WTI nears week high, caution ahead of OPEC+ meeting
The West Texas Intermediate (WTI) futures on NYMEX were moving higher towards a weekly high near .25 in Tuesday’s European trading.
inflation
Husic’s Corporate Tax Cut Calls
The Greens criticize Cabinet Minister Ed Husic’s call to lower the corporate tax rate, stating that it is out of touch with the struggles of Australians. They argue that one in three of Australia’s biggest corporations pay no tax and should be the focus instead. The Greens advocate for a tax system where big corporations pay their fair share to fund essential public services and suggest introducing a super profits tax. They believe that lowering corporate taxes would sabotage climate efforts and reward polluting industries.
German business sentiment stagnates in May
German business morale stagnated in May, with the Ifo institute reporting that the business climate index remained constant at 89.3, falling short of the forecasted improvement. The German economy is expected to have slow progress in its recovery this year, with companies being less satisfied with the current business situation. Despite some sectors recovering, the overall outlook remains cautious.
🔒 Why Biden is the best president that business could hope for
Fact: No Democratic president since at least Grover Cleveland in the late 19th century has been beloved by American business.
Euro steadies as markets eye Eurozone, US inflation data
The EURUSD pair is trading around 1.0850 in a tight range. ECB policymakers are hesitant to commit to further rate cuts beyond June due to concerns about reviving price pressures. Traders have lowered expectations of three rate cuts to two this year. Higher wage growth is leading to increased consumer spending and inflationary pressures. Germany’s Ifo Business Climate data for May missed estimates, with the Business Climate Index, Current Economic Assessment Index, and Expectations Index all falling short of expectations.
Illegal work , ‘a problem for all’
Illegal and undeclared work in Cyprus is a growing trend, particularly in the construction industry, where it is approaching 25%. The Cyprus economy relies on employing people other than Cypriots, but this needs to be done with appropriate regulations. Third country personnel are attracted through illegal procedures in the promise of a job. The construction sector contributes about 15% to the island’s GDP, with optimistic forecasts for 2024. There are currently 40 projects underway in the construction sector worth €862 million.
Americans must pay higher taxes if they want to keep a high standard of living
The U.S. government faces fiscal challenges that will require higher taxes, regardless of the presidential election outcome. The federal deficit is projected to grow to 6% of GDP by 2033, and debt held by the public will increase to 114% of GDP. The 2017 Tax Cut and Jobs Act simplified and cut individual income taxes and lowered business taxes, with most individual tax cuts expiring in 2025. President Biden’s proposed budget includes repealing benefits for high-income families and raising taxes on the wealthy. If former President Trump is reelected, the TCJA is likely to be extended, costing at least .3 trillion through 2033. Trump has proposed tariffs on imports from China and lowering the federal corporate tax rate. These proposals could lead to a financial “train wreck” for the nation.
A bank windfall tax is not the answer in Cyprus
Since 2022, the huge deposits held by banks at the ECB have been earning millions in interest.
Crude oil pares losses, WTI rebounds into congestion
West Texas Intermediate (WTI) rebounded on Friday, recovering from a fresh 12-week low set early in the day at .03. The benchmark US crude remains down on the week, in the red by -2.38% from Monday’s opening bids.
Stellantis CEO: electric vehicle tariffs are a trap
Stellantis CEO Carlos Tavares expects a major battle with Chinese rivals in the European market for electric vehicles, warning of significant consequences for jobs and production. The European Commission will unveil an initial decision on potential tariffs on Chinese EV imports on June 5, and China has been threatening counter tariffs. Tavares believes that tariffs would fuel inflation, impact sales and production, and create overcapacity in the European auto sector. Stellantis is in discussions with labor unions about the risks they are facing and how to navigate the challenges ahead. The company will start selling EVs from its Chinese partner, Leapmotor, outside China starting in Europe in September. Tavares aims for Stellantis to be part of the Chinese offensive rather than purely defensive against Chinese competition.