Overseas Headlines – August 18, 2020

United States:

Trump Pledges Tax Credits, Tariffs to Redirect Jobs from China

“President Donald Trump said he’ll punish American companies that move jobs abroad and reward firms with tax breaks for shifting work from China to the U.S., proposals aimed at hastening the decoupling of the world’s largest economies. “We will create tax credits for companies that bring jobs from China back to America, and we’ll impose tariffs on companies that leave America to produce jobs overseas,” he said in a speech Monday in Minnesota.”



U.K. End to Pandemic Aid Pushes Employers to Adapt or Fade Away

“The U.K. is entering a critical phase in the coronavirus crisis that could shape the future of its economy long after the pandemic is gone. Employers are anxiously awaiting to see whether mounting pressure on Chancellor of the Exchequer Rishi Sunak will force him to reverse course on plans to phase out wage-support programs. That would echo a proposal this week by Germany, where the finance minister wants to extend support to 24 months.”



Japan Sees Record Economic Slump with Recovery Hinging on Virus

“Japan posted a record economic contraction in the second quarter, with recovery prospects now hinging on how quickly an uptick in virus infections can be contained. The world’s third-largest economy contracted an annualized 27.8% in the three months through June from the previous quarter as a state of emergency and lockdowns in the country’s major export markets hammered consumer spending, production and exports.”


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