#rsm house for sale | Explore Tumblr Posts and Blogs

olko71 · 3 years

Text

New Post has been published on All about business online

New Post has been published on http://yaroreviews.info/2021/10/democrats-tax-plans-worry-high-income-businesses

Democrats' Tax Plans Worry High-Income Businesses

The largest closely held businesses would face a series of overlapping tax increases under Democratic proposals, leading to heavier burdens on high-income owners of partnerships and S corporations.

The plan, detailed in September by the House Ways and Means Committee, seeks to raise about $2 trillion over a decade to expand the social safety net and combat climate change. The House plan differs from the Biden administration’s proposals, and it is likely to change again as lawmakers negotiate the size and details of their agenda.

Most mom-and-pop businesses would see little or no change in their tax bills under the proposal. But owners of some larger, more profitable companies are raising alarms.

“Dollar for dollar, that is going to reduce our ability to reinvest in the business and grow the business,” said John Frieling, chairman of Precision Components Group, based in York, Pa., which makes components for Navy submarines and aircraft carriers.

John Frieling, chairman of Precision Components, says the proposed tax changes would reduce the company’s ability to reinvest.

Rep. Richard Neal (D., Mass.), chairman of the House Ways and Means Committee, said last week that he was just starting to hear some of the concerns from business owners.

“There’s some unease, that’s for sure,” he said. “We’re trying to respond to some of the concerns they’ve raised and, if they’re legitimate, we’d obviously be interested in repairing them.”

President Biden has said his proposals aren’t designed to punish anyone. “I’m a capitalist,” he said in a speech in mid-September after House Democrats released their plan. “If you can make a million or a billion dollars, that’s great. God bless you. All I’m asking is you pay your fair share.”

At issue are a series of proposed changes that could affect some owners of limited liability companies, sole proprietorships and other so-called pass-through businesses. These companies don’t pay taxes themselves; their profits “pass through” to owners and are taxed on their individual returns. By contrast, traditional C corporations such as Apple Inc. face a corporate income tax. Their taxable shareholders then pay a second layer of tax on any dividends or capital gains.

Ninety-six percent of businesses are organized as pass-throughs, according to an analysis of 2018 tax returns by the Joint Committee on Taxation.

One key change in the Democratic plan would limit the 20% deduction claimed by most pass-throughs to $500,000 for joint filers, meaning the benefit would no longer be available on business income above $2.5 million per household. Congress created the deduction in the 2017 tax law to give pass-throughs a rate cut equivalent to what corporations were getting.

York, Pa.-based Precision Components, which makes components for submarines and aircraft carriers, is organized as a limited liability company.

The proposed legislation would also create a new surcharge on high-income individuals, adding a 3% levy on income over $5 million. In addition, it would extend a 3.8% surcharge on net investment income to married taxpayers who earn more than $500,000 (and individuals above $400,000) and don’t otherwise pay employment taxes. That tax currently applies only to taxpayers receiving investment income and not to those actively involved in the business. The top marginal tax rate would also rise to 39.6% from 37%.

“You read all of the individual pieces and none of them sound that daunting by themselves, but then you start stacking them together,” said Eric Wenger, a partner with the Lancaster, Pa., accounting firm RKL LLP. The top marginal tax rate for owners of pass-through companies could jump to 46.4% from 29.6%, an increase of nearly 17 percentage points, he said. State taxes would come on top of that.

SHARE YOUR THOUGHTS

What are the potential benefits or setbacks of increasing taxes on large businesses? Join the conversation below.

“Folks [earning] under about $400,000 won’t see much, if any, direct tax impact,” Mr. Wenger added. Business owners making millions of dollars through their pass-through businesses, on the other hand, “need to be on high alert.”

Most pass-through businesses are small, though much of the money earned by pass-throughs flows to higher-income households. Pass-throughs include large law and accounting firms, medical practices, investment funds, manufacturers and some global family-owned companies.

Nearly 96% of the 24.4 million tax returns filed by partnerships, S corps and sole proprietors reported adjusted gross income of less than $500,000, according to estimates by the University of Pennsylvania’s Penn Wharton Budget Model. Less than 100,000 filers with pass-through income reported adjusted gross income of $2.5 million or more.

Precision Components spends roughly $3 million annually on capital investments.

About half the benefit of the pass-through deduction goes to households in the top 1% of the income distribution, according to the Tax Policy Center.

Business owners with income of $5 million or more could face the biggest tax increases, tax experts say.

Precision, the York, Pa.-based defense contractor, is organized as a limited liability company. It has about 430 employees and about $90 million in revenue, and spends roughly $3 million annually on capital investments, Mr. Frieling said. The company is weighing a 25,000-square-foot expansion with two 75-ton cranes and an estimated cost of $15 million to better support the Navy’s construction timetable.

The Democrats’ plan to pay for President Biden’s $3.5 trillion Build Back Better initiative will need to strike the right balance to appeal to progressives without alienating moderates. WSJ’s Gerald F. Seib discusses with tax policy reporter Richard Rubin. Photo illustration: Todd Johnson

“The proposed increase in taxes reduces our cash flow that was expected in part to support this effort,” said Mr. Frieling. Precision makes distributions to its owners to cover taxes, he added.

The potential tax hit could be even larger for Breakthru Beverage Group, an alcohol distributor with $6 billion in annual revenue. The New York-based company, which employs about 7,000 people, distributes enough money to its owners each year to cover their tax costs stemming from the business and sometimes makes some additional profit distributions.

The more it pays in those taxes, the less the company has for capital expenditures and other initiatives, said Jacob Onufrychuk, director of strategy and corporate development at Breakthru, created by the merger of two family-owned wholesalers.

Defense contractor Precision Components has about 430 employees.

The House tax plan would also reduce the tax rate for corporations earning up to $400,000 to 18% from 21%, while boosting the top corporate tax rate to 26.5%.

The gap between corporate and pass-through business tax rates could make it hard for pass-through companies to compete for truck drivers and warehouse workers against companies such as Amazon.com Inc. that face the corporate tax but don’t pay dividends, said Richard Davis, executive vice president for government affairs at Republic National Distributing Co., an alcohol wholesaler that employs about 13,000 people.

Newsletter Sign-up

Capital Journal

Scoops, analysis and insights driving Washington from the WSJ’s D.C. bureau.

The difference between the top rate for pass-throughs and C corps could make it attractive for some closely held companies to switch to operating as a C corporation.

“We have a lot of calls from clients who have asked us to start running the numbers,” said Matt Talcoff, national industry tax leader for RSM US LLP, a tax advisory, accounting and consulting firm.

