What we’re reading (8/10)
“Laffer Curve In The United Kingdom?” (Scott Sumner). “More broadly, I believe that the current malaise in the European economy partly reflects the long run effects of various tax and spending policies, which have slowly eroded the tax base. European countries that did not opt for a big government model, such as Switzerland, are doing better than their more highly taxed neighbors.”
“Retreats, Coaching, And Therapy: Inside The $1 Billion Cottage Industry Cashing In On The Retail-Trading Phenomenon” (Business Insider). “In recent years, a cottage industry has taken root amid the hype for stock trading. Social media is rife with businesses offering courses, getaways, one-on-one coaching, and other services that claim to improve traders' performance and get them in the right mindset to turn a profit.”
“American Companies Are Buying Their Own Stocks At A Record Pace” (Wall Street Journal). “U.S. companies have announced $983.6 billion worth of stock buybacks so far this year, the best start to a year on record, according to Birinyi Associates data going back to 1982. They are projected to purchase more than $1.1 trillion worth overall in 2025, which would mark an all-time high.”
“Dollar Steady Before Inflation Report, US-China Tariff Deadline” (Reuters). “The U.S. dollar stabilised on Monday after last week's losses, as markets await Tuesday's key U.S. CPI report for July and focus on developments in trade talks between Washington and Beijing ahead of a deadline to avoid the imposition of higher tariffs. The dollar index was flat at 98.25 after a 0.4% decline last week. Against the yen, the dollar was unchanged at 147.685 yen, with Japanese markets closed for the Mountain Day holiday. Trade talks were in focus as Trump's August 12 deadline for a deal between the U.S. and China loomed, particularly around chip policy.”
“Gold Prices Are On A Rollercoaster After A Curious Tariff Ruling That The White House Called ‘Misinformation’” (CNN Business). “
The global gold market has been thrown into fresh turmoil after a US government agency indicated that bullion would not be exempt from tariffs. Imports of one kilo and 100-ounce gold bars are subject to reciprocal tariffs, according to a July 31 Customs and Border Protection letter reviewed by CNN. The revelation perplexed Wall Street traders, who had expected bullion to be exempt from duties.”
