WTO: Trump threatens to pull out of the World Trade Organisation.

- Via euronews: Trump threatens to pull out of World Trade Organisation

Read more at: 

http://www.euronews.com/2018/08/31/trump-threatens-to-pull-out-of-world-trade-organisation

Sweden - Cash-Free: Ikea to test cash-free store in Sweden

Swedish furniture giant Ikea is going to use its Gävle location to test out whether it can go completely cash-free nationwide.

Ikea said that customers in Gävle, an eastern city best known for its giant straw Christmas goat, were strongly in favour of abandoning cash.

“In our surveys, the vast majority of customers have said that cash payments are no longer important.

Today we use a fair amount of resources on handling cash but we’d prefer to use them on something else,” Patric Burstein, the head of customer relations at the Gävle store, told Dagens Nyheter.

Ikea said that its cashless test would begin in Gävle on October 1st. If all goes well, the company plans to eliminate cash payments in all of its Swedish locations.

Department store Åhléns is also testing the idea of going cashless, with three of its locations currently not accepting cash payments.

Swedes use their debit cards three times as frequently as most Europeans and with the popularity of smartphone payment apps like Swish, it has been predicted that Sweden will be completely cash-free by 2030

Read more: Ikea to test cash-free store in Sweden - The Local

EU Economy: US withdrawal from Iran deal is good for Europe - by Giulio Terzi di Sant’Agata

Under the Trump administration the US has, to say the least, been acting erratically on the world stage. The current uncertainty over trade relations between Europe and the US, as well as Trump’s posturing on NATO, have left many questioning the Atlantic alliance, and whether the interests of the US and Europe have now truly diverged.

On Monday, French President Emmanuel Macron said that the EU can no longer rely on the US for its security, and must pursue its own security policy to protect its interests.

One area, however, where Trump’s new policies have been aligned with European interests is in his policy on Iran. Trump’s decision to withdraw from the Joint Comprehensive Plan of Action (JCPOA), more commonly known as the Iran nuclear deal, promises to do more to protect the security of Europe than almost any decision made by Europe’s own political leaders this year.

Saying that the US’s withdrawal from the deal is in Europe’s best interest may seem strange considering how it has been reported in the media and the negative reaction of many of the EU’s political leaders. Trump’s decision was presented as reckless and highly risky, an impulsive move which jeopardises relations with Iran and increases the risks of the regime deciding to pursue a nuclear agenda.

The deal has clearly benefited private commercial interests within Europe: companies such as Airbus, Allianz and Total were quick to take advantage of the economic opportunities provided by the opening up of the Iranian market. It is not at all clear, however, how much European citizens have benefited economically from the deal, and it is impossible to see any benefit which compensates them for the security risk they have to shoulder.

The second justification, that the deal will in some way ‘Westernise’ Iran, is completely wrong-headed, and is based on a now outdated view of geopolitics. Autocratic regimes around the globe have demonstrated that it is possible to import Western goods and profit from Western trade without importing Western values. European goods can be bought in the absence of European democracy.

The narrative that the Iran deal is in the interests of Europe and that reimposing sanctions will be harmful seems only therefore to serve the interests of private companies looking to expand their business dealings in the country.

The companies who have profited from the deal, and who were well aware of the risks of doing business in Iran when they entered the market, are now crying out for protection and further economic benefit from Europe. As if profiting at the cost of European security was not enough, these companies now want the EU to foot the bill for their misadventures in the country.

Giving in to these demands is not the right course of action for Europe. The prospect of a nuclear Iran is Europe’s problem first and foremost. Three years after the JCPOA was signed, we can see that this was not the right way to deal with this problem. A new arrangement, one which places the security of European citizens as its top priority, should be the top priority for European leaders like Macron who believe that Europe should take more responsibility for its own security.

Read more: US withdrawal from Iran deal is good for Europe | View | Euronews

CAPITALISM: OIL RICH COUNTRIES AND CAPITLISTIC COUNTRIES ARE WARNED BY UN CONTRACTED SCIENTIST OF IMMINENT CAPITALIST DEMISE

Scientists Warn the UN of Capitalism's Imminent Demise

Read more at:
http://flip.it/J2.VCW

Health: How Gardening Can Help Your Overall Health And Wellbeing - The Best Of Health

If you want to stay fit, are intimidated by gyms, but enjoy theoutdoors and want to benefit from fresh air, then gardening may be the perfect choice for you. As the weather improves and the days lengthen,many people think about heading out either into their own outdoor spaceor to a public allotment. Research has shown that regular energetic gardening provides the same positive health benefits as exercise programmes such as jogging or swimming:

• Half an hour of digging burns 150 calories
• Half an hour pushing a lawn mower burns 165 calories
• Half an hour raking a lawn burns 120 calories

While running or exercising in a gym may burn slightly more calories, doctors are increasingly trying to encourage people to take up lighter activities that can be fitted into a daily routine. The key principle in any fitness regime, is sustaining the exercise habit by doing something enjoyable such as gardening.

The Royal Horticultural Society asked 2,000 gardeners about their experiences in a campaign to get more people using gardening for fitness. 80% of the respondents said gardening had improved their
fitness, 60% said they felt physically energised after gardening and 53% said it improved their mood.

Around 70% said that gardening helped tone their forearms, 52% that it toned their thighs and nearly a third that it toned their bottom.