Whether or not a company makes the change could turn on the shape of the final tax legislation, the size of dividend payouts, state tax implications and when the owners expect to sell.

Precision Components is weighing a 25,000-square-foot expansion to better support the Navy’s construction timetable.

“When you convert from an S corp to a C corp, you have certain taxes that occur,” said Richard Witwer, owner of Direct Wire & Cable, a Denver, Pa., maker of electrical wire and cable with about $100 million in sales and about 120 employees.

In addition, it is easier to switch to a C corporation than it is to switch back. Businesses switching from an S corporation to a C corporation typically must wait five years to elect to become an S corporation again.

“The biggest problem to me is they could always just increase the corporate rate,” said Marvin Kirsner, a tax attorney in Fort Lauderdale, Fla.

The $3.5 Trillion Budget Bill

Write to Ruth Simon at [email protected] and Richard Rubin at [email protected]

#PAID

0 notes

jobsine · 3 years

Text

Customer Service - Sales - Housing - EM - HL - Sales - Chennai - Tamabaram - CRE *RM - RSM* Job For 0-50 Year Exp In Tata Group Chennai, India - 3898591

Customer Service – Sales – Housing – EM – HL – Sales – Chennai – Tamabaram – CRE *RM – RSM* Job For 0-50 Year Exp In Tata Group Chennai, India – 3898591

Achieving business targets as laid down by acquiring new client relationships and maintaining them.Graduate in any discipline Identify target areas for prospective business Pre-screen customer segments as per the organization norms Ensure the number of log in along with disbursement Ensure high customer satisfaction level by proactively understanding customer needs and cross- sell multiple…

View On WordPress

0 notes

sarkarinaukriclub · 3 years

Text

Branch Manager - Retail Sales - Housing - EM - AHF - Sales - Guwahati - Royal Arcade - JM (M1 - M3) - RSM - BH

Branch Manager – Retail Sales – Housing – EM – AHF – Sales – Guwahati – Royal Arcade – JM (M1 – M3) – RSM – BH

Job title: Branch Manager – Retail Sales – Housing – EM – AHF – Sales – Guwahati – Royal Arcade – JM (M1 – M3) – RSM – BH Company: Tata Mutual Fund Job description: and products available in the markets and provide positive feedback to the central product and policy team to stay ahead in the… Expected salary: Location: Guwahati, Assam Job date: Mon, 22 Mar 2021 23:50:05 GMT Apply for the job now!

View On WordPress

0 notes

orbemnews · 3 years

Link

The US recovery is speeding up but the global economy isn't out of danger “While the outlook has improved overall, prospects are diverging dangerously not only within nations but also across countries and regions. In fact, what we see is a multi-speed recovery, increasingly powered by two engines — the US and China,” Kristalina Georgieva, the managing director of the International Monetary Fund, said in remarks last week. Her comments set the tone for a week of virtual meetings at the IMF and the World Bank, where the pace of the Covid-19 recovery will take center stage. Finance ministers from top economies are also set to convene this week at a meeting hosted by Italy. Georgieva hailed “good news” for the global economy thanks to vaccinations and additional stimulus spending in the United States. She indicated that the IMF will upgrade its global economic forecast on Tuesday. The group last predicted that global growth would hit 5.5% in 2021. “An American economy about to regain its swagger after a year of pandemic-induced crisis was on full display in the March jobs report,” Joseph Brusuelas, chief economist at RSM US, said in a note to clients. The job market is still in a hole, with the country down 8.4 million positions since February 2020. But industries that have been hit hard are showing signs of resilience. Restaurants and bars added 176,000 jobs last month, while state and local education jobs rose by 126,000 as schools started to reopen. Delivery services such as FedEx and UPS, which have benefited from the huge increase in online shopping, added another 17,000 jobs. The US manufacturing sector is also roaring ahead, with the ISM Manufacturing Index recently posting its best reading since 1983. Consumer confidence is the strongest it’s been in a year. Data on the US services sector is due Monday. Such stats helped drive the S&P 500 to an all-time high on Thursday, when the index closed above 4,000 for the first time. Elsewhere, though, slow vaccination campaigns and a resurgence of cases could pose problems. “There is danger as well,” Georgieva said last week. “Vaccines are not yet available to everyone and everywhere. Too many people continue to face job losses and rising poverty. Too many countries are falling behind.” Her comments were echoed over the weekend by Ignazio Visco, the governor of Italy’s central bank. “The main instrument we have at the moment is neither monetary nor fiscal, it is vaccinations,” he said in an interview with the Financial Times. “We need to maintain close international cooperation within the G20 to avoid that the different stages of the vaccination campaign in the various countries result in excessive divergences of the respective economies.” Over the weekend, the United States reported that more than 4 million doses of the coronavirus vaccine were administered in 24 hours, a new record. Nearly 19% of the population, or about 61 million people, have been fully vaccinated. Efforts in most other countries pale in comparison. Last week, the World Health Organization called the rollout of vaccines in Europe, which is experiencing another surge of cases, “unacceptably slow.” India, which recorded a record number of daily Covid cases on Monday, has administered nearly 76 million doses — but less than 1% of the country’s 1.3 billion people have been fully vaccinated. LG was a smartphone pioneer. Now it’s quitting the business LG is getting out of the “incredibly competitive” business of making smartphones. On Monday, the South Korean tech giant announced that it would close down its mobile phone unit after years of losses, marking the end of an era for a trailblazer in the Android world, my CNN Business colleague Michelle Toh reports. The division is expected to be wound down by July 31, although the company may continue to sell some of its existing models after that, according to LG Electronics. The “strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions,” it said in a statement. LG was once one of the world’s top smartphone makers, earnings a spot among the top three global players in 2013, according to research firm Strategy Analytics. But the company’s devices have since dwindled in popularity, particularly as Chinese upstarts such as Xiaomi and Oppo have surged around the world. As of last year, LG was no longer even among the top seven players globally, according to Counterpoint Research, even though it is still the third most popular smartphone vendor in the United States, after Apple (AAPL) and Samsung (SSNLF), according to market research firm Canalys. “LG leaves a ‘small vacuum’ of global market share of under 2%,” Neil Shah, a partner and vice president of research at Counterpoint Research, told CNN Business. That space will likely be filled by Samsung in both South Korea and the United States, as well as some smaller players, he predicted. It’s a sad day for this former owner of a baby blue LG Chocolate. But the signs have been there. LG warned in January that it was looking at all options, including a potential sale of the unit. Why US housing could be more expensive forever Investors hunting for yield are increasingly pumping money into single-family homes or even entire neighborhoods, a trend that could permanently increase the cost of housing in the United States. The Wall Street Journal reports that both individual investors utilizing apps and wealthy private equity funds with billions on hand have been competing for residential real estate with normal Americans, which have gone on a home-buying spree thanks to dirt cheap mortgage financing. “You now have permanent capital competing with a young couple trying to buy a house,” said John Burns, whose real estate consulting firm estimates that in many top markets, about one in every five houses sold is bought by someone who never moves in. His firm thinks the bubble could grow bigger before it pops, predicting that home prices will rise 12% this year and 6% or more in 2022. Experts say there are meaningful differences between this real estate boom and the one that helped trigger the 2008 financial crisis, with tighter lending standards and more limited stock. But as the bull market marches on, the frenzy is worth monitoring. Up next The ISM Non-Manufacturing Index, a closely-watched gauge of the US services sector, posts at 10 a.m. ET. Coming tomorrow: Stay tuned for the International Monetary Fund’s latest outlook for the global economy. Source link Orbem News #Danger #Economy #Global #investing #isnt #Premarketstocks:TheUSrecoveryisspeedingupbuttheglobaleconomyisn'toutofdanger-CNN #recovery #speeding

