Tag: Billion

Greg Baker/Agence France-Presse — Getty Images WASHINGTON — The United States and the European Union are preparing to impose tit-for-tat tariffs on each other’s products, the latest escalation in a 14-year fight over government aid given to Boeing and European rival Airbus. “The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of E.U. It will soon stop!” The United States Trade Representative said on Monday night that it was preparing a list of European products to tax as retaliation for European subsidies to Airbus, which the World Trade Organization ruled were illegal in May 2018. The announcement of new tariffs stems from a dispute that began in 2004 related to government subsidies that Europe provides to Airbus, which is a rival to America’s Boeing. The United States requested the authority to impose retaliatory tariffs of $11.2 billion per year, and the two sides are awaiting a decision on the level of tariffs that the United States will be authorized to levy on the European Union. ends these harmful subsidies, the additional U.S. duties imposed in response can be lifted.” The European Commission indicated on Tuesday that it considers the $11 billion in retaliatory measures to be overblown and not justified by any findings by the World Trade Organization. In a statement, Boeing said it supported the United States Trade Representative and hoped that the draft tariff list would encourage the European Union “to comply with past W.T.O. However, they also have been quick to publicize the organization’s decisions when it finds in their favor. In its statement Monday, the Trump administration emphasized that its latest measures against the European Union would comply with the rules of the World Trade Organization. In a separate announcement Tuesday, the U.S. Trade Representative said the W.T.O.

Significant risk for dead-lock after Swedish election: Ohman Sees lowest expected market return since turn of millennium Investors typically ignore Swedish politics. But this year’s general election could be different, according to Swedish asset manager Ohman Funds. All polls indicate that none of the two major blocs will emerge with a majority and there’s little appetite to reach across the aisle among the biggest political parties. “It seems impossible to form a new Swedish majority government as things stand currently,” said Pablo Bernengo, chief executive officer at Ohman Funds in Stockholm “The risk for a dead-lock is significant.” And political turmoil at this late stage of a stock rally and economic upswing could have dire consequences, according to Bernengo. The stakes are high with the potential for a continued downturn in the Swedish housing market and slowing growth. The central bank could at the same time be forced into tightening as inflation, which lags growth, finally picks up. But his main scenario for now is that a compromise will be reached on a minority government. Investors should therefore adjust their expectations, said Jamal Abida Norling, Ohman’s chief investment officer, whose Sweden Micro Cap fund was awarded awarded best small-cap fund by Morningstar based on its result over the past 5 years. “It’s significantly lower compared to three-four years ago.” Ohman went to neutral in emerging market stocks during the fall after holding an overweight for almost 18 months. The asset manager is overweight credits within fixed income and also prefers a lower duration.