President Donald Trump said Monday he's in no rush to respond to a coordinated attack that hit Saudi Arabia's oil industry over the weekend.Marketsread more
The price of oil could go sharply higher, depending on the duration of the disruption at Saudi oil facilities and whether there is a military response.Powering the Futureread more
Energy stocks, one of the worst-performing sectors this year, spiked Monday after an attack on Saudi Arabia's heart of oil production Saturday sent oil prices soaring.Marketsread more
The Saudi-led military coalition battling Yemen's Houthi movement said on Monday that the attack on Saudi oil plants was carried out by Iranian weapons and did not originate...Oilread more
"The United States military, with our interagency team, is working with our partners to address this unprecedented attack and defend the international rules-based order that...Politicsread more
Crude oil's spike following attacks on Saudi Arabia's energy supply has experts weighing whether or not the gains will last.ETF Edgeread more
"In the old days, the averages would've plunged on this kind of oil shock. I know because I've lived through a bunch of them, starting in 1973," Jim Cramer says.Mad Money with Jim Cramerread more
Traders in the fed funds futures market on Monday were pricing in a 34% chance that the Fed will stay put on rates.The Fedread more
The meeting comes amid months of stalled trade talks between Washington and New Delhi, resulting in both sides taking retaliatory measures.Asia Politicsread more
Gas prices could rise by about 20 cents per gallon "starting tomorrow," oil analyst Andy Lipow says Monday.Oil and Gasread more
Some operators are cashing in on the CBD craze by substituting cheap and illegal synthetic marijuana for natural CBD in vapes and edibles such as gummy bears, an AP...Health and Scienceread more
— This is the script of CNBC's news report for China's CCTV on June 10, 2019, Monday.
As you just heard, the communique of the G20 finance ministers and central bank governors' meeting pointed out that the trade disputes have intensified. However, there was also disappointment that the meeting did not offer a solution to the trade conflict. "Recognizing the urgent need to address trade tensions" in the previous draft was deleted at the insistence of the United States, sources familiar with the matter told Reuters.
Analysts see it as a U.S. concern about burdening future trade talks, and this is a further sign that the G20 talks are still at odds. There was also no specific language on how much damage trade conflicts would do to the global economy. Recently, however, weak global manufacturing and other data are showing the impact on the global economy and America's bond markets are warning that the economy may be weakening.
But, Steven Mnuchin, United States Secretary of the Treasury, said in an interview with CNBC that the U.S. remains a economy with strong growth and reemphasized its current priority of balancing trade.
United States Secretary of the Treasury
We are in an environment where global interest rates are very low around the world. So i think that's what you're seeing in the US bond markets. But we see no signs of a recession. We see another strong quarter in the United States. And the message that I've been delivering here at the g 20 is we want free and fair reciprocal trade， but it's got to work in both directions.
In the communique, there's another area that gets a lot of attention that is a possible global digital tax on tech giants. At the meeting, finance ministers agreed to set common rules to close tax loopholes used by global tech giants like Facebook and Google to lower corporate taxes.
At present, the first place for digital taxes is in Europe. In recent years, tech giants have come under fire for locating their headquarters in low-tax areas where they can make more money but serve people who are in hard-to-define areas. Such tax avoidance is seen by many as a violation of the fairness principle. But how to tax the tech giants is fraught with disagreement.
We know that in March last year, the European Union announced its "digital tax" plan, which plans to levy taxes on large Internet enterprises with annual revenues of more than 750 million euros, but it sparked controversy, with France and Britain firmly on the EU's side, however, low-tax areas such as Denmark, Sweden and Ireland are opposed, they argue that the introduction of digital taxes will reduce their competitiveness. Such disagreements led the European Union to announce the suspension of the EU-wide digital tax in March. And that led to France going it alone. France passed legislation in May that a 3 per cent digital tax will be imposed on companies with global digital revenues of at least €750m and those with revenues of more than €25m in France. But digital taxes are controversial, and not just in the EU, and this may make the confrontation between the United States and the European Union continue.
The European Union estimates that between 120 and 150 Internet giants would be affected by a digital tax, and half of those affected are American. As a result, the US is concerned that US Internet companies will be unfairly targeted on global corporate tax problems. So it may be some time before a global digital tax actually works, because of the support from the US and the division in the EU.
United States Secretary of the Treasury
I have made it very clear in this meeting that we do not support the proposed UK and France's tax positions that we think they are discriminatory against our companies, having said that i am sympathetic to the issue as you have changing business models, you have to look at the tax impact, so we are looking at the tax issue more broadly and looking for a broad solution that would be supported by the OECD.
But what's clear is that as this issue gets agreed across the G20, it's likely to get harder for the tech giants. We will keep an eye on this issue.