0 notes

dipulb3 · 3 years

Text

The US recovery is speeding up but the global economy isn't out of danger

New Post has been published on https://appradab.com/the-us-recovery-is-speeding-up-but-the-global-economy-isnt-out-of-danger/

The US recovery is speeding up but the global economy isn't out of danger

“While the outlook has improved overall, prospects are diverging dangerously not only within nations but also across countries and regions. In fact, what we see is a multi-speed recovery, increasingly powered by two engines — the US and China,” Kristalina Georgieva, the managing director of the International Monetary Fund, said in remarks last week.

Her comments set the tone for a week of virtual meetings at the IMF and the World Bank, where the pace of the Covid-19 recovery will take center stage. Finance ministers from top economies are also set to convene this week at a meeting hosted by Italy.

Georgieva hailed “good news” for the global economy thanks to vaccinations and additional stimulus spending in the United States. She indicated that the IMF will upgrade its global economic forecast on Tuesday. The group last predicted that global growth would hit 5.5% in 2021.

“An American economy about to regain its swagger after a year of pandemic-induced crisis was on full display in the March jobs report,” Joseph Brusuelas, chief economist at RSM US, said in a note to clients.

The job market is still in a hole, with the country down 8.4 million positions since February 2020.

But industries that have been hit hard are showing signs of resilience. Restaurants and bars added 176,000 jobs last month, while state and local education jobs rose by 126,000 as schools started to reopen. Delivery services such as FedEx and UPS, which have benefited from the huge increase in online shopping, added another 17,000 jobs.

The US manufacturing sector is also roaring ahead, with the ISM Manufacturing Index recently posting its best reading since 1983. Consumer confidence is the strongest it’s been in a year. Data on the US services sector is due Monday.

Such stats helped drive the S&P 500 to an all-time high on Thursday, when the index closed above 4,000 for the first time.

Elsewhere, though, slow vaccination campaigns and a resurgence of cases could pose problems.

“There is danger as well,” Georgieva said last week. “Vaccines are not yet available to everyone and everywhere. Too many people continue to face job losses and rising poverty. Too many countries are falling behind.”

Her comments were echoed over the weekend by Ignazio Visco, the governor of Italy’s central bank.

“The main instrument we have at the moment is neither monetary nor fiscal, it is vaccinations,” he said in an interview with the Financial Times. “We need to maintain close international cooperation within the G20 to avoid that the different stages of the vaccination campaign in the various countries result in excessive divergences of the respective economies.”

Over the weekend, the United States reported that more than 4 million doses of the coronavirus vaccine were administered in 24 hours, a new record. Nearly 19% of the population, or about 61 million people, have been fully vaccinated.

Efforts in most other countries pale in comparison. Last week, the World Health Organization called the rollout of vaccines in Europe, which is experiencing another surge of cases, “unacceptably slow.” India, which recorded a record number of daily Covid cases on Monday, has administered nearly 76 million doses — but less than 1% of the country’s 1.3 billion people have been fully vaccinated.

LG was a smartphone pioneer. Now it’s quitting the business

LG is getting out of the “incredibly competitive” business of making smartphones.

On Monday, the South Korean tech giant announced that it would close down its mobile phone unit after years of losses, marking the end of an era for a trailblazer in the Android world, my Appradab Business colleague Michelle Toh reports.

The division is expected to be wound down by July 31, although the company may continue to sell some of its existing models after that, according to LG Electronics.

The “strategic decision to exit the incredibly competitive mobile phone sector will enable the company to focus resources in growth areas such as electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business solutions,” it said in a statement.

LG was once one of the world’s top smartphone makers, earnings a spot among the top three global players in 2013, according to research firm Strategy Analytics.

But the company’s devices have since dwindled in popularity, particularly as Chinese upstarts such as Xiaomi and Oppo have surged around the world. As of last year, LG was no longer even among the top seven players globally, according to Counterpoint Research, even though it is still the third most popular smartphone vendor in the United States, after Apple (AAPL) and Samsung (SSNLF), according to market research firm Canalys.

“LG leaves a ‘small vacuum’ of global market share of under 2%,” Neil Shah, a partner and vice president of research at Counterpoint Research, told Appradab Business.

That space will likely be filled by Samsung in both South Korea and the United States, as well as some smaller players, he predicted.

It’s a sad day for this former owner of a baby blue LG Chocolate. But the signs have been there. LG warned in January that it was looking at all options, including a potential sale of the unit.

Why US housing could be more expensive forever

Investors hunting for yield are increasingly pumping money into single-family homes or even entire neighborhoods, a trend that could permanently increase the cost of housing in the United States.

The Wall Street Journal reports that both individual investors utilizing apps and wealthy private equity funds with billions on hand have been competing for residential real estate with normal Americans, which have gone on a home-buying spree thanks to dirt cheap mortgage financing.

“You now have permanent capital competing with a young couple trying to buy a house,” said John Burns, whose real estate consulting firm estimates that in many top markets, about one in every five houses sold is bought by someone who never moves in.

His firm thinks the bubble could grow bigger before it pops, predicting that home prices will rise 12% this year and 6% or more in 2022.

Experts say there are meaningful differences between this real estate boom and the one that helped trigger the 2008 financial crisis, with tighter lending standards and more limited stock. But as the bull market marches on, the frenzy is worth monitoring.

Up next

The ISM Non-Manufacturing Index, a closely-watched gauge of the US services sector, posts at 10 a.m. ET.

Coming tomorrow: Stay tuned for the International Monetary Fund’s latest outlook for the global economy.

