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Boris Johnson is the leading candidate to succeed Theresa
May as Britain’s next prime minister and has threatened to withhold $50 billion
Brexit payment until the European Union gives Britain better exit terms. This
is following the resignation of May as the British PM as well as stepping down
as the leader of the governing Conservatives.
The EU has also stated severally that it will not reopen discussion
with UK on the Brexit transition deal reached with May last year.
Unfortunately, British lawmakers have rejected the deal three times, which led
to the resignation of the prime minister.
Johnson is a former foreign secretary that served in May’s cabinet
and is popular with ordinary Conservative Party members. These members will
decide between the two candidates who come top in a series of votes by
Conservative lawmakers over the coming weeks.
“I always thought it was extraordinary that we should agree
to write that entire cheque before having a final deal. In getting a good deal,
money is a great solvent and a great lubricant,” Johnson told the Sunday Times.
Britain is scheduled to leave the EU at the end of October.
However, if no deal is approved and the government fails to ask the EU for
another delay, there is the risk of a major economic disruption occurring from
a disorderly departure.
The 39 billion pounds is the outstanding British liabilities
to the EU, which would be paid over a number of years as contained in the
withdrawal agreement negotiated by May. Johnson has also stated that border
arrangements with Ireland should be settled only as part of a long-term
agreement as against a “backstop” that would avoid checks on Northern Ireland’s
border.
In another light, one of Johnson’s rivals, environment
minister Michael Gove, has said that he would scrap the value-added tax (VAT)
levied on most goods and services, replacing it with a lower U.S.-style sales
tax.
SajidJavid is another leadership contender and he has
expressed his willingness to pay Ireland hundreds of millions of pounds towards
the cost of new border arrangements to facilitate a Brexit deal.
More economic news and other related information as well as
the services offered by Pacific Capital Advisors can be found on their website.
Contact Information
Pacific Capital Advisors
680 6th Avenue
New York City, New York
10019
United States
Phone: +1 (914) 867-3862
Finance leaders from the Group of 20 (G20) ended a two-day meeting where they alluded to the fact that the trade and geopolitical tensions have intensified in recent times. The leaders at the meeting held in the western Japanese city of Fukuoka also proposed pro-growth tax policies.
According to IMF chief, Christine Lagarde, trade tension was the “major” headwind facing the global economy, and she told Japan’s Nikkei daily it was a “significant risk on the horizon.” The event was hosted by Japanese Finance Minister,Taro Aso, who also mentioned to reporters that the world economy should “firm” in the second half of the year but “downside risks still remain.”Aso further stated that “market confidence could be eroded” if China and the US did not resolve their ongoing trade conflict.
According to the French Finance Minister Bruno Le Maire, there was a “real risk” that “this global economic slowdown could turn into a global economic crisis due to trade tensions.”
“A worsening of the international climate and a real trade war would lead to an even more marked slowdown in global growth, with a direct impact on our jobs, companies, factories and sectors,”Bruno said.
In their final word, the finance chiefs admitted the economic headwinds amid “intensified” trade tensions. However, they expressed hope of global growth picking up moderately later in the year and into 2020.
The finance chiefs all agreed to step up efforts to reform taxes “for a globally fair, sustainable, and modern international tax system, and welcome international cooperation to advance pro-growth tax policies.”
They also admitted the fact that current account imbalances may have “narrowed” since the financial crisis in 2008 but “remain large and persistent.” They also advised that major economies tackle the topic of aging as it relates to economic growth, while encouraging women and older people into the labor market and promoting “elderly-friendly industries.” Tax systems should be designed to “better respond to the challenges posed by aging.” They also talked about designing the tax systems to “better respond to the challenges posed by aging.”
On the topic of digital currency, the G20 said the concept could “deliver significant benefits to the financial system and the broader economy,” but that “while crypto-assets do not pose a threat to global financial stability at this point, we remain vigilant to risks.”
More economic news and other related information as well as the services offered by Pacific Capital Advisors can be found on their website.