Read more: How Gardening Can Help Your Overall Health And Wellbeing - The Best Of Health

EU-Iran Relations: EU provides Iran with EUR 18m development support

The Commission adopted Thursday a first package of EUR 18 million for projects in support of sustainable economic and social development in Iran, including EUR 8m aid to the private sector.

The projects are the first of a wider package of EUR 50 million for Iran, says the EU executive, which aims to support the country to address key economic and social challenges. They are part of the renewed cooperation and engagement between the European Union and Iran following the conclusion of the Joint Comprehensive Plan of Action (JCPOA).

"Since the renewal of the EU-Iran relations as a result of the Iran nuclear deal, cooperation has developed in many sectors," says the EU's foreign policy chief Federica Mogherini: "We are committed to sustain it and this new package will widen economic and sectoral relations in areas that are of direct benefit to our citizens".

Activities supporting the private sector will include support to high-potential Iranian Small and Medium-sized Enterprises (SMEs), the development of selected value chains, and technical assistance to Iran's Trade Promotion Organisation, says the Commission.

Read more: EU provides Iran with EUR 18m development support — EUbusiness.com | EU news, business and politics

USA: Politics in America are Corporate, not Citizen focused - Why are guns a right in the US, meanwhile education and healthcare are not?

USA: Corporate Insurance Policies suck

The fact that the US isn’t among the countries with universal healthcare and free college has been a topic of many heated political debates and complaints, especially among the Millennials faced with the prospect of repaying their student loans well into their adulthood. If they have a misfortune of getting hit with a major hospital bill as well, declaring a bankruptcy is often the only solution.

Universal healthcare is something that is available in a vast number of countries across the globe. While the programs offered by each government varies from nation to nation, they’re all based on the same concept – offering access to free healthcare to everyone, old or young. Most often than not, insurance is offered freely for the underaged and the elderly, while those in the working force have a small portion of their paycheck directed to the national fund sustaining this system.

Free education is something that is widely encountered across the globe, although college isn’t always included on the list. Many countries offer a number of free university seats while others subsidize them.

Many argue that this type of education, just like universal healthcare, isn’t actually free since it is funded by the government, who in turn gathers the cash by taxing people’s paychecks and businesses. 

Basically that is an argument used in the US which in reality does not fly, because the end result in countries which do provide this service  is offering everyone access to what they need, be it education that will provide them with a better future without having to spend half of their lives paying back the student loans or getting the healthcare they need.

Across the globe, there are quite a lot of countries that offer free healthcare, from the Americas, Asia, although the most are from Europe where this seems to be the way to go when it comes to this important issue.

Many European (EU)  countries regard free education also as an investment to the economy. There is skilled workforce available on the free labor market. The opposite solution could be for example that every industry would educate their own work force starting from day one.

Capitalism or socialism doesn’t define who must pay the education: the society, the industry or the individual.

It’s the same with the healthcare: there isn’t any rule that tells that either the society, the employer or the individual should be the one who pays for the health care. It could be also so that every industry should build their own hospitals and educate their own doctors - or so that the people, the work force, do it together. But it can also be regarded as a state’s investment in the economy so that the free work force remains available and capable on the market.

These investments by the state are comparable with other investments in the infrastructure and the functionality of the society. The state offers some base for the free economy to thrive, like roads, security and so on.

Socialism is so abused and so polymorphic concept that it’s hard to define simply. But in the basic concept of socialism is about how the economic power is divided between the capital and the labor.

It certainly has nothing to do with communism, which unfortunately many right-wing conservatives like to call socialism.

.
The ultimate goal is a society that has stopped the domination of capital over the labor and where the labor has taken the domination on the production. This doesn’t necessarily mean that the state should own everything.

Both of these functions can also be shared in different ways as long as it benefits the citizens and the country as a whole.

In America the concept has become totally lopsided over the years. Today about 3 % of the US population controls all the wealth in the country, with corporations basically influencing all the decision making processes of the political establishment.

If not corrected soon, it will have disastrous consequences for America.

EU-Digest

EU-Turkish Relations: EU and Turkey on same side against US - by Bugra Susler

The Turkey-US trade spat has led to EU leaders backing Turkey against the US administration's policies.

This not only shows the extent of economic interdependence between Europe and Turkey, but also signals the development of a common stance in the face of a bullying trade partner.

When US president Donald Trump took to Twitter to celebrate the downward trajectory of the Turkish lira against the US dollar, Europe was concerned about the potential spillover of rapidly growing economic turmoil in Turkey.

In particular, Germany, Turkey's biggest trading partner, came to Turkey's defence.

At a news conference in Berlin, German chancellor Angela Merkel made it clear that "Germany would like to see an economically prosperous Turkey" and emphasised that "No one has an interest in the economic destabilisation of Turkey."

USA: More dark clouds are gathering over Donald Trump's credibility as the President of the USA

Even though the US President is not openly showing much anguish over the troubles surrounding his Presidency, it is becoming very apparent that his credibility to govern the US is more and more in doubt.

Specially in light of the recent court verdicts against many of his close associates, and damaging daily press reports, including :

David Pecker, CEO of National Enquirer Publisher, Granted Immunity in Michael Cohen Case

Sessions hits back at Trump: DOJ won't be 'improperly influenced'

The only reason that Trump hasn’t been indicted is that he’s the president

Embattled Trump Startles Israel by Demanding 'Higher Price' for His Delusional Achievements on Jerusalem

Bottom-line, this is not a pleasant time in the history for the United States.  Who would have thought that after the Republican President Nixon was impeached, that another Republican President possibly faces the same fate as Richard Nixon did and,  as a consequence, had to resign on August 9, 1974.

copyright: the above report can be copied
 only if the source - EU-Digest- is mentioned.

