Tax them if they buy what they want to buy
- US President Trump is eager to impose more taxes on the US consumer as soon as possible. Reports suggest new US consumer taxes on goods partially made in China as soon as next week. US President Trump also threatened to quit the World Trade Organization. That could offer some benefits for the World Trade Organization.
- The US president rejected an EU offer to set auto taxes at zero, complaining that Europeans only seem to buy the cars that they want to buy (i.e. European made). As the Europeans also dare to sell Americans things Americans want to buy, the problem is made worse. There is talk of Canada doing a preliminary trade deal today – with discussions carrying on afterwards.
- Currencies in some emerging markets had a rather bad day yesterday. The Argentinian peso weakened in spite of rates rising to 60%. The Turkish lira fell again – overnight there were tax changes to encourage people to hold the lira. The Venezuelan bolivar trades with the value of a cryptocurrency (i.e. none).
- Data may struggle to be heard above the noise. Japan's Tokyo consumer price inflation was a little stronger than expected with food prices helping. French and Italian consumer price inflation numbers are due.