Iraq Economic News and Points To Ponder Late Sunday Evening 6-14-26
Iraq Economic News and Points To Ponder Late Sunday Evening 6-14-26
Economic Observatory: Financial Revenues For Iraqi Railways Are Unprofitable
Money and Business Economy News – Baghdad The Echo Iraq Observatory announced on Sunday that the financial revenues of Iraq Railways are not profitable, while pointing to a legal problem in delivering a train to the governorates of the Kurdistan Region.
The observatory stated in a statement that the railway network in Iraq currently has two main lines for night transport, linking Baghdad to Basra and back, passing through a number of governorates, indicating that the capacity of each trip reaches about 360 seats, including tourist seats and others designated for sleeping.
He explained that "the operation of these lines is done within a service-oriented framework aimed at covering operational expenses only, without generating direct revenues for the state," adding that revenues are generated when transporting goods such as oil and its derivatives, grains, and commercial goods.
He pointed out that "there are other lines within the country, but they are not operating regularly, including the Baghdad-Karbala line, which is used seasonally during religious visits, in addition to the Baghdad-Ramadi and Baghdad-Samarra lines, which do not operate daily."
He explained that "the Baghdad-Mosul line is still not operational due to the security situation that the country has witnessed in recent years, in addition to other lines such as Baghdad-Kirkuk."
The Eco Iraq Observatory called on the government to "develop the railway sector and expand the network linking the provinces and neighboring countries," adding that "rehabilitating the inefficient lines will enhance transportation, support the national economy, and boost non-oil revenues."
Regarding linking Baghdad with the Kurdistan Region governorates such as Erbil and Sulaymaniyah, the Observatory explained that there is a legal obstacle related to the ownership of the railway routes, as the laws stipulate that the lands through which the lines pass must be under the management of the General Company for Railways exclusively, which is facing objection from the region. https://www.economy-news.net/content.php?id=70225
Financial Times: Easing Sanctions On Iran Depends On Progress In Nuclear Negotiations
Arabic and international Economy News - Follow-up The Financial Times reported that easing sanctions on Iran, including releasing frozen assets abroad, will depend on the progress of negotiations on Iran's nuclear program.
The newspaper quoted sources familiar with the negotiations as saying that any easing of sanctions on Iran, including the release of its frozen assets abroad, would be gradual and contingent on progress in the nuclear negotiations, which would begin after the signing of the memorandum of understanding.
The sources added that the United States would grant Iran permission to sell oil during the 60-day extension of the ceasefire regime.
The Iranian news agency Mehr had previously reported, based on a draft memorandum of understanding, that the United States had pledged to release $24 billion of Iranian assets held abroad, with half of this amount to be returned to Iran before the memorandum of understanding between the two countries was signed.
US President Donald Trump and Iranian Deputy Foreign Minister Kazem Gharibabadi had earlier confirmed the completion of the memorandum of understanding, which is scheduled to be signed in Switzerland on June 19.
Iranian television officially announced early Monday that a peace agreement had been reached with the United States, indicating that Washington had been forced to accept ending the war.
Earlier, US President Donald Trump announced that the United Statesand Iran had reached a peace agreement, writing in a post on the Truth Social platform: "The agreement with the Islamic Republic of Iran has been finalized... Congratulations to all!"
The Pakistani Prime Minister also thanked the United States and Iran for their commitment to finding a diplomatic solution to the conflict, and thanked the leadership of the State of Qatar for its support in reaching an agreement between Washington and Tehran, and Saudi Arabia and Turkey for their contributions to reaching an agreement between Washington and Tehran.
https://www.economy-news.net/content.php?id=70267
Trump Threatens Macron: Either Cancel The Tech Tax Or Face 100% Tariffs
Arabic and international Economy News - Follow-up In a new escalation between Washington and Paris, US President Donald Trump threatened to impose 100% tariffs on all types of French wine and champagne.
In an interview with the New York Post, Trump said he had asked French President Emmanuel Macron to scrap the 3% tax on technology companies, warning that France could face devastating tariffs in the US market if it did not comply.
Trump explained, "I asked him (Macron) not to impose tariffs on American companies, and if they do, I will have no choice but to impose a 100% tariff on all Champagne and all wines produced in France."
The US president added that what Macron simply needs is to "cancel the sales tax, and then he will not be under this pressure."
US President Donald Trump is scheduled to arrive in Evian-les-Bains, France on Monday for the G7 summit meetings at a time when world leaders are increasingly wary of the United States.
Many experts have also pointed out that a large number of G7 leaders were directly affected by Trump’s erratic moves on the world stage, which caused turmoil in the Middle East, trade, and diplomacy.
https://www.economy-news.net/content.php?id=70268
The European Stoxx 600 Index Hits A Record High After The US-Iran Agreement.
Stock Exchange Economy News - Follow-up The pan-European STOXX 600 index opened at a record high on Monday, with most sectors rising after the United States and Iran reached a preliminary agreement to reopen the Strait of Hormuz and end the more than three-month-long conflict in the Middle East.
Global risk appetite improved, and Brent crude fell 4% after US and Iranian officials announced they had reached a framework agreement that is scheduled to be signed on Friday.
The pan-European STOXX 600 index rose 1.2% to 640.94 points by 07:11 GMT, surpassing its previous record high set on February 27. With Monday's gains, the benchmark index has recovered all of its conflict-related losses, according to Reuters.
Most sectors posted gains, led by automakers whose shares rose 3.5%, while shares of energy-sensitive airlines such as Lufthansa and Air France jumped more than 5% each. The travel and leisure sector also hit a new high.
European stocks have generally underperformed compared to their US and Asian counterparts since March, mainly due to Europe's reliance on the Strait of Hormuz for oil supplies.
Concerns about inflation caused by rising energy prices prompted the European Central Bank to raise interest rates by 25 basis points last week.
Traders expect the European Central Bank to raise interest rates by another 25 basis points before the end of this year, according to data from the London Stock Exchange Group.
Shares of Schneider Electric, which specializes in artificial intelligence equipment, rose 3.3% after it entered into a strategic partnership with Taiwan's Foxconn to develop and expand its next-generation AI data center infrastructure. In contrast, energy stocks fell 2.7%, affected by the decline in crude oil prices. https://www.economy-news.net/content.php?id=70262
Jefferies International: A Federal Reserve interest rate hike is currently unlikely.
banks Economy News - Follow-up Jefferies International's chief economist, Alia Mbayed, said that recent declines in oil prices have led investors to reduce their expectations regarding an interest rate hike by the US Federal Reserve before the end of this year, noting that any potential move may be postponed until the beginning of next year.
Mbayed added that the scenario of the Federal Reserve raising interest rates in the near term seems unlikely at the moment.