Just four days after the closing ceremony of the 2016 Rio de Janeiro Olympics, the final proceedings in the impeachment of Brazil’s former President Dilma Rousseff began. Re-appointed by the Brazilian electorate less than two years ago, she faces the possibility of being removed from power permanently if the senate vote in favour of her impeachment next week – which is looking likely if experts are to be believed.
The hope is that the success of the Olympics and the replacement of Rousseff with her former deputy, Michael Temer, will mark the end of a period of hardship for Brazil. The country has been in a deep recession over the last two years accompanied by a peppering of corruption scandals since Rousseff was sworn for the second time in last January.
Taxing America’s patience
The global crackdown on corporate tax avoidance has dragged another US company into the news this week. As the European Commission (EC) draws its three-year investigation into tech giant Apple to a close, it has been suggested that the company’s tax bill should more closely reflect its size. The EC’s main criticism of Apple is one that has resurfaced again and again: the use of tax havens.
Apple follows US powerhouses Facebook, Starbucks and Amazon, which have also featured in tax-dodging headlines this year. In April, Oxfam claimed that US institutions have as much as $1.4 trillion stashed in tax havens. That’s more than the economic output of Russia. The US Treasury has criticised the EC’s investigations, claiming that it is disproportionately targeting American companies. The EC is due to announce its ruling on Apple in September.
Nobody’s going for gold this week
Nor are investors going for any other types of metals or commodities. Copper prices fell as data revealed rising inventory levels. Growth in stockpiles of crude oil also had a negative effect on prices and crude oil slipped to $49 per barrel.
Falling energy and commodity prices had a negative effect on the FTSE 100 index, which is stuffed with global energy and mining companies. The index was down by 0.61% over the week to the close on Thursday. The fall in oil stocks also hit the US S&P 500 index, which was down by 0.52% over the same period.
And finally…
Famous journalist and novelist, Rudyard Kipling once said, “Politics are not my concern…. They impressed me as a dog’s life without a dog’s decencies.” A quote has never been so relevant as Kipling’s in the town of Cormorant, MInnestoa earlier this week where where Duke the Great Pyrenees dog has just won his third Mayoral election. After a dogged campaign, Duke won in a landslide victory, losing just one vote (to his girlfriend apparently).
However, Duke’s success in politics is no mystery. The American Kennel Club describes his breed as “calm, patient, smart and strong-willed yet affectionate”. It’s no wonder he has the highest approval rating in the US.
