12 July 2024 – Inflationary pressure in the US eased more than expected in June. This opens the door for possible interest rate cuts in 2024. The UK economy is growing more strongly than expected. And the CDU/CSU group in the EPP parliamentary group in the European Parliament is calling for a “European Steel Pact”.
In this Stainless Espresso
US inflation opens the door for interest rate cuts in 2024
Inflationary pressure in the USA eased more than expected in June. On a monthly comparison, consumer prices fell by 0.1 per cent – an increase of 0.1 per cent had been expected.
Many market players believe that this data, combined with a cooling of the tight labour market, could prompt the Fed to cut interest rates in the autumn. After all, Fed Governor Jerome Powell announced at his congressional hearing this week that “further good data” would strengthen confidence that inflation is moving towards the Fed’s target of two per cent.
UK: Economy grows more strongly than expected
Gross domestic product in the UK rose by 0.4 per cent compared to the previous month. Following stagnation in April, analysts had only expected consensus growth of 0.2 per cent. The economic recovery was broad-based: The service sector grew by 0.3 per cent, industry by 0.2 per cent and construction by 1.9 per cent.
Analysts are currently of the opinion that the Bank of England will support the further recovery with a gradual easing of its monetary policy as the year progresses.
“European steel pact” – CDU/CSU in a one-way street
The life of the CDU/CSU in the EPP group has once again ended up in the proverbial one-way street with the latest ejection of a position paper on the “European Steel Pact“. The only thing the CDU/CSU can be credited with is that they have now consistently dropped the mask in relation to the previous hypocrisy of the EU Green Deal.
WTO-infringing demand: CDU/CSU wants successor measure for Safeguard
The paper not only contains the demand to replace the EU Safeguard measure on certain steel products with a successor regulation from June 2026, thereby violating or circumventing WTO regulations.
As a reminder, the EU Carbon Border Tax CBAM was introduced on the premise that Safeguard would expire in 2026 and that double punitive tariffs at the EU’s external borders would violate WTO law.
CBAM to get EAF quotas?
We had already predicted that CBAM would turn out to be a disaster before its introduction. The EU, which wanted to impose its Green Deal on the world, had simply overlooked the fact that the world could possibly go along with it and adapt. This realisation has now also reached the CDU/CSU and there are now polemical calls to introduce EAF quotas for CBAM because CO2-reduced steel is not so welcome after all. Once again, hypocrisy knows no bounds in Brussels.
The position paper “European Steel Pact” (PDF-file) contains many more demands regarding the future of the EU steel industry and how it can be protected even more despite 180 existing EU market protection measures. Time to counter this. Or what do you think?
Note to the CDU/CSU group in the EPP group in the European Parliament: Even if you would like to, Ms von der Leyen has not yet been elected for a second term as EU Commission President. Your paper is a little premature. And the CDU/CSU is not really into gendering, is it?
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