News 

Tariffs are taxes, and taxes are not political winners

“Trump ought to wrap up a deal as soon as possible and take down all the new tariffs he has imposed” reports washingtonexaminer.com. Tariffs are not as economically destructive as income taxes are, and they are not as politically unpopular.President Trump has increased taxes on imports — that is what tariffs are — unilaterally.And if tariffs did bring manufacturing back home, the factories would be filled with robots rather than guys from Youngstown, Ohio.He has cut corporate taxes and individual income taxes. Source: washingtonexaminer.com

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Eyeing economic growth, South Africa seeks to renegotiate old renewables projects

“Renewable energy projects are protected by more than 140 billion rand ($9.4 billion) of state guarantees, exposing the government to huge penalties if it were to terminate or breach existing agreements” writes Midwest Communications Inc for 95kqds.com. Putting too much pressure on them would risk deterring renewable energy investment just as the country is suffering nationwide power cuts.A simpler way to lower power prices could be to give the go-ahead for projects to refinance their debt.Jason van der Poel, a partner at law firm Webber Wentzel who represents power firms,…

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One measure shows Americans have paid an extra $34 billion in tariffs since the start of the trade war with China

“While the White House has often asserted that foreign exporters pay tariffs, study after study has found that costs largely fall on business and consumers” writes Finanzen Net Gmbh for businessinsider.com. Businesses and consumers in the US have paid an additional $34 billion in tariffs from the start of the trade war in February 2018 through August 2019, according to the free-trade advocacy groups Tariffs Hurt the Heartland and the Trade Partnership.The groups estimated that in August alone, Americans paid $6.5 billion in tariffs.As President Donald Trump escalated a trade…

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Markets News Regulators 

Trump’s trade tweets have moved market’s Fed expectations, Goldman says

“By contrast, the bank said, “the evidence that President Trump’s trade-related tweets affect market expectations of Fed policy is strong.”” writes Holly Ellyatt for cnbc.com. “Once again, there are many tweets that garner little reaction, but there are also quite a few trade policy tweets that lead to sizable swings.There’s only “weak evidence” that President Trump’s tweets criticizing the U.S. Federal Reserve move market monetary policy expectations, Goldman Sachs said in a research paper published Monday, but there is “strong” evidence that his trade-related tweets do affect market expectations of…

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Markets News 

Asia markets mixed ahead of this week’s US-China trade talks

“Asia markets were mixed on Monday as investors awaited a fresh round of U.S.-China trade negotiations expected to begin later this week” writes Eustance Huang for cnbc.com. Ahead of this week’s trade talks between the world’s two largest economies, there were reports that Chinese officials are growing hesitant to pursue a broad trade deal with the U.S. Principal-level trade negotiations between the United States and China are set to begin on Thursday in Washington.”If the market pricing of rate cuts do increase, it will definitely have a negative impact on…

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Where the U.S.-Japan trade deal falls short of Trans-Pacific pact abandoned by Trump

“WASHINGTON (Reuters) – U.S. President Donald Trump has called his new trade deal with Japan a “phenomenal” victory for U.S. farmers” writes Midwest Communications Inc for 95kqds.com. The U.S.-Japan deal prohibits these, as well as unreasonable security requests for source code.Apart from the lack of improved access for butter and milk powder, exact details of cheese provisions in the U.S.-Japan deal are not yet known.The main improvement over TPP comes from the U.S.-Japan digital trade agreement, say congressional aides and tech industry officials briefed on it.Abe said Trump agreed not…

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The EU signaled it won’t retaliate after Trump said he’d slap Europe with $7.5 billion in tariffs

“Rosario’s comments come after the US said it would impose almost $7.5 billion worth of tariffs on European goods, including Airbus aircraft parts, and luxury goods like cheese, wine, and whiskey” writes Finanzen Net Gmbh for businessinsider.com. After the trade body made the decision, Trump took to Twitter, saying  it was “A nice victory!” adding that the EU “has for many years treated the USA very badly on Trade due to Tariffs, Trade Barriers, and more.”. The tariffs will affect a range of goods — here’s a list of what’s…

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The US will reportedly slap $7.5 billion worth of tariffs on European imports

“The new European tariffs will be in the full amount of the $7.5 billion authorized by the WTO, according to The Wall Street Journal” writes Finanzen Net Gmbh for businessinsider.com. Earlier on Wednesday, the WTO reached a historic ruling that authorized the US to impose punitive tariffs on $7.5 billion worth of European products.The US is expected to dramatically escalate trade tensions with Europe this month after a decision from the World Trade Organization on Wednesday. Source: businessinsider.com

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U.S.-China talks in October won’t stop tariff hikes, but more progress could arrive in November, Morgan Stanley says

“But analysts at Morgan Stanley say tariff increases scheduled to go into effect on Oct. 15 on $250 billion Chinese goods are likely to go ahead” writes European Markets Editor for marketwatch.com. With Chinese negotiators scheduled to visit Washington in October, it would be natural to expect progress in the trade tensions the two sides are imposing on each other. As the trade talks ebb and flow, the S&P 500 SPX, +0.56%   has climbed 1.1% this quarter, while the Shanghai Composite SHCOMP, -0.92%   has slipped a little over…

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