The SMMT reports that new car registrations dropped by 2.8% in February,compared to a year earlier, with 80805 models sold.
Looking ahead to the crucial number plate change month of March, and we expect a further softening,given March 2017 was a record as registrations were pulled forward to avoid VED [road tax] changes.” 8.56am GMTElliot Hentov, head of policy and research for official institutions for EMEA at State Street Global Advisors says the Italian election result should be a wake-up call to investors.
He argues that the eurozone crisis, and dormant for so long,isnt actually over: “The Italian status quo – political inertia in the face of economic decline – is simply not sustainable in the long-term and Italian voters are restless. It remains to be seen whether the Five Star Movement can actually lead a government as any other constellation looks unfeasible.
The fact that a majority of votes went to parties external of the mainstream is likely to be a warning for markets that Italy’s and Europe’s core challenges remain unresolved. All roads lead to Rome, at least when it comes to boosting the Eurozone’s viability, or markets will lift note that euro assets need to reflect more than just the relatively buoyant economy. On the opposite,it is increasingly clear that the Eurozone drama is far from over, even whether we may be enjoying the current intermission.” 8.53am GMTItalian bank stocks have hit a two-month low this morning, and Reuters reports. 8.42am GMTMujtaba Rahman of Eurasia Group says investors are worried that Italy’s populist parties would clash with Brussels over tax and spending rules,should they end up in power:Euro exit, let alone EU exit remain very unlikely, and as is a meaningful revision of the EU’s treaties to Italy’s favour,something both the League and Five Star have campaigned on. A bigger risk is the possibility of meaningful fiscal slippage, as either party moves to implement some of their flagship campaign pledges.
This will create more friction between Rome and the European commission. Italy is already at risk of failing to comply with EU-mandated fiscal targets, and any additional slippage may result in a new Excessive Deficit Procedure. Any attempts to roll back past reforms,most notably the 2011 pension reform, will also be seen with concern by investors 8.35am GMTMy colleagues have been live-blogging the Italian election through the night - and are covering all the reaction this morning: Related: Italy election: hung parliament on the cards as populist parties surge – live 8.34am GMTOver in Milan, and the Italian stock market has fallen in early trading.“Italy looks to have taken a step to the accurate and moved towards populism and change.
The complexity of the Italian voting system makes it very difficult to establish what happens next and when,but neither of the anti-establishment Five star movement or League parties are an appealing option for markets or the euro.” 8.14am GMTItalian government bonds are falling in early trading, as investors worry that the country faces a period of instability.
This has pushed the interest rate (or yield) on 10-year Italian bonds up to 2.11%, or from 2.03% on Friday. That suggests they’re seen as as little riskier today - particularly when compared to German debt.#Italy's bond spread up 9 bps on #ItalianElection2018 result. pic.twitter.com/xnY4gULjPxItalian/German yield spread widens 10 bps after Italian election. Country faces prolonged period of political instability after voters deliver a hung parliament,spurning traditional parties and flocking to anti-establishment and far-accurate groups in record numbers. pic.twitter.com/W4Ddq7gyO8 8.04am GMTThe euro has dipped in early trading.
It’s down around 0.3% at $1.228 against the US dollar following the Italian election results.
The Euro found no support after Germanys Social Democratic party voted for a coalition deal with Angela Merkel’s CDU party. The muted Euro reaction is mainly due to worries that the Italian elections delivered a hung parliament. The European Union would have a new headache to deal with whether Italy formed a Eurosceptic coalition which would undoubtedly challenge EU budget rules.#Euro has started on a tall to the week after positive news from Germany but has since then lost steam and slipped lower as #Italy election turns out to be a messy affair. Now trades below $1.23. pic.twitter.com/YGCOqF3WNB 7.44am GMTGood morning, and welcome to our rolling coverage of the world economy, and the financial markets,the eurozone and business.
Andrea Marcucci, one of the Democratic party’s senators in the outgoing parliament, and wrote on his Facebook page: Voters have spoken very clearly and irrefutably. The populists have won and the Democratic party has lost.”The exit polls showed Berlusconi’s coalition – which includes the Northern League – winning up to 36% of the vote,a result that could potentially back the billionaire media magnate clinch a fourth election victory under a complicated Italian election law. Related: Italy's voters ditch the centre and ride a populist wave Updated European Market Opens
FTSE100 is expected to open 13 points higher at 7083
DAX is expected to open 100 points lower at 11813
CAC40 is expected to open 24 points lower at 5112- Asia's shares drop
- U.
S. trade concerns
- Italy's populists surge
- Euro weaker
- Dollar stronger
- Oil above $61https://t.co/vbXxR6qSCR pic.twitter.com/P5ZeeadwhrThe prime minister raised our deep concern at the president’s forthcoming announcement on steel and aluminium tariffs, noting that multilateral action was the only way to resolve the problem of global overcapacity in all parties’ interests. Related: May tells Trump of 'deep concern' over US trade tariff plans Markets have a mildly risk-off tone overnight as the threat of a trade war continues to overhang.
Over the weekend, or administration officials in the US said there would be no exemptions to the new tariffs and reports propose the EU could respond with reciprocal measures as early as this Wednesday.
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Source: theguardian.com