Tag Archives: EU

The European Union rose “only” 0,4 percent in Q1 of 2018

Last week I talked about America`s fantastic growth of 4,1 percent on quarter in Q2 of 2018, and this is only the beginning. It is no doubt; President Trump must be doing something right. But, what about the European Union?

GDP in the European Union rose «only» 0,4 percent on quarter in the first three months of 2018. Not much to write home about. But the growth have never been above 1 percent since the financial crisis in 2008.

The European Union reached an all time high of 1,30 percent in 1999 and that is right before the tech bubble burst. Since then it has been a dead fish, reaching an all time low of -2,60 percent in the first quarter of 2009.

At the same time we can see that the unemployment rate reached a record low of 6,80 percent in February of 2008, and that`s right before the financial crisis. It reached an all time high of 11 percent in February 2013, but in May this year it fall down to 7 percent again.

This isn`t good enough if we are living in a capitalistic world.

The European Union in Brussels are nothing more than unelected bureaucrats. Draghi and the ECB have, just like Japan and the U.S «printed» a lot of money, and will continue to do so. If they can`t turn around the ship, they need to consider a strong cheerleader.

European Commission President Jean-Claude Juncker had a meeting with President Trump last week. They were talking about trade, free trade and tariffs. Mr Trump`s goal is to make better deals so both the U.S and the EU can take more profit and prosper.

I think that the EU should be glad for that and they need to hurry up. The U.S is the world`s third biggest exporter, yet exports account «only» for 13 percent on GDP. Exports in the U.S reached an all time high of 215328 USD million in May this year, which is pretty impressive.

The EU has 28 member states and the biggest among them all is Germany (21 percent of total GDP), the United Kingdom (15 percent), and France (15 percent).

Exports of goods and services account for 46 percent of GDP while imports account for 42 percent, adding 4 percent of total GDP. But this is about to change. If the UK contribute with 15 percent of the total GDP in the EU, then what will happen to their growth after Brexit?

That being said; nor is the UK a success story. The British economy grew by 0,1 percent in the first three months of 2018 and well below 0,4 percent in the previous period. It is the lowest growth rate since a 0,1 percent contraction in Q4 2012.

The largest contribution to growth in the UK was from household spending at 0,2 percentage points. From the production side, the service industries made the largest contribution to GDP growth, followed by production.

Agriculture, the smallest component within the output approach of GDP made no contribution to growth to one decimal place, while construction deducted from GDP growth. The service industries increased by 0,3 percent.

Positive growth was recorded within all sub-sectors of the services industries; distribution, hotels and restaurants (0,1 percent vs -0,1 percent).

President Trump have repeatedly said that the EU have treated the US very bad. I have written many articles about that long before Mr Trump`s inauguration. The European Commission has fined Google €4,34 billion for breaching EU antitrust rules this month.

In May 2009, Intel was imposed with a 1,06 billion euro fined for abusing its market dominance on central processing units. Microsoft has been in trouble with the Commission on several occasions. In 2004, the Commission ruled that Microsoft had abused its market dominance.

In 208, the Commission fined Microsoft nearly 900 million euros for charging «unreasonable» royalty fees. In 2013, another fine of 561 million euros was imposed on Microsoft. This time for failing to comply with the Commission`s ruling that it had to allow users to more easily choose a prefered web browser.

The European Commission fined Facebook for 110 million euros in May this year in relation to its takeover of WhatsApp. Facebook acquired the messaging service in 2014 for $19 billion, but provided the Commission with misleading information about the acquisition.

In August 2016, the Commission ruled that tech giant Apple had received illegal tax benefits from Ireland worth up to 13 billion euros. Ireland was ordered to recover the unpaid tax from Apple, plus interest.

As early as 1966, British Politician Tony Benn said that «Communism run by commissars from Moscow did not work, and nor will capitalism run by commissioners in Brussels. Both deny people their right to develop in their own way.»

Now, under President Donald Trump, big companies like Apple are moving home to the United States with billions of dollars. Apple alone, are bringing in $230 billion. They will build new plants and a magnificent campus.

They will spend their money wisely and the money will be in the U.S. All this is possible because of Trump`s tax cuts and reforms. This is how you make growth.

 

 

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Donald Trump is the best negotiator that we`ve seen in decades and America is back

There is no doubt; Trump is a great negotiator. The best in decades. He know how to play this game, mainly because he is a business-man. He made a deal with “the rocket man” and now he is making a deal with the EU. Mr Trump is making America great again, and Trump is a good cheerleader.

