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The pound continues slight recovery against weaker US and Euro currencies but remains significantly below pre-referendum levels. The UK and American markets had small rises, driven in part by American jobs news and improved manufacturer sentiment in the UK.
We reported last week on the upcoming EU announcement on taxation in Ireland. They concluded the rules were broken and Apple is required to pay $13B in tax. The US government is not impressed with that decision, and with TTiP negotiations failing relations between the EU and the US seem to be heading in the wrong direction. Dublin have confirmed that, alongside Apple, they will be appealing the decision.(Source : BBC)
Korean shipping company Hanjin has failed, going into receivership on Wednesday. A number of ships at sea can’t dock until how their quayside fees will be paid. Capacity in container shipping has been growing strongly due to large numbers of vessels being commissioned some time ago now entering service. The industry is fundamentally oversupplied because growth in Chinese exports has fallen. That’s led the companies to ship each other’s goods to make the loadings more cost efficient. Many goods are tied up in the failure that both manufacturers and consumers understood to be carried by other firms. That’s an example of invisible market interdependence. If you are reliant on goods or products that are being physically moved then seeking out invisible interdependencies in the logistics is a key part of business risk management. (Source: FT)
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