EU-Digest 

EU: Making plans for a new world order - by Heiko Maas

Europe's relationship with the US was changing even before Donald Trump and his provocative Tweets came along. Germany now sees the current trans-Atlantic antipathy as a historic opportunity to redefine the EU's role, writes Germany's foreign minister.

If we go it alone, we will fail in this task. The outstanding aim of our foreign policy is to build a sovereign, strong Europe. Only by joining forces with France and other European nations can a balance with the US be achieved. The European Union must become a cornerstone of the international order, a partner for all those who are committed to it. She is predestined for this, because compromise and balance lie in her DNA.

“Europe United” means this: We act with sovereignty at those points where nation-states alone cannot muster the level of power a united Europe can. We are not circling the wagons and keeping the rest of the world out. We are not demanding allegiance. Europe is building on the rule of law, respect for the weaker, and our experiences that show that international cooperation is not a zero-sum game.

A balanced partnership means that we Europeans take an equal share of the responsibility. Nowhere is the trans-Atlantic link more indispensable to us than in terms of security. Whether as a partner in NATO, or in the fight against terrorism, we need the US. We must draw the right conclusions from this.

It is in our own interest to strengthen the European part of the North Atlantic Alliance. Not because Donald Trump is always setting new percentage targets, but because we can no longer rely on Washington to the same extent. But the dialectic of the trans-Atlantic also means this: If we take on more responsibility, then Americans and Europeans can continue to rely on each other in the future.

Read more: Making plans for a new world order

British Economy: UK records biggest July budget surplus since 2000 - as it happened

t’s been a good day for UK chancellor Philip Hammond as far as the country’s public finances go, with the best July budget surplus for 18 years.

But factory growth was less impressive in August, according to the CBI.

Meanwhile the dollar has weakened after President Trump took the Federal Reserve to task for continuing to raise interest rates.

And in Greece, prime minister Alexis Tsipras has said Greece is at the beginning of a new era following its exit from its longstanding bailout programme.

Read more: UK records biggest July budget surplus since 2000 - as it happened | Business | The Guardian

EU-US Trade Relations: Six Ways How Trump Gets Trade and Europe Wrong - by Holger Schmieding

U.S. President Donald Trump is bringing the world close to a genuine trade war. Judging by his own rhetoric, Trump gets key trade issues wrong on at least six counts:

1. If China poses a problem, why not join forces with the EU?

In his dealings with China, Trump has half a point. China ought to change some of its practices, including its penchant for forced technology transfer and its habit of discriminating against foreign companies.

These legitimate concerns do not apply to the EU, however. Unfortunately, Trump seems to have rejected the original EU offer to jointly lean on China to mend its ways.

2. Can trade barriers reduce a U.S. deficit in a meaningful way?

Not really. The U.S. current account deficit of 2.3% of U.S. GDP in 2017 is not the result of supposedly unfair practices of trading partners.

Instead, the U.S. deficit reflects the country’s traditionally strong appetite for imports as well as the fact that the United States does not save enough to finance its investments at home. Short of actually halting imports, U.S. trade barriers will not change these factors very much.

3. Does the EU run a surplus with the U.S.?

Trump complains about too many German cars on Fifth Avenue — although half of those cars may actually be built in the United States.

Still, the United States indeed imports more goods from the EU than it sells in Europe. But that is only half the truth. The U.S. goods deficit is offset by a small surplus in services and a big surplus in income (largely from the Netherlands where some U.S. companies seem to pool their EU-wide profits).

As the chart below shows, the United States has actually run a small current account surplus with the EU since 2009. What Europe earns by selling goods to the United States, it spends on licensing fees for U.S. technology and on U.S. services. Nothing unfair here.



4. Is the EU refusing to cut tariffs on U.S. exports?

President Trump complains that EU tariffs are high. For cars, that is true. For trucks, however, it is the other way around. On average, EU tariffs are close to those of the United States.

In 2017, Trump rejected the TTIP deal that would have abolished almost all tariffs between the United States and the EU. For that, he can only blame himself.

5. Talk to Brussels, not Berlin and Wolfsburg

Trump’s ambassador to Berlin, Richard Grenell, has reportedly offered German car companies to abolish all car tariffs between the two countries on a bilateral basis.

But such a “divide and rule” attempt will not work. On trade, only the EU can and will strike deals, not Berlin. Moreover, as a result of the recent trade tensions, the EU seems more united on trade than on most other issues.

6. Can the U.S. bully the EU on trade?

The EU as such is not a strong force in global politics. But its sheer market size makes the EU the top trading power of the world.

As a result, the EU is less inclined than any other region to give in to trade threats.
Conclusion

A well-balanced deal to liberalize U.S.-EU trade is possible, but only if Trump’s advisors start to understand the EU — and then manage to convince their president.

Read more: Six Ways How Trump Gets Trade and Europe Wrong - The Globalist

EU - Iran Relations: Trump Sanctions Against Iran: EU pledges to help Iran out of US oil ban

Iran's First Vice President Eshaq Jahangiri on Sunday said the European Union (EU) has pledged to take action before the US ban on importing oil from Iran takes effect in November, the media reported.

