1. White House Announces $6 Trillion Budget Offer
2. Manufacturing in China Stalls in May
3. EU Fails to Compromise on Agriculture Support Reform

White House Announces $6 Trillion Budget Offer

The White House announced its $6 trillion budget proposal to increase spending on infrastructure, education and combating climate change.

While the White House announced its budget proposal, it argued that it makes financial sense to invest now and reduce the budget deficit later when borrowing costs are cheap.

According to the news on the website of Voice of America, the budget listing government expenditures for the fiscal year that will start on October 1 is the first full budget proposal of Democrat President Joe Biden.

The proposal faces strong opposition from members of the Republican Congress who want to reduce US government spending and oppose plans to increase taxes on the rich and big corporations.

Biden’s plan for fiscal year 2022 calls for $6.01 trillion in spending and $4.17 trillion in tax revenue, an increase of 36.6% compared to 2019 expenses before the Covid-19 outbreak increased spending. The plan envisions a budget deficit of $1.84 trillion. This is higher than the $984 billion deficit in 2019, albeit a sharp decrease from the deficit in the past two years due to Covid-19.

White House officials said Biden’s $4 trillion plans to tackle inequality, take steps in the field of climate change, and provide four more years of free public education will be fully paid within 15 years, and tax increases will begin to reduce deficits after 2030.

Manufacturing in China Stalls in May

The purchasing managers’ index (PMI) for China’s manufacturing sector came in at 51.0 in May, data from the National Bureau of Statistics (NBS) showed Monday.

High commodity costs, chip shortages, currency volatility, and a rise of coronavirus cases in Guangdong, China’s primary factory region, provide a heightened level of risk, analysts warned.

The figures demonstrated that the May PMI stayed in the growth zone, showing that China’s manufacturing industry maintained its stable expansion.

Although the index managed to stay above the 50 level, showing that the growth in the sector continues, it remained below 51.1 points in April.

In May, the new export orders sub-index declined from 50.4 points in April to 48.3 points, while the raw material costs sub-index rose from 66.9 points in April to 72.8 points in May.

On the other hand, non-manufacturing PMI rose to 55.2 points in May, from 54.9 points in April.

In addition, Asia Pacific stocks were mixed in Monday morning trading as investors looked ahead to the release of China’s official manufacturing buyers index in May.

Nikkei 25 In Japan, the Topix index fell 0.36%, while it fell 0.34% early in the transaction. Korean KOSPI increased by 0.1%, while in Australia S&P / ASX 200 Increased by 0.16%.

EU Fails to Compromise on Agriculture Support Reform

Negotiations between 27 member states of the European Union and the European Parliament on agricultural subsidies of more than 350 billion euros could not be agreed.

In the statement made by the Council of the European Union (EU), it was reported that an agreement could not be reached and the negotiations were postponed in the Common Agricultural Policy (CAP) reform negotiations carried out by the member countries with the European Parliament (EP).

It was pointed out that despite the progress made in some areas in the talks, there was no agreement on the main topics such as social conditions, payments and green architecture, and it was reminded that the talks are planned to continue in June.

The EU Commission, 27 member states and EP representatives had been discussing how to transfer agricultural support funds after 2023.

The negotiations focus on the topics such as the harmonization of agricultural supports with the EU environmental targets, the amount of support to be provided to organic agriculture, the resources to be allocated to the transformation of marshes and peatlands, and the support to be directed especially to small producers.

Approximately one third of the total budget of the EU is allocated to agricultural policy and support in this field.

Within the framework of the program in question, the total amount of payments to be made in 2021-2027 is expected to exceed 350 billion euros.