US and EU agreed today to work toward zero tariffs and zero barriers. European Commission President Jean-Claude Juncker didn`t reveal any details on what they specifically agreed to. Nor did President Trump.

“We will also work to reduce barriers and increase trade and services, chemicals, pharmaceuticals, medical products as well as soybeans,” Trump said. “Soybeans is a big deal.”

The farmers have supported Trump despite the fact that the prices of Soybeans has plummeted. Now, this has changed. The European Union is starting to buy soybeans from the U.S immediatly and EU is a new market that have opened up for them. That`s what I call business.

Foe or frenemy? Trump calls EU leader “smart” after ripping Europe.

The U.S has lost a lot of money on the deal with EU so far. That is about to change. In proposing new trade talks with the European Union, Trump said, “we want to further strengthen this trade relationship to the benefit of all American and European citizens.”

So, why is a trade agreement so important? International trade is important for the Netherlands and the European Union. Like international investment, it generates economic growth and employment. Around a third of the Netherlands` national income is related to trade.

59% of the Dutch population work for a company that imports and/or exports goods and services. In addition, 800,000 people work for foreign companies operating in the Netherlands. Trade is therefore very important to their economy.

That`s why the Dutch government aims to make effective international trade deals. Like the Transatlantic Trade and Investment partnership (TTIP) between the EU and the US. The Netherlands stands to gain from this trade agreement between the EU and the US.

The Dutch and American economies are already closely linked. The Netherlands is the third largest investor in the U.S. While the U.S is the Netherlands` largest trading partner outside the EU. The Netherlands exports goods to the value of €20 billion to the U.S every year.

European carmakers climbed after President Donald Trump backed off his threat to levy tariffs on cars imported to the U.S during a meeting with Juncker. Many automaker shares jumped on Thursday after the good news.

Germany`s VDA auto industry association called the meeting “a big step forward” and “good news for industry and consumers on both sides of the Atlantic.”

“We had a big day, very big,” Trump said during a press conference with Juncker. “We are starting the negotiation right now, but we know where it is going.”

Mr Trump is a winner and America is back.

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Investors are worried because Gary Cohn, who is a Wall Street veteran, was opposed to the tariffs

President Donald Trump usually do the things he promise to do. He had long talked about tariffs, and earlier this week he said; “I have no choice.” His economic advisor Gary Cohn didn`t like that and announced retirement.

Mr Trump shocked the market last week with his decision to impose 25 percent tariff on steel imports and 10 percent tariff on aluminium. Investors are worried because Gary Cohn, who is a Wall Street veteran, was opposed to the tariffs.

 

 

Gary Cohn is a former Goldman Sachs president and free trade advocate. He is the man who helped Mr Trump and his team at the White House to deliver historic tax cuts and reforms, but he clashed with Trump`s protectionist advisors on the issue of tariffs.

White House officially said that President Donald Trump will announce more details on the tariff proposal on Thursday this week.

In addition, there could be conversation this week around more trade actions.

European Union said they will target $3,5 billion of goods like motorcycles, T-shirts, whisky and jeans imported from the United States. European Commission President Jean-Claude Juncker said the trade bloc would “not sit idly” if Trump goes ahead with his tariffs.

President Trump warned the US would apply a tax on European cars if the bloc wants to increase tariffs on American companies. A statement the European automakers didn`t like at all.

The Volksvagen emissions scandal (Emissionsgate/dieselgate) began in September 2015, when the United States Environmental Protection Agency issued a notice of violation of the Clean Air Act to German automakers Volkswagen Group.

Volkswagen pleaded guilty to conspiracy and obstruction of justice charges in a brazen scheme to get around US pollution rules on nearly 600,000 diesel vehicles by using software to suppress emissions of nitrogen oxide during tests.

Assistant US attorney John Neal said it was a “calculated offence,” not a «monetary lapse of judgement».

In my recent articles, I have talked about Europe`s treatment of American companies. A bad treatment that has been going on for decades.

In 2001, the European Commission accused Microsoft of having illegally extended its dominans in operating systems for PC`s into adjacent markets, for tying Windows to programs that play music and videos.

The European Commission said Microsoft was too dominant in the market in 2001. They said the same about Google in 2016, claiming that Google was too dominant in the internet search market. Last year, they attacked the biggest company in the world: Apple.

Nucors CEO told CNBC last week that the presidents proposal was about treating Europe “exactly as they treat us.” So, who is the real elephant in the room?