The European countries have made this promise in an attempt to make up for the possible losses that Tehran may suffer, Jahangiri was quoted as saying by the Press TV.

The US sanctions have so far not limited European countries in the economic sector, particularly with regard to oil purchases and trade, Jahangiri said, Xinhua reported.

The impact has not been "very determining" despite the departure of some private companies, particularly the European ones, he added.

US President Donald Trump signed an executive order August 6 to reimpose the first round of sanctions on Iran, which had been lifted under the 2015 nuclear deal, to levy "maximum economic pressure" on the Islamic republic.

The sanctions will cover Iran's purchases of US dollar, its trade in gold and precious metals, and its automotive sector.

For the complete report click here

USA -Trump Trade Wars: Southern states among hardest hit by China tariffs - by Andrew Soerge

 Exporters in manufacturing-heavy states such as Alabama, South Carolina and Kentucky are among those that stand to lose the most from a protracted trade war with China, according to a U.S. News analysis of government trade data that suggests newly erected trade barriers into the Chinese market could stifle industries shipping billions of dollars of goods into Asia's largest economy each year.

The U.S. Census Bureau estimates the U.S. exported nearly $130 billion in commodities to China last year, an increase of nearly $14 billion from 2016's trade total. Newly erected tariffs on some of those goods – a byproduct of a tit-for-tat trade conflict that's developed between President Donald Trump's administration and members of Chinese President Xi Jinping's regime – stand to raise prices on U.S. exports, with farmers and manufacturers, in particular, concerned about their products getting priced out of the world's second-largest economy.

"What is clear is that we are in a trade war," Daniel Ikenson, director of the Cato Institute's Herbert A. Stiefel Center for Trade Policy Studies, said in a statement last week. "With very little substantive dialogue underway between the governments, matters are likely to get much worse before they get better."

The average U.S. state shipped 9 percent of its total commodity exports to China in 2017 – valued at an average of $2.5 billion. Washington, California and Texas led the way in China exports, each shipping more than $16 billion in goods to the country in 2017.

Read more: Southern states among hardest hit by China tariffs

Germany′s planned immigration law – what you need to know

The German government is preparing a new immigration law aimed at bringing more skilled workers to Germany – but has apparently rejected the "points-based" system that other countries favor.

The new "key-point" paper, seen by DW, acknowledges that low unemployment and an aging population in Germany have meant that companies are struggling to fill posts with qualified people, and even creating more opportunities for other European Union citizens will not meet the shortfall – so " we will have to be significantly more successful in winning qualified specialist workers from third countries" – meaning countries outside the EU.

Read more: Germany′s planned immigration law – what you need to know | Germany| News and in-depth reporting from Berlin and beyond | DW | 17.08.2018

USA: Trump's military parade in Washington may cost $92 million

The estimated cost of the military parade requested by President Donald Trump has risen again, this time to as much as $92 million, according to a defense official.

The cost of the parade, scheduled for Nov. 10 in Washington, was initially reported as $12 million, and was based on the cost of the victory parade held in the capital after the 1991 Gulf War, said the officials.

The Washington Post estimated the cost of the 1991 victory parade as $8 million.

In February, White House budget director Mick Mulvaney told Congress the price could be $10 million to $30 million.

The defense official told NBC News that the internal estimate of the cost of this fall's parade rose to $25 million after adjusting for more than 25 years of inflation. But that estimate did not take into account expenses borne by other federal agencies and some nonmilitary line items.

The $92 million figure, first reported by CNBC, is the current uppermost estimate, said the official, and includes security, transportation and other expenses.

As NBC News first reported, serious planning for the parade began in June, four months after Trump directed the Defense Department to organize it.

"There is only one person who wants this parade," said a senior U.S. official at the time, referring to Trump.

Trump got the idea for the parade while viewing France's Bastille Day Parade in July 2017.

"We're going to have to try to top it," he later told French President Emmanuel Macron.

By January, Trump was floating the idea with military leaders and in late February, he made it official with a memo to Defense Secretary James Mattis.

A March memo laid out the skeleton of a plan: a parade from the White House to the Capitol to include only wheeled vehicles (because tanks could damage the streets), capped by a big display of air power and vintage aircraft, with themes including veterans, women in the military and medal of honor recipients.

Read more: Trump's military parade in Washington may cost $92 million

Turkey - US feud: lira went back up 7% after Turkey slaps Tariffs on US products

The lira surged 7% after Turkey hit back at US 'attacks' by slapping American cars, alcohol, and tobacco with huge tariffs

To read the full report  go to:
http://flip.it/ARmkM9

Global Currencies: Wall Street’s bet on global currencies is bloodied with the U.S. dollar soaring - by Luke Kawa and Sid Verma

Politics have foiled the best-laid plans of Wall Street’s currency strategists.

Turmoil in Turkey as well as strife between Italian leaders and the European Union have forced dollar bears to throw in the towel on bets that the rest of the world’s currencies would continue to play catch-up with the greenback in 2018. A continued flight to safety propelled the Bloomberg Dollar Spot Index to a 13-month high on Monday.

The advance prompted TD Securities to close the G10 foreign exchange convergence trade recommended in its 2018 outlook after losses of more than 4 per cent. The team targeted 10-per-cent upside in going long the euro, Swedish krona, and New Zealand dollar relative to the U.S. and Swiss currencies. In early Tuesday trading, the Bloomberg Dollar Spot Index eased 0.2 per cent.