0 notes

jobsearchtips02 · 4 years

Text

4 other looming relief-program expirations as $600 UI increase goes out

Detailed listed below are four other economic-relief programs set to run out by the end of September.

Go to Service Expert’s homepage for more stories

The United States is facing a number of ending policies that might spell disaster for the economic recovery as the country continues to grapple with the coronavirus pandemic.

Over the past few days, two major policies protecting customers have struck expiration, potentially putting countless Americans in threat of losing real estate and earnings in the middle of the sharpest financial downturn since the Great Anxiety.

On Friday, the federal expulsion moratorium ended, ending a four-month period where approximately 12 million Americans that rent were secured from eviction, the Washington Post reported

Today, the extra $600 weekly unemployment benefit will begin to end, with some states concluding the program on Saturday and others on Sunday. Since Friday, Republicans stated they plan to roll out their initial coronavirus relief expense next week, although the brand-new version is anticipated to scale back weekly advantages for joblessness employees.

” Due to the fact that of the inability of the political sector to put in location another round of aid in a prompt way, investors should expect a significant slowing in family spending and another round of irreversible task losses,” Joseph Brusuelas, chief economist at RSM, composed in a Wednesday note.

Find Out More: ‘ Castles developed on sand’: Famed economist David Rosenberg says financiers are being too reckless as stocks rally– and warns that a vicious long-term bear market is far from over

Beyond these recent examples, other looming policy expirations recommend more discomfort to come– ranging from the end airline assistance to the deferment of student loan financial obligation. And they come at a troubling time for the financial recovery from the pandemic economic crisis.

The trillions of dollars in stimulus that the federal government has provided because enacting sweeping financial shutdowns at first showed signs of reward in record task gains, a jump in consumer belief, and strong retail sales. But as states started to reopen their economies, indications that the preliminary rebound is slowing have actually mounted. initial unemployed claims increased this week for the very first time since March, and consumer sentiment plunged in July following an uptick in new coronavirus cases.

There are likewise signals from high-frequency signs such as dining establishment reservations and information from Homebase– a scheduling app– that show the healing is slowing.

The financial regression is directly connected to increasing virus cases, of which there are currently more than 4 million, according to data from Johns Hopkins University. The data likewise reveal there have actually also been 144,000 resulting deaths.

Find Out More: Bernstein states purchase these 13 dividend-rich stocks developed to take advantage of a trend not seen in 65 years

Still, it’s possible that the upcoming expirations will not be a problem, as a lot of the deadlines have actually been pushed back amid the continued spread of the infection. There’s no guarantee that support will continue or eventually be without spaces, as evidenced by the conclusion of the $600 extra weekly unemployment advantage.

The PPP program extends loans to small organisations that are forgivable if used to sustain work near pre-pandemic levels. A recent analysis from ADP showed that the program has actually conserved millions of tasks at little companies

The CARES Act passed in March secured federally or federal government sponsored business home loans from foreclosure through the end of August.

Once the moratorium ends, loan providers will be able to take back the home if the house owner has failed to make home mortgage payments.

Roughly 44 million Americans hold more than $ 1.6 trillion in trainee loan debt and will once again owe payments on that debt beginning September30 In addition, interest rates– which were set to 0%during the pandemic, while payments on loans were postponed– may begin once again, growing the debt stack.

September 30— Payroll assistance for airline company workers ends

The United States federal government vowed $32 billion through September 30 to keep airline company workers on payroll as the pandemic slammed worldwide travel demand. But even with the financial relief, airlines such as United and American have actually alerted 10s of countless employees that they may be furloughed or laid off– thousands more might be out of the task if help isn’t extended.

Read more: Paul Andreola has a long performance history of finding small stocks that provide 10- times returns. He sets out the 4 criteria he looks for when seeking the next explosive choice.

Loading Something is packing.

%%.

from Job Search Tips https://jobsearchtips.net/4-other-looming-relief-program-expirations-as-600-ui-increase-goes-out/

0 notes

day0one · 4 years

Link

As economy tries to recover, Trump's latest moves won't help

President Donald Trump's latest economic policies are the opposite of the emergency aid that Corporate America and Wall Street are clamoring for.

Trump may be calculating that tougher stances on immigration and trade could score him points in November. But they could backfire by making it harder for the economy to recover from this historic recession.

Trump is suddenly ramping up trade fights with two of the nation's biggest trading partners -- threatening to slap tariffs on goods like chocolate and butter from Europe, and reportedly pushing to reimpose tariffs on aluminum imports from Canada. Meanwhile, Trump this week also extended immigration restrictions, which could make it harder for businesses to find the skilled foreign workers they rely on.

All of this is happening during a drumbeat of bad coronavirus news, as infections surge in several areas.

Stocks tumbled Wednesday on concerns about the European tariff threat and the pandemic.

"This is exactly the wrong move at the wrong time. We're inching toward the same mistakes we made during the Great Depression," said Joe Brusuelas, chief economist at RSM International.

Economists agree the Great Depression was worsened by tariff policies -- namely, the Smoot-Hawley Act of 1930, which imposed tariffs on all countries that shipped products to America. Trading partners promptly retaliated by slapping tariffs on US goods.

"For many of us, Smoot-Hawley was a joke in 'Ferris Bueller's Day Off.' This is not a joke. This is very serious," Brusuelas said. "It would be a significant policy error that would put at risk the nascent recovery."

Trump's tariff threats are part of a US-European battle over government subsidies to aircraft makers. The World Trade Organization ruled in 2018 that the European Union helped Airbus with unfair subsidies, clearing the path for new tariffs from the United States. The Trump administration signaled this week it plans to retaliate by slapping tariffs on $3.1 billion of goods from Europe, including olives, chocolate, gin and yogurt.

But these tariffs would only add to the vast uncertainty in the world economy right now. The International Monetary Fund on Wednesday downgraded its global growth forecast, warning of a contraction of nearly 5% in 2020.

"This is not the time to engage in a trade war and [we] simply cannot believe that the WTO can't come up with a better solution," Win Thin, global head of currency strategy at Brown Brothers Harriman, wrote in a note to clients Wednesday.

'Like a bad horror movie' The Trump administration is also pushing Canada to impose quotas to slow aluminum exports -- or else it will snap back a 10% tariff on the metal, Politico reported.

"Bringing back these tariffs would be like a bad horror movie," Neil Herrington, senior vice president for the Americas at the US Chamber of Commerce, said in a statement on Tuesday.

Although tariffs could help aluminum makers, they would add to the pain for the already-struggling auto industry.

"If anything, it's more likely to hurt American businesses than help them," said Gus Faucher, chief economist at PNC. "It's going to raise costs for producers and consumers."

