With the G8 meeting out of the way the next focal point is turning toward this week’s meeting of EU leaders on Wednesday, where Germany will take centre-stage as the country is expected to be asked to slightly ease austerity around peripheral economies in Europe and rethink its strategy around the notion of 'growth'. Will leaders Merkel and Hollande agree to anything concrete or is further market disappointment likely to follow? Things are likely to get worse before they get better as all eyes turn to Wednesday’s meeting.
German Chancellor Angela Merkel said she won’t shy away from disagreeing with French President Francois Hollande at the summit on 23rd May, the next major appointment of leaders seeking to allay concerns among investors that Greece may quit the Euro, putting at risk Spain and Italy as well.
Business leaders have suggested a single 30% rate of tax should be introduced in the UK, in what is the latest piece of advice to help boost the nation's struggling economy. The reforms would see national insurance contributions and stamp duty abolished, and the introduction of single, flat rate and the report claims that a two-earner household with an income of £28,000 would save £3,400 a year in tax.
Manufacturers probably received more orders in April and home sales rose, a sign that the U.S. expansion is still on track. Factory bookings for long-lasting goods rose 0.3 % last month after falling 3.9 % in March. Meanwhile housing will probably benefit from record-low mortgage rates that are making properties more affordable. While the economy is growing, it is just not growing at an inspiring pace.
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