“The soft patch in global growth and the emergence of Italian political tumult curtailed this thesis even though the ECB signaled the end of QE this year,” writes Mazen Issa, TD’s senior foreign-exchange strategist.

Read more: Wall Street’s bet on global currencies is bloodied with the U.S. dollar soaring - The Globe and Mail

Britain-Banking Industry-Brexit:Banks' post-Brexit 'fragmentation' plans hold risks and costs - by Sinead Cruise, Pamela Barbaglia

Several of the world’s biggest banks are in the process of relocating a number of staff who deal directly with clients and some back-office functions as Britain prepares to leave the European Union next March.

The banks, which include JP Morgan (JPM.N), Goldman Sachs (GS.N), Citi (C.N), Morgan Stanley (MS.N) and Bank of America (BAC.N), plan to “fragment” their operations by expanding or launching services in more than just one city.

While beefing up operations in traditional financial centres such as Frankfurt, Luxembourg and Paris, they are also seeking to expand in citiePlaying down the links with Brexit, the banks say the moves will bring them closer to clients and cut the costs of concentrating their operations in expensive London.

But the rush to set up offices in continental Europe has been mainly triggered by the fear of losing the benefits of EU “passports”, which remove internal borders and allow banks operating in London to serve clients across the bloc.

“It is an enforced change in strategy. If Brexit wasn’t happening, would we be doing all this? No, of course we wouldn’t. And neither would anyone else,” said an insider at a large U.S. bank.

“Does it get you closer to clients? Yes, of course it does. But people are trying to make a virtue out of a necessity,” said the insider, who declined to be named because of the sensitivity of the subject.

Read more: Banks' post-Brexit 'fragmentation' plans hold risks and costs | Reuters

Middle East - Iran: US demands Britain back Trump with Iran sanctions

Ambassador Woody Johnson has challenged the UK to abandon its European neighbours who back the 2015 international deal to constrain Iran's development of nuclear capabilities in return for  trade with Iran. Johnson said on Sunday that Britain should join forces with America to enforce the US president's hard-hitting sanctions. He also delivered an explicit ultimatum to British companies, telling then to stop doing business with Iran or face "serious consequences" for their trade with the US.

The comments are a direct challenge to Prime Minister Theresa May's minority Conservative government, days after a minister point-blank refused to go along with Trump's sanctions on Tehran and keep the nuclear agreement alive.

They also come six days after Jeremy Hunt, the Foreign Secretary, signed a joint statement with the EU which promised to push ahead with blocking the impact of the sanctions on European businesses. Johnson's comments escalate the tensions over what is the first test of the so-called special relationship between the US and UK since Trump's visit to the UK last month.

Britain negotiated the original Iran deal in 2015 with France, Germany, China, Russia and the US in a process coordinated by the European Union. The Tehran regime agreed to curb its nuclear program in return for the lifting of sanctions.

But Trump pulled out of the deal, which was struck by his predecessor Barack Obama, three months ago because Trump believes it is not stopping Iran from meddling the Middle East. Hard-hitting economic sanctions were reimposed last week with more to come in November.

Note EU-Digest: Hopefully Britain will not cave in to the bullying tactics of Trump, instead reurn to the welcoming arms of the EU in a new Brexit referendum.Like was said before, getting out of the EU for any member will mean losing your EU "security blanket" in standing up against the "big powers".

Read more: US demands Britain back Trump with Iran sanctions

Global Economy: The Big, Dangerous Bubble in Corporate Debt - by William D. Cohan

The $30 trillion domestic stock market seems to get all the attention. When the stock market sets new highs, we instinctively feel things are good and getting better. When it tanks, as happened in the initial months of the 2008 financial crisis, we think things are going to hell.

But the larger domestic debt market — at around $41 trillion for the bond market alone — reveals more about our nation’s financial health. And right now, the debt market is broadcasting a dangerous message: 

Investors, desperate for debt instruments that pay high interest, have been overpaying for riskier and riskier obligations. University endowments, pension funds, mutual funds and hedge funds have been pouring money into the bond market with little concern that bonds can be every bit as dangerous to own as stocks.

Unlike buying a stock, which is a calculated gamble, buying a bond or a loan is a contractual obligation: A borrower must repay a lender the borrowed amount, plus interest as compensation.

The upside in a bond is limited to the contractual interest payments, but the downside is theoretically protected. Bondholders expect to get their money back, as long as the borrower doesn’t default or go bankrupt.

For the complete report go to the NY times 

Turkey: Will Turkey′s economic woes reach Europe? - probably not say the experts

With diplomatic tensions high, the Turkish lira has hit yet another all-time low against the US dollar, which not only impacts the Mediterranean country. But will its spillover into the eurozone bring a bang?

Turkey's embattled lira on Friday hit new record lows against the US dollar, losing some five percent in value as fears grew over the exposure of European banks and tensions with the United States showed no sign of easing as Washington piled more pressure on Ankara through sanctions after a meeting between a Turkish delegation and US officials in Washington yielded no apparent solution to a diplomatic rift over the detention in Turkey of an evangelical American pastor.

The lira went into free-fall, sinking more than 12 percent at one point to reach and all-time low, having now lost more than one third of its value this year against the US dollar and the euro.

More broadly, concerns over the sickly Turkish economy's wider impact were intensified Friday by a report in the Financial Times that the supervisory wing of the European Central Bank had began to look more closely at eurozone lenders' exposure to the country.