The US-China trade war has already showed protectionism can depress business spending, dampen confidence and scramble supply chains. That's not to mention the blow it deals to the S&P 500, as companies like Nike and Apple generate a big chunk of their sales from overseas.

While US tariffs on Canada would have a relatively small impact on the economy, "certainly that's not what you want to be doing when you're trying to climb out of a steep recession," Faucher said.

'Shortsighted' immigration policies Likewise, it's an odd time to crack down on immigration. Yet the Trump administration introduced new restrictions on visas that allow immigrants to temporarily work in the United States.

Trump signed an immigration proclamation in April that targeted people outside the United States trying to legally migrate to the country. That order was set to lapse -- but it will now be extended until the end of 2020 and expanded to include some guest worker visas.

The proclamation cited a desire to "protect unemployed Americans from the threat of competition for scarce jobs from new lawful permanent residents."

But economists warned restricting immigration is another policy error, especially during a pandemic.

"We're in the midst of a medical crisis. The last thing we want to do is discourage skilled workers from coming to the United States and helping us solve the problems we have," Faucher said.

Even before the pandemic, the US economy was growing too slowly in part because of an aging population. Underlying labor force growth is as weak as it has been since the end of World War II, according to Faucher. That in turn makes it harder to pay for the retirement of Baby Boomers.

"I'm concerned this is shortsighted," Faucher said.

Thomas Donohue, CEO of the US Chamber of Commerce, slammed the policy as a "severe and sweeping attempt to restrict legal immigration."

"Putting up a 'not welcome' sign for engineers, IT experts, doctors, nurses and other workers won't help our country, it will hold us back," Donohue said in comments that echoed criticism from the Business Roundtable.

Return of populism -- just in time for November Taken together, the immigration and trade policies threaten to offset some of the enormous positives from the unprecedented stimulus unleashed by Congress and the White House.

Economists have largely applauded the emergency aid, which included stimulus checks to households and forgivable loans to small businesses.

"I give the administration high marks on the first rounds of aid," RSM's Brusuelas said. "But the threat of sparking a transatlantic trade war is not in the spirit of what they've done since the beginning of the pandemic."

That's why analysts say the moves are more about politics, than economics.

The latest polls show Trump badly trailing Joe Biden nationally and behind in must-win Rust Belt states.

"These two issues -- immigration and tariffs -- are crucial for Trump's reelection," Greg Valliere, chief US policy strategist at AGF Investments, wrote in a note to clients Wednesday. "He needs to show testosterone on both fronts...Trump's populist base demands jobs -- and protectionism."

But the risk is that by bowing to his base, Trump hinders the recovery that is required to win reelection.

0 notes

thisdaynews · 5 years

Text

‘Powell has been Trumped’: The Fed steps into Trump’s trade war

New Post has been published on https://thebiafrastar.com/powell-has-been-trumped-the-fed-steps-into-trumps-trade-war/

‘Powell has been Trumped’: The Fed steps into Trump’s trade war

Fed Chairman Jerome Powell continues to be the subject of criticism from President Donald Trump. | Jacquelyn Martin/AP Photo

finance

The central bank is expected to cut rates this week in part to offset President Donald Trump’s trade war.

In the case of Donald Trump vs. the U.S. Federal Reserve, the president of the United States is likely to secure a winning verdict this week.

Central bank officials are expected to cut interest rates for the first time since the global financial crisis not because Trump demanded it. Instead, they will move in part because the president’s bruising trade policy has helped fuel a global manufacturing slowdown and injected deep uncertainty into executive suites around the world.

Story Continued Below

Fed Chairman Jerome Powell won’t directly say it directly after his meetings Tuesday and Wednesday. But the central bank will reverse course at least in part to save the Trump economy from Trump.

“There is just no question that Powell has been ‘Trumped’ here,” said Ed Yardeni, president and chief investment strategist of Yardeni Research Inc. “Just read Powell’s comments during his recent congressional testimony and trade comes up eight times in the context of weighing on the global economy. All Trump had to do was keep up geopolitical trade uncertainty for a while and he’d get the Fed to cut rates.”

Trump continued to hammer away at the Fed in public comments and tweets on Monday, arguing that a series of rate hikes over the last three years slowed what would otherwise be a much faster economy.

“The Fed ‘raised’ way too early and way too much,” Trump tweeted. “Their quantitative tightening was another big mistake. While our Country is doing very well, the potential wealth creation that was missed, especially when measured against our debt, is staggering.”

But the data does not really support his argument. Interest rates, adjusted for inflation, remain historically low. And consumer spending, which is where higher rates might slow things down, remains the dominant engine of growth. It is on the corporate investment side — where the 2017 tax cut was supposed to unleash a wave of growth — where conditions have stalled.

The U.S. GDP report out last week showed growth slowing to a 2.1 percent pace in the second quarter from 3.1 percent in the first. Most of the gains came from consumer spending, which rose a strong 4.3 percent. Business investment declined by 0.6 percent, the first such drop since the first quarter of 2016. Exports, a key metric for Trump’s promise to reinvigorate American manufacturing, plunged by 5.2 percent and imports rose, increasing the trade deficit.

Trump administration officials say the president is taking a longer-term view of trade relationships and hopes to eventually win concessions from China on important issues including forced technology transfer and intellectual property theft.

They also contend the Fed went too far in rate hikes. National Economic Council Director Larry Kudlow said in a recent interview that the Fed should make an “insurance” cut in rates to prevent any slowdown and give the tax cuts more time to work.

Meanwhile, signs of a declining manufacturing sector in the U.S. and abroad continue to pile up. The J.P. Morgan Global Manufacturing Purchasing Managers Index, or PMI, reading recently moved into contraction territory for the first time since 2012. Of the 30 nations issuing a PMI report for June, 18 registered a contraction including China, Japan, the UK and Germany.

In the United States, the Institute for Supply Management index for manufacturing dropped for a third straight month in June to 51.7, still indicating expansion but at the weakest level since October 2016, before the trade battles began. Fresh manufacturing data for the U.S. and China will come out later this week.

Job growth in manufacturing companies has also slowed from 22,000 new jobs per month last year to 8,000 per month this year. The Fed said earlier this month that U.S. industrial production was technically in recession, meaning two straight quarters of contraction.

Powell on multiple occasions has cited concerns that trade fights were hurting growth and denting confidence, while being careful not to antagonize Trump directly.

“What we’re seeing is business fixed investment … it’s really slowed down now,” Powell said in congressional testimony earlier this month. “There’s no perfect way to identify these things, but we do connect that to trade policy uncertainty and also uncertainty on global growth, weaker manufacturing around the world.”

