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Equities want no new taxes

| Posted by: Paul Donovan | Tags: Paul Donovan

  • US markets are closed as a mark of respect to the late President Bush Sr. Tuesday saw losses in the markets as the Trump Twitter Feed raised fears that the president would raise more taxes on US consumers and US companies. The hope must be that as time goes on, these taxes become more obvious, and the political pressures change.
  • High drama in UK politics. Politicians and journalists are excited. The rest of the country is down the pub talking about more interesting things (like the weather). Despite hints the UK could legally end the EU divorce, it is illegal for the UK to do anything other than leave the EU with a hard exit on 29 March – unless the law is changed. A reversal of the divorce does not look likely.
  • Unlike the US, French taxes look likely to go down (or rather not go up) with a six-month delay to implementing fuel taxes. Recent events show that even with a majority in the National Assembly, the French president can be defeated by opposition on the streets.
  • US data releases are postponed on Wednesday. European data is mainly service sector sentiment opinion polls, and not really worth focusing on.