Deepening investor concerns about Turkey's authoritarian trajectory under President Recep Tayyip Erdogan and the economic fallout have also weighed on the currency. Markets are deeply concerned over the direction of economic policy in Turkey where inflation has hit nearly 16 percent while the central bank remains reluctant to raise rates in response.

Speaking to supporters in the Black Sea province of Rize late on Thursday, Erdogan dismissed concerns over the currency as a campaign against his country. "There are various campaigns being carried out. Don't heed them," Erdogan said.

"Don't forget, if they have their dollars, we have our people, our God. We are working hard. Look at what we were 16 years ago and look at us now," he said. On Friday, Turkish Finance Minister Berat Albayrak — at the same time Erdogan's son-in-law — is set to unveil the government's latest plan for country's economy.

Turkish economist Korkut Boratav sees the need for urgent action: "The economy is fragile. Due to the foreign debts of companies and banks and the current account deficit, there is a great need for foreign capital."

A new analysis by Berenberg Bank sees little long-term impact of high Turkish inflation and low interest rates on eurozone gross domestic product (GDP) growth. "Even if eurozone goods exports to Turkey were to fall by, say, 20 percent, this would subtract no more than 0.1 percentage point from growth in the big eurozone," according to the report.

Even Turkey's annual GDP which is around €750 billion ($860 billion) is only equivalent to 6.5 percent of the eurozone's GDP. Though this is four times larger than Greece, it is still "less than half the size of the Italian economy, despite Turkey's larger population of around 80 million versus around 60 million for Italy," according to the analysis. 

And even if eurozone exports to Turkey fell through the floor, previous experience has shown that European companies are "pretty quick in identifying and switching to new markets. Selling more elsewhere would offset some of the hypothetical decline in eurozone exports to Turkey." Once any crisis was over, the bank expects exports to recover quickly.

Obviously a real Turkish crisis would have knock-on effects, though Berenberg sees Europe's exposure to Turkish banks as being too small to cause much harm. Even in the worst case scenario, "bank supervisors in the eurozone would have sufficient tools at their disposal to contain the damage," making a credit crunch in any part of the eurozone highly unlikely, concludes the upbeat analysis.

Korkut Boratav is more concerned and thinks an intervention by the IMF is the only way to save the European banks. "The Europeans should have known that they should not lend to distressed banks," criticizes Boratav. "This is one of the most important principles of the free market economy — if you lend money, you take a risk and must accept the losses."

Read more: Will Turkey′s economic woes reach Europe? | Business| Economy and finance news from a German perspective | DW | 10.08.2018

EU-US Relations -Trade: EU urges US to cut red tape on liquefied natural gas exports

The European Union is urging the United States to cut red tape and simplify rules for the export of its liquefied natural gas if Washington wants the 28-nation bloc to buy more.

Amid a trade dispute over tariffs, President Donald Trump and Commission President Jean-Claude

Juncker agreed last month to start talks intended to achieve "zero tariffs" and "zero subsidies" on non-automotive industrial goods.

The EU also agreed to build more terminals to import U.S. liquefied natural gas.

Juncker said Thursday that if it's cheap enough, U.S. gas could help the EU diversify energy supplies and break its dependency on Russia.

But he said "the U.S. needs to play its role in doing away with red tape restrictions

Read more: EU urges US to cut red tape on liquefied natural gas exports

Middle East: Iran - US Relations: Donald Trump bullies rest of world they must choose between trade with US or Iran - by Bethan McKernan

European companies should still be able to trade with Iran despite new US sanctions, according to minister of state for the Middle East, Alaistair Burt.

Donald Trump tweeted “anyone doing business with Iran will NOT be doing business with the United States”.

The EU has launched a “blocking statute”, designed to allow companies within the bloc to sue the Trump administration, if they are adversely affected by US sanctions, and has encouraged member states to continue trading with Tehran.

This EU legislation should protect businesses in member states who do not wish to break off economic ties with Tehran despite the reinstatement of US sanctions which came into effect on Tuesday, Mr Burt told the BBC.

“If a company fears legal action taken against it and enforcement action taken against it by an entity in response to American sanctions then that company can be protected as far as EU legislation is concerned,” added Mr Burt.

Read more: Donald Trump says rest of world must choose between trade with US or Iran | The Independent

EU Citizens under threat from populist right-wing local and foreign politicians who are endangering the EU's unity and economic stability - by RM

Right-wing populist politicians destabilizing the EU

Democratic and Cultural Fortress Europe is under attack, by devious right-wing populist politicians and their followers

These include, but not limited to, (see picture insert) from top left to right: Donald Trump (USA), Steve Bannon (USA), Marine Le Pen (France), Nigel Farage (Britain), Benjamin Netanyahu (Israel), Geert Wilders (the Netherlands), Dr.Jörg Meuthen (Germany), Jarosław Aleksander Kaczyński (Poland), Viktor Mihály Orbán (Hungary),Thierry Henri Philippe Baudet (the Netherlands) Luigi Di Maio (Italy), and Sebastian Kurz (Austria)

It is not a question anymore of how to come to terms with this threat, but how this threat can be eliminated effectively.  Tthe majority of Europesn citizens certainly do not want Europe to fall apart into a feuding group of nations, and easy prey for China, Russia and the US.

This issue certainly must, if it is not so already, become the number one objective on the agenda of the EU Commission, the EU Parliament and each individual EU Nation state.