The Fed has made clear that trade tensions loom large in its worries about risks to the economy. Company investments in long-term projects like factories and technology picked up during the first half of 2018 in the wake of corporate tax cuts, but those investments have faded much faster than expected.

The central bank’s business contacts tell the Fed they aren’t sure where to put their money because they’re not sure where tariffs might show up next.

“If you’re a manufacturing company in our economy, of any size, chances are pretty good that your supply chain goes across national borders,” Powell said in his testimony. “That supply chain is really part of how you do business, and you just assume that it’s working and you can focus on your clients. When your supply chain is called into question — we hear this a lot from businesses — when it’s called into question, you pull back.”

Powell said trade uncertainty “spiked” in May. Though he didn’t explain why, that coincides with the president’s threat to put tariffs on Mexico over the ongoing migration crisis. Trump’s tweet on Mexico spooked investors because it threw the future of the renegotiated NAFTA deal into doubt and raised the possibility of retaliatory tariffs from the U.S.’s third-largest trading partner.

The central bank has also quantified the direct impacts of the trade battles, though those are less a factor in the growth picture. In its semiannual monetary policy report to Congress earlier this month, the central bank estimated that new tariffs might have lowered U.S. imports by roughly $70 billion.

The impact of Trump’s trade wars are starting to weighing on some corporate earnings like those of equipment maker Caterpillar, Apple and chip-maker Nvidia, among others. Economists fear it could get worse.

“Trump’s trade policies are starting to show up in corporate balance sheets,” said Joseph Brusuelas, chief economist at consulting firm RSM. “In the third quarter you’d expect to see profit-margin compression across a wider array of earnings reports and the consumer will feel it, which could cause a pullback in consumption. That’s where the problem is for the White House.”

Businesses are also becoming less bullish about future growth, in part because they are uncertain how they will be impacted by tariff policy. The National Association for Business Economics on Monday reported that in its latest survey, members said they believed growth will slow and corporate sales and profits will decline this year.

Inside the survey, 56 percent of goods-producing firms said they had altered supply chains in response to trade policy and 38 percent said they’d delayed investments.

The Fed will likely step into this slowdown scenario on Wednesday with a rate cut of at least a quarter point and perhaps as much as a half a point. Trump already predicted on Monday that whatever it does will not be enough for him.

Economists, meanwhile, question whether a Fed rate cut will do very much to alter the economic picture. Part of the Fed’s rationale for a cut is that the inflation central banks feared would arrive with the jobless rate at historic lows has not arrived. In that sense, the pivot to cuts will be a big win for progressives who have long argued for Powell and the central bank to allow the economy to run hotter.

But with borrowing costs still very low, it’s not likely to change underlying corporate behavior, which may only respond to a more certain policy environment.

“The biggest risk to growth for the economy is the uncertainty as to where economic policy is headed,” said Steven Ricchiuto, chief U.S. economist at Mizuho Securities USA. “And it’s not as if the Fed can fix some of these problems related to uncertainty caused by the administration and these global-related issues.”

There is also some fear that the Fed cutting interest rates will keep investors searching for investments that offer a higher rate of return. These so called “high yield” investments include lower-grade corporate debt and high-risk loans that have risen in volume in recent years and could create significant problems if a sharper slowdown forces defaults.

“The lack of credit is not the problem in the global economy,” Yardeni said. “Central bankers are convinced they can fix problems, when in fact they can’t. And the reach for yield is starting to get borderline insane with the lack of covenants in bonds and loans. I’m starting to get a little feeling of deja vu all over again.”

#Foreign #Politics #trade #Trump

0 notes

jobsine · 3 years

Text

Customer Service - Sales - Housing - EM - AHF - Sales - Tumkur - Vidya Nagar - CRE - BM - RSM Job For 0-50 Year Exp In Tata Group Tumkur, India - 3886088

Customer Service – Sales – Housing – EM – AHF – Sales – Tumkur – Vidya Nagar – CRE – BM – RSM Job For 0-50 Year Exp In Tata Group Tumkur, India – 3886088

View On WordPress

0 notes

sarkarinaukriclub · 3 years

Text

Customer Service - Sales - Housing - EM - AHF - Sales - Guwahati - Royal Arcade - CRE - BM - RSM

Customer Service – Sales – Housing – EM – AHF – Sales – Guwahati – Royal Arcade – CRE – BM – RSM

Job title: Customer Service – Sales – Housing – EM – AHF – Sales – Guwahati – Royal Arcade – CRE – BM – RSM Company: Tata Mutual Fund Job description: . Graduate in any discipline Identify target areas for prospective business Pre-screen customer segments as per the organization…. Graduate in any discipline Identify target areas for prospective business Pre-screen customer segments as per the…

View On WordPress

0 notes

nicholerestrada · 6 years

Text

How to think about the China talks

Editor’s Note: This edition of Morning Money is published weekdays at 8 a.m. POLITICO Pro Financial Services subscribers hold exclusive early access to the newsletter each morning at 5:15 a.m. To learn more about POLITICO Pro’s comprehensive policy intelligence coverage, policy tools and services, click here.

HOW TO THINK ABOUT THE CHINA TALKS — There will be closer to 60 days to make a deal one we get through the Christmas and New Year’s holidays. And there likely won’t be any serious talks before that. Once we hit the new year, there are likely to be several rounds of talks including possible U.S. delegations to Beijing and Chinese visits to Washington, though as of Thursday there was no schedule set up yet.

Story Continued Below

That’s not much time for U.S. Trade Representative Robert Lighthizer to put together a meaningful accord that would include specific goals for the Chinese to meet on intellectual property rights, forced technology transfer and other key administration goals.

The document will also have to include timetables for compliance and a mechanism for verification. The Chinese are good at making vague promises and then not doing much of anything to comply with them. This is not true of buying U.S. products, which they are more than happy to do and doesn’t actually mean anything to their long-term goals.

There is almost no chance any of this can get done in sixty days. Which means there will have either have to be extensions or President Trump can accept a weak deal or push ahead with a trade war escalation.

Trump alone will make this call and he probably has little idea at this point which way he is going to go. His senior advisers certainly don’t know. A lot will depend on how markets are doing in late February, what the Fed has done on rates, what’s happening in the Mueller probe and what Trump’s mood is like.

The betting here is that Trump will care more about market reaction and not screwing up the economy heading toward re-election than he will about complaints from hardliners like Peter Navarro that he is not being tough enough with China. This makes the most likely outcome an extension past March 1 for more work or acceptance of modest promises and more Chines goods purchases.

