Follow Paul Donovan

Tax Groundhog Day

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Americans are waking up to find yet more taxes have been thrust upon them. From today, USD 200bn of goods partially made in China will be subject to a pre-Christmas tax (of 10%). Around USD 4.5bn of European exports to China are caught up in this taxation process – as goods re-exported to the US. The question is whether China's retaliation will prompt an "immediate" tax on everything China sells to the US.
  • OPEC did not appear to pay too much attention to the complaints of the Trump Twitter Feed last week. Oil prices remain elevated. A higher oil price means people need to buy more dollars in the foreign exchange markets in order to buy oil. A higher oil price is also very visible to US consumers (in particular).
  • The German Ifo survey is due. It is a business sentiment survey (and thus to be treated with considerable caution), but this is probably the best of them. Perhaps German business leaders enjoy filling in forms more than do business leaders in other countries.
  • The interminably tedious process of separating the EU and the UK had a weekend of drama, which did nothing to make the process any less interminably tedious.