Maybe, in this context it might help to refresh our memory as to the importance of the EU among the world of nations, with some historic background on the EU, and the benefits its citizens enjoy.

The European Union was set up with the aim of ending the frequent and bloody wars between neighbours in Europe, which culminated in the past, and more recently in the First and Second World Wars.

Europeans were determined to prevent such killing and destruction from ever happening again.

After the Second world war, Europe was split into East and West,  resulting in a 40-year-long Cold War.

To counter this political problem, West European nations created the Council of Europe in 1949.

It was a first step towards cooperation between them, but six countries even wanted to go further.

As of 1950, the European Coal and Steel Community begins to unite European countries economically and politically in order to secure lasting peace.

The six founding countries were Belgium, France, Germany, Italy, Luxembourg and the Netherlands.

The 1950s were dominated by a cold war between east and west. Protests in Hungary against the Communist regime are put down by Soviet tanks in 1956. ’

On the 8 of May 1950 French Foreign Minister Robert Schuman presents a plan for deeper cooperation. This historic event is celebrated every 9th of May as ' Europe Day'

On 18 April 1951 based on the Schuman plan, six countries signed a treaty to run their heavy industries – coal and steel – under a common management. In this way, none can on its own make the weapons of war to turn against the other, as in the past.

In 1957, the Treaty of Rome created the European Economic Community (EEC), or ‘Common Market

One thing led to another, making the EU what it is today, operating as a single market with 28 member countries, one of the major global trading powers.

EU economic policy seeks to sustain growth by investing in transport, energy and research – while minimising the impact of further economic development on the environment.

In terms of the total value of all goods and services produced (GDP), it is bigger than the US economy. EU GDP in 2017 was €15.3 trillion

Over 64 % of EU countries’ total trade is done with other countries in the EU bloc.

On January 1, 2017, the population of the European Union (EU) was estimated at 511.8 million, compared with 510.3 million on 1 January 2016. During the year 2016, as many births as deaths were recorded in the EU (5.1 million), meaning that the natural change of the EU population was neutral.

With just 6.9 % of the world’s total population, EU trade with the rest of the world accounts for some 15.6 % of global imports and exports.

Consequently, together with the United States and China, the EU is one of the 3 largest global players in international trade.

The 28 EU countries had the second largest share of global imports and exports of goods in 2016.

For individual EU citizen some of the benefits include:

    1) Eligibility to live and work everywhere within the EU without further permission.

    2) Eligibility to take part in local elections of the community where you are a resident. So if you       are a Frenchman living in Munich you can vote for in the election of the Munich
city council, which chooses the mayor. You can even run for a seat in that local municipality.
   
   3) Eligibility to vote in the EU parliamentary elections, and you can even run for a seat.
   
    4) Coming from another EU member country one may not be discriminated against, in relation to local citizen in your place of residence. That means: If local residents are allowed to send their children to public school for free, you are also allowed. If they receive social security payments, you may also receive them.
   
    5) Say you want to run a workshop in Germany, you may even have benefits over and above those of local German citizens. If you are a German running a car repair workshop, you either need a master certificate as a trained car mechanic, or you have to employ somebody who has such a certificate. If, however, you are coming in from another EU country, you only have to show proof that you are a car mechanic with a work experience.
   
    6) As an EU citizen you also have diplomatic protection. If you are in a country where your home country does not have its own embassy, every EU embassy of a member state is obliged to help you if you need help.
   
    7) EU citizens also have the right to communicate with every administrative office within the EU in your own language - and you have the right to receive an answer in your own language.

Bottom line - don't let these right-wing Populists mislead you with vague and confusing arguments, Ask for specifics, like how they would set up things differently, and what the benefits would be for you as a citizen.

And if this results in more garbled rhetoric, like we so often hear from those populist politicians,  make sure you tell them they are not convincing you.

There is no way EU citizens would benefit from going back to their own currency, border controls, banking regulations, and nationally protected local trade.

Probably the most remarkable success for the EU has been that, apart from its economic prominence, following the ‘Schuman Declaration’, on 9 May 1950, there have been 68 years of peace across the continent, following this declaration.

The European project, known as the EU is the best thing that ever happened for peace, economic stability and prosperity on  the European continent. Another positive is that since it is still a project under development, it can only get better.

We must therefore use all means at our disposal to protect and safeguard it from the destabilizing forces which are presently attacking its existence.

© This article can be republished only if EU=Digest is mentioned as the source

EU-Digest 

EU economic growth forecast reduced as a result of Trump tariffs

The European Commission on Thursday cut its forecasts for the eurozone's economic growth this year, citing among the top causes for its revision trade tensions with the United States, as well as rising oil prices, which are expected to push the bloc's inflation higher.

The slowdown of the eurozone economy is set to affect all major economies of the bloc, but is expected to hit Italy harder, as the country is forecast to record the lowest growth rate in Europe, matched only by Britain among all 28 EU countries.

The EU executive estimated the 19-country eurozone will grow by 2.1 percent this year, lower than the 2.3 percent gross domestic product (GDP) increase it had forecast in its previous estimates released in May, and below the 2.4 percent growth recorded last year.

In 2019, the bloc's growth should slow to 2.0 percent, unchanged from the previous forecast.

But what do these forecasts — and changes in forecasts — actually mean?

