Tax

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.

Hadas: Higher is better for capital-gains taxes

8 Aug 2018

The Trump administration wants an inflation adjustment to reduce investors’ tax bills. Indexing makes sense, but the goal is wrongheaded. Lower taxes on gains don’t encourage investment. Higher rates on capital and lower ones on labor can reduce socially dangerous inequality.

Erdogan opens Turkish lira to new line of attack

6 Aug 2018

The currency hit a record low against the dollar after the United States said it was reviewing Turkey’s duty-free access to its markets. President Tayyip Erdogan has alienated investors. The tougher he talks to the world’s largest economy, the more they’ll punish Turkish assets.

Luxury investors take benign view on trade wars

3 Aug 2018

A growing spat between China and the U.S. threatens sales in the sector’s two most important markets. A weaker yuan would make overseas shopping pricier for spendthrift Chinese tourists too. With share prices near record highs, investors are exposed to anything but all-out peace.

Trumponomics flirts with more debt and inequality

31 Jul 2018

Treasury Secretary Steven Mnuchin wants to cut capital-gains tax bills by accounting for inflation. It’s sensible to assess the true value of costs and profit. But it’d mostly benefit the wealthy and add to what may be a $1.1 trln deficit in 2019. It also smacks of self-interest.

Tariff truce leaves EU carmakers stuck in low gear

26 Jul 2018

Volkswagen, BMW and Daimler’s collective value rose about $7 bln after U.S. President Donald Trump seemed to relent on auto tariffs. It’s a minor victory. Transatlantic peace may not last, while Trump’s trade battle with China will still prove disruptive for the German trio.

EU-Japan pact too tiny to lift Trump trade blues

17 Jul 2018

A deal between nations that account for nearly a third of world GDP has symbolic value and may save European companies up to 1 bln euros a year in custom duties. But such benefits are dwarfed by the damage the U.S. president could inflict with more tariffs, say on car imports.

India’s Cairn Energy fire sale is short-sighted

9 Jul 2018

Tax authorities have sold part of a stake in Vedanta Limited seized from the UK company in a $1.3 bln tax dispute, weeks before the pair go to arbitration. India only pockets $216 mln, half what the shares were worth at the start of the year. The timing and the logic look flawed.

Auto tariff deal hopes are rightly restrained

5 Jul 2018

Carmaker shares rose after a German newspaper reported Europe may be able to avoid higher U.S. levies on exports. But BMW, Daimler and Volkswagen’s valuations are still down a fifth since January. Caution is sensible given the unpredictability of White House thinking on trade.

U.S. sales-tax fix has global parallels

21 Jun 2018

The Supreme Court scrapped precedent and said states can force retailers to collect levies on sales to residents even if the sellers aren’t physically present. States will regain a tax base eroded by geographical arbitrage and the internet – two causes of worldwide tax tensions.

Tax reform puts utilities’ good credit at risk

21 Jun 2018

Debt investors have long favored power companies because their regulated monopoly status provides good assurance of payback. But tax cuts are limiting companies' billing power and their ability to deduct investment spending. Natural disasters add an extra layer of risk.

EU’s best bet is to indulge Trump on car tariffs

20 Jun 2018

Europe’s tit-for-tat response to U.S. metal duties risks a trade war that hits EU carmakers. Better to offer President Donald Trump the carrot of lower auto tariffs, which have little effect anyway. That could humour his trade antics, but cause less economic damage.

Gary Cohn only delayed inevitable trade war

14 Jun 2018

The Goldman Sachs banker who went to the White House says U.S. trade spats could wipe out the benefits of tax cuts he championed. President Trump may yet escalate his campaign against China. Cohn was a helpful buffer, but Trump’s anti-globalist instincts are now in full control.

Election shake-ups will make NAFTA more elusive

5 Jun 2018

Doug Ford, a Canada-first candidate, has a shot at becoming the next premier of Ontario – the province that will be hardest hit by U.S. steel tariffs. Voters also go to the polls this year in Mexico and the U.S. New political faces will make sealing a trade deal even harder.

Investors retain edge over in-demand U.S. workers

1 Jun 2018

U.S. job creation strengthened in May with the unemployment rate hitting an 18-year low of 3.8 pct. Even so, wages rose only 2.7 pct year-on-year. The White House said corporate tax cuts would translate into higher pay. But buybacks have so far made shareholders the real winners.