In an interview broadcast on Sunday Treasury Secretary Steven Mnuchin said that president Trump would use his first "State of the Union" policy speech on Tuesday night to preview some elements of his sweeping plans to cut taxes for the middle class, simplify the tax system and make American companies more globally competitive with lower rates and changes to encourage U.S. manufacturing.
The plan will reduce the number of tax brackets for individuals and offer a "middle income tax cut," Mnuchin said. On the business side, Trump administration officials have complained that many countries charge value-added taxes on imports while exempting exports from taxation. The United States mainly taxes corporate income and this is therefore prompting the President to "create a level playing field for U.S. companies to be able to compete in the world."
Nevertheless, Mnuchin again said he was only studying a House Republican border tax adjustment plan that would levy a 20 percent tax on imports to encourage more U.S.-based production and exports. That plan aims to raise more than $1 trillion in revenue over a decade to offset lower tax rates for businesses.
French presidential candidate Emmanuel Macron won his third endorsement in less than a week, giving the independent renewed momentum in polls that suggested he was again the favorite to become France’s next president as Republican Francois Fillon faced the prospect of an extended judicial investigation.
Christophe Caresche, a Socialist lawmaker, said in a Sunday newspaper article that he will abandon his party’s nominee to back Macron, joining former green party lawmaker Francois de Rugy and Francois Bayrou, a centrist politician who ran for president in the past three elections, in supporting the former economy minister.
Fillon, meanwhile, is struggling to put to rest a scandal about the employment of his wife and children as parliamentary aides over the course of more than three decades in politics.
Sterling slid from a 2-week high to the dollar on Friday but was still on track for its strongest weekly showing in a month as concerns about politics in the United States and Europe took investors' focus off immediate Brexit worries.
Besides the Brexit bill making its way through Britain's upper house of parliament, a week largely lacking in major domestic political developments and new economic numbers has given the pound some respite. Triggering of Article 50 is still on course for the end of March which could prove to deliver more market volatility than we have seen over the past few weeks.
13.30 – USD – Core Durable Goods Orders MoM; Forecast the same as previous at 0.5%