President Trump has many times said that Europe are treating USA bad, and this has been going on for a long time now. It is clear to see that there has been a silent war going on, but Mr Trump is the one to do something with that.

The war between Europe and USA is not a secret anymore. This trade war is a zero sum game, and there is no winner. This is how the market was before the start of World War II. Now, the history seems to repeat itself. This can be very ugly.

In 2015, Russia marked 70 years since the victory over the Nazis with a spectacular parade in Moscow. Many Western leaders missed the event. USA is the one who stopped World War II.
<p align="LEFT"><span style="color:#333333;"><span style="font-family:Georgia, 'Bitstream Charter', serif;"><span style="font-size:small;">Everybody in Greece are talking about Nazi-Europe. They know the history from WWII. Nazi Germany invaded Greece to assist its ally, Fascist Italy, which had been at war with Greece (Greco-Italien War) for about a year. </span></span></span></p>
<p align="LEFT"><span style="color:#333333;"><span style="font-family:Georgia, 'Bitstream Charter', serif;"><span style="font-size:small;">The occupation ruined Greek economy. The Nazi occupation led to rampant inflation, and 200,000,000-drachma banknote were issued in 1944. They can
t do the same today, because they do not have its own currency. They have Euro.

What the Nazi`s did to Greece is a long list of crimes against humanity, and the truth cannot be hidden.

The Nazi`s burned down every house and dynamited the church in retaliation, but the Greeks were the first Europeans who won a victory against fascism.

The biggest party in Italy, The Five Star Movement, is Euroskeptic. So, are the Brexit voters. EU need to change its strategy very fast, because EU is very important but not the ugly part of it.

European Commisssion doubts justification for Trump tariffs. It is done under section 232, which refers to National security. European Commission cannot see how the allies is a threath to International Security in the United States.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Around 40% of voters in Italy remain undecided and no party or alliance is expected to earn an outright majority

Take a look at the history and you can clearly see that all the roads leads us back to Rome and Italy.

A country that gave the world pizza. The founder of that dish is a genius. The term pizza was first recorded in the 10th century, in a Latin manuscript from the Southern Italian town of Gaeta in Lazio.

Not only that. Rome is also the capital of Italy, and serves as the capital of the Lazio region. The Vatican City is an independent country inside the city boundaries of Rome, which means Rome has been often defined as capital of two states. 4,3 million residents live in the metropolitan City of Rome, and most of them head to the polls on Sunday in a vote that will be closely watched by European leaders.

Italys election on Sunday will test Europenerves, because it can make instability in the eurozones thrid-largest economy. It should be a great place on earth, but it isnt. Italy`s unemployment rate rose to 11,1 percent in January 2018, and the youth unemployment rate fell to 31,5 percent, which is the lowest since December 2011.

The Italian economy advanced by 0,3 percent on quarter in the three months to December of 2017, so the growth is very slow. The Italian stock marked plummeted during the financial crisis ten years ago. The unemployment rate was at its lowest in 2007, but skyrocketed after the crisis.

Italy`s Government debt reached an all time high of 132 percent in 2016 which is more than the U.S but it dropped to 131,5 percent last year. Italy need a change, but that change can be painful and Italy can be drown into months of further political deadlock.

Around 40% of voters remain undecided and no party or alliance is expected to earn an outright majority, according to analysts.

European leaders are watching this election closely because so far, polls are telling us that the populist, anti-European Union Five Star Movement (M5S) is the biggest party. Twice as big as Forza Italia and the Democratic party at the second place.

The M5S is founded by Beppe Grillo who is a popular comedian and blogger. The party is considered populist, anti-establishment, environmentalist, anti-globalist, and Eurosceptic. At the 2013 general election the M5S was the most voted party.

People in Italy and many of their parties are euroskeptic, and one issue has dominated the pre-election debate, and that is immigration. Hundreds of thousands have arrived from Africa to Italy recently, and the debate over immigration has highlighted racial tensions ahead of Sunday`s vote.

Right-wing parties have pushed an anti-immigration agenda, and former Italian Prime Minister Silvio Berlusconi has warned that all the migrants in Italy has caused «serious social alarm,» and said that more than 600 000 undocumented migrants must be deported.

Migration has been a serious issue in Italy in many decades. When the Pope look outside the window in the Vatican, he can see some right-wing parties, but also some neo-fascist political parties.

Fascism is also coming from Italy. The founder of fascism is Benito Mussolini and he outlined three principles of a fascist philosophy.

