Banks tell a U.S. tax tale with three endings 15 Jan 2019 Wells Fargo, JPMorgan and Citi all started 2018 with the gift of lower taxes. Fourth-quarter earnings show the similarities end there. Treasury largesse propped up Citi and Wells, accounting for most of their underlying growth. JPMorgan gave back most, and needed the help least.
Hadas: Silly carbon tax talk hides hard choices 2 Jan 2019 The principle that higher prices reduce demand lies behind calls for levies on carbon dioxide emissions. But prices cannot do much in the large, complicated and economically crucial energy industry. Only big government, or major lifestyle adjustments, can really change things.
Bush paid history’s economic dividends forward 1 Dec 2018 During the 41st U.S. president's one term, Soviet communism fell and Iraq's invasion of Kuwait was foiled. The "kinder, gentler" Bush was the last of a Washington breed that sought compromise. He put country over party. His successors reaped, and then squandered, the benefits.
GM’s Mary Barra has only one leg to stand on 27 Nov 2018 Pulling subsidies as revenge for the $51 bln carmaker cutting U.S. staff and plants – as President Trump has threatened - would be unfair. It might not even be possible. Trouble is GM remains a poster child for government bailouts. It’s a fight its boss can’t easily win.
G20 showdown hangs on big numbers, big egos 21 Nov 2018 Donald Trump and Xi Jinping’s upcoming meeting is weighing on markets. Despite discord among his aides, the U.S. president has the autonomy to strike a deal if China offers the right incentives. His interest in trade balances and historical strongmen creates an opportunity.
Viewsroom: Europe fights U.S. Big Tech 15 Nov 2018 Digital titans like Alphabet and Apple may rule the roost, but EU rules on data privacy are helping startups flourish on the other side of the Atlantic. Meanwhile, Facebook’s inability to police fake content spreads to Africa. Plus: Mumbai’s ride-share drivers go on strike.
Jeff Bezos spreads jobs and disappointment 13 Nov 2018 By splitting his ballyhooed HQ2 between New York City and greater Washington, the Amazon boss can tap deep pools of tech talent. But the unconventional choice aggravates the socioeconomic divisions that plague America. It also exposes the year-long exercise as somewhat of a sham.
Trade war ushers in the compartmentalized economy 8 Nov 2018 Beijing and Washington’s conscious uncoupling could unravel decades-old commercial ties. That doesn’t mean the rest of the world has to choose sides. Companies like electronics maker Philips are mulling how to take advantage of both markets. Business can continue, at a cost.
Hadas: Wealth-power is about influence not comfort 31 Oct 2018 The unequal distribution of wealth hardly affects consumption in developed economies: millionaires don’t live much better than the middle class. But excess money does buy status, influence and political power. To break the trend, politicians need to target inherited fortunes.
UK’s digital tax is a flawed scare tactic 30 Oct 2018 The specter of a 2 pct levy on revenue from in-country users of Facebook et al is partly a negotiating ploy aimed at America. Britain and others want new global rules for taxing tech firms. Yet the U.S. has little reason to acquiesce, and unilateral measures risk retaliation.
China tax cut would only be band-aid for carmakers 29 Oct 2018 Halving the levy on new vehicle sales might help prop up falling demand. But it could delay the country’s much-needed industry consolidation. Meanwhile foreign automakers have far more to fear from U.S. and European slowdowns – not to mention the prospect of more trade tariffs.
Cox: Wooing of GE is lesson for wannabe Amazon HQs 4 Oct 2018 Lured by inducements and hangars for its CEO’s jets, the group quit Connecticut in 2016 for Boston. GE has since incinerated over $150 bln of value and shed businesses, leaving less for its new home. Yet it continues to inflame politics in the place it left. Bezos buyers beware.
EU arms media with a pea-shooter for Google fight 12 Sep 2018 Brussels’ proposals would make it easier for publishers to charge tech groups for using their articles. But given Google and Facebook hold all the market power, the plan would make little difference. Digital dominance calls for antitrust remedies rather than ineffective fiddling.
Beijing’s confused tax message will strain growth 12 Sep 2018 A fiscal shake-up is set to slash personal taxes and leave China's workers with nearly $50 bln more to spend. Companies, though, may need to start paying a lot more social charges, raising their costs. That has left officials scrambling to avoid a fall in corporate investment.
Volvo’s IPO problems go beyond brewing trade war 10 Sep 2018 The carmaker’s Chinese owner has paused a float worth up to $30 bln. Even without America’s tariff antics, that price tag would have been far too high. Investors are unconvinced old-school auto groups will get a return for their spending on electric and autonomous cars.
Review: A land of milk and (plenty of) money 7 Sep 2018 "Moneyland" takes a trip to the world of super-rich super-crooks, where borders are for wimps, taxes for little people and laws don't matter. Oliver Bullough's urgent polemic is deeply reported and engaging, even if it spends more time on the problem than on potential solutions.
Corbyn goes mainstream with UK tech tax idea 23 Aug 2018 The opposition Labour Party’s leader, Jeremy Corbyn, wants to tax tech giants like Google and Facebook to fund journalism. The normally radical politician is in line with European thinking. His proposed solution has flaws but a better designed subsidy would be worth considering.
Investment gives U.S. market, economy fresh legs 21 Aug 2018 American companies are pouring a big chunk of their tax-cut windfall into new plant, equipment and software. With the stock-market rally and economic recovery nearing record longevity, the capital-spending surge provides welcome momentum – and insurance against trade troubles.
Putin has strong defences against U.S. debt siege 15 Aug 2018 The rouble has slumped on fears that Russia’s sovereign bonds will be next in the crosshairs of U.S. sanctions. That would cause a stink, but the bill may not pass into legislation. If it does, oil prices and Moscow’s low debt mean President Vladimir Putin can weather a crisis.
South Korea offers cautionary Trump trade tale 13 Aug 2018 Seoul dodged U.S. steel tariffs by agreeing to a quota. The limit, however, was then applied retroactively and prevented exemptions. American manufacturers are now cut off from materials. EU President Jean-Claude Juncker and others will have to keep a close eye on the fine print.