Trump asked Xi for political help, Bolton charges in book
Donald Trump’s former national security advisor, John Bolton, alleged in a new book that Trump asked Xi Jinping, China’s leader, to buy more American agricultural products in a bid to help Trump win re-election this November. Robert Lighthizer, the US trade representative, said the request “never happened”. Bolton also wrote that Trump expressed support for China’s harsh treatment of the Uighur minority group. The US Department of Justice filed court papers asking for the book to be banned. Sources: BBC, CNBC, CNN, Financial Times, The Guardian, Reuters and South China Morning Post.
US pulls out of digital tax talks
Robert Lighthizer, the US trade representative, said Washington has withdrawn from international negotiations on establishing a global turnover tax on large digital firms such as Amazon, Facebook and Google. Lighthizer said other countries were trying to “screw America”. Sources: Bloomberg, Financial Times, Marketwatch and Reuters.
EU to probe planned tie-up between automakers
The European Commission said it started a competition investigation of the proposed merger between Fiat Chrysler and PSA, the French maker of Peugeot, Citroën and Opel. The commission is concerned the deal would reduce competition, particularly for vans, in 14 countries, including Luxembourg. Sources: Deutsche Welle, Financial Times, Reuters and RTE.
Luxembourg keeps AAA rating: Moody’s
The credit rating agency Moody’s reiterated Luxembourg’s top notch score on its sovereign debt, saying the coronavirus pandemic’s impact on the economy would be “temporary”. Moody’s forecast the country’s GDP would shrink by 6.5% this year and grow by 5% in 2021. Source: Moody’s.
German building society pulling out of Luxembourg
Schwäbisch Hall, which operates one of three authorised home savings schemes in the grand duchy, said it would shut down its Luxembourg branch in January 2021. Source: RTL.
Guardian could close Dudelange site
The glassmaker Guardian said it might merge its two Luxembourg plants, in Bascharage and Dudelange, which together employ 461 people. Source: Paperjam.
Hoffmann gets another 2 years at head of ABBL
Guy Hoffmann has been re-elected as chair of the Luxembourg Bankers Association. Source: Paperjam.
Place de Paris construction zone
Luxtram began its extension works on the place de Paris this week, which it said should be completed by July 2021. Automobile traffic is permitted, but expect diversions. Source: Luxtram.
CNS heading into the red
The country’s main health insurance fund is forecast to run a €551m operational deficit this year and a €218m deficit in 2021, due to the covid-19 crisis. The CNS posted a surplus of €102m in 2019. Source: Social security and health ministries.
Coronavirus outbreak at German slaughterhouse
657 people working at meat processing plant in Gütersloh (about 380km northeast of Luxembourg City) have tested positive for covid-19. Sources: Associated Press, BBC and Deutsche Welle.
Luxembourg outbreak update
10 of the 7,202 people tested for covid-19 in the grand duchy during the 24 hours to Wednesday afternoon were positive. The RT_eff reproduction rate remained steady at 0.86. Source: Health ministry.
HSBC to resume job cuts
After a pause during the covid-19 pandemic, the global bank HSBC said it would continue with its plan to make 35,000 staff redundant. Sources: CNN, Financial Times, The Guardian and South China Morning Post.
JD.com nets nearly $4bn with HK listing
China’s second largest e-commerce firm, JD.com, raised US$3.8bn in its IPO on the Hong Kong Stock Exchange. Its shares rose more than 5% at the beginning of trading. Sources: BBC, CNBC, Financial Times and South China Morning Post.
Scaled back National Day plans
The traditional National Day fireworks display in the capital on 22 June has been cancelled, due to covid-19. Instead, the City of Luxembourg will distribute items “to encourage residents to celebrate National Day at home.” There will be a more sombre official ceremony and 21 cannon fire salute on 23 June. Sources: City of Luxembourg, Ministry of State and Paperjam.
Schueberfouer replacement plan
Luxembourg City is working on an alternative for its annual summer funfair, cancelled due to covid-19, which would involve several smaller sites (perhaps with free rides) throughout the capital. Source: Paperjam.
Agenda
Wednesday 24 June, 5:30pm-7pm: Paperjam Club’s “10x6 Architecture: Co-living & Co-working” online conference (in French and English). Wednesday 24 June, 6pm-7pm: The American Chamber of Commerce’s “EU-US and bilateral relations in times of covid-19” webinar with Luxembourg’s ambassador to Washington, Gaston Stronck. Thursday 25 June, 1:30pm-3pm: Luxembourg directors institute (ILA) and Women in Digital Empowerment’s “Leading strategic corporate sustainability” training webinar. Thursday 25 June, 3:30pm-5pm: Luxflag sustainable finance webinar on “Using and improving ESG data to measure ESG performance”. Friday 26 June, 4:30pm-5:30pm: Chinalux’s “Practical techniques for self-management and well-being during these times of reduced social interaction” webinar.
Jarring Marmite news
There’s a brewing Marmite shortage due to the covid-19 lockdown in the UK. Sources: Australian Associated Press, NPR and Sky News.
Today’s breakfast briefing was written by Aaron Grunwald