CHIEF OF STAFF HUNT GOES ON — Our Rebecca Morin: “Trump said on Thursday that he’s narrowed his chief of staff search down to five candidates, but he refused to reveal who’s now on the short-list. During a meeting with governors-elect, the president teased out vague details of the search in reality-show style. ‘Five people. Really good ones. Terrific people. Mostly well known, but terrific people,’ Trump said. Trump did not name any of the candidates or say when a decision will be made.

“Trump has repeatedly insisted that it’s a highly coveted job, even as top White House aide Kellyanne Conway hinted that Kelly may stay on longer than the end of 2018. … Other contenders floated have included David Bossie, a former Trump campaign deputy manager; former New Jersey Gov. Chris Christie; U.S. Trade Representative Robert Lighthizer; and Republican fundraiser Wayne Berman.” Read more.

IS HE GOING TO JARED? — HuffPo’s S.V. Date: “Jared Kushner, the husband of Trump’s daughter Ivanka and already an official White House adviser, met with Trump Wednesday about the job, a top Republican close to the White House told HuffPost. He and two others close to Trump or the White House who confirmed Kushner’s interest in the position did so on condition of anonymity to discuss the president’s staffing considerations freely.

“Kushner has been pushing his own candidacy with Trump, citing his work on a criminal justice reform package and a claimed ability to work with Democrats, one person said.” Read more.

WP’s Josh Dawsey on Twitter: “A White House official says Jared Kushner is not under consideration for chief of staff and is not interviewing for the job. (The usual Trump White House caveats apply here.)”

MM SIDEBAR — We are told by one person close to the White House that Christie is unlikely due to frictions with Kushner, though Trump could overrule his son-in-law. We are also told that Mulvaney actually does want it (very badly) and could somehow wind up with it if no other candidate emerges, though wanting it is usually a very bad look with Trump. Blackstone’s Wayne Berman is again on some short lists but we are told he is not among the FINAL FIVE. Anyway, it’s a big, Trump Show mess.

BOSSIE THE BOSS? — Our Gabby Orr, Andrew Restuccia and Rebecca Morin: “Depending on who you ask … Bossie, a controversial Republican operative excluded from the president’s earliest batch of hires, is either a frontrunner or a nonstarter in … Trump’s chief of staff sweepstakes.

“Some White House allies say Bossie, formerly Trump’s deputy campaign manager, shot to the top of the list the minute Trump expressed an interest in having an effective political operator in the slot. … People close to the White House said the president has even discussed splitting the job into two separate positions: one person tasked with focusing on the day-to-day operations of the West Wing and another person charged with orchestrating a political strategy ahead of the 2020 election.” Read more.

CRAPO WEIGHS DEUTSCHE INVESTIGATION — Per our Zachary Warmbrodt: Senate Banking Chairman Mike Crapo says he’s taking a request by Sens. Chris Van Hollen and Elizabeth Warren to investigate Deutsche Bank “under advisement” but he’s hesitant to single out a specific company.

“The Banking Committee has not yet, and I don’t know that I’m ready to start, singling out and creating investigations on specific companies,” Crapo told POLITICO.

Crapo said the committee’s already been reviewing anti-money laundering rules and that “I’m very open to looking into the issues further.” Police raided Deutsche’s offices recently as part of a money laundering investigation.

The company’s problems could be a case study as part of a potential anti-money laundering overhaul but Crapo said the committee also has “a list as long as your arm of issues that we need to hold hearings on.”

Sen. Sherrod Brown, the top Democrat on the committee, says he’s in favor of the committee “looking into all of this kind of scandal, and Deutsche Bank is sort of first in line it seems on all things scandal.”

** A message from the American Council of Life Insurers: Americans work hard and deserve a secure retirement. Now is the time for Congress to act. The American Council of Life Insurers is joined by the Insured Retirement Institute, BPC Action, Church Alliance, and other leading voices in calling on Congress to pass retirement security legislation this year. Learn more. **

FED PREP — The central bank will almost certainly boost its target rate by a quarter point next week to a range of 2.25 to 2.50 percent. What happens after that is now a pretty open question.

We should get some signals from Fed Chair Jay Powell next week on whether three rate hikes are still likely for next year. He may well nudge expectations away from that and lean hard into the idea of data dependence and that any signs of a significant economic slowing could reduce the number to two, one, or even none.

RSM chief economist Joseph Brusuelas: “Recent Fed rhetoric implies there will be changes in the language around forward-looking guidance … which will deemphasize the dot plot forecast. We expect the committee to drop the phrase ‘further gradual increases’ in favor of something that points toward the evolution of high frequency data and risks around the outlook, which remain balanced.”

SPEAKING OF THE CHINESE BUYING STUFF — Our Megan Cassella: “China purchased 1.13 million metric tons of U.S. soybeans this week, offering a sign that the two countries are beginning to make progress in alleviating trade tensions. The Department of Agriculture on Thursday reported the purchase, which historical data show is the ninth-largest daily sale of U.S. soybeans ever. … The purchase, which is equal to about 41 million bushels, will make up only a fraction of the total soybeans typically sold to China in a normal year.

“Including the purchase, the U.S. has sold roughly 55 million bushels to China in this marketing year, which began Sept. 1. That represents a 91 percent drop from the more than 600 million bushels sold to China at the same point last year, said John Newton, chief economist at the American Farm Bureau Federation.” Read more.

SHOT — Trump to Fox News on the GM plant closings: “It doesn’t really matter because Ohio is, under my leadership from a national standpoint, Ohio’s going to replace those jobs like in two minutes.”

CHASER — American Bridge’s Andrew Bates emails: “Trump spent years promising the American people that he could prevent layoffs and outsourcing. But now that 11,000 American workers are losing their jobs on his watch – in part due to economic damage caused by his own trade policies – he says it ‘doesn’t really matter.’ Try telling that to the thousands of distressed families in Ohio, Michigan, and Maryland whose futures were just thrown into chaos right before the holidays.”

GOOD FRIDAY MORNING — Happy weekend, all. Email me at [email protected] and follow me on Twitter @morningmoneyben. Email Aubree Eliza Weaver at [email protected] and follow her on Twitter @AubreeEWeaver.

DRIVING THE DAY — Retail Sales at 8:30 a.m. expected to rise 0.1 percent … Industrial production at 9:15 a.m. … Industrial Production at 9:15 a.m. expected to rise 0.3 percent …

NO PLAN AS SHUTDOWN NEARS — Our Sarah Ferris, Burgess Everett, and Anthony Adragna: “Without … Trump to worry about, a bipartisan deal would likely sail through Congress to fund the government ahead of the holidays. But with Trump enjoying his border wall brinkmanship, everyone in the Capitol has basically stopped talking.

