Morning Market Roundup: EU Carbon Tax May Lead to Trade War, Asian Exports Shrink, Oil 8-Month Low
- Posted on June 12, 2012 at 8:35am by
Becket Adams
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Here’s what’s important in the business world this morning:
EU Carbon Tax: The global aviation industry group warned Tuesday that governments might be moving toward a trade war over Europe’s carbon charges on airlines and appealed for a negotiated settlement.
China, India, Russia and 26 other governments that oppose the charges issued a joint declaration in February that cited possible retaliatory steps such as imposing charges on European airlines.
“The last thing that we want as an industry is a trade war,” said Paul Steele, director of environmental issues for the International Air Transport Association, at an industry conference in Beijing.
“The problem is that the way things stand right now, I think we are on the brink of something like that happening,” he said.
The European Trading System requires airlines that fly to and from Europe to buy permits for all the carbon they emit en route. The charges took effect Jan. 1 but airlines will not be required to pay until next year.
As mentioned earlier on The Blaze, China and India have prohibited their airlines from cooperating and Beijing has blocked purchases of European aircraft by its carriers in protest. European courts have rejected legal challenges by U.S. airlines, supported by governments including China and India.
Asian Exports: Big markets in Europe and the U.S. no longer seem so rich or reliable and Asian countries, while fast-growing, cannot pick up all the slack.
As an austerity-weary Greece votes this weekend in elections that could determine if it stays in the euro and Spain’s ailing banks get bailout money, Asia is girding for a worsening Europe crisis that has already stifled demand for exports that have powered growth and given hundreds of millions a higher standard of living.
One of the biggest concerns in Asia is that a sudden Greek exit from the euro common currency will spark panic and freeze global credit such as in the aftermath of the Lehman collapse in 2008.
How China weathers the European crisis will serve as a harbinger for the rest of Asia. China is not only the region’s biggest economy and exporter but it has become the top destination for other leading Asian exporters such as Japan, South Korea and Taiwan. They feed China’s growing domestic market and manufacture many of the components which make up its exports.
Oil: Oil touched an eight-month low near $81 a barrel Tuesday in Asia amid concern Spain‘s bank bailout won’t be enough to stem Europe’s debt crisis.
Benchmark oil for July delivery was down $1.15 to $81.55 per barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Earlier on Tuesday, oil dropped to $81.07, the lowest since October. The contract fell $1.40 to settle at $82.70 in New York on Monday.
In London, Brent crude for July delivery was down 98 cents at $97.02 per barrel on the ICE Futures exchange.
The Associated Press contributed to this report.
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rsanchez1
Posted on June 12, 2012 at 3:03pmThe EU just keeps shooting itself in the foot. Very soon they’ll be in a position to enact draconian laws to keep “order”.
Report Post »Dougral Supports Israel
Posted on June 12, 2012 at 10:35amCongress should pass a law forbidding US airlines from paying that tax. For myself, the Euro carbon tax is one more reason to avoid travel to Europe.
Report Post »The_Jerk
Posted on June 12, 2012 at 10:26amEuropeans are the dumbest people on Earth.
Report Post »Cleats4Feets
Posted on June 12, 2012 at 10:19amSoon we will be taxed everytime we fart!
Report Post »SamIamTwo
Posted on June 12, 2012 at 9:40amThey EU puts the gun to their head and is ready to pull the trigger.
LMAO if they were to decide not fly to or over EU. haha Let them rot in their own mess. The decay of EU is liberalism. And we watch and react as it inches into the US.
Report Post »nostromo
Posted on June 12, 2012 at 9:16amThere is so much stuff going on in various committees at the UN that will impact US sovereignty that the US must either stand up for the nation state or withdraw from the organization and form another organization built on the principles of individual rights and personal property and not collective rights and communal property.
Report Post »Unix
Posted on June 12, 2012 at 9:05amAh, the liberals can’t have cheap energy for all, it would be a crime! These people are insidious, and their thirst for power and control over you and me is unquenchable.
To the safety NAZI’s out there:
Your control over my life ENDS and your front door!
Beat back the progressive hoard come November 2012, VOTE all Progressives OUT of power, and return our country back to true FREEDOM!
Report Post »HappyHaloHousewife
Posted on June 12, 2012 at 9:03amFood storage, water storage, fuel storage. That’s all I got.
Report Post »Wildblue3
Posted on June 12, 2012 at 9:02amGas is still going down here in Texas. It’s 3.30 and still decreasing. Would love it lower.
Report Post »Snowleopard {gallery of cat folks}
Posted on June 12, 2012 at 9:02amTime we sever all relations with the EU once and for all.
Report Post »contkmi
Posted on June 12, 2012 at 8:50amWith oil prices dropping, you’d think gas might drop, too. Unfortunately, that’s not the case, huh? Which refineries are shut down this month? And can we PLEASE do away with summer and boutique blends?
Report Post »progressiveslayer
Posted on June 12, 2012 at 8:45amA carbon tax is such a great idea it’ll make energy more expensive than it should be and drive up the cost of everything else.It‘s redistribution of wealth plain as that and Al Gore and his minions are responsible for the fraud of ’man made’ global warming.
If we exploit our natural resources like the 1.5 trillion barrels of oil here in the U.S the price of oil drops because more oil on the world market will lower the price,supply and demand.
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