WHAT IS A NON-MARKET ECONOMY AND WHICH COUNTRIES ARE IN THIS CLASS
Nonmarket Economy Status under U.S. Trade Laws
The Department of Commerce has the authority to designate countries as NMEs for the purpose of U.S. antidumping and countervailing duty (AD/CVD) laws. An NME is a country that Commerce determines “does not operate on market principles of cost or pricing structures, so that sales of merchandise in such country do not reflect the fair value of merchandise.”
In designating a country as an NME, Commerce considers the extent to which :
(1) the country’s currency is convertible;
(2) its wage rates result from free bargaining between labor and management;
(3) joint ventures or other foreign investment are permitted;
(4) the government owns or controls the means of production; and
(5) the government controls the allocation of resources and price and output decisions.
“Commerce may also consider other factors that it considers appropriate. An NME designation remains in effect until revoked by Commerce. There are currently 12 countries, including Vietnam, designated as NMEs. Commerce designated Vietnam as an NME in 2002 during its antidumping investigation into Vietnamese catfish exports.”
VIETNAM
“The U.S. Commerce Department said on Wednesday it has delayed a difficult decision on whether to upgrade VIETNAM to market economy status by about a week until early August, citing IT disruptions from the CrowdStrike software bug.
A decision on the upgrade that Hanoi has long sought had been due by Friday. The upgrade is opposed by U.S. steelmakers, Gulf Coast shrimpers and honey farmers, but backed by retailers and some other business groups.”
“VIETNAM has long argued it should be freed of the non-market label because of recent economic reforms, and it said that retaining the moniker is bad for increasingly close two-way ties that Washington sees as a counterbalance to China.
Opponents of upgrading VIETNAM – one of 12 economies labeled by Washington as non-market, including China, Russia, North Korea and Azerbaijan – argue that Hanoi’s policy commitments have not been matched by concrete actions and it operates as a planned economy governed by the ruling Communist Party.”
@ Newshounds News™
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The FTC’s Final Rule Banning Post-Employment Non-Competes
On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being published in the Federal Register (Effective Date).[1] The Final Rule was published in the Federal Register and the effective date is September 4, 2024.
Key Provisions
- Scope:
- The Final Rule prohibits an employer from entering into, or attempting to enter into, a non-compete clause with a “worker” (including, e.g., employees and independent contractors) or representing that a worker is subject to a non-compete clause.[2] The Final Rule allows employers to maintain existing non-compete agreements with “senior executives,”[3] (those with over $151,164 annual compensation and in a policy making position for the business) but bars an employer from entering into, or attempting to enter into, a non-compete clause with a senior executive after the Effective Date of the Final Rule.[4]
- The Final Rule does not apply to non-competes entered into by a person pursuant to a bona fide sale of a business entity.[5]
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Bank of America’s out-of-consensus call: Fed will cut just once this year
Bank of America economists expect the Federal Reserve to maintain its policy rate unchanged in July while indicating that progress on reducing inflation has resumed.
The Fed is optimistic about the possibility of near-term rate cuts but is unlikely to signal that a September cut is a “done deal,” economists said in a note.
“It could happen, but it would depend on the data. This was the general tone of most FOMC members that delivered public remarks recently,” they noted. While the inflation data has been encouraging, more evidence is needed before policy rate normalization can begin.
BofA also believes that Fed Chair Jerome Powell will signal a shift in the Fed’s focus from solely inflation to a more balanced approach. Previously, with inflation far from its target and employment closer to its goal, the Fed prioritized inflation.
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Stock Market Today: Dow in 4th weekly win as data puts September rate cut in play
The Dow rallied Friday to a fourth-straight weekly win, supported by upbeat quarterly earnings from corporates and data showing cooling inflation that boosted hopes for a sooner interest rate cut.
At 16:00 ET (20:00 GMT), Dow Jones Industrial Average rose 654 points, or 1.6%, S&P 500 rose 1.1%, and NASDAQ Composite rose 1.1%, with the latter two indexes posting two-straight weeks of loses for the first time since April.
Cooling inflation data puts September rate cut in play
The PCE price index, the U.S. Federal Reserve’s preferred inflation metric, rose 0.1% on a monthly basis in June and 2.5% annually, both as expected.
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