“The House and Senate left town Thursday with no strategy to avert a partial government shutdown next week, putting Congress on the brink of an intractable conflict that could drag out through New Year’s Day — furloughing hundreds of thousands of workers and costing taxpayers millions.” Read more.

INSIDE THE LAST DAYS OF LLOYD — Bloomberg’s Max Abelson and Sridhar Natarajan: “When Lloyd Blankfein told his colleagues at Goldman Sachs Group Inc. in July that he was going to retire from the bank’s top job, he said the timing just felt right. When things are going wrong, he wrote them in a memo, you can’t up and leave. Now in Blankfein’s final weeks as chairman of Wall Street’s most influential bank, things have gone wrong.

“Prosecutors are zeroing in on the firm’s work for a Malaysian investment fund that they say was raided in a historic plunder. Goldman’s role raising about $6.5 billion for 1MDB has become one of its ugliest scandals in a generation. In November, the U.S. Justice Department revealed that a former partner pleaded guilty to bribery charges, his deputy was arrested and the firm put a top Asia banking executive on leave. The stock is down more than 30 percent in 2018.” Read more.

MEET YOUR NEW BANKING COMMITTEE DEMOCRATS — Via Zach: Sen.-elect Kyrsten Sinema and Sen. Tina Smith are joining the Democratic side of the Senate Banking Committee, a pair that may effectively cancel each other out when it comes to certain regulatory issues.

The appointment of Sinema was great news for bank lobbyists. The Arizona Democrat has been one of the most industry-friendly members of her party in the House, and she supported the landmark bank deregulation bill that became law in May.

Smith opposed that legislation. Senate Banking ranking member Sherrod Brown, who led the charge against the bill, described the Minnesota Democrat as “pro-consumer” in an interview.

The committee lost two of its more “conservative members” — Sens. Heidi Heitkamp and Joe Donnelly — “and picked up a progressive and a conservative,” Brown told POLITICO.

“I don’t know Sinema,” he said. “I don’t talk to her. I’ve never seen her in action. I know that she’s not been exactly where I am politically but it’s a big country. I worked with Heidi and Joe.”

TRUMP PUSHES OPPORTUNITY ZONES — Our Brian Faler: “Trump … signed an executive order creating a new group of government officials charged with developing ways of improving the new Opportunity Zone program. The White House Opportunity and Revitalization Council will be led by Ben Carson, head of the Department of Housing and Urban Development, and staffed by aides from 13 agencies.

“It will be responsible for finding ways federal agencies can support the initiative, which is designed to funnel money into designated areas for economic development. … The effort has come under criticism, though, because many of the areas were already gentrifying before the initiative began. It would also personally benefit Ivanka Trump and Jared Kushner’s family, the Associated Press and Bloomberg News have reported.” Read more.

BUDGET DEFICIT UP TO $305B IN FY2019 — WSJ’s Kate “Coat Thief” Davidson: “The U.S. budget gap widened in the first two months of the fiscal year as tax collections lagged behind federal outlays, which included higher spending for the military and interest on the national debt. The government ran a $305 billion deficit in October and November, compared with $202 billion during the same period a year earlier, the Treasury Department said Thursday.

“Federal outlays climbed 18 percent the first two months of fiscal 2019, which began Oct. 1, and total receipts rose 3 percent. Much of the increase in the deficit was attributable to a shift in the timing of certain payments, the Treasury said. The first day of December fell on a Saturday this year, so payments that would have been made then were moved up to Nov. 30, boosting spending for the period.” Read more.

MNUCHIN “HAPPY,” BUT WILLING TO BE TRUMP’S CHIEF — Bloomberg’s Jennifer Jacobs and Erik Wasson: “Mnuchin indicated he’d serve as White House chief of staff if President Donald Trump wants but said he’s happy in his current job. ‘I’m happy where I am,’ Mnuchin said Thursday in a brief interview at the Capitol, but added: ‘Whatever the president wants.’

“Trump said earlier Thursday that he’s weighing five candidates to succeed retired General John Kelly as White House chief of staff, after eliminating Representative Mark Meadows, a North Carolina Republican, from consideration.” Read more.

BIGGEST THREAT IN 2019? STILL THE TRADE WAR. — WSJ’s Harriet Torry: “Most economists in a recent survey view a trade war between the U.S. and China as the biggest threat to the U.S. economy in 2019, a sign that forecasters view political uncertainty and the potential for new punitive tariff barriers as greater risks than macroeconomic or financial disruptions.

“Nearly half of economists who responded to a survey by The Wall Street Journal, 47.3 percent, said they viewed the U.S. dispute with Beijing as the No. 1 risk for 2019. Some 20 percent cited financial market disruptions and 12.7 percent pointed to a slowdown in business investment.” Read more.

ECONOMIST SCALE BACK PROJECTIONS ON FED HIKES — WSJ’s Kate Davidson: “Private economists tempered their expectations for the path of interest rates next year in a new Wall Street Journal survey, and many foresee the Federal Reserve cutting rates starting in 2020.

“All but one of the 60 economists polled expect the Fed to raise its benchmark federal-funds rate next week to a range between 2.25 percent and 2.5 percent. But they dialed back their median forecast for 2019, calling for two rate increases next year rather than the three they expected when surveyed last month.” Read more.

CAN CRYPTO SURVIVE GOVERNMENT REGULATION? — NYT’s Peter Henning: “The government has finally begun a crackdown on the market for cryptocurrencies and digital tokens. Does this spell the demise of digital currencies and the end of initial coin offerings? …

“But even before the government began its crackdown, there was a big sign that euphoria was evaporating from the market: the decline in cryptocurrency ‘mining’ that generates additional digital tokens. Giga Watt, a digital currency mining operation in Washington state, filed for bankruptcy recently due in large part to the collapse in Bitcoin’s price.” Read more.

** A message from the American Council of Life Insurers: Americans work hard and deserve a secure retirement. Now is the time for Congress to act.

The American Council of Life Insurers is joined by a broad coalition of advocates across industries in calling on Congress to pass comprehensive retirement security legislation this year. Legislation now before the House and Senate would help millions of Americans prepare for a financially secure future by expanding access to retirement plans and making it easier for employers to offer guaranteed lifetime income options. Enhancements to the retirement system are needed now more than ever—10,000 Americans turn age 65 every day, with many living 30 years or more in retirement.

Congress: Support workers, retirees, and business owners by passing retirement security legislation before year’s end. Learn more. **

Source link

Source: https://hashtaghighways.com/2018/12/17/how-to-think-about-the-china-talks/

from Garko Media https://garkomedia1.wordpress.com/2018/12/17/how-to-think-about-the-china-talks/

0 notes

michaeljtraylor · 6 years