Tax

Trump tariffs risk more than just a new trade war

7 Mar 2018

Europe will retaliate if U.S. President Donald Trump slaps tariffs on steel and aluminium imports. A transatlantic trade fight is just one danger. By invoking a little-used national security loophole, Trump is setting a precedent of how to subvert international commerce rules.

Cohn exit makes White House chaos markets’ problem

6 Mar 2018

The ex-Goldman Sachs banker was a buffer against anti-trade voices in President Donald Trump’s administration. Now Gary Cohn is leaving, and Trump is ramping up protectionist talk. Markets have been phlegmatic about disorder in Washington. That can no longer be taken for granted.

Trade tensions curb spirits in U.S. energy sector

5 Mar 2018

OPEC is breaking bread with U.S. shale producers at an industry confab in Houston. It’s a sign of American wildcatters’ influence on the global market. But infrastructure bottlenecks and Trump’s new tariffs threaten to prevent drillers from taking full advantage of their clout.

China’s economic targets invite promise fatigue

5 Mar 2018

More money and more credit, less tax and red tape, plus the same old 6.5 pct growth target: Beijing’s key economic conference opened with cautious tweaks to last year's playbook. Chinese promises in Davos that reform will "exceed foreign expectations" look thin already.

Trump’s incoherent strategy dooms tariff crusade

2 Mar 2018

The U.S. president defended his steel and aluminum duties, arguing trade wars are “easy to win.” But his tax cuts increase the budget deficit and the country’s reliance on foreign capital, almost guaranteeing a worsening trade balance. The conflicting tactics are self-defeating.

Trump tariff chaos shoots America in its own foot

1 Mar 2018

The president is to impose sweeping import duties on steel and aluminum, citing national-security concerns – though details are scant. It’ll help domestic steelmakers. But the move ignored some U.S. agencies and could deliver a blow to vital allies like Canada and South Korea.

Georgia gives Amazon one great reason to stay away

27 Feb 2018

The Peach State's Lt. Governor hoisted a big red flag for the e-commerce giant. By lobbying to remove tax breaks for Delta Air Lines, a punishment for withdrawing discounts for NRA members, he makes Georgia an untrustworthy partner – and a poor choice for Amazon’s new HQ.

European tech tax grab risks U.S. backlash

27 Feb 2018

The EU may tax groups like Google 5 pct of sales based on where users are located. It’s an unsubtle solution to a real problem. But after recent U.S. reforms intended to keep profit at home, the two are reaching for the same slice of pie. The danger is a harmful tax tit-for-tat.

JPMorgan’s new goals hint at U.S. tax doublespeak

27 Feb 2018

The bank hiked its main return target to factor in last year’s tax cuts. While some benefits may get competed away, for now shareholders get the lion’s share. Investing in the community is well and good, but so too is payback after years of absorbing higher costs.

George Foreman Grill maker gets leaner, not meaner

26 Feb 2018

The maker of the famed kitchen device – as well as bits and bobs ranging from faucets to fish food – is combining with its majority owner in a deal valued at $10 billion. Spectrum Brands comes out with a neater structure. Its collection of businesses, though, is still messy.

Ares tax switcheroo may attract few copycats

15 Feb 2018

The manager of $106 bln in alternative assets is going to pay U.S. corporate tax rather than elect for partnership treatment. That should boost its investment appeal – and, for Ares, the numbers add up. The likes of Blackstone, with lumpier earnings, probably have less to gain.

Fannie, Freddie rear ugly heads from 10-year limbo

15 Feb 2018

The two are asking the U.S. Treasury for $4 bln after recent tax cuts dented fourth-quarter earnings. It’s not the rescue critics claim. But the awkward dependence on public coffers means next time, it could be. The politics of needed reform have only worsened since the crisis.

Congress holds its nose over U.S. fiscal restraint

8 Feb 2018

The legislature passed a deal early on Friday to raise spending by several hundred billion dollars, just two months after a $1.5 trln tax cut. The strain on government coffers during a roaring economy will leave politicians with far less ammo when the next downturn arrives.

Auto 2.0 race is becoming General Motors’ to lose

6 Feb 2018

Cost cuts and SUV and truck sales are boosting earnings. CEO Mary Barra has also pulled out of troubled markets. That leaves the automaker well positioned to lead mass production of electric and self-driving vehicles – as long as Barra can leave behind its accident-prone past.

Dell has no time for fantasy finance

29 Jan 2018

The U.S. tech giant needs cash to pay taxes, reduce debt and let investors exit. Reversing into its $53 bln subsidiary VMware is too complex, while an IPO would be financially unattractive because of pricey past acquisitions. There are simpler, more logical ways to raise cash.

Viewsroom: Trump solar tax is more burn than balm

25 Jan 2018

The U.S. president seems to be trying to right past trade wrongs. But business has long since moved on, meaning tariffs on washing machines and solar panels will do more harm than good. Also, Merkel and Modi disappoint in snow-ravaged Davos. Plus: Spotify’s Wall Street snub.

U.S. tax cuts pile on pressure for GE to shrink

24 Jan 2018

They should help, long term. But a big charge contributed to a whopping $9.8 bln fourth-quarter loss at the conglomerate, whose top line also declined. Cost cuts and cash-flow gains buy CEO John Flannery breathing room, but the breakup option is looming increasingly large.

Jamie Dimon’s $20 bln investment is pitch-perfect

23 Jan 2018

JPMorgan is boosting wages, branches, lending and philanthropy, all partly thanks to U.S. tax cuts. The plan makes the Trump administration look good. But the lender had the wherewithal to do most of it already. And shareholders will benefit most from Uncle Sam’s largesse.

Trump’s solar tariffs add new wrong to old

22 Jan 2018

The levies should ease pressure on surviving panel makers, who account for about 15 pct of the U.S. solar industry’s 260,000 jobs. But pricier imports will set back installers that dominate the sector. It’s an illustration of how difficult righting past trade unfairness can be.

U.S. shutdown is expensive in more ways than one

22 Jan 2018

Lawmakers agreed Monday to reopen the federal government after a brief closure. Spending halts have only a modest impact on the economy and financial markets, but they cost taxpayers and risk deepening partisan divides. It’s a pricey tool that perpetuates Washington dysfunction.