Contact Information
Pacific Capital Advisors
680 6th Avenue
New York City, New York
10019
United States
Phone: +1 (914) 867-3862
Find More: http://www.prnob.com/release/show/g20-finance-leaders-agree/44485
According to a survey of chief financial officers that was recently released, the longest economic expansion in the history of the U.S. could soon come to an end. The financial chiefs identified growing economic uncertainty and trade wars as their major fears, which could eventually halt the record streak of U.S. GDP growth that is only a month shy of its 10th year.
About 48% of the chief financial officers predicted that the economy could go into recession by mid-2020. This is according to the quarterly survey conducted by the Duke University/CFO Global Business Outlook. Over 69% of the surveyed financial experts also predicted an economic downturn by the end of next year.
“It looks likely that an economic recession is on the horizon for 2020,” says John Graham, a finance professor at Duke University in a video comment.
The recent prediction is the third consecutive prediction from chief financial officers, which also matches other reports of a weakening U.S. economy. According to financial analysts from Morgan Stanley, a recession is possible in just nine months.
In what looks like a response to the predictions, the Federal Reserve has said that it is open to cutting interest rates, a move it typically does to stimulate the economy during a slowdown. This is coming after President Donald Trump called off his threatened tariffs on Mexico. The Fed had raised its benchmark rate four times last year.
The fear of an economic slowdown is global with a survey more than 500 CFOs across the globe revealing that CFOs in other parts of the world were more likely than those in the U.S. to predict a downturn in their countries within a year.
A whopping 85% of African CFOs believe that their countries will be in recession before the end of 2020. Sixty-three percent of the counterparts in Europe, 57% of Asian CFOs and 52% of Latin American CFOs also had the same belief.
“For the first time in a decade,” Graham said, “no region of the world appears to be on solid enough economic footing to be the engine that pulls the global economy upward.”
More economic news and other related information as well as the services offered by Pacific Capital Advisors can be found on their website.
Contact Information
Pacific Capital Advisors
680 6th Avenue, New York City
New York
10019
United States
Phone: +1 (914) 867-3862
Find More: http://www.prnob.com/release/show/nearly-50-of-us/44484
According to Fitch Ratings analyst, James MacCormack, there is a likelihood of the US Dollar surrendering its exorbitant privileges and ultimately losing its special global standing due to a number of factors. Some of the factors that have been identified by James are related to U.S. policy decisions. The statement from James seemingly received some sort of backing from the Russian President, Vladimir Putin, during the St. Petersburg International Economic Forum. Putin told participants at the event that US actions undermine the advantages created by the Bretton Woods system, thus “trust in the US dollar is falling.”
The major reasons for the dollar’s dominance in the global space
are inertia and the lack of viable alternatives. However, analysts have stated
that policymakers in the United States should not be too comfortable with these
reasons particularly in the longer term. The economic sanctions and
protectionist trade initiatives in the U.S. foreign policy are some of
contributions to a diminished role for the dollar. Such protectionist policies
will ultimately divert trade away from the U.S. and might even induce new trade
partners to settle in other currencies other than the USD.
Competition from
abroad
U.S. policies in recent times have pushed countries like
Iran and Russia away from the dollar. China and the euro zone have also been
actively touting their currencies as reserve and transaction substitutes.
Several European officials have hyped the role of the euro,
with European Commission President Jean-Claude Juncker in his 2018 annual
program address that it is “absurd” that 80% of European energy imports are
settled in dollars. This is a clear indication that countries across the globe
are continuously looking for substitutes for the dollar, especially as it is
becoming increasingly difficult to bridge policy differences.
Finding safe haven
elsewhere
Disentangling the causes and consequences that tie the
dollar as the world’s reserve currency to U.S. Treasury securities is
difficult. However, the effect of foreign investors – central bank reserve
managers in particular – seeking risk-free dollar assets other than Treasurys
should be considered.
More economic news and other related information as well as
the services offered by Pacific Capital Advisors can be found on their website.
Contact Information:
Pacific Capital Advisors
680 6th Avenue, New York City,
New York
10019
United States
Phone: +1 (914) 867-3862
Find More: http://www.prnob.com/release/show/us-dollar-risks-losing/44487