To get a sense of how forecasts can differ from actual results, see the charts. The first shows how GDP actually changed (light blue) and how it was forecast by the Commission to change (blue-and-black hatched bars) in 2017 compared to the previous year. The second chart, further below, compares actual and forecast changes in the consumer price inflation for 2017 compared to 2016.

The take-home message here is that the forecasts the Commission is currently making about next year's GDP or inflation numbers will likewise prove, in retrospect, to be wrong. Nonetheless, the forecasts are useful as a snapshot of Commission economists' perceptions of current trends, reflected in available economic data as these are processed in their economic models.

Read more: EU economic growth forecast reduced | Business| Economy and finance news from a German perspective | DW | 12.07.2018

Euronomics: Euro Tragedy, A Drama in Nine Acts review: Impossible to undo, and impossible to fix - by Ashoka Mody

Celebrations for the 20th anniversary of Europe's common currency, the euro, are due in January and they will be subdued. The common currency almost came apart in the aftermath of the 2008 financial crisis and its vulnerability was baked into the design.

Ashoka Mody, who headed the IMF mission to Ireland during the subsequent Troika programme, recounts the genesis of the misbegotten project in this comprehensive study. He argues that the common currency was poorly designed and poorly managed in the years following the financial crash.

The eurosystem masquerades as ''Economic and Monetary Union'', the preferred moniker invariably employed by its defenders. But it is not a true monetary union even after the grudging repairs implemented since the crisis years from 2010 onwards. The United States is a full-blown monetary union, with a significant federal budget, a federally-issued safe asset, centralised bank supervision and a federal system of deposit insurance. If the banks go bust in Texas, the government of Texas does not have to pick up the pieces: the feds do the job. Nobody worries that the Texas dollar (deposits in bank branches in Texas) might come to be worth less than real dollars in New York or Massachusetts. Nor can the governor of Texas be threatened with expulsion from the dollar zone unless unsecured creditors of bust Texas banks are rescued by Texas taxpayers.

 For the complete report click here

EU and Chinese foreign ministers reaffirm commitment to multilateralism and free trade

China and the European Union pledged to work together to promote free trade during a key regional summit in Singapore, on the heels of the trade detente between Europe and the US that left Beijing the central focus of US President Donald Trump’s global crusade on trade.

On the sidelines of the gathering of Association of Southeast Asian Nations (Asean) foreign ministers, China’s Foreign Minister Wang Yi met with his counterpart Federica Mogherini, the highest representative of the EU for foreign affairs and security policy, to reaffirm their commitment to multilateralism and free trade.

Wang said the two would enhance their strategic communication and cooperation at a time of “uncertainty and instability in the international situation,” while Mogherini said the EU stands with China on trade and would not adopt any policy against Beijing, according to a statement from the Chinese foreign ministry.

Read more: EU and Chinese foreign ministers reaffirm commitment to multilateralism and free trade | South China Morning Post

Global Politics: US reckless policies with Russia and Iran risks splitting allies and losing their world power position to China

Read more at:
https://www.newsweek.com/us-risks-losing-world-power-china-russia-splitting-allies-iran-experts-say-1053407?spMailingID=3865933&spUserID=MTI0NzM2NDgxNDcS1&spJobID=1090078676&spReportId=MTA5MDA3ODY3NgS2

USA - House Race elections: last straw for Republicans

Why this House race may be the last straw for Republicans in 2018

Read more at:
http://flip.it/R_iHOY

Global Warming: List of companies most responsible for Global warming

Via euronews: Here are the companies most responsible for global warming: Study

Read more at: 

http://www.euronews.com/2018/08/01/here-are-the-companies-most-responsible-for-global-warming-study

Death Penalty: Catholic, church to oppose death penalty

Pope changes teaching to oppose death penalty in all cases

Read more at:
http://flip.it/mkKrzQ

Turkey-US Relations: Trump White House sanctions Turkey over pastor Andrew Brunson - by Alex Ward

President Donald Trump announced that he would sanction Turkey for detaining an American pastor — a move that could further imperil the already tense relationship between Washington and Ankara.

The president is “not happy with Turkey’s decision” to continue to detain the man who has been held for nearly two years, White House press secretary Sarah Sanders said on Wednesday. Trump ordered sanctions that target two top Turkish officials — the minister of justice and minister of interior — for their role in the issue.

Turkey, a NATO ally, responded by calling the sanctions “unacceptable” and promised to retaliate. Turkish Foreign Minister Mevlüt Çavuşoğlu tweeted after the announcement that the US can’t “obtain unlawful requests” in this way. The Turkish lira, meanwhile, has dropped in anticipation of the sanctions.

The pastor in question, Andrew Brunson, is originally from North Carolina but has lived in Turkey for more than 20 years. Turkish authorities detained him on October 7, 2016, claiming that he was a spy and had connections to a terrorist group. The US expected him to be released on July 18, but on Wednesday, Turkish officials moved Brunson due to health concerns and kept him under house arrest.

The charges he’s facing mean he could spend the rest of his life in prison.

Trump has repeatedly called Brunson a “great Christian” and expressed his displeasure over the pastor’s detainment for months, but hadn’t taken significant action before Thursday. It’s unclear, though, why Trump decided to escalate this issue now, or what the sanctions he promised to impose might look like.

On July 26, Vice President Mike Pence had noted the possibility of sanctions during a speech at a conference on religious freedom. After the speech, Trump tweeted that he would follow through on the threat.

Read more: Trump White House sanctions Turkey over pastor Andrew