Over the past week, we have been waiting for the notorious U.S. tax reform. According to Wall Street indices and the dollar price, it was well accepted by investors. The main thing in the plan is that corporate tax will be reduced to 20% of the current 35%. The tax return rate in the country will fall to 25%, which is particularly important for technology companies such as Apple, which hold large amounts of money outside the US. Returning technology capital due to radical tax reform was one of Trump’s biggest promises during his election campaign. For citizens, the highest rate for income taxes will fall to 35%. Another driving force turned out to be Federal Reserve Chairman Janet Yellen, who confirmed on Tuesday that the central bank will continue its policy of raising interest rates.
The US economy grew faster in the second quarter than the initial estimates, marking its fastest pace in over 2 years. However, the inertation probably slowed in the third quarter after Hurricane Harvey and Irma temporarily hit activity.The gross domestic product has increased at an annual rate of 3.1% during the April-June period, the trade ministry said in its third assessment. The upward correction compared to the growth rate 3.0% announced last month reflects an increase in investments in stocks of goods. The growth in the past quarter was the fastest since the first quarter of 2015 and accelerated sharply against the rate of 1.2% for the January-March period. Economists expected GDP growth for the second quarter to remain without correction at a level of 3.0%.
On the other side of the ocean, Britain’s economy is growing at its slowest annual pace since 2013 in the three months until the end of June, the Air Force reported, quoting the latest revised data.The gross domestic product (GDP) reported an increase of 1.5% in the second quarter compared to the same period last year, the National Statistical Service reported. The previous estimate was for growth of 1.7%.
Markets have also turned their attention to the situation in Catalonia.
In Bulgaria, strange political appointments continue and the country is not affected by international events, but lives in its own micro-climate.
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