US to propose 2,4 billion dollars tariffs on French digital tax – Bloomberg

The US has proposed 2,4 billion dollars tariffs on French digital tax, which came into force in March this year. According to Bloomberg, the US is also considering to probe Turkey, Austria and Italy over the digital tax as well.

The negotiation process is expected to start now and end in the early 2020 with France but continue with the new countries, Bloomberg reports.

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Fiat Chrysler and Peugeot PSA agree to merge – WSJ

The auto industry is having its golden years regarding changes. Now the Italian car manufacturer Fiat Chrysler (FCHA) is said to merge with the French Peugeot owner PSA (UG). The companies are expected to publish the details on Thursday the Wall Street Journal reported siting sources.

Peugeot-508-SW-HybridThis 46 billion dollars merge would create the world fourth largest car manufacturer. Last time when Fiat was in the headlines, it was about a merge with French Renault (RNO) in June 2019. Then the companies were also discussing about vehicle platforms and sharing engineering resources. According to media sources, this merge did not get the French government approval so the deal broke up.

This time the French government is also involved while the government is one of the biggest owners of Peugeot with 12 % ownership.

The new auto company would be the fourth largest in the world after Volkswagen, Toyota and Renault-Nissan. The industry is facing heavy technology changes due to electrification, emission reductions and autonomous driving. This has also caused that some manufacturers are calling for sharing tech platforms and R&D for electric car manufacturing.

The Milan listed Fiat stock closed up 9,5 % and the Paris based Peugeot also gained 4,5 % on Wednesday.






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LVMH is considering Tiffany takeover – Bloomberg

The world largest luxury company, the French LVMH (LVMH) is considering a takeover of the US luxury company Tiffany & Co (TIF). The takeover, according to Bloomberg, would increase the French company´s presence in the US markets, but according to the news, there is no guarantee of the possible deal.

Tiffany, which was founded in 1837 in Manhattan, is one of the leading luxury houses in the US with the annual turnover of 4,4 billion dollars and net earnings 586 million dollars in 2018. The company has over 300 brand stores globally for its jewellery, timepieces, accessories and fragrances.  Nearly half of its sales comes from the US markets, while Asia counts about 30 %, Japan 15 % and Europe 11%.

The market cap of Tiffany is about 11,9 billion dollars, while the French rival LVMH is about 190 billion euros.

The French company LVMH has been investing in the US markets and last week the company opened its Louis Vuitton factory in Texas. LVMH´s other brands in the luxury jewellery category are for example Bulgari, Dior, Hublot and Tag Heuer.

Both companies enhance the luxury and sustainability integration and for example Tiffany has launched a Diamond Source Initiative, where customers can know the geographical region of their individually registered diamonds.










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Brexit: On Saturday there might be other UK-votes as well

The Brexit Saturday voting day in the UK Parliament might turn to something else than expected. According to Bloomberg news, some MPs are willing still to vote for delay and for another referendum. The news agency writes that the Prime Minister Boris Johnson may have to face that the deal might be postponed.

The EU leaders approved the Brexit-agreement during their meeting on Thursday and Friday. The France president Emmanuel Macron said that there should be no new deal for the UK if the deal is not accepted. He thinks that the UK Parliament should decide now the deal.

According to news, the new deal differs from former PM May´s agreement because of the Northern Ireland. Only Northern Ireland rather than the whole U.K. will continue to apply the EU’s customs rules. This is the reason why DUP will not back the Boris Johnson deal.

If Prime Minister loses the vote, he will have to ask the EU for more extension.







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Trump taking actions against France related tech tax

The US President Donald Trump said on Friday that the US is taking action against France and its decision to tax the US tech companies. According to his Twitter feed, the US will announce a substantial reciprocal shortly.

According to Wall Street Journal, France approved a new tax on large tech companies related on digital services. This 3 % tax of revenue will mean that companies like Google and Amazon would need to pay tax in France.

This tax issue will be discussed also in the coming G7 meeting in Biarritz, France in the beginning of August.


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China to develop fintech markets

China has taken several steps to enhance and engage with the opening of its capital markets towards western financial markets. Part of this process is also the new development of financial tech-companies and their regulation in the Chinese markets.

According to the China Securities Regulatory Commission, the signed MoU with China and France will allow information sharing on developing dynamics of fintech and its related regulation policies. The MoU was signed during the Chinese President Xi Jinping´s statevisit to France in April.

According to the press release of the Securities Regulatory Commission, the countries also reached a common consensus for enhancing mutual co-operation on green financing and promoting bilateral capital markets connectivity.

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Global stocks down – BoE considering green tests for banks

The global stock market continued the downward trend on Monday. S&P 500 -index ended down 2,08 % to 2545 points and Dow Jones -index 2,11 % to 23592 points. Tech-index Nasdaq ended down 2,27 % to 6753 points.

Global economic growth concerns continued in the markets. Markets were also looking at the Federal Reserve meeting this week about the future interest rates.

France decided to introduce the digital tax, starting from the January 1st. This means that big tech-companies must pay “digital tax” from their revenues. This will be implemented to big tech companies like Apple, Google, Facebook and Amazon. France expects that the tax will be about 500 million euros a year.

In Europe the stocks were also down. In Germany the Dax-index was down 0,86 % to 10772 points, in France, Paris the CAC 40 -index ended down 1,11 % to 4799 points and in London City, the FTSE 100-index was ended down 1,05 % to 6773 points.

The Bank of England´s governor Mark Carney told to FT, that he is considering of green stress tests for banks. This would mean that the national banks would be tested how they  can manage Climate Change risks and opportunities in their operations.

According to the bank survey, only 10 % of the banks were taking long enough view of the climate related issues. The final decision of the green stress test will be made by the central bank´s financial policy commitee.

In the Brexit-update, the UK Prime Minister Theresa May told that the vote about the Brexit-deal would happen in mid January in the Parliament.

In Asia, Nikkei 225 index was among the few indexes to gain on Monday trading. It ended up 0,62 % to 21506 points., In Hong Kong the Hang Seng  index ended down 0,03 % to 26 087 points.

Euro was unchanged at 1,13 dollars.

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