  1. Everything in the state. The Government is supreme and the country is all-encompassing, and all within it must confront the ruling body, often a dictator.
  2. Nothing outside the state. The country must grow and the implied goal of any fascist nation is to rule the country, and have every human submit to the government.
  3. Nothing against the state. Any type of questioning the government is not to be tolerated. If you do not see things our way, you are wrong. If you do not agree with the government, you cannot be allowed to live and taint the minds of the rest of the good citizens.

The use of militarism was implied only as a means to accomplish one of the three above principles, mainly to keep people and rest of the world in line. Fascist countries are known for their harmony and lack of internal strife. There are no conflicting parties or elections in fascist countries.

There were a demonstration in Maceratata on February 10, and Italian protesters hold a banner reading «Against fascism, racism and sexism, everyday, in all cities.» Similar to how it was in Italy about 100 years ago, but it was a different march. The opposite.

The March on Rome was an organized mass demonstration in October 1922, which resulted in Benito Mussolini`s National Fascist Party. Fascists saw WWI as a revolution that brought massive changes to the nature of war, society, the state and technology.

Italy has an unproven new system in place for the voters. On top of that there is a bloc of undecided voters, so analysts say that Italy is headed toward a hung parliament. Berlusconi`s right-wing coalition can win. So can the Democratic party, Forza Italia and other centrist allies. It can also be a populist government of M5S and Northern League.

Another option is that the Gentiloni government will continue like it is today. If so, they will start long discussions on whether to build an all-party technical government.

The political situation in Italy right now, with its government instability, economic problems and repeated elections are building up to a perfect storm. It can be harmful for one of the main European democracies, but it can be very harmful for an already weak European Union in an already weak continental alliance too. Especially after Brexit.

Rome is called the «Caput Mundi» (Capital of the World). Rome is also regarded as the birthplace of Western civilisation and by some as the first ever metropolis. Rome is the 3rd most visited in the European Union, and Colosseum are among the world`s most visited tourist destinations.

After the fall of the Western Empire, which marked the beginning of the Middle Ages, Rome fell under the political control of the Papacy. All of this is a part of an evolution, so the show must go on.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Google is a success story and the European Commission fined them a record $2,7 billion today

Google is a success story and the company is up over 40% since June last year. The company is well-known for its search engine which is the best in the world. Some people in this world doesn`t like this success and one of them is the European Commission.

The European Commission have received many complaints from competitors who claimed that Google abused its search market dominance to give its own business an advantage over other retailers. This is a clear picture of the relationship between Europe and the U.S right now.

 

 

“What Google has done is illegal under EU antitrust rules. It denied other companies the chance to compete on the merits and to innovate. And most importantly, it denied European consumers a genuine choice of services and the full benefits of innovation,” European Competition commissioner Margrethe Vestager said in a statement.

The European Commission has been working on this case for over seven years, and the action came after complaints from rivals such as Yelp, TripAdviser, UK price comparison site Foundem, News Corp and lobbying group FairSearch.

This is not the first time the European Commission has attacked a U.S company. Last year they attacked Apple, and at that time, Commissioner Margrethe Vestager, in charge of competition policy said: “Member States cannot give tax benefits to selected companies.

This is illegal under EU state aid rules. The Commission`s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years. In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1% on its European profits in 2003 down to 0,005% in 2014.”

Apple has their own tax structure in Europe, which is Apple Sales International and Apple Operations Europe. Both are two Irish incorporated companies that are fully owned by the Apple group.

In 2001, the European Commission sent a sternly worded missive to Microsoft. EU accused the software maker of having illegally extended its dominance in operation systems for personal computers (PC`s) into adjacent markets, for tying Windows to programs that play music and videos.

The European Commission said Microsoft was too dominant in the market in 2001. Last year they claimed Google was too dominant in the internet search market. Google were also ruling the smart phone market with their Android system, which will be their next problem.

EU regulators in Brussels fined Google a record $2,7 billion today, ruling that the search-engine giant violated antitrust rules for its online shopping practices, and this is the largest doled out by Brussels.

Google disagreed with the EU action.

«We respectfully disagree with the conclusions announced today (Tuesday).We will review the (European) Commissions decision in detail as we consider an appeal, and we look forward to continuing to make our case,» Kent Walker, Googles Senior vice-president and General Counsel, said in a statement today.

It doesnt stop here. Next time, Brussels will attack Googles Android mobile operating system, which is a case that could potentially be the most damaging for Google.

Theodore Roosevelt led a populist party in 1912, and Ralph Nader campaigned against the power of large corporations such as auto companies. Now, 105 years later, EU is doing the same.

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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