News 

Japan’s Mizuho sees pickup in US M&A lending after tax cut

“Bigger lenders Mitsubishi UFJ Financial Group Inc and Sumitomo Mitsui Financial Group Inc have bought into Indonesian banks and are seeking to turn their interests into majority stakes” reports businessinsider.com. But a slowdown in U.S. deals led to weak growth in overseas lending last year.”We expect companies that become cash-rich from the tax cut to accelerate acquisitions,” said Akira Sugano, head of overseas business at Japan’s third-biggest bank by market value.”The tax cut would change companies’ cash flows, which would have an impact on the value of acquisition targets, making…

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News 

Homebuyers now have something else to be worried about besides the housing shortage

“A bigger issue for most homebuyers is that interest rates are on the rise” writes Akin Oyedele for businessinsider.com. Or, at least, there’s a growing consensus the era of being able to count on interest rates to stay low is nearing its end.The good news, according to Goldberg, is interest rates alone don’t determine the decision to purchase.These expectations have already bumped up mortgage rates in 2018. Source: businessinsider.com Share This:

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Krugman: Trump’s Twin Deficits

“And two things happened at more or less the same time: for the first time ever, the U.S. began running large peacetime full-employment budget deficits, and we began running large, sustained trade deficits” writes Paul Krugman for nytimes.com. At the time, Martin Feldstein famously linked the two, calling them “twin deficits.” While this oversimplified matters – in the late 1990s we ran both budget surpluses and trade deficits, thanks to booming investment – the logic made sense.OK, I’m not quite sure which external debt number he’s referring to.Now the always…

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Crypto News 

Canada’s Powerview-Pine Falls Attracts Cryptocurrency…

“Few places in the world accommodate profitable cryptocurrency mining” writes Jp Buntinx for livebitcoinnews.com. Luckily, it now gets a second lease on life thanks to cryptocurrency mining firms.With the value of Bitcoin and consorts soaring, cryptocurrency mining has become a lot more popular.It is not surprising this has caught the interest of cryptocurrency mining firms. Source: livebitcoinnews.com Share This:

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Markets News 

Banks are the sweet spot of this market that’s about to get a lot tougher

“Higher rates let banks increase lending rates and make it more attractive for people to deposit cash in bank accounts” writes unknown author for cnbc.com. Interest rates have surged to multiyear highs recently as inflation shows signs of life.But financials, particularly the big banks, benefit both from higher interest rates and volatility.”Interest rates are on the rise.”.  Source: cnbc.com Share This:

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A small loophole in the new GOP tax law could be a big win for hedge funds — now the Trump administration is scrambling to close it

“Hedge funds are swarming to take advantage of a loophole in the new tax law, but the Trump administration is attempting to close the loophole” writes Bob Bryan for businessinsider.com. Under previous law, investors had to hold an investment for more than a year to get the discounted rate.President Donald Trump promised to end the loophole, but the Republican tax law only makes a slight change to the rules.In the law, as first reported by Bloomberg, large investors have found a way to avoid the new waiting period. Source: businessinsider.com Share…

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Markets News 

When Everything Is Too Safe, Add Risk

“This is not a story of adding risk unconsciously with creeping hidden leverage; this is a story of pensions and endowments explicitly embracing products that were built to add risk” writes Tyler Cowen for bloomberg.com. But it is worth making one point about the producty stuff here, which is that its explicit purpose was to add risk.As dangerous financial innovation goes, repackaging safe assets to make them riskier is much less worrying than the alternative.But the fraud represented almost a third of the bank’s market capitalization.It’s not literally that the market knew about…

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Steve Mnuchin: Treasury will crack down on carried-interest loophole

“That was still his intent with the tax law, Mnuchin claimed, but Republicans in Congress drafted the legislation not to eliminate carried interest” writes Joseph Lawler for washingtonexaminer.com. Most carried interest is earned by private equity investors who maintain an interest in companies for longer periods of time.Accordingly, hedge funds are setting up S-Corporations in Delaware to take advantage of the break, according to Bloomberg.On the campaign trail, Donald Trump said that he aimed to end the preference for carried interest.The Treasury Department and IRS will seek to prevent hedge…

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News Stocks 

Investors worry so much about inflation because it can kill their returns

“The reverse has also been true in the past; when inflation heats up, higher rates tend to cool it off” writes Brendan Mcdermid for cnbc.com. For much of the last decade, investors were worried that inflation was too low.So why are investors so worried about inflation in the first place?.  Source: cnbc.com Share This:

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New Hedge-Fund Tax Dodge Triggers Wild Rush Back Into Delaware

“They expect the government to close it by clarifying that the holding period exemption is available only to regular corporations” writes unknown author for bloomberg.com. Some include the names or initials of executives at activist hedge funds Corvex Management and Sachem Head Capital Management, Delaware records show.By lengthening the holding period for capital gains treatment instead of eliminating it, lawmakers gave up revenue.The rule, however, exempts carried interest from the longer holding period when it’s paid to a corporation rather than an individual. Source: bloomberg.com Share This:

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