Trade Highlights: Low Tax Cuts for the Dow Jones in 2022 in the UK

Trade Highlights: Low Tax Cuts for the Dow Jones in 2022 in the UK


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Dow Jones hits 2022 low as markets sell off recession fears

New York (AFP) – Markets around the world sold off amid growing signs of a weakening global economy as central banks increased the pressure further with additional interest rate hikes. The Dow Jones Industrial Average closed at its lowest point of the year on Friday. The S&P 500 fell 1.7%, close to its lowest level in 2022. Energy prices also closed sharply lower as traders worried about a possible recession. Treasury yields, which affect interest rates on mortgages and other types of loans, and which are kept at their highest levels for several years. British government bond yields fell to rise after that country’s new government announced a comprehensive plan for tax cuts.

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UK cuts taxes, boosts spending, pound slide accelerates

London (AFP) – The British pound experienced its biggest one-day decline in two and a half years after the new British government outlined plans to cut taxes and increase spending. It has raised concerns that increased public borrowing will exacerbate the country’s cost-of-living crisis. The British currency fell more than 3% on Friday. Treasury Secretary Kwasi Quarting announced sweeping tax cuts that he said would boost economic growth and generate increased revenue, without making similar spending cuts. He also said previously announced plans to curb rising energy bills for homes and businesses would be financed through borrowing. Critics attacked the scheme favoring business interests over workers and failed to provide any figures on its impact on the government’s financial goals.

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The now revamped Detroit Auto Show also features new flying technology

DETROIT (AFP) – The Detroit Auto Show is back with bangs. and flying. The prestigious North American International Auto Show was last held in 2019, and returned last week. Visitors can once again keep their eyes on the latest offers from some of the world’s largest automakers. But now they can also see what the organizers call “offer over show.” The Air Mobility Experience features presentations and demonstrations from six air transportation innovators including an electric vertical take-off and landing aircraft, a Hoover bike, a hoverboard and a jet suit. The show runs through Sunday at a downtown convention center.

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The United States seeks stronger labor and environmental standards in Asia

Washington (AFP) – The United States is setting its goals for a new trade deal with Australia, Japan, South Korea and nine other countries designed to signal the country’s commitment to working with the Indo-Pacific at a time of rising Chinese influence. The US Trade Representative’s office on Friday released its negotiating targets for the Indo-Pacific Economic Framework, an agreement with 12 countries launched in May. Among them, the United States wants the Indo-Pacific nations to improve their labor and environmental standards and ensure their markets remain open to competition, while also taking steps to mitigate supply chain buildup at border crossings.

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GM spends $760 million to convert Toledo plant into electric parts

TOLEDO, Ohio (AP) — General Motors said it will spend $760 million to renovate its transmission plant in Toledo, Ohio, so it can build drivelines for electric vehicles. It’s the first GM or transmission plant to begin the long transition from internal combustion engines to EVs. General Motors aims to manufacture only electric passenger cars by 2035. The investment will preserve the jobs of about 1,500 hourly and salary workers at the Toledo plant, which now makes four transmissions used in pickup trucks and many other GM vehicles. It’s good news for workers in Toledo, who have been worried about the future of their plant.

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Bank executives urge removal of Trump official in ethical probe

The executives of the Inter-American Development Bank voted unanimously to recommend the removal of a former Trump official as head of the Washington-based institution. This action follows an investigation that finds that Mauricio Clavier Carrone violated the rules of ethics by favoring a top lieutenant with whom he had a romantic relationship. A person familiar with the vote said the decision to recommend the dismissal of Claver-Carone came at a closed meeting on Thursday. The Associated Press obtained a confidential report from a law firm hired by the bank’s board of directors over an anonymous misconduct complaint against Claver-Carone. Investigators say it is reasonable to conclude that the relationship has existed since at least 2019, when they both held senior positions on the National Security Council.

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After 90 years, German bakery shuts down as energy costs soar

Cologne, Germany (AFP) – A family-run bakery in the German city of Cologne has shut down its ovens for good after 90 years because it can no longer afford the rising energy prices caused by the Russian war in Ukraine. The bakery was founded by Engelbert Schlichtermin’s grandparents before World War II, and the 58-year-old took it over 28 years ago from his father. His company is a casualty of the European energy crisis driven by Russia’s cuts in natural gas. The resulting increases in energy and energy prices have put pressure on companies that are already struggling with other costs rising as inflation rises.

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Spain plans to raise taxes for millionaires to help the needy

Madrid (AFP) – The Socialist-led coalition government plans to impose a temporarily higher tax rate on the country’s richest 1% from next year. This is in addition to its unexpected taxes on large energy companies and banks. Socialist Prime Minister Pedro Sanchez said Friday that the change is aimed at helping fund the welfare state amid hardships caused by rising energy and food prices. The annual inflation rate jumped to 10.5% in Spain last month. The government says the tax increases target only millionaires. She says the exact increase and scope of the tax action are still being worked out.

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Inflation and turmoil challenge Bangladesh’s ‘miracle economy’

DHAKA, Bangladesh (AP) – The economic miracle in Bangladesh is under heavy pressure, as soaring fuel prices exacerbate public frustration over the rising costs of food and other necessities. Protests have erupted in recent weeks, adding to pressure on the government of Prime Minister Sheikh Hasina, which has requested International Monetary Fund help to protect the country’s public finances. Experts say Bangladesh’s predicament is hardly as serious as the situation in Sri Lanka, where months of turmoil have led its longtime president to flee the country. But it faces similar problems: excessive spending on show business, public anger over corruption and nepotism and a weak trade balance. Such trends are undermining Bangladesh’s progress towards becoming a richer, middle-income country.

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The Standard & Poor’s 500 Index fell 64.76 points, or 1.7%, to 3,693.23 points. The Dow Jones Industrial Average lost 486.27 points, or 1.6%, to 29590.41. The Nasdaq index fell 198.88 points, or 1.8 percent, to 10,867.93 points. The Russell 2000 index of smaller companies fell 42.72 points, or 2.5%, to 1679.59 points.



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