Italy has doubled the flat tax on foreign income for wealthy new residents who have been flocking here to take advantage of it.
The €100,000 a year payment — which exempts people moving to the country from taxes on overseas earnings, gifts, and inheritance for 15yrs — will rise to €200,000. The previous €100,000 tax incentive was popular w/wealthy individuals but controversial among Italians, particularly in Milan, the business capital. The recent influx of the super-rich has been blamed for significantly increasing real estate prices and living costs. The increaed flat tax for the billionaires is still set at a level that would remain interesting to wealthy foreigners, FinMin Giorgetti said. Source: Bloomberg, HolgerZ
Why the ECB should keep interest rates at the lowest level possible explained in one chart
The Euro zone is an equilibrium where high debt countries like Italy, France and Spain run big deficits. The ECB enables this by capping yields when these spike like they did in 2022. This policy is an implicit subsidy of high debt countries by low debt ones... Source: Robin Brooks
German inflation unexpectedly accelerated in July to 2.3% YoY from 2.2% in June as food price inflation keeps rising, core inflation, and services inflation remain sticky at 2.9% and 3.9%.
Source: HolgerZ, Bloomberg
Chinese EVs Seize Record 11% Share in Europe Ahead of Tariffs - Bloomberg
Chinese brands captured 11% of the European electric-car market in June, notching record registrations as manufacturers raced to beat stiff European Union tariffs that took effect early this month.
As highlighted by Michel A.Arouet on X: the German business model was based on:
1. Cheap energy from Russia 2. Cheap subcontractors in Eastern Europe 3. Steadily growing exports to China All three are gone by now, and not much has been done to change the trend. Source: Bloomberg, Michel A.Arouet
Interesting point by HolgerZ on X. Unlike on Wall Street – big stocks in germany are still doing well, while small stocks are struggling.
This can be seen in the ratio of the Benchmark Index Dax to the Mid-Cap-Index MDax, which hit its highest level since 2011. This could be because the economy isn't doing great, and small companies are more affected by this. The Purchasing Managers' Index for Germany dropped below make-or-break 50 this week, highlighting Germany's economic challenges. Source: HolgerZ, Bloomberg
"The H1 results reflect LVMH's remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty."
Bernard Arnault Below $LVMH Q2 2024 organic revenue growth by business group by Quartr.
France’s Interior Minister Gerald Darmanin said the minimum wage could be increased, opening the door to a key proposal of the leftist bloc
Raising the floor on the basic wage known as the SMIC by around €200 ($217.64) to €1,600 a month net is a core proposal of the New Popular Front, which won the largest share of seats in a snap election two weeks ago, but not enough to govern alone. Source; Bloomberg
