Another Deal for Donald
The US and European Union have agreed on a trade deal that will see the EU face 15% tariffs on most of its exports, including automobiles, to stave off a trade war. The deal was announced by President Donald Trump and European Commission President Ursula von der Leyen, who said it would bring "stability" and "predictability". The EU agreed to purchase $750 billion in American energy products and invest $600 billion in the US as part of the pact.
Wall Street is facing a pivotal week that will set the tone for the rest of the year with the conclusion of the Federal Reserve’s meeting and Big Tech earnings reports including Meta, Microsoft and Amazon. This week also includes ongoing trade negotiations ahead of the 1st August deadline.
Old timers will remember the anti-corruption drive that newly elected President Xi enacted on his rise to power back in March 2013. The previous administration of the aptly named ‘Hu and Wen’ had overseen what one can only described as a blatant surge in corruption.
Twelve years on the anti-extravagance campaign has made a comeback. The initial campaign dealt a major blow to the catering industry when revenues plunged in early 2013 and we appear to have a repeat on the cards. Banqueting and drinking on the public purse remain grave violations of Party discipline.
Revised austerity regulations released in May target party members and public sector workers. Lavish banquets, white elephant infrastructure projects, luxurious car fittings and ornamental plants in work meetings are among the main measures. While one cannot fault the intent, the impact on catering revenues has been severe. June revenues rose just 0.9% y-o-y in June, down from over 5% in May, and is seriously impacting the Government’s overall efforts to boost domestic consumption.
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