5 Highlights In The Economy This week
Market News – 20/08/18
There’s no denying the fact that nearly every country is struggling to improve their economy to stay on the safe side. China and US are neck and neck in the economy contest. This weekend, we’ve got some interesting economy news for you. Let’s have a look at them below:
The US’s Latest Duties On Chinese Goods Could Be ’Painful’
During an interview given to CNBC on Tuesday, the governor Rick Snyder said that the new duties can be painful for Michigan, which is home to country’s largest automakers – Ford Motor, General Motors, and Fiat Chrysler. The President Trump’s trade policies could send car prices through the roof, Synder further told CNBC.
Trump announced on Monday that a 10% tariff on Chinese imports will come into effect next week and ultimately rise to 25% by year-end. If China takes retaliatory action, the US will immediately follow the phase three plan, which will levy more tariffs on $267 billion worth of additional Chinese products, according to Donald Trump’s latest statement. It’s not only the auto industry that will be affected. Agriculture players are also concerned about it.
U.S. Sanctions On Iran Are Wrong And Unproductive, Russian Energy Minister Says
Russia appears to be favouring Iran’s stance on U.S. sanctions on Iran’s oil industry. The Russian energy minister Alexand Novak told a veritable news agency that the US’s sanctions on Iran are unproductive and unfeasible. “It is better to continue working in the market, Iran being just another exporter that provides stable supplies to the market,” Novak further said at the Eastern Economic Forum in Vladivostok.
The Trade War Between China And U.S. Could Lead To Economic Problems In The Emerging Markets
According to many economists, the tension between U.S. and China isn’t going to work out; instead, it could take the world economy to next financial crisis. Many believe that both countries should come to the table to find a better solution rather than imposing more tariffs on each other’s products. The CEO of Korea Investment Corporation (KIC), Heenam Choi, also seems to be worried about the US China trade war. He said that if the trade dispute continues between the two largest economies, then it would eventually affect South Korea’s economy.
UK Needs Brexit Deal To Survive Financially
The UK’s economy will collapse if the country decides to leave the European Union without a Brexit deal, the International Monetary Fund said on Monday. So, the UK government should revisit their policies to make a wise decision that is beneficial for everyone involved.
Myanmar Businesses Are Now Happy With Government’s High Taxation Rates
To mitigate pressure from the growing dollar exchange rate and strengthen Burmese kyat, Myanmar businesses are trying to convince their government to lower taxation rates. Higher taxation is one of the main reasons behind the Myanmar weak economy.
What’s your take on this? Have something interesting to share with us? Please feel free to offer your suggestions in the comment section below.